Father of France

Chapter 121 Black Market Economy
On Rue Hugo in the 16th arrondissement, a real estate agent was enthusiastically introducing the property in front of her to Koman, with an air of eagerness as if she wanted to buy one herself. "In terms of location, through the huge floor-to-ceiling windows, the top of the Eiffel Tower is clearly visible against the gray-blue Parisian skyline. This kind of house will never have trouble finding a buyer."

Koeman nodded in agreement. That was indeed the truth. With France in dire need of rebuilding, it was a good time to buy property. Paris, as the capital of the country, was a prime example; property prices would not fall anywhere else.

As the agent said, all the criteria for a top-tier investment property are: prime location, classic layout, impeccable neighbors, and a dual orientation overlooking the tranquil greenery of the inner courtyard and the magnificent city views.

The well-dressed real estate agent, speaking with measured intonation, assured the man and woman before her that this trip would be absolutely worthwhile: "...Look, Mr. Coleman, these high ceilings, these exquisite plaster moldings... typical Napoleon III-era elegance. With just a little—of course, a considerable renovation—this place will be restored to its unparalleled splendor. The heart of the 16th arrondissement is always a wise choice."

“A little bit, quite considerable.” Koman repeated with a smile the completely unrelated words the real estate agent used. “A price of 80,000 francs is by no means a little bit.”

But in Koeman's eyes, the price is indeed acceptable. For example, with a monthly salary of 3,000 francs in the capital Paris, a house priced at 80,000 francs is really not expensive.

To put it simply, in Koman's hometown in his previous life, the monthly salary was 3,000 RMB and a house cost around 100,000 RMB. Isn't that about the same?
The only difference was that Paris was in a special period, and many places had not yet been rebuilt. German prisoners of war were working hard, hoping to regain their freedom as soon as possible.

Current housing prices reflect only a very brief and unique period in Paris and are not representative of current market conditions.

In Koman's hometown, house prices are not expected to rise in the foreseeable future, and may even continue to rise in the same direction as Hegang.

At this time, the French franc had a significant problem with purchasing power. In other words, a black market also existed in France, and the official exchange rate differed from the black market rate by a factor of three. On the official exchange rate, the US dollar could be exchanged for 115 francs, but on the black market, the exchange rate was 300 to 400 francs.

Therefore, buying a house now, especially in a famous wealthy area like the 16th District, is almost like picking up money by bending down.

Of course, this price is far from all; there are also renovation costs. Paris's urban development originated during the reign of Napoleon III, and these houses are now considered century-old. Renovation costs are definitely not cheap.

Even so, it was still a highly profitable business. Eva Gardner couldn't wait to walk to the window, stand alone, holding a coffee, and gaze at the Eiffel Tower outside.

“This is the perspective of a conqueror.” Koman turned around and saw Eva Gardner gazing at the Eiffel Tower. He walked over and said, “If peacetime lasts longer, it would take an ordinary person a lifetime of effort to acquire this. A house is the material symbol of a person’s entire life.”

“It really is.” Ava Gardner whispered in disbelief, as if afraid of disturbing a corner of the palace. She simply couldn’t believe that she, a fringe Hollywood actress, could afford to buy a prime property in the heart of Paris’s wealthy district with her weekly salary.

Because the real estate agent was right there, Ava Gardner didn't dare say much, as if a door had already opened in front of her.

“This is a situation that can only occur during a short and special period,” Koeman replied in English. Although speaking English in France was somewhat inappropriate, Eva Gardner did not understand French either.

Twenty years from now, buying a house in the 16th arrondissement will not only buy you a residence, but also a qualification to enter some kind of secret club in Paris, a stable and respected social landmark.

But for now, in this short period of time, the real estate project, which will require a thousand times more effort in the future, is something that Ava Gardner's weekly salary can actually solve.

Koeman certainly couldn't let Ava Gardner pay, so he refused to be a kept man and paid for everything out of his own pocket. Then he put his arm around Ava Gardner's shoulder and left the house, a symbol of respectable social status.

“I’ve learned a lot.” There were many people on the street, and Ava Gardner walked close to Coman with her head tilted to the side as if she had no bones, attracting a lot of attention.

"Do you have an idea to investigate current property prices in Western European countries?"

Koeman could tell at a glance that Ava Gardner was a marginal actress who could only afford to rent a place in the United States, but whose weekly salary could buy property directly in the capital of a European country. This difference shattered the illusion that Ava Gardner was a famous actress.

Could a seasoned extra in Hengdian afford a luxury apartment in Beijing every week? If someone could afford a luxury apartment in Beijing every week, would they still work as an extra in Hengdian?

"I want to invest in European real estate." Ava Gardner's eyes were now burning with a fierce, unquenchable ambition.

"Don't worry, I'll help you." Koeman offered a timely assist; he had originally planned to buy property to help Eva Gardner relax. The real reason was that Louis Vuitton's signing fee for Eva Gardner was too meager, and Koeman suspected that Louis Vuitton didn't have many US dollars on hand, hence the franc payment.

In that case, when Ava Gardner returns to the United States, she can only exchange her currency for US dollars using the official exchange rate.

In fact, these were all Koeman's own speculations. However, a black market exchange rate does exist in France and may continue to exist for another year or two. So, in order to make up for it and to keep Eva Gardner by his side, he directly exposed the value system misalignment created by the exchange rate between the franc and the dollar.

Koeman had just told Ava Gardner that it wasn't just France that was like this; the situation was similar in many Western European countries. Sure enough, Ava Gardner discovered this misalignment in the value system and suddenly realized that she, a Hollywood actress earning a fixed weekly salary, could easily have entered high society in another country.

It's fair to say that if you have US dollars, even an ordinary American can buy a decent fixed asset in a Western European country right now.

However, ordinary Americans certainly wouldn't have this vision, but Ava Gardner, whom Koeman dragged out of America, happened to see it, and thus their new home in Paris was born.

It was only then that Corman remembered his military identity and arranged to meet Martin, a well-known tobacco merchant in the French army, at a Russian-style café in the 16th arrondissement, mainly to inquire about the progress of his tobacco business.

Martin held up one palm and said, "Currently, the Youth Division has a fortune of fifty million US dollars, but now there are obstacles. The United States has begun to restrict our business and is investigating the reason for the increase in drug addicts in Germany. It was indeed very profitable, but the era of exorbitant profits is over."

“Excessive profits will always exist as long as people want them,” Coman said, taking a sip of his coffee. “With this seed money, there are many things we can do in the future. Take the military tribunal in Algeria, for example; it can be extended to other French colonies and become a permanent institution.”

Koeman believes that the military tribunal currently operating in Algeria has the potential to transform into an important institution in the French-speaking world.

The logic is simple: both the French Communist Party and the Viet Minh were largely based on the Soviet model, but did these two political forces have a common language? Absolutely not.

But this time there are nearly a million soldiers from various colonies, whether they live in Syria, Central Africa, or North Africa, and they were French soldiers at least during the World War.

Therefore, all benefits after discharge from the military, as well as provisions related to the military protection law, would theoretically require French assistance.

And there is no more suitable institution than a military tribunal for protecting those who served in France after the war.

Even in the future, France could maintain contact with the armed forces of these Francophone independent countries through military courts, making it easier to control them. As long as one French soldier is alive, French interference in these countries will not disappear.

There's no need to spell it out too clearly; Martin just needs to understand the significance of military tribunals becoming more important, since it's currently just a concept.

The war in Europe ended more than three months ago, unlike in the Far East where the war has just ended. Now, a large number of soldiers have been discharged and returned to the colonies.

For example, several divisions of the French First Army, composed of Alawites and Druzes, have already left Europe and returned to Syria.

Upon hearing Koman's question, Martin gave an affirmative answer: "Currently, the troops of the three divisions have returned to Syria, but General Fontan has not yet disbanded them. There are still some issues involving fulfilling previous promises, as well as the properties vacated by the Maronite immigrants. Anyway, it will be a busy time."

“In this way, our Youth Division’s military assets can be invested in Algeria.” Koeman seemed to have grasped a spark of inspiration, and what he said became clearer as he spoke. “After all, the places where Maronite Christian immigrants live are also the homes of our comrades. Using our profits in Germany in Algeria is actually using them for ourselves.”

“I originally thought you would want to use most of that for domestic investments,” Martin chuckled, indicating that Koeman’s attitude was unexpected.

"The mainland has little value, except for the opportunity to buy property at rock-bottom prices," Koeman muttered dismissively. "North Africa is far more valuable than these inherently lazy, complaining idiots on the mainland. By the way, investigate the Jewish community in Algeria."

(End of this chapter)