Fanhua: Abao, stop here and pay me back.

Chapter 67 The number on the treasury bill is not necessarily the real price (22, please order first)

"But these are not enough to show that treasury bills will become freely tradable next year. The country does not only use this policy to make up for local fiscal deficits. How can you be sure that the country will use this policy?"

Abao is covering up for the "knowledgeable image" that he doesn't know still exists.

Gou Siji's smile overflowed from the corner of his mouth, and he could see it clearly.

People still have to fight for something.

"Hmph~~~Hum~~~~, because there are two ways to solve local fiscal deficits. One is for the state to take care of the deficit. As much as the local governments are short of money, the central government will use the central bank, fiscal subsidies and other state-specific things. To make up for it; another idea is to leave it to the local governments and let them issue treasury bills and other local bonds."

Gou Siji tried hard to control his laughter because he saw Abao trying to hide it.

There is no way, the smile is like this, it is balanced.

When a person smiles, it must mean that someone's smile disappears.

Gou Siji knew this was unreasonable, but he just thought of it inexplicably.

After all, as A Bao studied with his uncle, he began to become more and more mature. It is very likely that such a scene will not be seen again in the future.

You have to keep these memories well.

"You also said that there are so many means, why must we use the means of allowing the circulation of treasury bonds to make up for local fiscal deficits? Can't the state send money to local governments?"

Abao is a little unaware.

He was still refuting Gou Siji from what he thought was a loophole.

The cheeks on both sides were slightly bulging.

"The country has national tasks, and local governments have local tasks. As far as the current environment is concerned, the country's own tasks require a large amount of money. How can there be any spare money to relieve local governments? And the bank's money is not in vain. A small part of it is residents' savings, and most of it is borrowed from the state. No matter what methods are adopted at the national level, there is no way to completely solve the local fiscal deficit."

Gou Siji also sighed when he thought about the country's difficulties in this era.

"But the fiscal deficit of local governments will not be paid off with one or two relief packages from the central government. It is almost impossible for local government fiscal expenditures to change in a short period of time, nor can they be significantly reduced, but can only be significantly increased. "

This dilemma is almost insoluble.

This is also one of the reasons why collapse theory emerged in the country in the late 1980s and early 1990s.

The economy has not yet developed, and the industry is not competitive in the world. There is only a huge population and poor resources. In order to maintain people's living standards, the economy with state ownership as the main body must take care of people's lives.

As a result, local fiscal deficits remain high.

This has resulted in local fiscal deficits being like a bloodletting machine that cannot be turned off, firmly slowing down the country's development.

In Gou Siji's previous life, the country had to turn to the real estate industry to reverse this economic situation and solve the huge local fiscal deficit.

Use rapidly growing land revenue to cover increasing local expenditures.

The local fiscal deficit crisis has only improved.

However, in 1987, real estate was just budding, and Pengcheng had just piloted state-owned land use rights contracting (referred to as land sales). The revenue generated from land sales could not support the local fiscal deficit.

"The country really has no money..."

Abao heard Gou Siji's explanation, and heard Gou Siji's voice change from gloating to sighing.

I also came to my senses and realized that it is indeed impossible and difficult to subsidize local fiscal deficits at the national level.

With the crazy help from my uncle, I also gained a lot of new understanding of the country's situation. The current foreign exchange reserves are decreasing every year.

It can be said that the country is on fire.

“Then allowing free circulation of treasury bills in the market will slow down local fiscal deficits?”

Po asked.

Abao is skeptical that the free circulation of treasury bills in the market can alleviate local fiscal deficits.

Could it be that as soon as local restrictions are lifted and local restrictions are lifted and the treasury bills that no one buys locally are able to circulate freely in the market, they will generate value, and people in other places will buy these treasury bills that no one wants even if they are forced to be apportioned?
"Yes. Where there is demand for the issuance of treasury bills, there is a high probability that they cannot afford to pay the interest on these treasury bills and can only borrow new bonds to repay old debts. But places that can afford the interest on treasury bills do not need to use the method of issuing treasury bills. .”

Gou Siji nodded, confirming Abao's guess.

He also talked about the current helpless situation of treasury bill issuance.

"If that's the case, why didn't the country lift the geographical restrictions on treasury bills early?"

Abao continued to ask.

"Because after the national finance and local finance are separated, each locality must be responsible for the finance of its own location. Under the guidance of this policy, everyone must take into account their own development first, and then help the local finance of other regions. Therefore, treasury bills The circulation will be restricted.”

Gou Siji answered Abao's question "Why did you let go now?"

In fact, there is another reason Gou Siji has not revealed, that is, in 1981, when treasury bills were first issued and reform and opening up had just begun, the country did not firmly implement the path of reform and opening up, and there were still doubts about marketization.

Often policies introduced today are withdrawn within a few days.

He even denies his own previously formulated policies.

This is not because the policy direction of the country's top leaders has undergone a 360-degree reversal, but because most people in key positions have not completely changed their minds and realize that marketization is also a good supplement to the social system.

These cannot be explained clearly, I believe Abao also understands.

"A place like Shanghai, which can be considered at the forefront of the economy nationwide, is obviously not troubled by local financial deficits and has the ability to consume. Moreover, the interest rates given by banks are so high that it is easy to take them in your hands. With so much money, we need a place to spend it.”

Gou Siji decided to avoid such a sensitive topic and changed his mind to talk about the significance of doing so.

Shanghai's economy is obviously much better than other inland cities, and it is fully capable of absorbing more treasury bills. Coupled with the encouragement of national policies.

These treasury bills can completely make up for the huge local fiscal deficit in a short period of time.

To give the country the reason why the real estate monster developed.

"That doesn't make any money either."

Abao curled his lips.

Just the interest on Treasury bills.

Even if it can be circulated, how much money will a more developed city like Shanghai be willing to acquire?

Is there any room for me to intervene?
"On paper, you don't make money, but who says that if you go to a city that issues a large number of treasury bills, you must buy treasury bills according to the figures on paper? The actual price of their local treasury bills is a 20% discount to the face value of the treasury bills. It’s not excessive. But in a place like Shanghai, the purchase price is still based on the face value of the treasury bills, which is a huge price difference.”

　This chapter has been overhauled and I finally passed it. It was too difficult.

　　
　
(End of this chapter)