I, Zhu Houzhao, join the US imperialist chat group

Chapter 56 Zhu Houzhao: Did Ming Dynasty also experience an economic crisis?
[Meixuanzong Jackson: First, the price of land has increased. Some people even copy the value of the land and sell it, making several times the profit...]

[The second thing is, very magically, the real estate market in New York and Chicago is also getting higher step by step... resulting in many people paying high prices to build houses. According to their current housing construction plan, I feel that the houses they have built are enough to house 10 million American citizens... Why do they plan to build so many houses? Inhabited by Indians? 】

[Then there is the banking industry... Some people only have a piece of land, but they can get more than 100,000 US dollars through mortgage. Then they use the more than 100,000 US dollars to open another bank and collect millions in savings... A piece of land worth US$50,000 could eventually be worth almost US$300,000...]

It’s time to reach a stage in the economic field that Zhu Houzhao is unfamiliar with.

But this time, because Zhu Houzhao had previously made up for Emperor Wu of the Han Dynasty's economic operations and asked the Jinling Household Department to investigate the changes in the value of Ming Dynasty treasure banknotes.

He can barely be considered a novice in economics.

But he still didn't understand the economic phenomena described by Jackson.

For example, what Jackson said, why do those businessmen buy land and build houses like crazy? After building houses, will so many people buy them?
Also, the value of land has increased, and some people have even joined forces to raise land prices and go to banks for mortgage loans...

He really doesn't understand these rather complex economic phenomena.

But there must be someone who understands, and this may also be an opportunity for him to learn and improve.

[American Yingzong Cleveland: Stop, President Jackson, needless to say! I already know what question you're going to ask. It's about our Great Depression of 1837, which was even considered the first economic crisis in the United States, right? 】

However, Cleveland certainly understands. Not only does he understand, he is still experiencing an economic crisis.

Before Jackson finished speaking, he gave the result.

[American Xuanzong Jackson: The first economic crisis? Does that mean we have a second or third time? 】

Jackson is keenly aware of the pattern of this naming method, one naturally leads to another.

[American Yingzong Cleveland: President Jackson, you guessed it correctly, but there is no prize. Later, we had several economic depressions, which were probably similar to the one during your tenure. Even the methods of dealing with them were similar, and we all imitated you. 】

[American Yingzong Cleveland: Now you plan to restrict them from buying land with paper money. If they buy land again, they can only use gold and silver, right? Because this can alleviate the problem of overheated land development and even prevent such false prosperity for a time, right? 】

The crowd rarely became quiet, and Louis XVI and the others could not get a word in, because they, like Zhu Houzhao, knew nothing about economics.

I can only watch silently.

[Meixuanzong Jackson: Yes. 】

Jackson was prepared to do this, and Cleveland's answer also made his heart move: [So, historically, I have also adopted this method to alleviate this crisis? 】

[American Yingzong Cleveland: My dear President Jackson, reverse relief. This move of yours has accelerated the economic panic and further promoted the crisis! 】

[Do you know what this means? It means devaluation of banknotes and a run crisis! 】

[Those businessmen will be crazy about holding banknotes and exchanging gold from the bank! 】

[But banks don’t have so much gold and silver reserves! This directly led to the bankruptcy of countless banks! 】

[The banknotes in the hands of countless citizens and businessmen turned into waste paper almost instantly! This then triggered a chain-like economic collapse. Land that originally cost US$100,000 suddenly dropped to US$10,000 or even US$5,000. Countless people's mortgages were suddenly repossessed by banks... Hundreds of thousands of people were instantly displaced! 】

[To give an inappropriate example, a citizen with 10,000 US dollars in hand could have purchased a house, but in an instant, if you continue this move, he can only purchase a chair. 】Cleveland unceremoniously exposed the economic crisis that Jackson had single-handedly contributed to.

At this time, the study of US dollars and British pounds is bound to gold.

That is, how much gold is there and how many banknotes are issued.

However, because of Jackson's move to cancel the central bank, state banks lacked supervision and directly started printing money.

There was a crazy flood, causing inflation, and then there was not so much gold to support it, which directly caused the collapse of prosperity, and countless people became the price.

[Meixuanzong Jackson: What? How could this happen? Then, doesn’t it mean that we can do nothing but watch this crisis unfold? 】

Jackson was dumbfounded. He didn't know how to save this crisis for a moment. Facing such an invisible opponent, he felt powerless.

[American Taizu Washington: Wait, please explain it clearly. How come ten thousand dollars can only buy one chair all of a sudden? Why don't I understand something. 】

[American Taizong Jefferson: I don’t understand either. Is this the national credit that Hamilton often mentioned? National confidence? The cornerstone of the country? 】

Washington and Jefferson asked the question at the right time.

[Merezu Louis XVI: Why do I feel that it is somewhat similar to our current domestic situation... The finance minister seemed to have told me that the bread that originally cost only ten livres now seems to have increased to thirty livres. Foer...]

Louis XVI was confused at first, but when the examples of houses and chairs came up, he also thought of the current inflation situation in France, which seemed to be somewhat similar.

"Isn't this what Zheng Ji said before? Isn't it similar to how one hundred gold notes can only buy two or three steamed buns in an instant?"

Zhu Houzhao frowned, thinking of his previous exchange with Zheng Ji, and this situation also appeared on the banknotes.

Therefore, the Ming Dynasty treasure banknotes are becoming less and less valuable, and there is also the so-called Ming Dynasty economic crisis?

Zhu Houzhao cheered up, vaguely feeling that the economic crisis in the United States might also be an opportunity for him to find the deactivation of Ming Dynasty banknotes.

[American Yingzong Cleveland: President Jackson, don’t lose heart. Did I say you can't solve this problem? Don't sign the gold-purchasing land bill now. Wait a while and go to San Francisco! San Francisco can solve your economic crisis! 】

Cleveland sensed Jackson's confusion and directly provided a solution.

[Meixuanzong Jackson: San Francisco? Where is this? What's here to solve this crisis? 】

Jackson was confused instead, and Washington and Jefferson also looked suspicious.

[American Yingzong Cleveland: Don’t you know San Francisco? It's California...ah, wait! President Jackson, at this time, it seems that California is not in our hands, but in the hands of Mexico! 】

Cleveland was still a little hesitant that the President of the United States did not know San Francisco, but he soon realized that during the Jackson period, the United States really did not have California and did not know San Francisco.

San Francisco is the territory that Mexico ceded to the United States after the Mexican-American War!

(End of this chapter)