"I have a deposit certificate for one gold coin, and the bank has a claim for one gold coin. Needless to say, the deposit certificate can be exchanged for one gold coin.
However, the claim on this gold coin is money owed to the person who borrowed the money, but to the bank, it is also an asset.
Since it is an asset, it can be bought, sold and transferred to anyone. This is because anyone who takes over this claim has the right to take back a lent gold coin from the borrower.
Can't this be considered money?" Thinking carefully, thinking seriously, there is nothing wrong with it. But Brutus fell into an inexplicable tangled state.
Lin continued: "The story is not over yet. Of course the person who borrowed the money had a purpose, so he spent the gold coin.
And this gold coin will become a reward, or the price paid for purchasing a certain product, and it will go to the second person.
This person deposited the gold coin in the bank and received a certificate of deposit for one gold coin. The bank lent the money and obtained a creditor's right for one gold coin." So now there are a total of four gold coins in the market book.
They are two deposit certificates of one gold coin, and two claims of one gold coin. When this gold coin passes through more banks, although there are more people who owe money, it can create more book value at the same time.
Come." "But there is only one gold coin.
Where does the other money come from?" Brutus said. The magician in front of him took out a voucher issued by a certain bank from somewhere. It was quite beautifully made.
The textures are detailed and complicated, and there are even other details hidden in the details, which are full of modern banknote anti-counterfeiting measures on earth.
Lin held the two ends of the banknote and pulled it symbolically. This action made the owner of wealth suddenly realize.
I dare to say that the purpose of this paper is not just to be lighter than gold coins and easier to carry. There are other purposes." There is only one gold coin.
But as long as the bank recognizes the value of the voucher and the market recognizes its value, then a gold coin can theoretically generate countless book values under the operation of the bank.
Vouchers can be issued for these book values. To reduce this book value, the only way is to pay off debts.
When all debts are reduced to zero, the actual real value will be left on the market, that is, that gold coin." At this point, a certain magician took a breath, looked at the Leopard who was bowing his head in deep thought, and asked: "Listen
There are so many, do you hear anything?" Brutus raised his head and said: "According to your statement, inflation does not happen just because someone prints too many vouchers, which lowers the value represented by the face value of the voucher.
true value.
In fact, in the process of bank lending, the money will also increase." "Yes, Your Majesty. You also know my situation.
In my hometown, it is known that printing money indiscriminately will cause inflation. So, if the government with the power to print money stops printing money, inflation will not happen.
However, the fact is that regardless of whether the government prints money indiscriminately, inflation still occurs every year.
Why is this?" Because the real point of inflation is naturally caused by banking operations. It cannot be stopped, but can only be suppressed.
No one dares to talk about this to outsiders, but it is true. I used to hear people say that using money is the fastest way to make money.
I always thought that this sentence was an exaggeration and a ridicule, but I never thought that this sentence was actually a truth describing the real situation." As a god who intends to start from this aspect, the Lord of Wealth certainly cannot rely on it.
With these alarmist words, I gave up my original idea.
She tried to argue: "But didn't you also say that as long as the debt can be fully paid off, the market will return to its original state." "Hey, Your Majesty, just think about it."
People have good fortunes and bad fortunes, and investment also has profits and losses. What if you encounter someone who refuses to pay, or who deliberately defaults on the debt based on his power, so what should you do?
Besides, I haven’t introduced the factor of ‘interest’ yet.” In the scenario I just mentioned, for every gold coin you deposit, you can get one gold coin in interest.
Every time you borrow a gold coin, you also need to pay interest on one gold coin. How will things change after adding this element?
What if the banks then trade their claims and exchange them for cash that can be used directly?" Usury, a one-for-one loan, is a common thing in a land where the financial economy is not developed.
.
After all, the risk of borrowing is too high and there are not enough benefits. Who is willing to lend money to others? No matter how close they are.
That's why Brutus didn't worry about whether such an example would be too exaggerated. As for the science of mathematics, especially simple addition, subtraction, multiplication and division, it is not difficult to learn it based on the wisdom of the gods.
Not to mention that within the concept of the Lord of Wealth, such knowledge can also be used to calculate how much wealth one has.
Hearing the situation described by the magician in front of him, Brutus could easily come up with the result. The problem is that when the first debt is due to be repaid, there is only one gold coin in the market. Where can there be a third debt?
Two gold coins to pay interest?
To solve this problem, whether it is difficult or not, it is not simple. That is to borrow a second gold coin and pay the interest on the debt of the first gold coin. Anyway, it is just paper.
Then you can relax for a while, until the time limit for the second debt maturity comes. Well, it seems that the day when the debt in the market will be completely paid off is far away.
The Lord of Wealth came to such a conclusion. However, this also made Brutus think of another question and asked: "How was this matter resolved in your hometown?" "My hometown." Someone looked weird.
With a look on his face, he winked, and after struggling for a while, he said: "After a wave of harvested leeks, before they sprout again, the idle sickle will of course be used to find a new batch of leeks."
Cut and find again, cut when you find it, cut and find again, and so on. Simply put, it is to use the dividends brought by growth to offset the debt increased by the market." There are two main ways to grow here.
One is the growth of external profits. It can be trade, plunder, or war. In any case, it is just robbing other people's things to pay off the debts one owes.
But this is just a way to pass the losses on to others, not a real solution to the problem." The other is population growth.
Although the debt existing in the overall market is increasing, as long as the population growth rate is greater than the debt growth rate, then these debts will be equally distributed to everyone, there will not be too much pressure, and it may even feel like it will
It has slowed down a bit." At this time, people will say: Because people in the past suffered like this, it is okay for people today to suffer equally, and maybe it is easier.
But if the population growth rate is not as fast as the debt increase rate, this means that the burden shared equally on everyone will increase.
It was hard enough before, but life is even harder now. It’s hard not to be complained about in such an environment.” However, as the population increases, it can be expected that debt will increase faster in the future.
Although the current maturing debt problem has been suppressed for the time being, the problems in the future will be even greater. In other words, this entire system is like taking poison to satisfy your hunger.
In the end, you can only choose one of two, either starve to death or be poisoned to death." After someone complained about his situation, the owner of wealth looked at him in surprise and said, "This is not a solution.
Right." Lin spread his hands and said frankly: "It's not really that.
But you can choose to die early or die late." "Then why do people in your hometown choose this approach?" Brutus asked puzzledly.
After thinking about it, Lin explained: "Although prepaying for the future is a poison, it is undeniable that this poison can give you the opportunity to grow in the present."
If one country does this and other countries don't follow suit, it won't even have a chance and may be eliminated before it gets stronger." Then everyone can only hope that their physique is good enough and that they can take more poisons without dying.
Then before the poison takes hold, he continues to transfer these toxins to other countries, delaying the time when he will die suddenly from the poison." Lin's explanation obviously did not satisfy the owner of wealth.
She asked another question that she had never asked before: "If all this is as you said, it is full of shortcomings and traps.
So what can the person who designed all this gain?" "Financial power, military power, personal strength, all of these are just for the purpose of converting them into power.
Control other people's lives, control other people's life and death. When money reaches a certain level, for those at the top, money is just a number.
What they care about is what these numbers can bring, not the numbers themselves." As for the debts that need to be repaid in the future, as the designer of the rules of the game, how can he not know how to avoid or pass them on?
Even though the changes in the overall social environment are constantly slipping into the abyss, when it comes to individuals, some people will definitely suffer and some will take advantage.
Since I can take all the benefits and others swallow the bitter pills, then how bad has the world become, and how bad does it have to do with these people?
Right." After hearing this, Brutus still had many questions in his mind, but he was much less concerned about taking the path of bank lending.
The reason is that there is a difference between gods and mortals. Mortals would like to become the group of people at the top of the pyramid in capital society.
However, how can the gods satisfy the faith of only a few people and the curses of the vast majority of the remaining people?
This is not to mention the issue of how much faith a few people have. The consensus among the gods is that unless they are devout people, the faith of those who have reached the top in a certain field will be weaker.
Because they believe in what they believe in rather than placing most of their feelings on a certain god. "But!" Someone suddenly shouted and threw out a turning point.
The money leopard cooperated very well and asked, "But?" When the financial and economic environment of the United States continues to develop, sooner or later it will encounter a bottleneck.
At this time, lending, which has the function of regulating financial funds, is inevitable. Because continued obstruction will prevent people with redundant funds from making full use of their advantages, and will also make people with limited ability and creativity suffer from insufficient funds.
funds to realize your ideas.
——" Someone spread his hands helplessly," ——But when that time comes, I don't know how to go.
Perhaps His Majesty Brutus can be wise enough to find a way out. My only idea is to let the debt be treated as a debt instead of being treated as an asset.
But what the future world will look like and how to face it is not my business."