"So, what kind of monetary standard should we use?"

Yu He waited for the applause to fall and continued:

"It is clear that, given the circumstances of this era, there is no doubt that we must adopt a monetary policy on the gold/silver standard......"

"Brother Yu, I heard that Spain is the world's largest gold and silver investor in this era, will we be subject to the monetary policy of the gold and silver standard?"

"That's a good question too......"

Yu Hewei responded to the questioner with a smile, and then explained:

"Spain? Well, in fact, it should also include Japan, which are all major producers of gold and silver, accounting for the majority of the world's total gold and silver production.

However, we don't care where the gold and silver come from, because we have our own advantages and will be a net inflow of gold and silver.

Here I would like to ask you to clarify the concept that for the control of gold and silver, which is a monetary function, only the net importing country is the one who takes the initiative.

What do you mean by that? Note that here I am referring to gold and silver as hard currency, not as means of production.

To know a principle of numismatics - hard currency usually goes to strong sellers, what is a strong seller?

The sign is the possession of strong goods – if others do not know how to do these goods or do not do them well, then the seller will become the master of the market.

We know that in the history of the Old World, the great empire of the East has always been the master of the world market.

Why? Because back then, the Han people used the silk spit out by silkworms to make beautiful silk! Sinter fine porcelain from the clay of the earth! Tea was produced from native plants – and these goods soon became indispensable commodities in the world.

As a result, these commodities are as powerful and irreplaceable as the high-tech products of the old world, and even today, the ravaged China is still the world's leading gold and silver inflow country in foreign trade.

In the history of the Old World, the trade superpower of the East lasted until the nineteenth century, and it was only after the Opium War that the West surpassed the East with industrial civilization and became a superpower.

Therefore, in history, even the Great Song Dynasty, the Ming Dynasty and the Qing Dynasty, which rarely produced silver and gold, were able to adhere to the monetary policy of the silver standard for a long time, because gold and silver would flow into the country through trade, in the final analysis, relying on relatively advanced productive forces, relying on labor productivity that was a head higher than others.

From this we can conclude that the accumulation of wealth depends on the position of trade, and the strength of the position of trade will inevitably lead to the accumulation of money, in this case, hard currency.

Uh, what I'm saying is quite popular, I don't know if you understand......"

Before Yu He could speak, the discussion in the venue was already chaotic, and everyone's excitement was overflowing.

"Got it! Isn't our sugar, glassware, and glass mirrors very strong commodities? ”

"That's right! It's irreplaceable! ”

"Don't forget, our calico in the South Seas is the hard currency itself!"

"Yes, we'll have five-spice chocolate and tobacco in the future......"

"Don't forget the cement and steel!"

"Glass windows are counted......"

"You've forgotten the most profitable commodity – arms!"

"That's right! Compared to this era, all of our business is almost irreplaceable in its high-tech nature......"

"So, we should lay the foundation of our financial system on the gold/silver standard!"

"Haha! This is epoch-making, we are the founders of the global modern economic system! History will be written haha......"

"Don't be too happy, who said we are the founders of the modern economic system? The Dutch established a bank in the modern sense of the word 50 years ago, and the stock exchange is 50 years old......"

"What? Are the Dutch more advanced than us? ”

"I'll go! The Dutch are awesome ......."

"Yes, a lowland country with few resources......"

"Well, the Dutch United Provincial Republic is the first parliamentary republic in human history based on industry and commerce, and people have dominated the seas just by relying on institutional innovation and a free commercial system......

At this time, Yu He spoke:

"That's why the system is fundamental, everyone! We must always pay attention to maintaining the advanced nature of our own system, and we must establish a long-term mechanism to ensure that our concept of political and economic freedom can continue to exist---- only in this way can we maintain the vitality of society, constantly innovate new products, and maintain the generational difference in the external press, so as to maintain our position in the market.

To put it bluntly, in this world, the competition between countries, between nations, and between groups is, in the final analysis, the competition of systems, and the competition of systems, in the final analysis, the competition between values!

There is no doubt that which system reflects values that can stimulate the vitality of society is better, and which system is superior.

Of course, everyone, it is not easy to stay ahead, competition is like pushing a stone up a mountain, and you can't relax for a moment? ”

"Brother Yu Gaojian!"

"Words of gold and jade!"

"Daigo empowerment!"

"Golden sentences!"

"Uh...... That's the end of my speech, let's continue to ask Lao Ba to talk about the currency......"

Yu Hewei looked at Lao Ba very calmly in the praise of everyone, who was flipping through his notebook, and when he heard Yu Hewei mention himself, he immediately responded:

"Okay, I have an important idea for you to discuss and approve - yes, now we need to set up a central bank financial management body, the name, I've already thought of it, how about calling it the Federal Reserve Board of Australia?"

"Pa Lao, is this a state institution?"

"This institution must carry out our monetary policy!"

Ba Fengtian raised his hand to stop everyone's discussion, and responded:

"Note that this is a private institution, theoretically a union of banks, a settlement union, with the right to issue notes......"

When Lao Ba said this, the venue fell into silence suddenly-

The private sector?

How can the private sector operate a country's banknote issuance?

So what role do we play in this?

Lao Ba smiled:

"We are the shareholders of this institution, everyone!"

"The question is whether the people in the future will recognize this private organization, after all, it is a banking union, and it also has the right to issue money, so when time passes, will those in power covet us?"

A pointed question was asked in the room.

"Rest assured, first of all, we will manage this institution very well, and secondly, no one can say that private institutions cannot have the right to issue money!

The claim that money is a currency issued by the power of the state is a big fool - because money is essentially a product of the market, and only the market has the power to pick and choose money, eliminate it, and make a certain currency have meaning in the market. ”

"There is a saying that bad money drives out good money, which is also market behavior, may I ask Brother Yu, how to avoid this situation?"

"We're going to try to avoid that, and you can go to the computer library and look up some of the old world history of how that superpower made the financial system stable and mature through the power of the market, starting in the days of free banking.

And what we are doing now is nothing more than overtaking at key points - because we are traversers and can fully learn the lessons of our predecessors, please rest assured that our finance has been stable and mature from the beginning, and there should not be a situation where bad money drives out good money in the era of free banking. ”

Lao Ba's answer was not so much to convince everyone with reason, but because his confident face made everyone feel that there was no need to worry too much.

At this time, Yu Hewei also stood up and added beside him:

"Rest assured, in fact this practice was very successful, in the old world, the currency of that superpower was issued by a coalition of thousands of private banks in that country, note that those banks are privately owned or have a large proportion of shares, so that the Federal Reserve Board is theoretically actually a private institution - only because of the importance of this body, the chairman of this committee needs to be nominated by the president for parliament - the so-called state executive intervention basically ends there, Or to put it another way, it's more rigorous: any superpower has very limited ability to use administrative power to interfere in finance. However, it is indisputable that this does not prevent her currency from becoming a worldwide hard currency! ”