Chapter 447: The Root of the Crisis
Hearing Premier Chung Do-woo ask about other solutions, Gao Jinyuan said: "Another solution is to increase the supply of goods in the market and reduce prices, which can solve the crisis at the root." Pen Fun Pavilion www.biquge.info"
When prices are soaring, no one will take the initiative to reduce the sales price of materials, take the initiative to push down the market price, sell products at the current price, and the relevant enterprises will not make money.
So Zhang Wei said: "Don't discuss how to solve it now, just find out the root cause of the problem, and there will naturally be a solution." “
When Gao Jinyuan heard Zhang Wei say this, he immediately replied: "Yes, Your Majesty, then I will explain the root cause of the crisis in detail, so that everyone can understand why the crisis occurred." First, the central bank of the empire passively issued a large amount of currency, because the empire products were exported in large quantities, and the empire did not allow the use of paper money from other countries, and could only use summer yuan for transactions, so merchants from various countries shipped a lot of precious metals such as gold and silver, and after these precious metals such as gold and silver were transported to the empire, they exchanged them with the central bank of the empire for imperial banknotes, which caused the empire to issue a large number of paper money, and at the same time, due to the export of materials, it led to a decrease in the materials corresponding to the currency in the empire, which exacerbated the rise in prices from these two aspects. “
There are more banknotes, and fewer materials, and the price increase is inevitable, everyone nodded, and very much agreed with President Gao Jinyuan's analysis.
Zhang Wei also remembered the situation in his previous life, the foundry exported a large number of materials in exchange for US dollars, and the US dollars could not be circulated in the country, and the enterprises could only exchange US dollars for paper money, resulting in an increasingly large amount of currency issuance in the market, and due to a large number of exports in the market, the materials decreased sharply, and the double factors made prices soar, and the rent-seeking forces colluded with the bureaucratic compradors to deliberately lower the people's wages, so that the growth of wages could not keep up with the increase in prices, and the people's lives were miserable; How similar was the situation then to what it is now?
Zhang Wei was very interested in Gao Jinyuan's analysis, so he said: "Keep analyzing!" “
"Yes, Your Majesty, the second reason is that the Empire has provided many material or monetary aids to foreign countries, which has led to a decrease in domestic supplies and an increase in paper money; It is the monetary aid of foreign countries, which will eventually return to circulation within the empire; For example, aid to the United States has directly reduced domestic supplies; The transaction with the Ottoman Empire directly increased the paper money by 100 million yuan, but there were no materials corresponding to the 100 million yuan in the empire. “
Zhang Wei hurriedly retorted: "The transaction with the Ottoman Empire, the 100 million yuan they bought was arms, and in the end this money returned to my hands, and it did not circulate to the market, and it will not have any impact on the imperial market." “
Gao Jinyuan smiled: "Your Majesty, I just gave such an example, the money traded with the Ottoman Empire did not flow into the market, can you guarantee that all the money will be returned every time?" The money was handled by His Majesty himself, without going through the Central Bank. Moreover, the material aid to the United States has directly reduced the materials on the market, which cannot be changed. “
Zhang Wei said: "For the empire's tens of billions of dollars, even if it is to issue hundreds of millions of more currency, the current situation will not occur, your remarks are a bit alarmist." Okay, let's leave this question for now, you can continue to talk, and then we'll figure it out. “
Gao Jinyuan said unceremoniously: "The biggest problem is related to Your Majesty, the empire has a huge number of troops, and just the salary expenses of these soldiers will add a large amount of paper money to the market every month; There are also free and compulsory education and half-price medical care, the salaries of teachers and doctors, the materials consumed by students, and the various expenses of hospitals and schools, etc., which are all ways to increase the amount of money issued substantially; Nominally, His Majesty bears the costs, but if the supply of corresponding materials is not increased to the market, in the end, these costs will be borne by the whole people, more directly by the poor at the bottom of society. “
Through Gao Jinyuan's analysis, everyone has a deeper understanding of the problems in the market, and they all look at him with blank eyes, hoping that he can propose solutions to solve them.
Gao Jinyuan was very helpless, he could only put forward a few simple solutions based on these analyses, and each method was very difficult to implement, and he couldn't help but say it, so he thought about it for a while, and made up his mind to say: "As for the solution, I only have a few immature ideas, the first is to recycle the currency, the second is to increase the supply of materials, and the third is the internationalization of the currency, so that all countries can hold a certain amount of imperial banknotes, so that the people of the world can bear certain losses for the empire." First of all, we must increase imports, which not only increases the quantity of domestic materials, but also reduces domestic currency; secondly, reducing exports and raising export tariffs, which can not only increase the amount of domestic goods, but also recover part of the currency; Third, raise interest rates, reduce the amount of money in circulation, and lower prices, so that people no longer hoard goods or are reluctant to sell; After analgesia, the business will gradually get back on track. “
The minister of the Ministry of Agriculture, Forestry, Animal Husbandry and Fisheries said: "It is also necessary to set a minimum protection wage for workers, reduce the exploitation of workers and farmers, and increase the purchasing power of society." “
The Minister of Industry sneered: "It is necessary to increase the rent, the land belongs to His Majesty, and cannot be cultivated by the peasants for free, and these lands also have costs, so that a part of the currency can also be recovered." “
The Minister of Trade said: "Your Majesty, the economies of all countries are in great difficulty right now, and the high prices of the empire itself have played a role in suppressing exports, and if we continue to push up tariffs, it will be difficult to do foreign trade." “
Gao Jinyuan blamed Zhang Wei for most of the crisis, which made him ugly, Zhang Wei thought for a while and said: "The establishment of a minimum protective wage for workers is a double-edged sword, in this case, the introduction of this policy is not conducive to the expansion of reproduction by enterprises, they are likely to reduce the number of workers, and in the end it is ordinary workers and the people at the bottom who suffer; Until the empire completes its task of resettlement, the land policy will not be adjusted for the time being; In a situation where all countries are in difficulty, we cannot be merciful and serve the interests of the empire first. “
Seeing that everyone did not answer, Zhang Wei continued: "In the next few days, I will put a large amount of grain and cotton on the market, these two materials are the most basic items, and they can play a key role in the starting point of market price adjustment. To suppress the price to what price is reasonable, the material reserve center must come up with a reasonable opinion; In the past few days, I have thought about releasing some materials that are in short supply in the market and recovering some currency; In addition, in terms of foreign trade, I will negotiate with the court in the next few days to pass a law restricting foreign investment and foreign businessmen to protect the interests of the empire's merchants and enterprises. ”
As long as Zhang Wei is willing, his method is the best, since Gao Jinyuan said that he has the greatest responsibility, then he will help the government through the current difficulties; With the help of the system, it is not difficult for him to increase the amount of materials on the market, recover the excess currency in the market, etc.; Zhang Wei promised to solve these problems, and all the officials breathed a sigh of relief.