Due to the mixed alliance of the Bao army with the Jiannu and Mongols in Liaodong, the battle was in full swing.

Under financial pressure, the central bank of the Heaven and Earth Society issued 10 billion yuan of currency, which is a large number, because the total population of the area under the rule of the Heaven and Earth Society is only more than 7 million.

10 billion is equal to more than 100,000 more currencies for each person.

The per capita income level of the areas under the rule of the Heaven and Earth Society is only one or two hundred yuan per person per month, and only one or two thousand yuan a year.

According to the current economic level, everyone can save 1,000 per year, 10,000 in 10 years, and 100,000 in 100 years.

The issuance of so many currencies at once is obviously an act of pulling out seedlings and encouraging it, but for the needs of the war, there is no way.

President Wei's original purpose was to achieve the goal of recovering currency and stabilizing finance.

For the first time, President Wei used the means of state finance to mediate the war and economic needs, but he did not expect that something would happen.

Huang Ying has privileges, and Wei Dakang also has privileges, regardless of the identity of the president's parents, they are still members of the Supreme Committee of the Heaven and Earth Society.

Ordinary people do not understand what the extra money has on them.

Although some of the wealthy gentry had money in their hands, they believed that it was more secure to make money by hoarding Juqi, and as a result, the vast majority of the newly printed banknotes were borrowed by some wealthy and powerful people.

The problem began at this time, because the market in the area under the rule of the Heaven and Earth Society was not prosperous, and the people had not yet developed the habit of consumption, in fact, the storage of materials was greater than the dependence on money, so the government of the Heaven and Earth Society had to adopt the method of quota sales, and many people had to sell the materials in their hands at a discount, and as a result, the price of the currency fell from 20 yuan to 1 yuan at a rapid depreciation, and the prospects were bleak.

It was originally a newly opened government agency, but if it weren't for the high credibility of the Tiandihui, the people who came in had not yet left the thinking of the slavery system, and they all felt that they had arrived at the territory of the Tiandihui, and they were the slaves of President Wei.

Otherwise, with this 20-fold downward trend, the financial system would have collapsed long ago.

In order to alleviate the pressure of the war, President Wei took out a large amount of land as credit.

Therefore, the Heaven and Earth Society is definitely not an empty glove white wolf.

is not in a hurry to use money, President Wei generally does not move the land, which is the biggest reliance of the Heaven and Earth Society, and it is also the biggest dividend after the expansion of the territory.

Huang Ying listened to the words of a group of old neighbors and women in Weijiazhuang who had just entered the financial market and a few friends of Wei Dakang, seized the opportunity, and was ready to fight hard to make a big profit.

Huang Ying's first step was to take care of the people of the central bank in person and lend all the money to her.

Huang Ying is the president's mother, and the people of the central bank dare not fail to do so.

In addition, Fan Xiaolin nodded to confirm that this matter has to be biased towards the president's mother in both public and private affairs.

Huang Ying's second step is to find a scapegoat.

Huang Ying knows very well that once prices skyrocket and the currency plummets, it will soon arouse the vigilance of his son, and his son will definitely hold him accountable.

Therefore, Huang Ying must set up a circle in advance** Some little people as scapegoats, once the East Window incident happens, he will first throw them out to resist for a while, and then try to get out calmly.

So Huang Ying asked people to use fake names and addresses, so they set up suspicions and covered people's ears and eyes.

The last step is to use techniques such as "idling" to achieve the goal of starting from scratch.

When the currency continued to depreciate, Huang Ying sold gold to the market through the bank to absorb the currency and curb inflation.

As a result, most of each 400-ounce piece of gold was turned into private and went into the private vaults of Huang Ying and Wei Dakang.

After President Wei learned about this, he almost didn't go crazy, but he never expected that his parents would become the biggest mouses.

"Mother, father, you can tell me if you are short of money! Do you know what the consequences of this are? It will cause the economy of the entire area under the rule of the Heaven and Earth Society to collapse. Wei Bao blackened his face and questioned his parents in person.

"Xiaobao, are you talking to your mother like this? I'm just having fun, making a little money, how can I bring down the economy? Huang Ying was dissatisfied: "What is the difference between the banknotes going out of the bank and going out of my hands?" ”

Huang Ying knew the methods of the Statistics Office and the Procuratorate Office, and knew that the matter had been exposed, so she didn't bother to cover it up and simply played tricks.

"Can it be the same? Can this be the same? You have so many tricks, you dare to say that you don't understand them at all? Going out of the bank is facing the public, facing all the common people, and going out of your hands is only flowing to a few wealthy businessmen! Wei Bao said angrily: "Heaven and earth will encourage some people to get rich first, but not in this way, this is robbing the poor of their money!" What is the difference between you and the gentry of the Ming court? ”

Fan Lao Pimple, Fan Lao Pimple's wife, Wang Qiuya's father, and Fan Xiaolin, who rushed to hear the news, were all frightened by the president's appearance.

In this matter, Fan Laopimple and his wife and Wang Zhihui were involved.

Although Fan Xiaolin was not directly involved, she knew the inside story, otherwise it would be impossible for the central bank of the Heaven and Earth Society to allocate most of the money to Wei Bao's parents.

"I don't think about it so much, I've done this many times. Haven't you been good all the time? Huang Ying said dissatisfied.

"You're embarrassed to say you've done it many times, I really don't understand why you want so much money? The point is that you are too exaggerated this time, the amount is too big! Wei Bao said angrily: "You are not allowed to touch money in the future, you like to manage money, just manage the money of the president's mansion!" Banks are the backbone of the economy, and you can't afford to mess with them! And Fan Xiaolin! This time, you will be punished once! If it hadn't been for someone from the Public Prosecutor's Office, I would have almost broken something. ”

Because it was related to the president's parents, even the people from the Statistics Department did not dare to report to President Wei.

The Public Prosecutor's Office doesn't care about this, and if they find something wrong, they will immediately find the person responsible.

"I'm making amends." Fan Xiaolin said softly with a little grievance: "I didn't expect Uncle Wei and Aunt Wei to have such a big appetite this time." ”

When Fan Lao Pimple heard this, he quickly pulled his daughter's sleeve, for fear that his daughter would be involved in the Wei family's family fight.

Wei Bao didn't question Fan Xiaolin again, and said to Wu Xuexia: "Tell the procuratorate that all the people involved in this case will be dismissed from public office!" We will not be hired in the future. ”

Wu Xuexia was stunned, she didn't expect Wei Bao to be so strict this time, which had to be held accountable to many people.

"Xiaobao, what are you doing? If you are like this, how will your mother be in the future? Huang Ying cried: "If you want to resent it, you can resent your mother alone, don't involve other people." ”

"You and your father don't go to the Agricultural Bureau and the Supreme Council in the future, you will also be stripped of your public office!" Wei Bao said categorically: 'That's it! ’

Huang Ying sat on the ground all of a sudden, wiping her tears while crying, revealing the true face of a rural woman.

Wei Bao ignored Huang Ying's tricks and left directly.

Wu Xuexia chased out, "Then what now?" How to remedy? ”

"The only remedy is to make the money valuable again and save the credibility of the currency!" Wei Bao Road.

Credit money is derived from currency substitution, but currency substitution is not money per se, it is a kind of currency claim, which includes bank bills, demand deposits, low-value coinage, fiat currency and deposit currency, etc., which can be used as a medium of exchange.

Currencies can be divided into commodity currencies and credit currencies, with commodity currencies usually referring to gold. Credit money is the claim to money, derived from the use of "currency substitutes".

Some credit currencies do not have the right to claim, but they can still be used as a medium of exchange, and they are a kind of non-cash currency.

The value of a currency is related to the medium of exchange.

If it cannot be used as a medium of exchange, its exchange value will fall considerably.

Conversely, when a commodity can be used as a medium of exchange, it gains an additional value, such as Bitcoin, which derives much of its value from being a medium of exchange, and even more so gold.

Later generations of Moutai and scarce housing have enhanced their value because of similar media functions.

Credit money is derived from currency substitution, but currency substitution is not money per se, it is a kind of currency claim, which includes bank bills, demand deposits, low-value coinage, fiat currency and deposit currency, etc., which can be used as a medium of exchange.

Deposit currency refers to cheques or other credit instruments paid for with deposits.

Mises points out that not all banknotes are monetary substitutes, and that banknotes become monetary substitutes with a condition, that is, there is no doubt about the ability and willingness of the banks issuing banknotes to cash.

The ability and willingness of banks to issue more banknotes decreases, which inhibits the issuance of banknotes, and no one wants to hold bank notes.

Mises further divides monetary alternatives into monetary securities and credit media.

The difference between the two is whether there is a cash (base currency) provision equal to the total amount of the currency substitute it is issued.

The part of the currency substitute corresponding to the full amount of the provision is called the "currency security", and the part of the currency substitute that exceeds the provision for issuance is called the "credit medium".

In other words, the two are divided by 100% reserves.

Mises pointed out that the number of monetary securities issued has no effect on the market, but the number of credit intermediaries issued affects the purchasing power of money, prices and temporarily affects interest rates.

Monetary securities correspond to two different types of credit, one is commodity credit, which refers to the credit that can be lent by a bank that does not issue a credit medium, and this kind of bank only lends its own funds and the amount that its customers trust it.

The other is circulating credit, which refers to the credit that can be lent out because the bank can issue credit media, when the bank lends more funds than its own funds and the amount of customer trust, which is equivalent to creating credit out of nothing.

In short, commodity credit corresponds to monetary securities, and circulating credit corresponds to credit media.

Mises pointed out that "credit expansion" can only be the expansion of circulating credit, not commodity credit. However, the granting of circulating credit is not always credit expansion, for example, the impact of the original issued credit media in the market has been digested, or in other words, prices, wages, and interest rates have been adjusted to the newly added credit media, and if the new credit medium is not added, it will not cause credit expansion.

In other words, credit expansion only occurs when new credit media are issued, and if no new credit medium is added, but the original recovered credit medium is reissued, then it is not credit expansion.

Mises does not see credit expansion under "free banking" conditions.

So, what is a free bank?

Free banks are banks that follow general rules, Mises said.

Mises stressed that banking should be regulated by general commercial and civil law, and not by special decrees issued by the government.

That is, banks must fulfill general obligations, such as exchanging cash.

Under the conditions of free banking, if a bank issues a medium of credit, it is always in a precarious position.

Instability stems from the fact that a bank's reputation can easily be tarnished, and a bank's most valuable asset is its own creditworthiness.

According to Mises, it is difficult for banks to expand their credit because they do not dare to issue excessive credit mediums, because that increases the demand for money substitutes that can be cashed in, which forces banks to return to austerity.

In other words, under the free banking system, there is an automatic mechanism to restrain the expansion of bank credit, so that banks do not dare to issue credit indiscriminately.

So, if the government had never intervened in the banking sector, a massive credit expansion would not have occurred.

If a bank is regulated by a special government decree, it is no longer a free bank.

Credit expansion is prone to occur when banks become instruments of government fiscal purposes, because people always "trust" the money issued by the government's treasury and the institutions under its control, although this is a "superstition" that only the government can do.

Mises argues that liberalism has made a big mistake in dealing with the banking problem, that is, they have abandoned the principle of free enterprise in banking, which is tantamount to conniving at the credit expansion of the banking industry.

The harms of credit expansion include overconsumption and misinvestment, making it difficult to adjust production and reallocate resources, and unjust redistribution of wealth.

If the government continues to apply inflationary policies, it will lead to the collapse of the monetary system.

The regions under the rule of the Heaven and Earth Society are now in a state of collapse of the monetary system.

Wu Xuexia was ignorant when she heard it, "Then how can I make my banknotes worth again and not be treated as waste paper by the people?" Do you force the capitalists who got a lot of money from their mothers to spit out all the money? ”

"No, that would hurt something more fundamental." Wei Bao is very clear that the system of the Heaven and Earth Society is built on free capital.

If we want the financial markets to prosper completely, to let the factories rise one by one, and to give the industry a real start, not only must we not hurt the capitalists at this stage, but we must also support them and protect them.

Although he was at the bottom of society in his previous life and had always been a part-time worker, President Wei hated capital very much.

But his current position has changed, in order to prevent the whole system from collapsing, Wei Bao knows that the interests of the capitalists must not be touched, and they have been taken away, so he can only knock out his teeth and swallow it in his stomach! Dumb people eat coptis, and they can't say anything about their suffering.

"So what the hell is to be done?" Wu Xuexia was anxious and afraid of angering the president, so she asked cautiously.

"My mother's approach is right, hedging with gold, when the people no longer trust the currency, they will re-trust the traditional circulation currency of gold and silver, silver has been ruled by heaven and earth will not be applicable to the region, only a large number of gold bars, gold coins, to ensure the credit of the currency, in order to make the people regain confidence in the currency!" Wei Bao Road.

"That's a little easier, if it's 10 billion yuan, it only needs 30 or 40 million taels of gold, although there are a lot, we only have less than 10 million taels of gold in stock, but with a number, there is always a direction, so as not to be blind." Wu Xuexia said: "The crux of the problem now is, where to get such a large amount of gold? ”

"We can get it wherever we can, and see what others need from us, and what can be exchanged for gold as soon as possible." Wei Bao Road.

Wei Bao knows very well that such a large amount of printed currency will cause inflation, and the more it will cause an economic crisis, and now his mother will exacerbate this crisis even more, which is really fatal.

The overproduction exposed by the economic crisis is not the fact that the goods produced really exceed the actual needs.

In order to enable the existing population to live in affluence and fully meet their needs for material and cultural life, the means of subsistence are not produced too much, but too little.

However, it is true that there is too much production relative to the demand for payment.

As far as the means of production are concerned, in order to enable the working population to be fully employed and to promote the rapid development of production, it is necessary to invest a large amount of equipment in all production sectors.

Again, the means of production are not too much, but too little.

However, in order for the means of production to function at a certain rate of profit, it is true that the existing means of production are produced too much cyclically.

Overproduction is not an absolute surplus, but a relative surplus. In the various social forms before the market economy society.

Due to various reasons such as wars, plagues, natural disasters, and the decay of the upper classes, production and social life will also be plunged into serious misery and crisis for a longer or shorter period of time.

But such crises are characterized by severe underproduction, while economic crises are characterized by overproduction.

The phenomenon of economic crisis, the common denominator is the unsalable commodities and the reduction of profits, which leads to a sharp decline in production, mainly industrial production, a large increase in unemployment, insufficient operation of enterprises and the closure of a large number of enterprises, serious damage and loss of productive forces and products, and a state of paralysis, chaos and retrogression of the social economy. Production has fallen and unemployment has surged.

deflation, falling prices, tight monetary conditions, rising interest rates, bank runs and mass failures; Inflation and rising prices are anomalies.

The main manifestations are a large surplus of goods and stagnation of sales; Production has dropped sharply, enterprises have been under-employed or even closed, and unemployed workers have increased sharply; Enterprises' capital turnover is ineffective, money is in short supply, interest rates are rising, the credit system has been seriously damaged, and banks have declared bankruptcy one after another.

As a result of state intervention in inflationary policies and other measures, the economic crisis has led to the coexistence of stagnation of production and inflation.

The economic crisis has shown that there is a contradiction between the productive forces of society and the relations of production.

The economic crisis is a product of the intensification of contradictions, which in turn promotes the economy to continue to move forward amid ups and downs.

The economic crisis has exacerbated the contradiction between the developed and developing countries between the passing on crisis and the reverse crisis.

It has exacerbated the contradictions between countries competing for commodity markets and export crises.

In short, the economic crisis has exacerbated various contradictions, and it is one of the important economic root causes.

Economic crises have seriously undermined the productive forces of society, and each crisis has set production back by several years or even decades, bringing great disasters.

The crisis has caused a huge destruction of the wealth of society.

After consulting various books, President Wei felt that the best solution was to accelerate the export of armaments.

Take the initiative to ask for orders for weapons, and only by making money on weapons can you get out of the crisis.

Because this will make the entire area under the rule of the Heaven and Earth Society richer than the outside world.

During the period of free capitalist competition and the transition to monopoly capitalism, such a worldwide economic crisis occurs almost every decade or so.

The period between the outbreak of one crisis and the beginning of the next crisis constitutes a cycle of reproduction, or economic cycle.

Not only in previous societies, there were periodic economic crises, but even in the early days, economic crises were irregular.

At that time, because large-scale industry was not developed enough, the reproduction of fixed capital had not yet been able to become a decisive factor affecting the entire social and economic development.

There are no rules for the emergence and alternation of economic crises, and from the perspective of society as a whole, crises are still local or local.

It is only when the large-scale machine industry develops to the extent that it has a decisive impact on the production of the whole society that the local and local crises gradually turn into periodic economic crises of overproduction that affect all major industrial sectors and shake the entire economy and society.

In the winter of 1625, Weijiazhuang and southern Liaoning were already experiencing a small-scale economic crisis.

Hoarders of all kinds began to raise their heads.

After Wei Bao left, Zhang Meiyuan, Wang Qiuya, Xu Rui and others tried their best to comfort Wei's mother and let Wei's mother not be angry.

Huang Ying couldn't get her face down, she was pretentious, but she wasn't very angry, and she stopped crying for a while.

Wei Bao didn't mean to be angry with Huang Ying, but he really couldn't help it.

Because Wei Bao knew that if Huang Ying and Wei Dakang were not fired from public office this time, such a thing would definitely happen in the future.

Wei Bao didn't want to develop something similar to the four major families in Heaven and Earth.

The Wei family, Zhang Meiyuan's family, and Wu Xuexia's family, these three families all have the potential to develop into giant families.

Lam Man-piao, who is in charge of the Statistics Department, also hopes to develop his personal power.

But they were all stifled by President Wei, and Wei Bao did not allow it, and he did not need to rely on the family-style management method to manage the huge system.

Wei Bao is very confident in his political system, military system, and economic system, and he is also very confident in the Heaven and Earth Society.

"Alright, stop crying! I told you a long time ago, don't do such a thing, now that we are all masturbated by Xiaobao, you are happy. The tone of Wei Dakang's first half of the sentence was okay, and he got angry as he spoke.

"You're embarrassed to be angry with me, didn't you let me do that at the time?" Huang Ying said angrily: "Now your casual words are all mine, isn't it?" ”

Wei Dakang glared at Huang Ying, didn't complain anymore, and sighed heavily.