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Chapter 857 Digging a hole for yourself

"In addition to culture and religion, we must also strengthen control over the existing regime, eliminate any dangerous elements who want to speak against us, and prevent any attempts to get rid of our control. Of course, this is not your responsibility, just listen."

When it comes to how to lock down a country's progress, Zhu Zhen is like an old sow wearing a bra - one set after another. Shen and Rong heard this with great admiration, thinking that this was the result of his hard thinking these days.

As everyone knows, these are bloody lessons, and Lao Liu just took them out in advance and used them on the Japanese.

"There is also business, which is your old profession." King Chu looked at the two of them with bright eyes.

"Can our business also block a country's development?" The two of them were really excited when they heard this.

"Of course. This is not a new method. How many countries did Guan Zhong bring down with trade wars?" Lao Liu said with a smile: "It's a pity that his method is inconsistent with Confucian ideas, and not many people know about it now."

"Then you really need to study hard when you go back." The two of them said hurriedly, feeling ashamed.

"You have to study hard. Now remember the eight words I summarized: 'embargo', 'dumping', and 'origin of raw materials'." Lao Liu said solemnly: "These three are the guiding ideology of your trade with Japan. "

"I'm so stupid, please tell me in more detail, so as not to miss important things." Zhu He said casually.

"Of course it must be made clear. The embargo is the embargo of strategic materials." Lao Liu nodded and said: "It goes without saying that things like gunpowder, firearms, armor, telescopes, medicinal materials, etc., everyone knows that they cannot be spread. But there are also books, copper coins, etc. Materials that are easily overlooked must also be strictly embargoed."

"But don't worry. When the time comes, the Maritime Administration will give you a prohibited list and a permitted list. Just follow them strictly."

The two of them breathed a sigh of relief and said, "That's good, that's good." Otherwise, they would really be afraid that they would accidentally step on a thunderbolt and commit some trouble.

"What's going on with dumping?" Shen Rong asked in confusion: "Isn't this inconsistent with His Highness's purpose of 'hungry marketing' to ensure profits?"

"There is no conflict." Lao Liu shook his head and said with a smile: "For the products they cannot produce, we have to strictly control the input volume to ensure profits. But once they can produce substitutes, we will immediately reduce the price and dump them, no matter what. Losing money will also make them unprofitable, and they will eventually have no choice but to exit the industry."

"Of course it doesn't mean that all their industries will be strangled to death. Dumping mainly targets the handicraft industry, and Article 3 will be applied to agriculture." Lao Liu and Liu Bowen have been studying all day for nothing in the past few years. Basically, they have dealt with all parties. There is a complete set of plans for everything.

"Where are the raw materials produced?" the two of them said in agreement.

"Yes." Lao Liu nodded and said: "We need to guide Japanese farmers to plant the cash crops we need. For example, let them grow sugar beets, rapeseed, camellia oleifera, sugar cane, cotton, mulberry trees, etc. This can be based on your actual conditions. It depends on the needs.”

After a pause, he emphasized: "We must give them higher returns than farming, so that both the lords and the farmers themselves will be more inclined to plant cash crops and purchase them from the market in pursuit of higher profits. food."

"This will slowly turn them into our raw material production areas," Zhu Zhen said with a smile: "Our handicraft industry can get sufficient raw materials, and their people will live a better life. This may be a beautiful thing. It’s something.”

"..." The two of them looked at Lao Liu suspiciously, thinking that he would not be so kind. Shen Rong asked: "But this way Japan grows food

There are fewer and fewer people, so the food gap will become bigger and bigger, food prices will rise, and people will not have enough to eat. Will their lives be better?"

"We can help them fill the gap." Zhu Zhen said and smiled at Zhu He: "This can also stabilize domestic food prices."

"Great!" Zhu He's eyes lit up. He probably didn't believe it. They were worried to death because the food was not valuable.

In order to solve the crisis of cashing food stamps and to support the imperial court's plan of "filling Jiangxi and Huguang", the Textile and Dyeing Bureau came forward. A group of large Jiangnan households pooled money to rent large tracts of land in Jiangxi and Huguang and hired farmers from the two provinces to farm.

This not only allowed the food stamps to completely get rid of the credit crisis, but also caused the price of food in Jiangnan to drop. Although it is only the second year of official farming, the cultivated area and grain output are far from meeting the requirements, but Jiangnan's food prices have already been reduced. Food prices have hit a record high.

This is because His Highness the King of Chu's generous move has completely changed people's expectations for food prices in Jiangnan. Everyone believes that with the launch of large-scale planting in Huguang, Jiangxi, the food shortage situation in Jiangnan will never return.

Naturally, no one would hoard anymore. Instead, large households sold off their stored grains. This came and went, and the price of grains suddenly dropped from two levels to one level.

This is still a period of drought, and now everyone believes that when the summer grain comes down, grain prices will drop historically.

From the Southern Song Dynasty to the present, we have not seen such low food prices for almost two hundred years. Boss Zhu was very happy, and the court was also very happy, but the Suzhou Dyeing and Weaving Bureau was dumbfounded.

They had just solved the credit crisis of food stamps, but they did not expect to face a devaluation crisis again.

Depreciation will also lead to runs.

The reason is simple. It's not that people don't believe they can pay, but that when food prices fall, the value of food stamps naturally also falls.

When one stone of grain was worth two guan of money, one stone of food stamps was worth two guan of money.

Nowadays, one stone of grain is worth a thousand dollars, and one stone of food stamps is only worth a thousand dollars, which is cut in half.

And the future will continue to be bearish. Who can withstand this? Nowadays, food stamps have flooded Jiangnan and flowed into various provinces. They are no longer controllable by the big households in Jiangnan.

The simultaneous explosion of exchange demands from merchants and people was enough to cause a run.

Although the Dyeing and Dyeing Bureau paid in grain, and when grain prices fell, there was enough grain to cope with the run. But after the people redeemed grain with grain stamps, they turned around and sold it to grain merchants in exchange for copper coins. As a result, grain shortages were exacerbated. The fall in food prices has intensified the run, creating a vicious cycle.

This all happened this spring. Lao Liu had already known about it in the report from the Dyeing and Weaving Bureau. The reason why Shen Rong and Zhu He came together was to ask His Highness for instructions on countermeasures.

The idea they came up with was that since the people chose to cash out the grain and sell it, it would be better to have the Weaving and Dyeing Bureau buy it directly. Or they could simply do it all at once and directly cash it in to the people for copper coins.

But no matter what, they are faced with the problem of halved grain prices. They definitely hope to trade according to the current grain prices, which makes sense.

But the common people used to receive one stone of food stamps worth two guan, and now the Dyeing and Weaving Bureau only gives them one guan. They will definitely be scolded to death.

The people's wealth has been cut in half and they are full of resentment. They will not reason with you, not to mention that the person who caused the drop in food prices is indeed the Weaving and Dyeing Bureau itself.

You deserve to be scolded!


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