2385 extra money

Inside the headquarters of Wenyang Bank. Pen ~ fun ~ pavilion www.biquge.info

"What kind of measures will the government take to solve the problem of funding?" Yingyu curiously found Xiao He and asked.

"Hmm. Now the government has cut interest rates and RRR cuts. Liquidity has indeed increased considerably, but it still does not meet the demand for currency at home and abroad. I've been working on this for a long time. My view is that increasing the money supply. That is, the printing house is larger and prints more money. Xiao He said to Yingyu.

"Hmm." Yingyu nodded.

"That's right." Yingyu said.

"It's just that I vaguely feel it. We've talked about this before, and if the money supply is in our hands, it's in our great interest. Yingyu said.

"But for now, it's not bad." Xiao He said.

"The money supply is in the hands of many parties, the government, the banks, the royal family, and many more participants, and this is how the Reserve Board of the Federal Bank of Qin plays a role." Xiao He said.

"It's just, how do you use the extra money?" Yingyu then asked. On economic issues, Xiao He has a deep study, and he has dabbled in how to develop the economy and the future development trend of the economy, which is beyond the reach of others, or rather, this is no longer such a simple thing as a hobby.

"If it were me, I would make government investment, because the government has a lot of money in its hands, and investment is the only way to drive economic development and spend that money." Xiao He said.

"In other words, the government's financial resources have increased a lot all of a sudden?" Yingyu said.

"Yes. This has never been done before. You know, the previous use of gold and silver currency, the government wants to increase financial funds, can only mine out real money, but now, the convenience of paper money lies in this, Qin wants economic development, especially the economic development of various countries, the only way is to issue paper money, issue a large number of paper money. Xiao He said.

"Hmm." Yingyu nodded. Agreed.

"And the demand for money is different now than it was in any previous era. In the gold and silver age, because of the mining technology, as well as the limitations of mining manpower and material resources, it was difficult for us to have a large amount of gold and silver on a large scale. But now it's different. The government has the right to issue paper money, and they can increase the money supply by issuing more paper money, just a piece of paper. Xiao He said.

"Hmm. If the government uses it for investment, it is best, we will follow the government's investment, or the government will establish several government enterprises, we can go public, buy shares, and finally achieve the purpose of acquisition. Yingyu said from the perspective of the future.

"Well, I totally agree with that, but I think there's one more thing we need to be aware of." Xiao He reminded at this time.

"What?" Yingyu asked.

"That is, gold reserves, the government may buy a lot of gold, because only in this way can we ensure that there is sufficient money in the market." Xiao He said.

"You mean gold is going up?" Yingyu asked.

"In terms of future expectations, it's the future. Not now. Xiao He reminded.

"Hmm. I understand. Yingyu nodded.

In Shang Wen's office, Shang Wen was discussing the matter with several of his key cabinet members.

"The only way to invigorate the economies of various countries and develop rapidly is to issue a large number of paper money, and you must know that the demand is very large. The total economic volume of our Qin state is very large, and now we add the state of Zhao, the state of Yan, the state of Qi, and possibly the state of Chu and Wei. As a result, the money supply is on the tight side, and the Securities Commission was impressed by my plan to reform the stock listing. But they were reluctant to approve my plan at all, because liquidity was tight. The only solution is to increase the money supply. Shang Wen said.

"In this way, we have a large part of our financial funds." The Minister of Finance said excitedly.

"It can be said that most of the extra funds are concentrated in the Reserve Board of the Federal Bank of Qin, of course. The government also has a part. Shang Wen said.

"With the extra these, the Qin State can issue a large number of banknotes to supply. What I want to know is, how are we going to spend the extra money? Shang Wen asked everyone.

"A lot of places need money, and education needs a fee. It is also needed in terms of infrastructure development. Xianyang needs to build a number of roads, as well as highways. In addition, there are a large number of railways, street lights, cables, as well as various power plants, waterworks, sewage facilities and so on. The Minister of Finance snapped his fingers and told Shang Wen one after another.

"Enough. That's enough. We know that there are many places where the Qin State spends money. Meng Yi said to the Minister of Finance at this time. And Shang Wen could only smile helplessly. He also had no choice, because what the Minister of Finance said was a fact.

"As far as the place where the money is spent, I basically think about it, and I think that the current place of spending can basically be divided into two parts: first, internally, we can make large-scale government investment, such as the government's construction of trading companies, railway companies, steel, waterworks and other infrastructure, and other places." Shang Wen said.

"Externally, there are many related pillar enterprises, such as Handan Iron Works, the Royal Bank of South Korea, and other enterprises in Qi State, which can be injected with capital, and the Qin government holds a stake in the enterprise. in order to increase revenue. Shang Wen said.

"This is a great benefit to the Qin State, and we have to thank the paper money for the grand benefits." Shang Wen said to everyone with a smile.

"In this case, is it an increase in military spending?" Wei Yu said at this time that although the cabinet members should not be there in this cabinet meeting, because the main purpose of this meeting is finance. And not a military issue.

"Of course." Shang Wen nodded.

"It is appropriate to increase military spending this time, but in the future, the way of doing business may be to adopt the method of a trading company." Shang Wen said to Wei Yu.

"What Qin needs is a benign change in the way it does business." Shang Wen continued.

"As for how to change, the enterprises established by the government need to bring a lot of benefits to the Qin State, and this benefit is obvious." Shang Wen then said. And Meng Yi looked at Shang Wen, he knew that Shang Wen had a meaning when he said such a thing. There is a deeper reason for this meaning.