Chapter 1226 The national team takes action (first update, please subscribe)
Author: Xiaoyu’s Destiny
Chapter 1226 The national team takes action (first update, please subscribe)
The empire and its economy will be crucified on a golden cross!
Emperor Zhu Da's words made everyone's hearts tighten. While Qian Degong and Cheng Dingkang frowned, Fang Zhanbo said.
"What your Majesty said is true. If the empire implements the "gold standard," then we will inevitably be crucified on the golden cross, not just now, but also in the future!"
In fact, among the senior officials of the empire, Fang Zhanbo has always been a staunch "silver faction".
"Many people who support the gold standard believe that the empire's annual trade surplus allows the empire to obtain sufficient gold reserves. This is also true. Currently, the empire's annual gold reserves are increasing at a rate of about 100 tons. But once the war breaks out, the empire will
Can we continue to maintain a trade surplus? Is there a stable input of precious metals? These are all questions, but silver is different. We have large-scale silver mines in our country, and the copper mines in Shanxi also provide a large amount of associated silver. The Mexican Empire is also the largest in the world
Silver-producing countries can also provide sufficient supply of silver, but what about gold? California belongs to the United States, and Australia belongs to the United Kingdom. Of course, the empire also has gold mines, but the output is always limited! Therefore, the only choice is to continue to adhere to the "gold and silver composite standard."
Only in this way can the currency security of the empire be fundamentally guaranteed.”
This era is different from the 20th century. The currency of the 20th century can be linked to national credit and oil, but now... people believe in gold and silver. As for oil, let's wait until the era when the major powers have one car per family.
"What the Fang Qing family said is true!"
Emperor Zhu Da nodded and said.
"What is the truth about the gold standard? The truth about the gold standard is that it is essentially a financial hegemony established by British and American bankers, and what does this financial hegemony rely on to achieve - gold. And now, the British are planning a "currency war"
"They are trying to use "silver depreciation" to induce us to abandon the "double gold system" and change to the "gold standard." Once we fall into the trap, they can use their monopoly on gold supply to harvest the wealth of the empire at will."
“The instability of money supply is the main cause of the economic crisis, and the resulting economic and financial panic will not only weaken the government’s monetary system, but also lead to the shrinkage of social wealth. In the process, the people who control the money supply
The bankers can harvest wealth at will, but who controls the money supply?”
After throwing out this point of view, Emperor Zhu Da warned.
"Not the Imperial Central Bank, but the British and American Banks! Because they control the gold mines and the world's most important gold supply!"
Currency issues are really too complicated. The core is what is the basis of the currency mechanism? The value of currency in later generations depends on the people's confidence in the government, but in this era, precious metals are the foundation.
"Under this situation, Ming Dynasty must firmly hold the currency supply in its own hands. Only in this way can the financial security of the empire be ensured!"
"But Your Majesty, once India abolishes the "silver standard", "gold is precious and silver is cheap" will be irreversible. With the continuous depreciation of silver, the impact on the empire's economy will be unimaginable!"
Lin Hongju, the household minister, thought for a while and said.
"Which is the lesser of two powers that harm each other? Although the "gold standard" is in crisis, isn't the British trying to use the depreciation of silver to severely damage the empire's economy? If we don't follow up, won't we just fall into their conspiracy?"
"But if we implement the gold standard, wouldn't we be playing into their own designs?"
It has to be said that the British and American bankers are definitely a group of geniuses. They easily created a dilemma - no matter what they choose, they can't escape the fate of being harvested.
"Dilemma..."
Emperor Zhu Da sneered.
"That's what they think. Since they want to fight a "currency war" with the empire, then we will directly fight against it. They think that the "golden cross" is the most stable, but they are totally wrong!"
The corners of his lips raised slightly, and Emperor Zhu sneered.
"What is the basis of currency? It's precious metals! It's gold, it's silver. They only see the rarity of gold, but they don't see that sufficient money supply is the foundation of a country's economic development. How can it be satisfied with only gold?
What about the demand for money in the market? Gold is the tool of the authoritarian regime, and silver is the symbol of liberation and freedom. Silver is the people's currency against gold, the currency of the oppressed and exploited, which can eliminate farmers and all areas of the country.
Debt...because its quantity is large enough, increasing the quantity of money and inflation are not only necessary to develop the economy, but can also be used as a way to increase the price of agricultural products and reduce farmers' debt."
Pick up that beautiful "Suzaku Silver Coin" in your hand. The peculiarity of this era is that currency is not anchored by precious metals, that is, it is not worth scrap paper. The premise for countries around the world to issue banknotes is that there must be hard currency, and
It's gold or silver.
Looking at the "flame pattern" on the silver dollar, this will be the rebirth of the silver coin and the rebirth of the people's currency. During the economic crisis, credit contraction will lead to deflation. However, under the gold standard, the central bank cannot adopt expansionary measures.
Monetary policy—that is, printing more money—further aggravates deflation.
But with the silver standard, at least there is a possibility. With silver and sufficient supply of silver, expansionary monetary policies can be adopted to stimulate the economy.
"As for depreciation, depreciation is because silver has lost its role as currency. This is the conspiracy of the big bankers in the United Kingdom and the United States that has led to the devaluation of silver. In order to combat depreciation..."
Emperor Zhu Da said directly.
"We can pass a bill to stabilize the currency value of silver. For example, using 18.5 as the mint price of silver. Once the price of silver falls below this point, then the Ministry of Accounts will start purchasing and purchase silver for mint to put it on the market to meet the market's demand for currency.
needs.”
In fact, in history, Roosevelt also did this - he doubled the price of silver through the "Silver Purchase Act".
Upon hearing this, Hu Xueyan immediately lost his voice and said in shock.
"Your Majesty, if this happens, India and other countries will inevitably transport silver into the empire and sell it to arbitrage gold."
"They think beautiful!"
Emperor Zhu Da sneered.
"My idea is to change the empire's "double gold system" to the "silver standard." At the same time, out of the need to stabilize the financial market, stop the export of gold and prohibit the circulation of gold. The British want to transport silver to us for sale.
, yes...but they can only exchange for banknotes!"
His Majesty's words made everyone's eyes light up. Qian Degong, who had been silent at first, said even more excitedly.
"Your Majesty, if this is the case, even if British and American profiteers transport silver to our country for sale, they can only exchange it for Ming Yuan banknotes, and the banknotes they hold can only buy goods in the empire. This will only further stimulate the empire's economy.
Development, it can be said that the empire not only stabilized the currency value, stimulated industrial production, and drove exports!"
What kind of currency war? Such a move will directly resolve the British "currency war" invisible.
"Your Majesty, Holy Ming!"
For a time, the conference room was filled with compliments. Faced with their compliments, Emperor Zhu Da just smiled, without any trace of pride in his expression.
Those who are wise or not don’t know, but Roosevelt relied on this trick to win the first battle of the Great Depression - he ordered an embargo on gold, prohibiting banks from paying foreign gold coins, gold bars and warrants, and exporting gold must obtain approval from the Treasury Department.
Minister’s permission. Then he lowered the gold content of the U.S. dollar by 50%, which allowed the U.S. government to print hundreds of millions of dollars more out of thin air.
As a result, the market was rich, and with the stimulating monetary expansion, the U.S. economy was pulled back from the brink of collapse.
Then he began to raise the price of silver again, seemingly to buy up the silver states in the west, but in fact he wanted to take advantage of the rise in silver prices and achieve the purpose of issuing additional currency by purchasing silver.
The price of silver doubled, which also easily stimulated the export of goods. Moreover, by raising the price of silver, it also caused a large outflow of Chinese silver coins. As the silver coins were melted and shipped to the United States for arbitrage, which caused a tight monetary policy, the money supply in the market was seriously insufficient.
In the end, it directly triggered a nationwide economic depression.
During the Great Depression, countless companies and families went bankrupt. Some people were overwhelmed and chose to commit suicide, and even a family committed collective suicide. Countless people starved to death by the Huangpu River...
Looking at His Majesty who was silent and seemed to be thinking about something, Qian Degong asked.
"Your Majesty, when should we implement the bill?"
"Um……"
After thinking for a while, Emperor Zhu asked.
"Wait until it falls below 19! But before they implement the plan, after all, once India abolishes the silver standard, it will only increase the difficulty and cost for us to defend the silver standard!"
Even war is costly.
"But I think that we can operate it appropriately to speed up the depreciation process. Then, we can obtain ammunition to defend the "silver standard" through market speculation on the expectation of silver depreciation. And I believe that those British and American bankers will definitely
We can also speculate. If we hedge, we should be able to get relatively generous returns..."
Not only is it relatively rich, maybe if the operation is done well, even the ammunition for this currency war will be provided by them. After all, those people will never miss the opportunity to speculate.
A currency war may look like a war. But what is it actually?
It's just an opportunity for bankers to speculate on making money. However, they ignored one point - the empire can be resisted with the strength of the whole country. This is of course the limitation of the era. After all, in this era, there has never been any
The country dispatches the "national team" in the financial market. They take it for granted that the market is just the market, but the problem is that their opponent is the empire!