I, Zhu Houzhao, join the US imperialist chat group

Chapter 134 Zhu Houzhao: Can I owe everyone money? railway? Financial Jinyiwei!
[Merezu Louis XVI: Financial Power in Spain? Although Spain was very prosperous when Charles V was here...but didn't his power come from the Holy Roman Emperor, and did he also have powers conferred by some territories? Did he have financial power? Also... Felipe II took over Portugal... They relied on force, right? Did they have financial power? 】

Louis XVI did not understand, and even disagreed with, the terrifying financial power of Spain described by Cleveland.

Because today's Spain is the Bourbon dynasty of France, and it is considered the younger brother...

My younger brother's glory days were indeed terrible, and they were also glorious.

But Spain's strength was due to its financial power, which Louis XVI did not quite recognize.

The reason is simple. He does not have that rich knowledge of economics, and... no one pays attention to the financial history for the time being.

Because the history of modern finance begins with the birth of the first stock exchange in Amsterdam, the Netherlands, in 1650.

Coupled with the real establishment of government credit, it can be considered that after the Glorious Revolution of 1688 in England, the power of fiscal and tax payment was transferred from the king to the parliament, and the parliament began to conduct budgetary management of expenditures. This was the beginning of modern financial power. .

It was not until the Industrial Revolution began in Britain in 1760 that the booming development of industry and commerce brought about transactions and laid the foundation of financial credit.

It was not until 1776 when British classical economists published "The Wealth of Nations", and then almost until 1867 when "Das Kapital" and other series were released, that modern economic views and systems were almost fully established.

Cleveland's views on financial power were actually timeless for Lincoln.

During the period of Louis XVI in 1784, economics was mostly in the hands of bankers... so even Washington felt unfamiliar with it.

[American Yingzong Cleveland: This thing is very complicated anyway. The example I gave should actually be considered appropriate... If you still don’t understand, just think of it as the power of gold and money. I don’t need to mention the power of money. Money can even buy life from God. 】

The era gap made Cleveland feel that Louis XVI was not even as good as Yu Wenyun. He was too lazy to continue correcting Louis XVI and directly changed it to a more understandable description.

Financial power is actually far greater than the power of money, because it includes stocks, bonds, debts, etc. He is too lazy to talk about it anymore.

[Merezu Louis XVI: Cleveland, you have come around in such a circle, you might as well say it is the power of money, I know that. 】

Yes, a chicken talks to a duck.

Cleveland could only understand Louis XVI.

[Emperor Xuan of Zhou Dynasty Yu Wenyun: Money can make the world go round. We here have known this for a long time, but I feel that the financial power you are talking about is not just a matter of money. 】

[American Yingzong Cleveland: Your Majesty Yuwen should be smarter. Sometimes the power of money reaches its extreme, which is financial power. His Majesty Louis XVI, if you have enough money, you can even mobilize people all over the world to repair your locks. This is the power of mobilization through money, which is called financial power. 】

[Our side is even more subdivided! You can exert financial power even if you have a lot of money, you can exert financial power if you have little money, and you can even exert financial power even if you have no money. 】

[Emperor Xuan of Zhou Dynasty Yuwen Yun: Huh? How can you exert your power without money? 】

Zhu Houzhao cheered up again. After all, he didn't have a lot of money at the moment. Having money to do things is not called ability, but being able to do things without money is called ability.

[Meixuanzong Jackson: Don’t have the money to exert your power? 】

Jackson was intrigued, too.

[American Yingzong Cleveland: If you don’t have money, other people have money! You can borrow money! Just like in the War of Independence, we owed France so much money. France wants us to pay back the money and needs to protect our fragile and newborn country very well. If we were ruined again, who would they ask for money from? 】

Cleveland once again offers an example.

[Meliezu Louis XVI:...]

He was silent.

[American Yingzong Cleveland: Of course... this kind of power is not big yet. To be big, you would have to owe more money! If you owe enough money and have enough creditors, the bank or creditors will take the initiative to care about whether you are living well and whether you are happy or not, for fear that you will die. To give a pertinent example, if Louis XVI or His Majesty Yu Wenyun... you accidentally owe money to everyone in your country, they will support you even more...]

[Speaking of which, Your Majesty Louis XVI, I can just give you another way to avoid death. You should find a way to owe all of you money in France. No matter what happens, they will definitely be reluctant to let you die. The same goes for Your Majesty Yuwen. You should try your best to owe everyone money. In our era, only those who owe money can live a prosperous life. 】

[Meliezu Louis XVI: Isn’t this a national debt? We already owe a lot. 】

Louis XVI suddenly discovered that following Cleveland's rhythm almost stopped thinking.

Cleveland clearly treated him like a fool.

[American Xuanzong Jackson: National Debt...]

Jackson also felt cheated.

National debt?
Zhu Houzhao was stunned. The Ming Dynasty owed money to all the people, so how could it still be played like this?
[American Yingzong Cleveland: It is indeed a national debt, but there are two concepts... His Majesty Louis XVI, the national debt you owe is repaid by the cabinet. What I am saying is that if you find a way to let yourself and the royal family bear so much Debt, death can be forgiven. 】

[Similarly... this kind of power to owe money is not so appropriate for you. If it is used for His Majesty Yuwen, the Emperor of the East, it would be perfect. They have great power. If you find a way to use everyone's money If they all lied here, I'm afraid those people will have to follow His Majesty Yuwen. If he wants to be radical, be radical, if he wants to be conservative, be conservative... But if he wants to die, I'm afraid everyone will not agree. 】

[Emperor Zhou Xuan Yuwen Yun: Still, it can still be done like this, right? Cleveland...the more you talk, the more outrageous you are. If I dare to use it like this, I guarantee that there will be rebellious officials and traitors who will uphold justice for heaven. If you kill me and say that you will repay the money on my behalf, more people will support you. 】

Zhu Houzhao was speechless and felt that national debt and personal debt were two different concepts.

[American Yingzong Cleveland: Haha, let me give you an example. Anyway, this is the power to owe money. His Majesty Yu Wenyun can definitely use the method of owing money to bind a large number of creditors. These creditors will definitely not let your father-in-law kill him. you. 】

[Or at that time, didn’t you have enough ships to mine gold, or wasn’t it cost-effective to risk launching a long-distance war? 】

[You can definitely borrow money from them and borrow all the money you can! Your creditors will try to get you to start a war or mine gold to repay the money... This is a disguised form of power to owe money. 】

[In short, this is a discussion and idea of ​​​​financial power. 】

[Finance is a devil...if used well, it can provide unimaginable benefits in return, especially the integration of finance and power, but if used poorly...it may hasten death. 】

[American Yingzong Cleveland: I feel like, that’s all I’ll say. As for the economic crisis... in fact, it is about the problem of lack of money, not enough money, how to use the money, and other issues, I feel like there is nothing to say. 】

Cleveland ended this topic. In fact, his tendency to solve the current economic crisis is to increase gold reserves.

If there is too much noodles, add water. If there is too much water, add noodles. This is the only way.

If I borrow money from them, if I borrow it to the limit, they will actively urge me to try their best to repay the money.

Although Cleveland was over, the little things he casually revealed in the end opened up Zhu Houzhao's thinking.

He was still worried that Japan's gold and silver could not be obtained without the army, but... if he borrowed money, especially from the civil and military officials, they might push him to find the money.

You can still play like this, right?
This may also be an idea!

Zhu Houzhao suddenly felt that Cleveland had finally done something.

[Supreme Group Leader: So, this issue is considered finished? 】

Zhu Houzhao still had some unfinished ideas and wanted to use more financial means from Cleveland.

[Meixuanzong Jackson: Wait...Cleveland, I have another question. I have no idea about the development of a complete economic crisis. Can you give me a complete description of my time and space, and the entire process of the economic crisis that is going to happen to me this time...]

[How it started, how it developed, what it was like when it was most serious, and how it ended. 】

Jackson finally thought seriously about how to fully understand the financial crisis.

[American Taizu Washington: Indeed, I just said a lot, I feel it is better to describe it with the real development situation. There are some things that I don’t quite understand. 】

[Mercy Lincoln: Jackson’s question is a good question. 】

[American Yingzong Cleveland: President Jackson, just ask me to solve the financial crisis. I don’t have the ability, but if you ask me to describe it, I will be familiar with it. 】

Cleveland's mind suddenly opened up.

[Let me start with the first financial crisis in 1837 and the second financial crisis in 1857. 】

Jackson, Jefferson, and Washington all cheered up. Oh, Jackson is still considerate, which is what I lack.

Zhu Houzhao even picked up the pen again. The financial crisis in Jinling had already begun. If he could really see the entire development process first, he would be better able to strategize.

[First of all, it was the cause of the first economic crisis in 1837... This cause should have been mentioned before. The main reason was that President Jackson abolished the Second National Bank. The deeper reason was that the upper echelons of the United States did not reach a financial consensus on whether to establish a Strong supervision of financial institutions across the country is still controversial, and they have not yet realized the horror of financial power. 】

[As His Majesty Yu Wenyun said before, establish a corruption supervision agency to monitor corrupt personnel. 】

[Corrupt people need to be supervised, and money, too, needs to be supervised. 】

[Supervising corrupt personnel can strengthen the power of the king. Similarly, supervising the flow and use of money can also strengthen the construction of financial power in disguise. 】

Therefore, something like the Ming Dynasty Bank should also establish something like Jinyiwei to supervise the flow of money and take back financial power?
The Jin Yiwei who specializes in supervising banks?

Zhu Houzhao did not expect that he would gain something from the beginning.

But combined with the impact of the civil unrest caused by the Jinling silver run, it is obvious...

If other people or those banks join forces, they will do something like this one day.

He went out to fight in person again, and his family was in chaos.

Obviously it is also a very fatal problem.

[The cause of the second financial crisis in 1857 was also the lack of financial supervision. A large amount of foreign money and our domestic money poured into our domestic railway construction field. 】

[Between 1848 and 1858, Britain invested heavily in our railway construction. The domestic railway mileage was as high as 33000 kilometers, far exceeding the total of other countries. In 1856, the total economic amount brought by railway construction to our country , already accounting for a quarter of the domestic economic lifeline. 】

[Emperor Xuan of Zhou Dynasty Yuwen Yun: Wait? railway? What is a railway? A road paved with iron? 】

Zhu Houzhao really didn't want to disturb him, but the railway exceeded 66,000 miles, and this huge data caught his attention.

[Mercy Zu Lincoln: The railway... is what you understand, Your Majesty Yuwen. We produce too much steel, which is used to pave roads. This transportation system is similar to the waterway formed by rivers. 】

Lincoln immediately added that he did not bother Cleveland. This crisis was not far away from him. However, although the relevant cause report came out, it was not as complete as later. He started the Civil War as soon as he took office, and he had no intention of paying attention to it.

[Emperor Zhou Xuan Yuwen Yun: Okay, Cleveland, you continue, I won’t disturb you. 】

Outrageous, they even used iron to pave the road extravagantly!

Although Zhu Houzhao still wanted to ask the way to the iron shop, it was obviously not the time to interrupt, so he suppressed his curiosity decisively.

[American Yingzong Cleveland: Let me continue. The birth of railways, like canals, played a very important role in increasing the circulation of goods and people. Under such a favorable situation, Wall Street bankers used railway construction projects to develop many investment products. Whether the railway company is profitable or not has become the foothold of rapid economic development. 】

[Therefore, the direct cause of this financial crisis was that in 1857, the shares of the Michigan Central Railroad were the first to fall due to the resignation of its president. Investors began to question the true operating conditions of the railroad company, and related stocks plummeted. The consequences of this were... The Ohio Life Insurance and Trust Company was the first to go bankrupt, because it almost covered most of the railroad financial products on the market. It was a shadow bank for financing in the East and West, and it managed a lot of people's money. 】

[It is not managed well, and many people are trying to recover funds from it. Even most banks want to ask it for money... However, it is obvious that the money has been misappropriated and cannot be recovered. 】

[In order for banks to protect themselves, on October 1857, 10, no one could bear the pressure of outflows of reserve cash, so 13 banks in New York called for a complete suspension of exchange business! As soon as this stopped, the depositors panicked. Although only the 18 banks in New York stopped exchanges, ordinary depositors did not care. They all treated them as if the bank had stopped exchange business. Panic arose and they all stepped forward to make a run...]

Isn't this a replica of the scene where the people of Jinling went to the bank to exchange money?

Zhu Houzhao suddenly thought of the situation caused by his actions.

But here, it is the shopkeepers of their bank who decide on their own!
[This is the origin of the development of the two crises. 】

[The story is that in 1837, President Jackson asked people to buy land with gold. As a result, some banks did not have enough gold, and others stepped forward to exchange it. A run crisis also occurred, causing banks to go bankrupt and workers to lose their jobs...]

[The same happened this time in 1857. 63 of the 62 banks in New York stopped paying, and a run crisis broke out in all of them. The most intuitive manifestation of the two crises is that countless banks went bankrupt. This time in 1857, 5000 companies went bankrupt...]

[The consequence is... Since 1837, the United States has experienced sluggish development, and the people have become increasingly dissatisfied! President Jackson's successor, Martin Van Buren, resigned as a result, and the reputation of the Democratic Party suddenly dropped to its lowest point, which allowed the Whigs to take advantage of the momentum. 】

[The consequences of the crisis in 1857 further intensified the antagonism between the North and the South, laying explosives for the actual outbreak of the civil war. 】

[Meixuanzong Jackson: This...is actually such a situation? 】

Jackson was silent.

[Mercier Lincoln: So, the Civil War was not only caused directly by my coming to power, but also the economic crisis was also a very important reason? 】

Lincoln felt a lot less stressed. He always thought it was him.

[American Yingzong Cleveland: From the perspective of the overall development of things, this is indeed the case. But judging from how things broke out, it is true that the war broke out after President Lincoln was elected...]

[Mercier Lincoln:...]

[Meixuanzong Jackson: So... what is the solution to the two crises? How to deal with it, how to end it? 】

Jackson quickly regained his composure and resumed the relationship.

[American Anglo-Cleveland: The end of 1837 was the disgrace of President Jackson, the resignation of President Van Buren, the lowest prestige of the Democratic Party, and the rise of the Whigs. However... the solution was basically to rely on hard resistance. It was not until the discovery of gold mines in San Francisco in 1848... that a large amount of gold reserves came up, coupled with increased investment in railway construction, alleviated the crisis. 】

[But don’t you think it’s weird, because increasing railway construction solved the first economic crisis, but the second crisis that followed closely in 1857 appeared during the boom of railway construction...]

Cleveland sighed in passing.

[American Xuanzong Jackson: Yes... from 1837 to 1857, we had a crisis only twenty years later. Why is this? 】

Jackson was confused again.

[American Taizu Washington: Putting aside this, how was it solved this time in 1857? 】

Washington was more concerned about the aftermath of 1857.

[American Yingzong Cleveland: As I said, this time led to the outbreak of the Civil War in 1857, and a large number of unemployed people happened to be able to serve as soldiers. At the same time, with the signing of President Lincoln's Homestead Act, many people were called upon to carry out western development. The victory of the civil war liberated a large number of labor forces, and coupled with the development of science and technology, our economy prospered again...]

[Similarly... With the help of these two crises, those families with money began to annex and acquire these banks and assets. They made crazy accumulation during the crisis, and eventually transformed into large consortiums, leaving behind our president, Congress, etc. , secretly controls the financial power of our United States...]

[They then used the huge financial power in their hands to make political contributions, support the election of some poor members, enter the Congress, and eventually...become the real power behind the scenes in our United States. 】

[Meixuanzong Jackson: Can’t we establish a powerful financial regulatory agency and firmly hold financial power in our hands? 】

Jackson finally understood why Cleveland encouraged him to tyrannically steal the United States.

In this case, if he doesn't steal, someone will steal.

[American Yingzong Cleveland: There are indeed people calling for the establishment of a third national bank again... However, President Jackson, under this loose financial supervision, it is easier for those people to make money. In addition... some of the congressmen they fund are in charge of Congress, and many people do not fully understand financial power... It is difficult for our top leaders in the United States to reach an agreement. This financial regulatory agency... I am afraid that it will be a corruption regulatory agency like His Majesty Yuwen said. It was too late to establish. 】

Cleveland concluded pessimistically.

This is also true. Historically, the period from Jackson's abolition of the Second National Bank to the establishment of the Federal Reserve was called the free financial period. This period became the golden age of capital.

Later, financial crises broke out frequently, and financial giants wanted to further control the United States.

Since 1907, Morgan had led a group of consortiums to prepare to establish the Federal Reserve.

But this plan lasted from 1907 to 1913, when the interests of all parties were finally agreed upon.

In 1913, Congress finally reached consensus and passed the Federal Reserve Act.

President Wilson signed the bill, officially declaring the establishment of the Federal Reserve.

　Five thousand words spread! I wrote this damn thing in one go and it gave me a headache to look up the information! Ask for everything!
　　
　
(End of this chapter)