parentshiftbook Chapter 168: The Credit Currency System Is Not Suitable For The Current Era [Please Subscribe, Pleas
Chapter 168: The Credit Currency System Is Not Suitable For The Current Era [Please Subscribe, Pleas
At this moment, Zhu Yuanzhang, Empress Ma, and the princes Zhu Biao, Zhu Di, Zhu Fan, Zhu Di and other princes all understood what Yan Changqing said before about the treasure banknote system. The biggest shortcoming is that money comes in too fast.
Indeed!
From rare and precious metal currencies such as gold, silver and copper coins to paper treasure currency, this is an epoch-making development and difference.
The former still relies on the main value of precious metal currency itself for buying, selling, circulating and trading. In the process of buying, selling, circulating and trading, its highest value limit is still limited by its own value.
In other words, gold worth one hundred may be sold for one hundred and ten, one hundred and twenty, one hundred and thirty... or even three hundred!!!
However, its gold value of only one hundred is already doomed. No matter how it is sold, it is impossible to sell it for a gold value of 100 liters!
Because gold worth only one hundred, selling gold worth one thousand, such a thing itself is against the value!!!
Unless it is said that this gold, which is only worth one hundred, has encountered substantial monopoly, malicious speculation and price increase.
In this way, the value of gold itself, which is only worth one hundred, is distorted, so that it is possible to sell gold worth one thousand.
But the latter, paper banknote currency, relies on the issuer's own credibility value for buying, selling, circulation and transactions.
In the process of buying, selling, circulating and trading, its highest value limit does not lie in the value of the paper currency itself, but in the credibility of the issuer itself!
This means that if one's credibility is strong enough, it is possible to sell only one thousand or ten thousand gold or other items worth one.
One hundred thousand, or even tens or millions of dollars!!!
Because paper currency is essentially a credit currency!!!
For example, a rich man in the world and a young man who is temporarily unemployed each ask others to borrow money.
The richest man in the world may easily be able to borrow tens of millions, or even hundreds of millions, without any collateral, simply by relying on his own credibility, or credibility.
As for the temporarily unemployed young people who have no mortgage, they may only be able to borrow a few thousand or a few dollars based on their own credibility, or credibility.
This is the difference brought about by the huge difference in credibility between the two sides.
Similarly, if the world's richest man and a temporarily unemployed young man each issue a banknote currency.
Then the banknote currency issued by the world's richest man may still be issued and operated smoothly even if the currency value exceeds tens of millions, hundreds of millions, or even tens or tens of billions.
However, the currency issued by a temporarily unemployed young man will stagnate when the currency value reaches several thousand or ten thousand, and cannot continue to be issued or operate.
Because for ordinary people, even if the value of banknotes issued by the world's richest man exceeds tens or tens of billions, they believe that the wealth and ability of the world's richest man can compensate for such losses.
But for ordinary people, once the currency value of banknotes issued by temporarily unemployed young people exceeds several thousand or ten thousand, they will begin to doubt whether the temporarily unemployed young people have enough wealth and ability to compensate for such losses.
Moreover, another characteristic of credit currency is that the more people believe and use it, the higher its upper limit will be.
For example, a certain virtual currency before Yan Changqing's time travel, essentially, it has no value, but from the perspective of credit currency, as long as someone trusts and uses it, then it has value.
And the more people trust and use it, the higher its value will be!!!
At the peak of Yan Changqing's previous life, the value of a single coin in a certain virtual market was equivalent to the value of the national currency of about 450,000!!!
The originally worthless virtual currency, due to the trust, use, hype, etc. of countless people around the world, finally has a value that exceeds 450,000 times its own value!!!
The lower limit of worthlessness and the upper limit of 450,000, this is the charm and terror of credit currency.
And if a country's terrifying size were to issue a paper banknote credit currency, then the maximum limit of this paper banknote credit currency would be the sum of the wealth of the country's tens of millions of people!!!
As long as the issuer is willing, he can use the country's credibility at any time to issue a massive amount of paper banknotes, and in a very short period of time, he can collect the wealth of tens of millions of people in the entire country!!!
Although once this is done, both the publisher and the country will be overthrown and buried by angry people.
But overthrow, bury, overthrow, bury, at least the credit currency of paper treasures can really collect the wealth of millions of people.
And such a thing is basically impossible to do if you switch to traditional precious metal currencies such as gold, silver, and copper.
"I believe that Your Majesty will not be greedy or plunder the wealth of millions of people~||"
"I also believe that His Majesty will be vigilant to avoid excessive issuance of Ming Dynasty Tongbao banknotes after knowing the dangers of excessive issuance of Ming Dynasty Tongbao banknotes.'
"However, if one day, the Ming Dynasty encounters various natural and man-made disasters one after another, the national treasury will really have spent all its annual income, but it will still be unable to continue."
"By then, if the Ming Dynasty's currency is not issued to relieve financial pressure and relieve people's livelihood, the Ming Dynasty may be in danger of overthrowing on the spot."
"And if the Ming Dynasty's currency is issued, it will only lead to inflation in the future, leading to the overthrow of the Ming Dynasty."
"I don't think I need to tell you how to choose between the two. Your Majesty also has the answer in his mind."
". "In the past, Dayuan actually faced the choice I just mentioned.
"And Dayuan also made the same choice as His Majesty."
"In the end, it was His Majesty who personally overthrew and buried Dayuan."
Yan Changqing looked at Zhu Yuanzhang and advised him sincerely.
In Yan Changqing's view, banknotes, a type of credit currency, are still a bit too advanced in this era.
In the current era, when the civil and military officials of the Manchu Dynasty did not know as much about economics and finance as a layman like him, it was really not suitable to play with credit currency.
You must know that even in the previous life, there were a large group of immortal bosses who had an incomparable understanding of economics and finance. They still failed the credit currency from time to time.
It would be strange if Zhu Yuanzhang and the others could play the credit currency well.
In fact, in the original history, the Ming Dynasty's universal treasure banknote system established by Zhu Yuanzhang was destroyed in less than a hundred years.
Otherwise, the Ming Dynasty had been forced to run banknotes and copper in parallel, and there was always a copper-based currency system to barely support it.
Coupled with the opening of gold and silver for use in the mid-Ming Dynasty, a bistandard currency system of copper and silver (de Wang Hao) was established, re-supporting the monetary system of the Ming Dynasty.
As early as when the Ming Dynasty's popular banknotes, which represented the credibility of the Ming Dynasty, were destroyed, the Ming Dynasty should have been destroyed like the Yuan Dynasty when it could not even survive a hundred years.
In the end, the reason why the Ming Dynasty did not finish in less than a hundred years can only show that the Ming Dynasty was lucky.
When the Ming Dynasty's currency system of banknotes, which represented the country's credibility, collapsed, gold, silver, and copper, which had also accumulated huge credibility throughout the ages, came to support the currency system, and that was it.
But this does not mean that the Ming Dynasty played very well with Tongxing Baobao. It should even be said that the Ming Dynasty played worse than the Yuan Dynasty in terms of Baobao.
Therefore, in the middle and late Ming Dynasty, the Ming Dynasty went back to using the traditional precious metal currency system that had existed in the Central Plains for thousands of years.
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