The Fourth Lingshi Financial Crisis

Chapter 3 President Li Qingyang

Spiritual energy is contained inside the spiritual stone, which is a necessary precious consumable for cultivators in Kyushu to break through and upgrade, kill people and seize treasures, and participate in auctions. According to ancient legends in the cultivation world, cultivators in the ancient and middle ages directly used spiritual stones as currency.

However, the use of spirit stones as currency quickly revealed huge disadvantages: spirit stones are special commodities with dual attributes of high-end consumer goods and financial products, and there are also commodities with very similar properties on the earth, that is Feitian Moutai.

Although these commodities are all hard currencies, they are naturally not suitable for use as currency. The reason is simple:
The essence of currency is the medium of exchange.

The amount of currency issued by monetary policy authorities should theoretically be determined according to the total demand for currency in the market, and the total amount of currency issued should also be adjusted according to the actual needs of economic development, neither too much nor too little.

But regardless of gold, Lingshi, Bitcoin, Feitian Moutai, they all have fatal flaws as currencies, that is, the growth rate of output cannot be controlled independently, so the social money supply cannot grow synchronously with the economic aggregate.The mismatch between monetary aggregates and economic aggregates will undoubtedly lead to disastrous consequences.

To give a theoretically inappropriate but simple and intuitive example of the gold standard:
Assuming that there is only one kind of wealth on the earth - flour; there is only one currency on the earth - gold; and there are only 100 tons of gold and 100 million tons of flour in the world, then at this time, each ton of gold is worth [-] tons of flour.

With the development of the global economy and the improvement of labor production efficiency, assuming that the world will have 200 million tons of flour wealth in a few years, but if the total amount of gold is still 100 tons, then one ton of gold is now worth [-] tons of flour .

In this process, the flour was obviously created by the laborers, but the wealth of the gold hoarders increased by 100% out of thin air.

This example of flour and gold is not theoretically accurate, because the total supply of money is also related to the speed of money circulation, but it still roughly illustrates the reason why the gold (spiritual stone) standard system must collapse: that is, with the With the development of the economy, the total output of global gold (spiritual stones) cannot keep up with the economic growth rate, and gold will naturally appreciate in value, thus encouraging everyone to hoard gold instead of creating wealth, which has created a negative incentive for workers.

Laborers will find that they have worked hard for half a day to make flour, and the result is to make wedding dresses for those who hoard gold. If this is the case, who will work to create value?It would be great if everyone went to speculate in gold!
In this case, the outbreak of monetary and financial crisis is the inevitable result.

Just like the collapse of the earth's gold standard, the spiritual stone standard currency system also quickly triggered a strong deflationary effect in the short term because the total currency issuance (soul stone output) could not meet the needs of economic development.

Similar to Feitian Moutai, Lingshi are high-end consumer goods that are easy to be hoarded. The higher the price, the easier it is to be hoarded. However, due to the strong downstream consumer demand, the deflationary trend of Lingshi is more violent than that of gold. And quickly detonated the first Lingshi financial crisis.

In order to solve the Lingshi financial crisis, successive generations of cultivation economists successively launched the [three-standard currency system] in which Lingshi, gold, and silver are linked to each other, and the [Kyushu Currency Union System] similar to the Earth's Bretton Woods system.

These two generations of monetary systems were ultimately destroyed by the second Lingshi financial crisis and the third Lingshi financial crisis because the standard currency could not be completely decoupled from Lingshi.Today's [Lingshi Credit Currency System] in the Kyushu cultivation world is the fourth-generation cultivation currency system established on the basis of the balance sheet of the Lingshi Reserve Bank during the third Lingshi financial crisis.Its underlying logic is already very close to the mainstream currency system of the earth, and its issuance is basically not bound by the spirit stone itself.

The chief designer of the fourth-generation cultivation monetary policy is known to everyone in the cultivation world of Kyushu. It is Lu Yang, the founder of Lingshi Reserve Bank, who is known as the "Emperor of Comprehension Finance". In the past few years, one of the three immortals who ascended to heaven.

Now Li Qingyang, the third president of Lingshi Reserve Bank, is the registered disciple accepted by President Lu Yang back then.

Li Qingyang was originally from Jindaomen, a little-known sect in Zhongzhou.It is said that when the Golden Knife Sect was at its worst, Li Qingyang was the only commander left in the entire sect. In addition, Li Qingyang's cultivation aptitude was only poor, and the entire sect was facing the crisis of being cut off.

But just like the protagonist of the web novel, Li Qingyang has shown outstanding talents in mathematics and finance since he was a child. After he just stepped into the middle stage of Qi refining, he was fortunate to be highly appreciated by President Lu and became his right-hand man.

His personal resume can also be described as luxurious.

From the economic and mathematical consultant of the Wuliangjian School, to the director of the research department of the Cultivation Financial Supervision Committee, to the assistant to Li Rui, the second president of Lingshi Reserve Bank, to return to the Cultivation Financial Supervision Committee as the chairman, and finally to succeed Li Rui as the president, Became the third president of the Lingshi Reserve Bank and held the supreme power of comprehension finance for 200 years.

According to rumors, on the eve of President Lu Yang's ascension to the fairy world, there was such an interesting incident:
Someone asked President Lu Yang: "After you ascended to the heaven, who is qualified to manage the Lingshi Reserve Bank?"

President Lu replied: "Li Rui, the Supreme Elder of the Infinite Sword Sect's Nascent Soul Stage, can do it."

Another question was asked: "Elder Li doesn't have much life left. After he passes away, who can be the president of the Lingshi Reserve Bank?"

President Lu replied: "Li Qingyang of the Golden Knife Gate is fine."

Someone else asked: "Then what will happen after Li Qingyang's life essence is exhausted?"

President Lu just smiled: "Don't ask me about such a distant matter, the monks of the younger generation will take care of it."

This plot of "President Lu Tuogu" is well-known in the Kyushu cultivation world, and this plot itself is not fabricated out of thin air.

After all, the president of the Lingshi Reserve Bank is the core position of the Wuliang Sword Sect, and its importance is no less than that of the head of the Wuliang Sword Sect.

But Li Qingyang has never formally joined the Wuliang Sword Sect, and even served as the head of the Golden Knife Sect part-time for more than 300 years, developing the Golden Knife Sect from a small sect with few followers to a second-rate sect in the top ten in Zhongzhou.

Although Li Qingyang is the most famous cultivation economist in the field of cultivation in Kyushu today, he still needs a strong person to overcome all opinions if he is able to serve as the third president of the Infinite Sword Sect Lingshi Reserve Bank as a foreign monk.And there are only a handful of big figures who can have such prestige, and have gone through the history of the cultivation world of Kyushu.

Considering the relationship between President Li and President Lu in the early years, the credibility of this joke of "President Lu Tuogu" is quite high.

It's a pity that President Li Qingyang's cultivation talent is really limited. Even if the Infinity Sword Sect fully provides him with cultivation resources, even if he obtains immeasurable merits and virtues by taking charge of cultivation and financial power, his cultivation still stops at the early stage of Jindan.

For the low-grade spiritual root monks, this kind of cultivation is unprecedented and unprecedented. It is not an exaggeration to say that Li Qingyang is the most powerful low-quality spiritual root monk in the history of the Kyushu cultivation world.However, even for a monk at the early stage of Golden Core, the maximum lifespan would not exceed 600 years, not to mention that Li Qingyang only had one level of Golden Core cultivation.

After hundreds of years passed, this legendary economist of cultivation finally ushered in the end of his life!
It's just that this President Li Qingyang has been in charge of the highest financial authority in the cultivation world of Kyushu for hundreds of years. He is like a sea god who defines the cultivation of finance, and his prestige is higher than that of the heads of the seven major sects in Kyushu.

Hearing the news of his imminent death suddenly, even ordinary drinkers in Haiya City will inevitably feel unacceptable.

As soon as the news came out, people immediately surrounded the girl newsboy. They didn't ask the price at all, and just threw Lingshi coins into her hands, just to be one step ahead and learn about the details of this heavy news.The heavy newspaper bag that the newspaper girl was carrying across her shoulders was sold out quickly.

Before she recovered from the surprise, Yang Lu shrugged at her and said, "What did I tell you? A little bit of information to whet everyone's appetite is much better than you hiding it. This way of selling is called hunger marketing!"

At this moment, two more newsboys came from the corner of the street through the snow.

Obviously, these low-level newsboys are not short of smart people, and there are not a few people who can think of coming to the tavern to sell newspapers.

But unfortunately, because the girl who sells newspapers threw a blockbuster first, almost all the drinkers now have a newspaper.The remaining two newsboys looked around, but they didn't see anyone needing newspapers, so they sighed and left angrily.

Seeing the desolate figures of the two newsboys slowly disappearing into the wind and snow, the newspaper girl was only grateful.

She didn't know that Yang Lu was actually a prostitute, and she thought that she was lucky enough to meet an expert.Thinking that if Yang Lu, an expert, hadn't suggested something in secret, the unlucky one would have become herself, and the newspaper girl couldn't help but feel a little scared.

(End of this chapter)