The people sitting here today can be said to be the most proficient in economics in the contemporary era. But the problem is that there is no finance at the moment. The status of businessmen has only just improved. For many contemporary people, this is the only thing they know.
, but their concept of the specific reason and why this situation occurs is very vague.
Cai Jing was confused and asked curiously: "What's going on?"
Li Qi explained: "After Fang La's rebellion, Jiangnan immediately fell into a currency crisis. In fact, it stands to reason that prices should have dropped immediately, because the lack of currency has led to a decline in people's purchasing power. If there are sufficient goods,
Goods will decline as people's purchasing power declines, because merchants are hoarding a large amount of goods and will definitely lower their prices in order to get rid of them."
Zheng Yi muttered: "What you said does make sense, but I remember that prices in Jiangnan were soaring."
Li Qidao: "That was caused by factors other than economics. Fangla's rebellion led to the destruction of farmland. Food was very tight, which was far worse than the shortage of currency. Moreover, grain merchants took the opportunity to stock up and raise grain prices. At that time, the people had no interest in currency.
Losing confidence, the status of currency was also declining, so food actually dominated prices at that time. When food prices rose, other prices also rose. Moreover, there was also a shortage of goods at that time, so the shortage of currency at that time did not
Did it cause a drop in prices?"
Qin Huidao said: "However, during the economic recovery period in Jiangnan, currency was still very scarce, but prices did not come down. It was the imperial court's tax-free system that isolated Jiangnan and forcibly brought down prices."
Li Qi smiled and said: "That was just the recovery period. The whole country was in a situation where there were too many people and few goods, and most of them were refugees. They had not created wealth, and the goods were not very sufficient. Even the most basic living requirements were met.
No, the price of food was still too high for them. If the price of food was not lowered, the people would not be able to maintain their basic life, let alone other things. Therefore, in order to quickly revitalize Jiangnan, the imperial court could only tighten its belt.
Give Jiangnan enough discounts.
The situation I mentioned really happened after repelling the Jin soldiers. Since then, our country's economy has grown rapidly, refugees have decreased, productivity has greatly increased, and there are more and more goods on the market. However, the currency
But it’s getting less and less.”
Qin Hui said in confusion: "Even in the past few years, prices have not actually dropped, but the price of currency has increased. This is not in line with what you said."
Li Qi further explained: "In fact, the value of currency has not changed. Instead, prices are constantly falling. It's just the government's policy control that keeps prices at a high level, and the currency prices continue to rise."
"Policy control?"
Qin Hui was slightly startled. Then he said: "It's trade."
Li Qi nodded and said: "It is trade that allows merchants to find a channel to unblock goods, so there is no pressure on goods. In addition, the court regulates and relies on the advantages of good goods to lower currency prices and devalue gold and silver prices. This
It is tantamount to transferring the losses that originally belonged to us to foreign countries. But this is walking on the edge of a cliff. Once any accident occurs, our country, Song Dynasty, will face a very serious currency crisis."
Cai Jing asked: "What are the risks here?"
"The risk is huge."
Li Qidao: "Let's put it this way, the economy of our Song Dynasty is actually a loft in the sky. It is supported by the foreign economy. Once the foreign economy is in a downturn, our economy of the Song Dynasty will collapse. For example, if our domestic trading partners of the Song Dynasty are all
During the war, the door to trade was closed. However, because the trade situation has been good in recent years and goods are shipped very quickly, merchants are promoting productivity, and the goods produced every year have increased sharply.
It is conceivable that once foreign trade is lost, businessmen will immediately hoard a large amount of goods, and the domestic purchasing power is declining sharply. I have estimated that in fact, the domestic purchasing power is only 30% of the output of goods, which means there are still
Seventy percent of the goods cannot be sold and can only be sold at a low price. The merchants will lose all their money. If the merchants collapse, then the economy of our Song Dynasty will also collapse, and it will return to the small peasant economy.
"
Cai Jing and Qin Hui were sweating and frightened when they heard this. They really didn't expect that the economy of the Song Dynasty was so vulnerable, and this was all caused by the shortage of currency. Apparently, the expanding trade made them forget that they were still
Being in a market where money is scarce.
Zhao Kai sighed and said: "I actually didn't believe it at first, but facts have proven that what Li Qi said was not wrong at all. The Tubo Rebellion and the Japanese Rebellion have caused prices to drop in these border areas. Fortunately,
It ensures the stability of the Hehuang area and prevents prices from plummeting. It is precisely because of this that I decided to adopt Li Qi's suggestion and take this big gamble."
Li Qi continued to explain: "Actually, I am also gambling now. I dare not say that there is no risk, but the risk is definitely accompanied by huge profits. Once successful, these 15 million coins will bring possibilities to me in the Song Dynasty."
We won’t be able to reach such heights in the next ten years.”
Cai Jing snorted and said, "Didn't you just say that fifteen million yuan is not a lot for the current market?"
"Definitely not much."
Li Qi shook his head and said, "But for the imperial court?"
Qin Hui frowned and said: "The court made a net profit of 15 million yuan?" Minting has always been something the court is happy to do. This is the appreciation of wealth, and only the court can do it. At present, nothing is more profitable than coining.
.
"It's not that much. After all, recycling copper also costs a lot of money. The net profit is about 8 million yuan."
Li Qi shook his head. The net profit mentioned here is the difference between the mined copper ore and the price of copper and currency. At this point, he changed the subject and said: "But in just three years, the court made a net profit of eight million by virtue of currency issuance."
Guan, this is a lot of money, because this is tantamount to getting rich just sitting around, but this is just one of them, the court earns huge profits.
Secondly, businessmen make a lot of money and a large amount of money pours into the market, which will greatly stimulate economic growth. As domestic purchasing power increases, prices will rise and the production of goods will further increase, which will also promote industrial growth.
As the economy grows, more types of goods will emerge. The Song Dynasty will soar into the sky within these three years, bursting out with a powerful economic wave. The wealth of merchants will expand rapidly.
Third, the people benefit. Maybe you will say that rising prices are not a good thing for the people. But don’t forget that the production of goods will also increase sharply, so productivity is needed, and this productivity comes from the people.
, then businessmen must recruit people on a large scale and provide a large number of employment opportunities. To drive the operation of the entire economy, as long as the court uses the liquidation method to regulate food prices, the wealth in the hands of the people will also increase rapidly.
Fourth, the whole country will make a lot of money, because the rise in prices will also affect foreign trade. Our Song Dynasty is the largest exporter of goods in the world. The abundance of goods will bring in a lot of wealth, thereby increasing national wealth. Although the currency has fallen,
It will also affect foreign trade. But after all, we are exchanging goods for other people's money. Even if the profit remains unchanged, the more goods we export, the bigger profits we will make.
Fifth, these 15 million coins can also meet the strategic needs of the Song Dynasty. As the Grand Master also said before, the increase in currency and the decline in value will attract many countries to madly exchange the currency of the Song Dynasty. In other words,
The currency of our Song Dynasty will cover the entire surrounding area and even the Western Regions. Currency is the foundation of the economy. That is to say, their country’s economy will be in our hands. For example, if our country’s copper is very abundant, then our country’s economy will be in our hands.
We don’t need to do anything. We can make very considerable profits by selling coins to these countries every day. Not only that, we can also control the economies of other countries at will. If we raise the price of our currency, the countries that hold our currency will make a profit.
On the contrary, once we lower the currency price, they will all lose money without knowing it. This will achieve strategic dominance."
Hearing this, Qin Hui finally understood why Zhao Kai decided to take this big gamble. Because if you don't gamble, the risk will always exist, and the longer it accumulates, it will be very scary if it breaks out. If you don't gamble, you have already lost. If you gamble, it may be even bigger.
If you don't gamble to make a fortune, it would be too conservative.
However, Cai Jing was still worried when he heard this, and said: "Even if it is as you said, our country will make a lot of profits in the next three years, but after three years, do you plan to abandon copper coins? But this is not what you said.
It is the people who have the final say. If the people and merchants cannot abandon this copper coin, then the court will be in a dilemma."
Li Qi chuckled: "The imperial court only needs to introduce silver coins, and the demise of copper coins will only be a matter of time."
Cai Jing showed an expression of sudden realization, but then shook his head and said: "No, no, I know you mean bad money drives out good money, but who is the bad coin and who is the good coin? If silver is a bad coin, then
There is no need for the imperial court to introduce it. If silver is a good coin, might it be expelled by copper coins?"
Li Qi chuckled and said: "The Grand Master is indeed proficient in the art of currency, and he can tell the key point in just one sentence."
Cai Jing hurriedly waved his hands and said, "Don't praise me, I'm far behind compared to you."
"Grand Master is being humble." Li Qi replied and explained: "It's not possible, but certain. As long as there are two different currencies in a country, the bad currency will drive out the good currency. This will definitely happen, so I
It is recommended that all copper coins be issued at once."
Qin Hui asked uncertainly: "Are you planning to transfer the copper coins to other countries?"
"That's right." Li Qidao said: "The Grand Master also said that it is difficult to abolish copper coins. The people will definitely not agree, so we can only use the laws of nature to eliminate copper coins. Therefore, after three years, the court will not abolish copper coins."
Under such circumstances, when silver coins are introduced, it is foreseeable that copper coins will depreciate on a large scale, but the premise is that we have enough copper coins. If this is the case, then the people will definitely suffer a very heavy blow and their wealth will depreciate on a large scale.
In fact, when currency is replaced, losses are inevitable, and the only way is to transfer the losses."
ps: Recently, I have seen many people saying that I was trying to make up the word count for this paragraph. This is really unfair. In fact, this paragraph was originally supposed to be written a month ago, but because I later overturned some details, it has been delayed again and again. , I just wrote it recently. Regarding writing this paragraph, I really checked a lot of books and read a lot of information. If I want to fill in the water, I will explain it in terms that bad money drives out good money. I can just say it in a few hundred words. Just give me a casual explanation of the currency standard. A few thousand words can be copied. So if I had to make up the number of words, I would never write this paragraph. This requires a lot of information to be checked, which is actually very hard.
I also know that after writing this paragraph, many people will not like to read it. Maybe some readers only need one result, but this paragraph must be written. As long as the Song Dynasty is written, the currency crisis has to be mentioned. ( To be continued, please search Piao Tian Literature, the novel will be better and updated faster!
ps: If you don’t solve the problem of currency, the following plots will not be possible, because with the development of the economy, copper coins will definitely be eliminated. Otherwise, the small farmer economy will continue and its development will be limited. Master Li’s Economic construction cannot succeed. For example, in the age of copper coins, steam engines will never appear, because there are only so many benefits to the small-scale peasant economy. The huge benefits generated by steam engines are completely a waste and are not what the times demand, so there will be no supply. , and the replacement of currencies can be said to be the advancement of the times. From the copper standard to the silver standard to the gold standard and then to the US dollar, every time the standard advances, the world pattern will undergo very big changes. This is actually a very interesting phenomenon, so This cannot be summed up in one go, and then I say that the Song Dynasty has entered a new era. I have to let readers know what is new, so I have to write this foreshadowing in detail. There are about two chapters left. If you really don’t like to read it, you can choose Skip, but as an author, I have to write this paragraph, and this paragraph is also directly connected to the war in the west. If the temptation of money is not thrown out now, then the role of Central Asia in the Song Dynasty will be greatly reduced, and any war It was all driven by interests. It was because of interests that the Song Dynasty would expand, and the whole country would support the expansion of its territory. This would have the basis for success. Without any interests, any expansion would be redundant, and one would have to pay for it. A heavy price!