Dressed as the Queen Mother to grasp the script of a strong country

Chapter 32 Silver, Gold and Other Monetary Theories

Liang Meng analyzed the information he got from Liu Xingzhu and combined it with the memory of the original owner. He found that there were five dynasties on this continent, Chaomu Dynasty, Tushui Dynasty, Huoyao Dynasty and Huantu Dynasty.

Liang Meng learned from Liu Xingzhu that there were huge silver reserves in the Tushui Dynasty.

The Chaomu Dynasty was rich in cotton.

Daijin’s rice comes from the Huantu Dynasty.

The Huoyao Dynasty had the strongest military strength.

Liang dreamed that the rice matter was an urgent matter and he needed to send an envoy to the Huantu Dynasty to find the rice and bring it back.

Tu Shui Dynasty had huge silver reserves in its territory.

Liang dreamed that people would occupy land, grow grain, and hand over the grain to officials. Due to the inconvenience of grain transportation, tax collection efficiency would be low.

To solve the problem of inconvenient food transportation, we can change the payment of grain into the payment of copper coins. With sufficient silver, we can change the payment of grain into the payment of silver.

This reminded Liang Meng of monetary theory.

In primitive societies, people exchanged the food they produced with other people's food, such as the exchange of fish and millet. Such exchanges raised a question: does a pound of fish match a pound of millet?

Gradually, people found a thing to measure them called currency between millet and fish. One currency can be equivalent to a pound of millet and half a pound of fish. Currency was born.

Money is the thing by which everything is measured.

Everything must be measured by money, so one conclusion will be drawn that the total amount of all things must be exactly equal to the total amount of money.

Currency evolved from sheep to shells to copper coins, iron coins, silver, gold, and paper money.

The total amount of everything must be equal to the total amount of money.

Therefore, the total amount of all things must be equivalent to the total amount of silver, gold, copper coins, iron coins, and paper money.

If the total amount of everything is not equal to the total amount of silver, gold, copper coins, iron coins, and paper money, deflation and inflation will occur.

The so-called deflation means that money is less than goods. Ten money can buy ten items, but ten money can buy thirty items.

In other words, the raw materials for ten items cost five dollars at the beginning. If they can be sold for ten dollars, they can earn five dollars.

Ten dollars can buy thirty items, and the raw materials for thirty items cost fifteen dollars. In the end, I lost five dollars.

This will cause factories to go bankrupt during deflation, and bosses would rather let their vegetables rot in the fields and let their milk pour into rivers than sell them.

If the factory vegetables cannot be sold and the farms go bankrupt, the people will have nothing to eat.

People without food will rebel and war will result.

Only when items become rotten and the fewer items become equal to the total amount of money will deflation be solved.

The so-called inflation means that there is more money and fewer items. Ten dollars can buy ten items. After inflation, thirty dollars can buy ten items.

The raw materials purchased by the factory originally cost ten dollars, but after inflation, thirty dollars can buy ten raw materials.

Therefore, the factory owner will not raise wages for the workers at this time, because the factory needs to survive, and the workers have not received a wage increase. Originally, ten dollars can buy ten items, but after inflation, thirty dollars can buy ten items. As a result, some workers cannot earn enough to support themselves.

Originally, ten kilograms of pork cost ten yuan, but now ten kilograms of pork cost thirty yuan. Workers may not be able to afford food.

In the conflict between man and land, in the beginning, every common person has land that can produce food, and they can go there if they can eat enough. Officials enclose the land, and the people lose their land. The people who lose the land lose their food. The people who have no food will resist, and the people will revolt. start.

When there is inflation, people's wages cannot afford to buy food. If people don't have food, there will be rebellion and even war.

Only by withdrawing the money or producing more items can the total amount of money and items be kept equal and inflation can be solved.

In ancient times, because smelting technology was not mature enough and resources were fixed, the amount of iron coins and copper coins produced would be relatively small.

The total amount of items and money is equal.

It will be concluded that if there are few iron coins and copper coins, then the total amount of items cannot be more than iron coins and copper coins, and too less than iron coins and copper coins.

In the same way, if the total amount of items is small, then the iron coins and copper coins cannot be too much more than the total amount of items, and they cannot be too less than the total amount of items.

In the Han Dynasty, the total amount of items was equivalent to the total amount of iron coins and copper coins.

But because the emperor needed burial objects after his death, a large amount of money was buried underground.

This caused the total amount of goods to exceed the total amount of money, resulting in deflation and the demise of the Han Dynasty.

During the Tang, Song and Ming dynasties, the economy was prosperous and the total number of goods was large, but because copper resources were fixed, technology was limited.

This creates a situation where there are more items but less money.

For this reason, the currency of the Tang Dynasty included not only copper coins but also iron coins, and cloth was used as currency to make up for the lack of money.

In order to solve the problem of lack of money, the Song Dynasty also had iron coins and paper money in addition to copper coins.

In order to deal with Shao Qian, the emperor of the Ming Dynasty set up gold-touching captains, the so-called tomb robbers, in addition to copper coins, paper money, and silver.

Because in ancient history, in order to solve the problem of lack of money, there were always multiple currencies.

Ancient currency developed from silver, gold, copper coins, and iron coins to paper money because paper money was easy to carry.

It is very convenient to make banknotes. The raw materials for making banknotes are trees and other things that can be produced continuously.

And banknotes are easy to make.

The Song Dynasty began to use paper money - Jiaozi, but why were paper money easy to make and convenient, while silver and copper coins were still used in the Ming and Qing Dynasties?

The Song Dynasty was surrounded by enemies on all sides, and when facing foreign enemies, it needed food. With food, there would be a population, and with a population, there would be an army.

Food can be understood as equivalent to money.

The Song Dynasty also needed money, a lot of money.

At this time paper money appeared.

Paper money is easy to make. What would the rulers of the Song Dynasty who needed a lot of money do when faced with easy-to-make paper money?
The answer is that he will print a lot of money.

Eventually, there will be more money and less goods, which will lead to inflation.

As a result, the food was too expensive and the people could not afford it, and then the people resisted. When the Song Dynasty suffered from external and internal troubles, it fell.

The total amount of items is equivalent to the total amount of copper coins, iron coins, silver, gold, banknotes and other currencies.

Copper coins, iron coins, silver, and gold are not as convenient as paper money, and the raw materials can be recycled and easily produced. Paper money will replace copper coins, iron coins, silver, and gold.

The total amount of items is equivalent to the total amount of currency.Copper coins, iron coins, silver, gold, banknotes, etc. are all currencies.

Paper money can conveniently replace gold, etc.

The total amount of paper money is equivalent to the total amount of items, and the total amount of items is equivalent to the total amount of copper coins, iron coins, silver, and gold.

Since items are always too large and difficult to determine, banknotes are always issued indiscriminately, so in the end it is concluded that the total amount of banknotes must be equivalent to the total amount of copper coins, iron coins, silver, and gold. This is the reserve system, which is also It is the anchor, which is the gold standard and the silver standard, that is, paper currency is linked to copper coins, iron coins, silver, gold, etc.

Paper money is easy to make, which will lead to the indiscriminate issuance of paper money. The increase in paper money will lead to more money and less goods, leading to inflation. Therefore, there must be a quantity to control paper money, which is copper coins, iron coins, silver, gold, etc.

Currency measures items, so this currency can be sheep, shells, copper coins, iron coins, silver, gold, banknotes, etc.

Gold has been recognized by the whole world since ancient times. In different regions and regional currencies, items are measured, and the whole world is regarded as one region.

After World War I and World War II, the beautiful country obtained the largest reserves of gold due to its geographical location and strong military strength. Gold has been recognized by people all over the world since ancient times. Paper currency needs to be linked to gold. Eventually, the US dollar was linked to gold, and the circulation of goods Globalization eventually made the world trade goods in dollars.

In the world, the total amount of dollars must be equal to the total amount of goods equal to the total amount of gold.

However, the U.S. dollar is easy to manufacture as banknotes, and the total amount of items is growing. Due to the limited gold resources, the total amount of gold reserves will eventually be greater than the total amount of gold. The total amount of U.S. dollars is equal to the total amount of gold. The total amount of items is greater than the total amount of U.S. dollars. This will result in less money, more goods, and deflation.

Currency is a measure of things, not who the currency must be. Currency can be copper, silver, gold or anything else.

Gold reserves obviously cannot be used to measure things, so another currency - oil - emerged.

The U.S. dollar is once again pegged to oil, using oil as its anchor.

Because oil is necessary for the machinery of industrial society, oil is recognized around the world, and the U.S. dollar is pegged to oil.

If there are two currencies in a dynasty, such as gold and iron money.

There will be a comparison between gold and iron money. In people's perception, gold is better than iron money. People will store gold and use iron money to trade, which will cause gold not to circulate. The circulation of iron money caused bad money to drive out good money.

When comparing paper money with copper coins, iron coins, silver, gold, etc., paper money is just a piece of paper, and its function is to make fire at most, while copper coins, iron coins, silver, and gold can be used to make weapons, works of art, etc., far more than Paper money works.

If copper coins, iron coins, silver, and gold are not only used as reserves, but banknotes can be exchanged for copper coins, iron coins, silver, and gold. If banknotes are circulated together with copper coins, iron coins, silver, and gold, only banknotes will be circulated without circulation. Copper coins, iron coins, silver, and gold cause bad coins to drive out good coins.

This will result in fewer and fewer copper coins, iron coins, silver, and gold as reserves, fewer and fewer copper coins, iron coins, silver, and gold in the hands of rulers, and less and less copper coins, iron coins, silver, and gold in the hands of the people. The more it is, the more it will not circulate.

As more and more paper money circulates among the people, the link between paper money and copper coins, iron coins, silver, and gold will loosen. The copper coins, iron coins, silver, and gold in the hands of the rulers will decrease, and the people can exchange them, and the more money they have in the hands of the rulers. Come less and less.

If the people cannot exchange money from the rulers and the people will not take out the copper coins, iron coins, silver, and gold in their hands, the rulers will persecute the people if they want what the people have, and the people will lose trust and eventually attack the rulers.

Liang dreamed that the currency of Dajin at this time was copper coins and other currencies. The total amount of Dajin items that had just experienced the war was equivalent to the total amount of currency.

Increasing food production can feed more people and generate more labor. When they enter business, they are bound to produce more items, which requires more money.

Silver is the best choice.

As for why Liang Meng didn’t choose banknotes?

Banknotes are convenient and easy to make. This is both an advantage and a disadvantage of banknotes.

In an agricultural society, only those who are loyal to the ruler and do not resist can resist natural disasters, and people are not allowed to disobey the ruler.

Paper money is convenient and easy to make and is a measure of all items. It is directly linked to resources. The instinct of animal survival naturally expands and plunders resources to survive.

The people obey the ruling class, and the biological survival instinct plunders resources. Paper money is synonymous with resources.

How could the ruling class stop issuing banknotes indiscriminately without supervision and control?

To supervise and control the ruling class and prevent the excessive issuance of banknotes, a central bank is needed.

It also appeared in agricultural societies that financial institutions such as banks and officials were in charge of accounting. However, in mainstream societies where obedience was important, banks and officials who obeyed the ruler could not supervise the ruler.

Banks are needed for supervision, and banks are also needed for concentrating efforts on big things.

In an agricultural society, people obtained land to grow food and handed the food to tax collectors such as officials, officials, etc., who handed it over to the central emperor.

In agricultural society, the backwardness of farm tools and low production efficiency resulted in not much grain being produced, and there were few officials. It was very inconvenient for officials to collect grain. The officials were corrupt, and in the end the emperor collected very little tax.

Since less taxes are collected and there are fewer officials, the efficiency of tax collection is slower, and less and less taxes are collected, creating a vicious cycle.

Because low taxes will mean that the emperor will not be able to do anything he wants to do. Building canals requires a lot of labor, and these labors need to eat. And collecting low taxes will cause the labor force to have no food to eat, let alone pay wages, which will lead to resentment among the people. Heaven and earth may eventually lead to riots and uprisings.

If more infrastructure needs to be built, more money will be needed, and banks will be needed.

Why do you need a bank?
英国
When the king faced a war, he needed more money, that is, food. The more people he had, the more troops he had.

Due to underdeveloped agriculture, the development of commerce collected taxes from merchants. With the development of machinery and navigation, merchants became richer and richer.

The merchants struggled to keep their property and the king wanted the merchants' property.

The land that can produce resources, those who occupy the land are called landlords, and the opposite are farmers.

The people who occupy the machines, etc. that produce resources are called bourgeois businessmen, and the opposite is workers.

The landowners elect the emperor they need, the emperor is the largest landowner, and the bourgeoisie elects its spokesperson.

The bourgeoisie and the landlord class are both people who occupy resources, and the others who correspond to them are the same people.

In order to protect their property, the merchants fought against the king. In the end, the two reached an agreement to limit the king's power, ensure the ownership of the merchant's property, prevent the misuse of money, establish a central bank, a supervised central bank, and restrict the issuance of banknotes. , Britain also moved from the gold and silver standard to the paper currency standard.

Doing something requires money, and in an agricultural society, borrowing money between people relies on trust between people, which will result in not being able to raise a lot of money in the end.

Banks can provide money to people who need it without trust between people. In this way, they can concentrate money to do more things, invest in research and development of machines, build factories, etc.

Britain has become an empire on which the sun never sets due to the superiority of its system.

In the late Qing Dynasty, from studying Western technology and military to learning systems and then overthrowing ideas, when learning technology systems, they always encountered official corruption and obedience to rulers. The rulers had too much power and all of this needed to be eliminated ideologically. This This is the lesson learned from history.

There were merchants in ancient times, but why couldn't they form a bourgeoisie?
It is precisely because of the environment of an agricultural society that the rulers have too much power and require the people to obey. Businessmen influenced by Confucian culture will never become true Western businessmen, which ultimately leads to a central bank that does not have supervisory power.

By doing business with overseas countries, the Ming Dynasty sold porcelain and cotton cloth to the world, and received an influx of overseas silver. As a result, items and silver were always equivalent, and the Ming Dynasty maintained its rule.

Liang Meng is determined to get the silver mine. The reserves of the copper mine cannot adapt to the future society, so he will definitely face a money shortage problem and cause deflation.

In an agricultural society, obedience is important, and there is currently no way to issue banknotes. Without supervision, banknotes will be issued indiscriminately, causing inflation.

Issuing two kinds of coins will definitely cause bad coins to drive out good coins, which is not advisable.

Therefore, obtaining silver is a must for various reasons.

(End of this chapter)

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