Chongzhen Emperor Zhu Youzhen's idea was to transition from the silver standard to the gold standard, or the composite standard, so as to transition to the credit standard system dominated by Daming banknotes! With the hegemony of the Ming banknotes, it has become the only currency in the world that can circulate internationally!

If this step can be reached, Daming will have no problems, no problems!

Chongzhen Emperor Zhu Youzhen's thinking has never been put on a hard encounter with Houjin, or a hard encounter with the anti-people in the Central Plains, or a hard encounter with the Jiangnan chaebols! He has been thinking about how to rely on foreign trade to change this predicament in the short term!

This is also the best solution that Emperor Chongzhen Zhu Youzhen can think of, the best solution to change the current crisis of the Ming Dynasty!

The biggest criticism of the gold and silver standard comes from the need for social development. Because if the gold and silver standard is adopted, it means that the amount of money issued by the state will be linked to the stock of gold and silver in the treasury. However, the problem is that society has entered a period of rapid development, which will inevitably lead to a rapid increase in the total value of social commodities, and failure to issue sufficient money will lead to deflation and constrain the economy. The best solution is for the state to buy a corresponding amount of gold and silver, and then issue the currency at a par value. But at the same time, we need to know that the total amount of gold and silver is limited, and if the country does not buy the corresponding amount of gold and silver and issues currency, it is equivalent to devaluing the currency. Currency depreciation is something that the state does not want to see. But there is a special case, if the country has to deal with war not with economic development, then it will not take care of so much.

The position of the gold and silver standard is not as strong as some people think, because gold and silver can be adulterated. In the old days, it was enough to kill the head, but if it was the king who committed the crime. Then everyone can only turn a blind eye. The corresponding amount of gold and silver cannot be purchased. And there is no currency depreciation. The common compromise adopted by kings was adulteration to reduce the purity of the gold and silver in the treasury in order to increase the total amount. But this kind of trick can only be played in their own country, and foreign countries can not eat such a set, so in fact, in the foreign exchange market, the currency will still depreciate, which is also the reason why the exchange rate will change.

Abandoning gold and silver and using paper money as the standard currency, a substitute for gold and silver must be found. The world's standard standard currency. It can be roughly thought of as the US dollar, which is pegged to oil. Therefore, no matter what form the currency or standard currency appears, it is a change of soup and not a change of medicine. The biggest problem with abandoning gold and silver with paper money as the standard currency is that paper money can be printed indiscriminately, and if the issuance of currency is not strongly regulated, everyone will not be able to escape the curse of inflation.

In the era of the gold and silver standard, the issuance of money was subject to the total amount of gold and silver, so it was relatively easy to control. After the abolition of the gold and silver standard, the issuance of currency became a major problem, and interest groups wanted to increase the amount of money issued out of interests. And they can cite the fact that mild inflation is good for economic development. The crisis was planted when the banking sector was already lending far beyond its ability to pay. The state cannot hope for economic stagnation. Therefore, if the banking industry can be pulled, it will absolutely not let go, and this leads to a vicious circle in which the state has to increase the amount of money issued and cause inflation, in order to control inflation, it has to release a large amount of treasury bonds to attract currency backflow, and in order to pay the interest generated by the issuance of treasury bonds, it has to increase the amount of money issued again, and this vicious circle. To put it simply, the state does not issue treasury bonds for lack of money to spend, but to control inflation, and the method of issuing treasury bonds itself is further increasing inflation, and the amount of treasury bonds issued by the state each year can be regarded as a barometer of the country's inflation process.

We can think of economic development as a tank full of water, the bubble economy caused by inflation will overflow the water, and the issuance of national bonds by the state can be seen as taking a basin to collect the overflowing water. The basin is also getting bigger, but its capacity is limited, and if the rate of inflation is much higher than the rate of economic development, then sooner or later the basin will be filled with it, and at that point, it will be the beginning of economic collapse (without even the need for an artificial deflation to finally seize the country's core assets).

Controlling the issuance of a country's currency controls the lifeblood of that country. Therefore, the key issue is not the choice of the standard currency, but the control of the right to issue the currency by the state itself.

Local currency refers to the legal tender of a country, and no other currency can be circulated in that country except legal tender. For example, the only legal tender in Chinese mainland is RMB, so at this time we also call RMB the local currency, but this concept is mostly used in the foreign exchange market. Except for the local currency, all other currencies are collectively referred to as foreign currencies.

Both the base currency and the original currency are relative concepts.

For example, in China, it is stipulated that RMB is used as the accounting currency, which means that all financial statements of domestic enterprises must be reflected in RMB, which is convenient for macro analysis such as statistics and planning, as well as horizontal and vertical comparison;

The original currency is relative to the standard currency, for example, a German foreign-funded enterprise, the boss is German, the company's financial statements must of course be understood by the German boss, and generally the financial statements are reported to the boss according to the Deutsche mark, and the Deutsche Mark at this time is regarded as the original currency in China.

The main currency, also known as the standard currency, is the basic currency in a country's monetary system, and it is the legal unit of valuation and settlement currency of the country. The main currency has unlimited solvency and is mainly used for the needs of commodity trading and labor supply. The main currency plays a leading role in the economic life of a country.

In the same way, if it goes to Germany, the mark becomes the standard currency, and the renminbi becomes the original currency in the eyes of the Germans. Under normal circumstances, when domestic foreign-funded enterprises submit statistical statements to some domestic government agencies, they must convert the reports into local currency.

In addition to the main currency and auxiliary currency, there is also a commemorative coin. The so-called commemorative coins are coins issued by the state to commemorate important events at home and abroad, important historical figures, or according to special needs.

Foreign currency refers to a request for payment made in or in an official currency area in another currency. The abbreviation of "foreign currency" refers to the currency of other countries or regions other than the national currency. It is often used in the external settlement business caused by economic activities such as trade and investment.

Auxiliary currency is auxiliary currency, refers to the circulation of small currency auxiliary large denomination currency below the standard currency unit, for daily sporadic transactions or change, it is characterized by small denomination, frequent circulation, fast wear, so it is mostly cast with base metals such as copper, nickel and its alloys, and some auxiliary coins are made of paper. Coins are generally limited currency, that is, there is a certain limit on the number of coins delivered each time, and if the limit is exceeded, the recipient can refuse to accept them. Many countries stipulate that the auxiliary currency has the same unlimited solvency as the main currency, and China has adopted this approach.

1. The currency (currency) that will enter the circulation field can be distinguished from the standard currency and the auxiliary currency. The standard currency is a coinage minted in accordance with the monetary unit stipulated by the state, also known as the main coin. Auxiliary coins are small amounts of currency below the main currency, which are used for daily sporadic transactions and change. Coins are small amounts of currency below the base currency, used for small turnovers, and are usually minted from base metals. The monetary systems of various countries generally stipulate that auxiliary coins are restricted from being minted. Coins have only limited solvency.

2. The face value of the standard currency is consistent with the actual metal value, and it is a full-value currency, and the state stipulates that the standard currency has unlimited legal solvency. Countries that allow the standard currency to be freely minted and melted are not allowed to be put into circulation if the wear and tear exceeds the weight tolerance in circulation, but it can be exchanged for new currency at an institution designated by the government, that is, the excess difference is exchanged for the new currency.

3. Auxiliary coins are generally minted from base metals, and the actual value contained in them is lower than the nominal value, but the state stipulates that it is within a certain limit in the form of a decree. Auxiliary coins are only limited in legal compensation, but can be freely exchanged with the main currency. Auxiliary coins cannot be minted freely, only by the state, and their minting income is an important source of national revenue. Under the conditions of contemporary paper money, the main coins minted by auxiliary coins and base metals are often marked with the name of the country or can reflect the authority of the state, but compared with the historical metal currency system, the main currency and auxiliary coins were granted to different departments to mint and issue them, which is more symbolic.

Under the general practice of non-cash credit system in modern countries, gold has basically lost its status as a world currency, and has been replaced by the non-cash credit currency of some countries, which is called international currency. The currencies of a small number of countries capable of performing monetary functions on the world market must be characterized by broad universal acceptance and free exchange. For example, it has been widely used in international settlement and payment; as an international reserve asset; It is free to exchange for other currencies in the market without the approval of the competent national monetary authority. Of course, this capability can only be achieved by the currencies of those countries with a large share of international trade and strong economic strength, not the sovereign currencies issued by all countries.

The US dollar remains the centre of international reserve assets, but the share of the Japanese yen, the British pound, the mark (which was replaced by the euro after 1999), the euro and the Special Drawing Rights (SDRs) is rising.

Everyone listened to Chongzhen Emperor Zhu Youzhen talking farther and farther, but Chongzhen Emperor Zhu Youzhen didn't pay attention at all, or even if he noticed, he didn't bother to care!

At this time, Emperor Zhu Youzhen didn't seem to be explaining anything to these people, but made the blueprint in his mind clearer and clearer!

A person can't control others, and the most important thing can only be to make himself think more clearly, Chongzhen Emperor Zhu Youzhen has such a meaning! (To be continued......)