"What determines prices?" In the eyes of ordinary people, there may be only one answer, that is, supply and demand are determined, and the price is low if supply exceeds demand, and the price is high when supply exceeds demand, and this simple view is the closest to the truth. Taking the price of rice as an example, there was a very low price of rice in history, which was the era of the early Han Dynasty, known as the rule of Wenjing, and there was also a sky-high price of rice 10,000 yuan, which was also the Han Dynasty, but it was the end of Wang Mang's reign.

If z is the price, x is the supply of rice, the price is z = 1 when the supply and demand are in balance, the demand is relatively stable (there is no large number of population increases and decreases, the consumption is basically unchanged) is set to 100, the size of x is inversely proportional to the size of z, so the graph of the rice price z should be a straight line with a negative coefficient or the first quadrant of the z=100/x hyperbola, but the price is not only one variable, there is another key variable, that is, the supply and demand of money.

As the general equivalent of the subject grain, under normal circumstances, the supply and demand of money are balanced and basically unchanged, so most people will ignore this very small variable and treat it as a constant. But as soon as this variable is abnormal and suddenly becomes unknown, then the calculation of prices becomes very complicated.

The public knows very well the power of money, and more than half of the achievements of the market economy are due to the stability of the currency, and most of the failure of the market economy is due to the mistakes of monetary policy. If you don't hold the most critical things for your success or failure in your hands, you will simply have trouble sleeping. In addition to planning to bring down the Zhao and Song dynasties, the most important goal of this design is to create a century-free inflation-free cause. The implementation of the complex composite standard of the Chenji Bank is not only gold, silver and copper as reserves, but also the issuance of 1:5 banknotes will always be discovered one day, before the emergence of pure credit banknotes - fiat currency, in order to avoid the fate of credit bankruptcy caused by a run on itself, it is naturally impossible to be as unprepared as the Royal Bank.

In the era of the gold standard, the issuance of money was limited by the amount of gold produced and imported, and the GDP growth rate of the domestic and world economy was faster than the growth rate of gold production, so it fell into long-term deflation. The moderate decline in prices has led to a sharp increase in the purchasing power of people's savings, which can be said to be the happiest era for the people. The era before the passage was the era of complete credit money, banknotes had no meaning, they were just a piece of paper endorsed by the political axe, and they could not freely exchange gold or foreign exchange, and they could not replace permanent assets such as land, and once they were printed too much, prices would rise sharply. Thirty years of economic growth have been almost entirely taken by those who printed money. What does it mean for ordinary people to have a 100-fold increase in incomes and a 100-fold increase in prices?

In the end, the game of raising wages first and then prices is just a dream full of monetary illusions, and the improvement in living standards is very limited, far less than that of countries with long-term stable prices, such as South Korea, Europe and the United States. This kind of behavior of robbing the poor and helping the rich and shearing sheep and shearing them on the people in the country is deeply hated by the people, and it is completely inconsistent with the imperialist spirit of the inner saint and the outer king.

In order to ensure price stability and limit the scale of money printing, Chen Guanxian and other financial experts designed the composite standard, in addition to 20% of the precious metal currency reserves, but also secretly added 20% of the treasury bonds, 10% of the long-term convertible bonds of various manufacturing companies under the Chenji Group, 5% of the stocks of the Chenji Group, 30% of the warehouse accumulation of rice, flour, grain and oil and other necessities. In the event of a run, in addition to precious metals that can be redeemed, in-demand securities with no market value can definitely be redeemed at a premium higher than the coin. Necessities are the general artifact of the Dinghai God Needle, and you can exchange for necessities with banknotes, and the credit of the bank can be said to be infinite. These reserves of necessities can be used for multiple purposes, serving as reserves, as pools for regulating and stabilizing prices, and as reserves for disaster relief or war supplies. All that the crossing pays is the maintenance costs and depreciation of some warehouses, which is only 5% of the annual interest on the reserves, which is a very good deal. This setting, although the margin is only 85%, reduces the risk of issuing new banknotes to a level that is lower than the gold standard of 1:1 redemption of precious metals. It avoids most of the credit risks caused by gold price fluctuations and price fluctuations, and hedges in two directions, minimizing the risk of run and losses, and greatly improving its own financing ability.

In order to maintain long-term zero inflation, stabilize the book value of a large number of movable and immovable assets, and continue to promote the expansion of its own industry to ensure that it is not affected by the unknown.

Li Ji and the others like to do things that benefit the country and the people and themselves, and secretly yin the Zhao and Song Dynasty and a hostile group of powerful people who have entered the royal bank are very comfortable, as long as the time comes, these conservatives and diehards who have refused to reform and promote the establishment of local special zones will go bankrupt.

Each banknote is a liability of the bank to the customer who exchanges the banknote, whether the banknote is exchanged by the customer with gold, silver or copper coins from the bank, or the bank prints it to buy goods directly from the merchant, these pieces of paper are all borrowing vouchers, and they are all IOUs that the bank has borrowed gold, silver and commodities from the hands of customers and merchants with its own credit. Where, after some time, these IOUs could not be exchanged for the same quantity and quality of gold, silver, and commodities that they had been exchanged, and part of the debt was lost. This is the nature of inflation, and this is the nature of paper money. The traversal has sufficient reserves and physical commodities to support the stability and credibility of the bank's banknote issuance rights, but the royal bank does not necessarily have it, and in the event of a run, they will not only lose all the shares of the royal bank, but also all the debts (all shareholders have unlimited liability attached to it, and must bear unlimited liability, once the royal bank goes bankrupt, all shareholders will go bankrupt at the same time to pay off the huge amount of banknotes issued in excess of the reserves).

Once the royal family is ready to pay off these debts, the traversal will have an excellent excuse to rebel and push for a change of dynasty. All resistance will be minimal (customers with heavy losses will curse the shareholders of the Royal Bank, and the cross-cutting public to recover losses for customers will naturally gain popular support and a lot of support.) ）