Chapter 240 The Art of Issuing and Converting Banknotes

The new annual plan will be drawn up in January next year, and there will be a new innovation in the bank, and the existing banking system is a huge liquid money distribution system with the central bank as the core.

Every bank branch is a faucet and pump, and the central bank is the largest central reservoir that supplies all the water. In the event of a large loss or collapse due to the occurrence of non-performing loans or too many dead debts of the bank, it is unreasonable for the central bank to pay for all the deposit losses.

Because all banks are not all provided by the central bank from talent to system, from channel to start-up capital. All commercial banks are not subsidiaries and branches of the central bank, and the central bank, an organization with unlimited liability, can never fail unless its owner, the government, collapses or defaults on its debts. Reserve requirements do not guarantee the absolute safety of this huge financial system, so deposit reinsurance is the second line of insurance.

Chenji Bank is only a commercial bank, its shareholders are all independent natural persons and corporate legal persons, there is no major shareholder holding more than 3 shares, the largest shareholder is Li Ji who holds 2.5 shares, and the others each hold 2.4 shares. Fifteen of them hold 36.1 shares, plus more than a dozen small banks and financial institutions controlled by 100 and dozens of financial companies with absolute control and cross-shareholding with partners, there are 56 shares. Partners in various places also use their own enterprises to participate in the branches of Chenji Bank in various places, but no matter how rich the partner is, it is impossible to get more than 2.5 shares, and the bank's merger restrictions on shares are unimaginable......

The Imperial Bank, which has the sole right to issue banknotes, does not control a single banknote printing and mint, and all mints and banknote printing houses are no different from ordinary foundries and printing houses, and their products are divided into special casts and prints, and their cost-profit accounting is no different from that of ordinary peers. The Imperial Bank bought special commodities at low prices (slightly higher than the price of ordinary precision casts and prints), and after they were transported into the vault, these things became credit certificates, which could be purchased in the market for goods and services equal to the face value, and the difference in the price was all created out of thin air by credit, which was seigniorage.

The seigniorage is minus the profits from the sale of gold and silver to the mint by the gold and silver mining company controlled by the Chenji Group, and the seigniorage income is not large. The full reserves required for the printing of banknotes also forced the Imperial Central Bank to allocate a huge amount of money to the accounts of precious metals companies controlled by the Chenji Group to buy precious metals in order to print the same amount of banknotes. Whenever the empire needed to print more money to eliminate deflation caused by the increase in commodity capacity, the imperial bank had to borrow money from the Chenji Bank to buy gold and silver, or request the issuance of treasury bonds to buy gold and silver, so that it could print more money. As a result, the empire can only sign more and more debts, whether it is central bank debt or government debt, can only be repaid from fiscal revenues, the central bank's open market operations, the manager's treasury can also earn some pocket money, although the annual interest rate of 0.1 is almost zero, but it is terrible to accumulate over time. According to the annual demand for money circulation to increase by 5, 100 years later, there will be 131.5 times the scale of circulation, this more than 100 times the cash demand has to be borrowed by the empire from the credit-creating Chenji Group is impossible, the amount of precious metals can definitely not support this scale at this time, so it is natural to abolish the gold standard in the middle. But it's not a matter for the next generation, at least it's for the grandchildren.

At that time, the Chenji bank, which was extremely widely circulated, was reorganized when it was changed to the dragon yuan issued by the Imperial Bank. The imperial government borrowed 20 million debts from Chenji Bank, and used it as the principal to establish the Imperial Bank, and Chenji Bank has the right to convert this convertible debt into shares at any time. In other words, the Imperial Bank controlled by the 100 Imperial Government can become the Imperial Bank controlled by the 100 Chenji Bank at any time. In other words, the Travelers can become the controllers of the Imperial Central Bank at any time.

Although the right to issue notes was nominally transferred from Chenji Bank to Imperial Bank, it was actually in the hands of Chenji Bank. The Imperial Senate Finance Committee, which decides how much money the Imperial Bank can print, is firmly in the hands of the Travelers. The Imperial Bank is just a puppet in the foreground.

In the eyes of the traversers, printing money to get rich is to kill themselves, stealing money printing, slowly leading to inflation and printing money indiscriminately, the difference between printing money is to extend the cycle. They have an endless amount of money to make, and they don't need to go through such trouble.

The power to issue money is not to make a fortune, but to hold the power to ensure that it is not stolen by other uncontrolled organizations that indiscriminately print money. This is the purpose of seizing the right to issue money through all the places.

The rich whose property is mostly real estate are not afraid of inflation at all, prices rise, their property also rises, and the wealth in their hands will not be diluted by currency depreciation and flooding, resulting in a decline in purchasing power, only the poor whose property is mostly deposits, cash, and movable property will be afraid of inflation, and thrifting is an inevitable choice, as soon as consumption falls, inventories are overstocked, and the economy stagnates.

The rich are not afraid of deflation, although the fall in prices will lead to the shrinkage of the property book, but the purchasing power will not shrink much, although the poor can get a temporary profit, but the probability of losing their jobs is also large, when deflation comes, as soon as prices fall, the company's New Year's Eve financial report will become a loss, after paying bank interest, there is little profit left, and the enterprise will reduce production and lay off employees, and all the proletarians will be unlucky.

Therefore, neither inflation nor deflation is in the interest of the traversal, so controlling liquidity has become the core element of the traversal state.

Although the traversal crowd is not afraid that someone in this era can see through and destroy their own schemes, it is also a troublesome thing and must be prevented. When technology advances at a rapid pace, high-tech banknotes can kill a bunch of counterfeit banknotes once and for all.

In the Song Dynasty, there were merchants and cooperatives that made huizi, and naturally there were profiteers who made fake huizi, but the modern craft banknotes that gathered through the black technology were not so easy to imitate. Color-changing ink, complicated electric plate patterns, upgraded watermark technology for several generations (watermark technology existed in the Song Dynasty), digital numbering, anti-counterfeiting metal wire, raised ink printing technology, and printing patterns (the irregular graphics in the upper left corner of the front and back of the Longyuan banknote are just complementary to the denomination number, accurate docking, no dislocation) and other black technologies are beyond the times, not to mention the chemical fiber paper that is absolutely monopolized by the public.

It is estimated that within 50 years, it will not be possible for the people to produce them with home-made equipment. In fact, small Nissan transactions in the private sector mostly use silver and copper coins, and there are few opportunities to see banknotes, that is, a small number of wealthy residents have seen it a few times when they were paying their salaries, and then returned to their accounts after turning around in the bank. Therefore, banknotes are rarely in circulation, and they are mainly used for transactions such as large cash transactions and cross-border exchanges.

Is it wrong to monopolize banknotes? Of course, the principle of the market economy is free competition, can not set administrative thresholds, with the huge production capacity of the Big Mac, through the public easily seized the right to issue money from the Great Song Empire, but this belongs to the natural monopoly produced by free competition, relying on the credit established by the sufficient gold and silver reserves and commodity production capacity through the public, plus exquisite casters and full exchange, if you want people to give up this currency to use the currency of other countries or what gold rolls issued by individuals and enterprises, it is obviously a dream, Unless the adversary can provide goods and services that the Empire cannot provide.

Those who have come from the information age know how the background of the circulation of universal currencies in China came into being in the early years of the late Qing Dynasty and the Republic of China. Competition is the source of the vitality of currency, and it is impossible to establish hegemony by relying on scale, and the ruble of the Soviet Union cannot even go out of Asia, so it can be seen that the export of capital and competitiveness such as currency export are all based on the premise of the export of commodities and the export of military and cultural services.

The copper coins of the Great Song Empire became treasures of neighboring countries, and the hoarding was based on strong production capacity and advantageous cultural status. Although the traversal has inherited the legacy of the Great Song Empire, it has reached a higher level in terms of external export. A large amount of Song money was exchanged for more elaborate coins and gold and silver coins of the new empire, and the excess copper recovered was enough to cover the cost of a slight surplus. The mass exchange continued for ten years, and it was not until the newly opened outlets in Xuanzhou had redeemed the copper coins of the farthest Swahili city-states that the purchasing power of the old Song coins was abolished (only the banks under the banner of the Crossing Sect announced that they would not accept these money).

The difference in the length of the transition between the political and monetary systems of the old and new empires has become a major focus of controversy in the financial history of later generations. This is an open case. Overseas countries that initially have a smelting and foundry industry can use the copper ingots in their hands and technology to make high-quality imitation of the old money to exchange for new money, although the price of copper has fallen and the industry is very profitable, but this scale has always been difficult to grow. The reason is that the public has monopolized the copper mine and copper price, and there are not many copper ingots to mint money on the market, and only copper products that have been processed can be bought. The price of these copper products is so high that after being melted, they are used to mint money, not only do they not make money, but they lose money, and there is no need for downstream industries that purchase copper ingots from copper smelters controlled by the public to make money and make profits by taking the risk of commercial crimes for the sake of profits similar to those of the Bank. Machine die-casting of new copper coins is a precision industry, without relevant equipment can only rely on the old method of casting, the cost is too high, the profit is far lower than the ordinary social average interest rate, so at most it is some small miners to make a little bit of pocket money.

In fact, this seemingly loss-making exchange is actually very beneficial, and the profit on the book is still very small, and those miscellaneous old copper coins of the past dynasties are exchanged for a dime of dragon yuan according to the quantity of 1 to 1 from the quality of the fire consumption and casting costs, and the average profit is only 2, so the core interests are not on the ledger, and the international monetary order and international credit established in the exchange process are crossed by the public.

The difference between financial beginners and novices is to know that the root of money is the confidence of the use and holders of its purchasing power, once this confidence is weakened by various external factors or internal factors, then this currency will inevitably become a depreciation and depreciation of the currency or even directly become waste paper.

The strength and strength of the old Song Dynasty copper coins were lost at a rate unprecedented in human history before the collapse of the industrial and even gold standard eras. At its peak, more money was lost in a year than the amount of money was newly minted by local money supervisors, and according to the amount of global currency issued at this time, it was like the United States printing $3 trillion a year of banknotes all replaced by imported goods and services; Who can see that the amount of banknotes in circulation in the country is not increasing in the slightest, but is also decreasing? If the president of the United States lived in the Song Dynasty, he would wake up laughing from his dreams. It is unacceptable that the lack of copper production makes it difficult to expand the scale of this plunder, and China's rulers strictly prohibit the outflow of copper coins, otherwise the country will be deflationary. This kind of background cannot be blamed on the scholars, after all, they are receiving the moral education of benevolence, righteousness, propriety, wisdom and faith, but they do not know the importance of financial warfare, and the bias is too serious.

As early as the era of Guan Zhong, there were rudiments of trade wars and financial wars in China, in the Han Dynasty there was a large-scale cross-border trade of exporting five baht coins, and in the Song Dynasty there was a credit currency Jiaozi, but no one has taken a critical step, that is, the exchange of credit for physical goods and services Modern money creation.

European goldsmiths dare to open more precious metal storage documents to the market to set up shopping materials, relying on their own credit, as long as they do not run, they can issue several times more than the deposit of receipts, this kind of naked fraud, Chinese businessmen are not ready to think, and have experienced the information society through the public has long been surprised.

The core secret of modern economics is how to package this naked fraud as a way to save the country and save the people.

After frantically relying on the credit of the Great Song Empire government to create tens of millions of national bonds and hundreds of millions of leverage, the scholars and doctors who tasted the sweetness fell under the feet of this magic that can make money while lying down. What is the interest rate, the strongest government credit can reduce the interest rate to less than 10, this figure is simply given in vain in the extremely high-risk agricultural social credit market. Borrowed cheap money can be repaid several times as much as it can be spent in the initial industrialization areas, huge interest rate differentials have made relying on the issuance of government bonds a sure-fire business, and the traditional bureaucrats and doctors who rely on land leasing have also been quickly swept into the bloody mouth of modern finance.

The first group of people to change their attitude towards exporting coins were the families of bureaucrats and doctors behind the smugglers who dumped salt in Western Xia. The high-quality and low-cost new refined salt of Jiechi crushed the green salt industry of Western Xia and destroyed the largest source of wealth in Western Xia. This kind of output not only opens up sales, increases employment and regional income, but also weakens competitors, cultivates the dependence of imports, establishes quality standards, establishes brand image, and improves the living standards of residents.

This kind of export is used in the financial field outside of trade, which is the export of money. In the past, due to the lack of copper ingots and the lack of production capacity caused by backward technology, the supply of copper coins was not a matter after the drum die-casting assembly line was made through the public.

Later, in the process of recycling and exchanging money made by the old dynasty, the new government, which held high the banner of credit, easily imported the monetary credit of the new government into all parts of the world, and sold out a large number of consumer and industrial products.

In retrospect, the Great Song Empire, which was collapsed by huge debts, really despised the level of capital operation of the Crossing Public, and a small military defeat was magnified by the Crossing Crowd who controlled public opinion to almost destroy the country, and the crazy sale of the treasury bonds was spent on the funds borrowed by the empire and could not be recovered, and all of a sudden the national debt collapsed, and the imperial government went bankrupt.

Crossing the public pretense of buying back the national bonds of the Great Song Empire at the price of cabbage and forcing the Zhao Emperor to abdicate is also an unprecedented move to cross the river and tear down the bridge. At the end of the day, the buyers of Treasury bonds who have lost so much will also have to thank the people who have protected their disks, and who knows how amazing the assets behind these Treasury bonds are. The lucrative Travelers hid this conspiracy against the Great Song Empire deep into the most secret underground vaults of the Travelers, placing it alongside the refrigerated modern deadly pathogens and biological weapons manufacturing technology, and its level was even higher than that of thermonuclear weapon preparation technology.

Financial weapons are far more lethal than nuclear weapons, destroying a country much faster than a nuclear bomb. After all, a nuclear bomb cannot turn all of a country's capital account surplus into debt, nor can it make the country bankrupt and the government step down, and the crisis caused by financial weapons can wipe out the savings of countless people, cause mass unemployment among the masses, and collapse the economy and depression.

Military wars are too damaging to real estate, and they are not a last resort that can be used casually, and bloodless financial wars are the favorite means of predators who want money and don't want to die. (To be continued.) If you like this work, you are welcome to subscribe (this site), reward, your support is my biggest motivation. )