I, Zhu Houzhao, join the US imperialist chat group

Chapter 133 Spain, the world’s money printing machine! Zhu Houzhao: Ming Dynasty will also become the world’s money printing machine!

[Emperor Xuan of Zhou Dynasty Yuwen Yun: Of course it is gold, only fools would choose silver! 】

Zhu Houzhao allowed the trumpet to interact actively.

[Meliezu Louis XVI: Just... why do we use gold to buy food? We also have silver? 】

Louis XVI also actively interacted.

Others waited in silence.

[American Yingzong Cleveland: Both Your Majesty’s said it very well, especially Your Majesty Louis XVI’s question, which very well points to another issue. 】

[After you have endless gold...you will definitely use the other money in your hand first, right? Moreover, in order to be more competitive than others and ensure that you can buy something, you will increase the price, right? 】

Lectures naturally require student interaction, especially Zhu Houzhao's trumpet and Louis XVI are simply the most eye-catching.

Cleveland has improved his teaching enthusiasm a little.

[Meliezu Louis XVI: Yes, the price will definitely increase. 】

[American Yingzong Cleveland: The problem is simple. When you can increase the price to buy something, others will definitely have to increase the price to 100 or 100 to buy the food originally worth . But the original price of food was only one hundred. Originally, it only cost silver to buy. 】

[Now there are twice as many things out of thin air, and you can buy them at three times the price. This phenomenon is inflation. 】

[Emperor Zhou Xuan Yuwen Yun: This is a bit confusing, why is it inflation? The people originally sold grain for 100, but got 300. He is happy, and so am I. 】

Zhu Houzhao still didn't understand, which fully exposed the shortcomings of the economic novice.

[American Yingzong Cleveland: No, no, no, Your Majesty Yuwen, are you sure the farmers will be happy? 】

That's what Cleveland wants.

[Emperor Xuan of Zhou Dynasty Yuwen Yun: No way? 】

[American Yingzong Cleveland: You may be happy for a while, then let’s continue talking. He got three hundred silver from you, so he must continue to grow food, right? Now he takes three hundred silver and goes directly to buy the farm tools needed for farming... Then, he will be surprised to find that the original one hundred farm tools have become three hundred or even four hundred...]

[He can no longer buy farm tools, and even has to pay 100 yuan to buy them. 】

[Meliezu Louis XVI: Huh? Why? Are farm tools also increasing in price? 】

This simple entry point is very vivid and unfamiliar to both Louis XVI and Zhu Houzhao, so they are also very interactive.

[American Yingzong Cleveland: Because it’s very simple, the blacksmith also needs to eat! The blacksmith originally only had two hundred dollars. When he had one hundred grains, he could buy the grains and then the iron ore to maintain balance. 】

[But the value of the grain reached three hundred, so in order not to starve to death, he had to pay one hundred to buy it. In addition, he has to continue to produce farm tools. In order to survive, does his original 100 farm tools need to be priced at 400, so that he can barely maintain balance? 】

[Meliezu Louis XVI: Ah, this...]

Louis XVI was obviously exposed to unknown territory and was a little dumbfounded.

[Emperor Zhou Xuan Yuwen Yun: Wait...Cleveland, what you are talking about does not exist! The blacksmith is not stupid. If he can't buy a hundred from this farmer, he can buy it from another farmer! Also...the farmer can't buy farm tools here, so he can buy cheaper ones elsewhere. 】

Although Zhu Houzhao was also surprised, he was still keenly aware of the limitations in Cleveland's words.

[American Yingzong Cleveland: Your Majesty Yuwen should be a little smarter. It is human instinct to seek advantages and avoid disadvantages, right... But I said it was hypothetical! Suppose, Your Majesty Yuwen, you have a lot of gold, and now you need to fight, and you need food to fight, right... You have bought all the food on the market at a price of three hundred or four hundred. 】

[Where can a blacksmith buy it? 】

[Not only that, everyone also needs to eat. Even if the farmer sees that the price of this grain keeps rising every day, will he sell it all in one go? In order to have enough food, the blacksmith can only go to more remote areas or even abroad to buy low-priced and cheap grains... But let’s assume another premise: you have enough gold to buy all the grains around your country...]

[What kind of situation will this cause? 】

【Price increase! Everything will increase in price! 】

[And when food is barely sufficient, everything will increase in price just like a blacksmith in order to maintain the previous level! This is called inflation! 】

[Fortunately on our side...inflation has occurred, at least there is enough food. 】

[But the situation on your side... Your Majesty Yuwen, think about it, what will happen if blacksmiths, tailors, and women don't have enough food? 】

[Emperor Xuan of Zhou Dynasty Yuwen Yun: Will... will starve to death. If they don't want to die, they must rebel and steal food from me! 】

Zhu Houzhao felt a chill rush from the soles of his feet to his forehead!

Because, he never thought that with enough money, he could force the people to rebel!

Is this inflation so terrible?
This made him couldn't help but think of the fact that Yang Guang also minted coins randomly during the Sui Dynasty. It seemed that there was one more reason why Yang Guang was bound to lose the Sui Dynasty.

Because Yang Guang did not add enough copper to his coins, he continued to buy things at a price that guaranteed their value. In the end, those people who got the money had to pay for it themselves to keep up with the inflation level of the entire society.

Those with wealth were fine, but those without wealth were obviously just like what Cleveland described. They had no food and could not buy food, so they had no choice but to join the uprising and rebel together.

[Merezu Louis XVI: Wait...Cleveland, don't you think that in this situation, we have too much gold, which will lead to chaos in the country? What logic? I haven't heard of money being like this... Also, I already have gold that I can't spend all my money, so I don't necessarily have to buy so much food or go to war! 】

[I can buy other things...clothes, famous paintings, antiques, and countless coppers, locks, jewelry...Why should I buy so much food? 】

Louis XVI was also frightened, and then discovered that there was still something wrong with Cleveland's logic.

[ Mercer Lincoln: Your Majesty Louis XVI, the truth is actually the same... the gold in your hand is spent through such purchases. Those merchants who have more gold in their hands will also spend the silver in their hands first... which also makes everything increase in price, especially... the production of these commodities requires a certain cycle, and food needs to wait several months or even one day. Years ago, farm tools also took several days... When banknotes were issued excessively and the supply of goods was insufficient, inflation would inevitably occur. 】

[Other deflation is the opposite of this phenomenon...]

[When there are countless supplies of food and commodities on the market, and the money in everyone’s hands remains unchanged, it turns out that a hundred dollars in the hands of farmers is valuable. They can buy not only one farm tool, but even ten farm tools. ...]

There was no need for Cleveland to explain here. Lincoln couldn't help but intervene, and also explained deflation to the two of them.

Ok?
Deflation!

Slower!

Lincoln's addition made Zhu Houzhao immediately contact the current situation in Jinling.

[Emperor Zhou Xuan Yuwen Yun: Wait a minute... Lincoln, when you talk about deflation, do you mean that people have less money in their hands and there are more things on the market? Or is it because there are so many things on the market that it makes money more valuable? 】

According to the market research of Jinyiwei and Jinling Twelve Panties.

Zhu Houzhao has discovered it since he announced that Jinling Bank could not cash out silver for the time being.

The silver in everyone's hands is valuable.

For example, a meal at Jinling Restaurant originally cost three taels of silver. But in this case, the customer is willing to give cash, and the restaurant only accepts two to five cents in silver.

Some stores are even more exaggerated, and will double the price in order to get cash.

For example, after the Qinhuai River oiran, the Jinling Bank did not honor the cash... That night the price of the oiran's overnight stay was reduced by half, just like that...

No one has gone yet!
The reason is simple. Everyone wants to cash in their money and no longer has the time to listen to music.

He has this data.

So seeing this situation here, he seemed to have the answer.

Because of his actions, Jinling experienced deflation, and money became more valuable!
[American Yingzong Cleveland: Yes, His Majesty Yuwen, you are so smart. I am a little surprised that you understood the concept of deflation all at once. 】

Cleveland was a little surprised.

[American Yingzong Cleveland: So, His Majesty Louis XVI and His Majesty Yuwen understand it. Do you understand it? 】

He also did not forget to step on Louis XVI.

[Meliezu Louis XVI: Understand, why didn’t I understand? It’s very simple! 】

Louis XVI responded quickly, not to be outdone.

[Emperor Zhou Xuan Yuwen Yun: So...what are the disadvantages of deflation? 】

Zhu Houzhao decisively interrupted their interruption, wanting to know in advance the harm of deflation in Jinling.

After all, inflation can accidentally trigger civil unrest, and deflation... can also cause civil unrest. He has experienced this firsthand.

[Mercy Lincoln: The disadvantages of deflation are the stagnation of economic development...A large number of companies and factories have reduced production, laid off employees, and increased debts. Will everyone become poor together? A run crisis occurs, banks fail... is society pessimistic? 】

Lincoln had never seen the Great Depression of the United States. Even the economic crisis of 1837 caused by Jackson was not deflation in the strict sense. Moreover, with the discovery of gold in California, the American economy quickly developed.

[American Yingzong Cleveland: Your Majesty Yuwen, you don’t have to worry about this phenomenon in your ancient dynasty. This phenomenon only occurs here. You had very little gold and silver at that time, and your economic activity was close to zero. You should be in a deflationary situation for a long time, so don't worry about this phenomenon. 】

[Even if it happens, it will be an opportunity for your royal family! 】

[You can take advantage of various price drops to buy up shops or land in large quantities, bankrupt merchants, or even use royal credit guarantees to issue additional banknotes, and further increase your imperial power by occupying tangible assets, firmly Controlling financial power, your power is already supreme, and then becoming an ancient monarch controlling financial power, it is unimaginable how terrifying it is...]

Cleveland directly interrupted Zhu Houzhao's trumpet learning progress and thought it was useless for him to learn this. Instead, he casually gave him some common examples.

Eh……

Hey, what's going on?
No matter how hard you try, you won't be able to find anything, and you won't be able to find it without any effort at all?
Is this a bad thing that Cleveland said?
On the contrary, it is a benefit!
Zhu Houzhao's mind suddenly opened up. He originally thought that such a situation in Jinling would be a bad thing, but who would have thought that it would have so many benefits.

So, should Jinling Bank let them continue to be imprisoned?

[Emperor Xuan of Zhou Dynasty Yuwen Yun: What is financial power? 】

[Louis XVI: An ancient monarch with financial power? horrible? 】

At this moment, Zhu Houzhao struck while the iron was hot and wanted to ask more. Unexpectedly, Louis XVI seemed to be very interested in this and asked questions at the same time as him.

[Meixuanzong Jackson: Is there still such a thing as financial power? 】

Jackson, who had been silent for a long time, couldn't help but speak here.

[American Yingzong Cleveland: Well... President Jackson, His Majesty Louis XVI, you should have seen financial power. The previous Spanish Empire used financial power to become the first empire on which the sun never sets. 】

[In more than a hundred years from 1503 to 1660, they seized more than % of the world's silver through the Age of Discovery. Then... they wielded silver, bought things all over the world, and built their invincible fleet. It made everyone breathless, and caused inflation to occur in almost all the countries they visited...]

[They don’t have to farm or produce anything. They just use the massive silver in their hands to buy and buy it all over the world. Everyone is driven by the silver in their hands to do things for them! As for the war caused by inflation...it's none of their business, it's not in their country! 】

[The series of grudges between Britain and France after the Hundred Years' War were partly influenced by the financial power of Spain. 】

[Through their financial power, they almost triggered a great melee and a series of colonial wars among European countries in the 17th century! And they all stay out of it, this is financial power! 】

[Actually, the gold distribution map I gave you... After you get the massive gold in the world, you no longer need to limit yourself to domestic farmers to buy a thousand kilograms of grain. Instead, you can wave your gold and buy it all over the world. The same You can ignore the wars caused by inflation in other countries...】

Jackson actually had doubts about financial power, which directly led Cleveland to immediately come up with a very powerful example to explain financial power.

The Spanish Empire is so apt, from the 16th to the 17th centuries, they were the money printing machine of the world.

Financial power is vividly demonstrated by them.

Similarly, the consequences of only pursuing financial power have been contributed to the whole world at the cost of their own decline.

[American Taizu Washington: Is this... financial power? Hamilton and the others want to turn the United States into a country with financial power like this? 】

This was suddenly connected to the history of Spain, and Washington also clearly understood the terror of finance.

[American Taizong Jefferson: With so much gold, can we also become a country with financial power? 】

Jefferson was also touched, especially since he seemed to understand why Cleveland was so generous in giving everyone the gold distribution map.

[Emperor Xuan of Zhou Dynasty Yuwen Yun: From 1503 to 1660, they wielded gold...buy, buy, buy all over the world, financial power, this is gold power, right? Can gold still have such power? us……】

Zhu Houzhao directly envisioned the situation where he would have enough gold to buy it all over the world.

Spain could do it at the same time, so why couldn't Ming Dynasty do it.

Although he has never seen Spain control financial power.

But Emperor Wu of the Han Dynasty was obviously this kind of emperor who had financial power.

He used the entire country's financial resources to fight with the Huns for more than forty years.

Daming, he...

He also has so many gold distribution maps now, so...

This was obviously a clear message from his ancestors that he also wanted to become this kind of emperor who firmly grasped financial power.

Ming Dynasty also wanted to use this financial power to influence the whole world and become an empire on which the sun never sets.

Zhu Houzhao did not expect that setting the topic of the financial crisis would yield such huge gains.

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(End of this chapter)