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Text Chapter 230 Inflation

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    Chen Xu looked at Feng Che and Mengyao, his eyes full of disbelief.  It's just the second child. He was originally two, but now he has become four at most - not only two but also two - Chen Xu didn't expect that Mengyao would also fall into this kind of confusion.  Gold and silver can be circulated as currency, but I have never heard that copper coins can be used to buy things. Even copper coins issued by the imperial court are not easy to sell after excessive wear.  "Ms. sir, Iam I wrong?" Mengyao paid attention to Chen Xu's expression. Seeing that he was not as excited as she imagined, she suddenly felt a little unsure.  "How troublesome is it to cast copper coins? Why don't you print banknotes?" Chen Xu asked.  "That's right." Feng Che slapped his thigh in high spirits. Silver notes of one hundred taels and one thousand taels were everywhere. Printing a piece of paper was much more convenient than casting copper. "Why didn't I think of this method?  What?¡± ¡°Second Brother, I really admire you.¡± ¡°What do you mean? You came up with this great idea.¡± Feng Che was so humble, but Chen Xu felt a little hot.  You are in charge. How many banknotes do you plan to print? " "If the Wara army comes to the city, how much money will we need to drive them away?" Feng Che really thought that Chen Xu was asking for advice, and he wanted to give him a satisfactory answer as much as possible.  "It's hard to say, but one thing I'm sure of is that five or even ten years after the war, the country's tax revenue will not be able to make up for the financial deficit caused by the war." Feng Che didn't think so much, he waved his hand with great enthusiasm,  "I will print as many banknotes as you need." Mengyao felt something was wrong.  She couldn't say exactly what was wrong.  I heard Chen Xu say that the country's tax revenue in ten years is not enough to pay for the losses of a war.  She finally understood why Jin Shangshu of the Ministry of Finance was so stingy.  "Talent, you are really a talent." Chen Xu sighed, and Feng Che asked with some uncertainty, "Are you really praising me?" "It doesn't work if I praise you, just wait for the people to remember your great kindness.  ," Feng Che's appetite was whetted, and Chen Xu suddenly turned around, "They will probably grit their teeth when they mention you, you will definitely be infamy for forever." Feng Che's eyes widened, he was so kind just now.  Woolen cloth.  In the blink of an eye, he will be infamy for thousands of years?  What does it mean to be stinking for thousands of years?  Feng Che didn't know much, but he also remembered that there was a guy named Qin Hui hundreds of years ago, who brought disaster to the country and the people and did all kinds of bad things.  After his death, the people even made a kneeling statue of him, which made everyone spit when they saw it.  When Feng Che thought of this possibility, he couldn't help but shudder. This was simply too scary.  "Third brother, why can't you print silver notes and make copper coins? Isn't this issued by the imperial court?" Mengyao also looked at Chen Xu eagerly. If someone sells, someone will buy it. When there is a transaction, there will be money circulation. She has never done it before.  Have studied this issue in depth.  Now that I think about it, there is really a lot of knowledge here.  It is not easy for Mengyao to realize this. She would never have imagined that a few hundred years later, a world-famous subject - finance would be derived.  A currency war is a war without smoke.  The stormy waves it can set off can even control the lifeblood of a country more than the army.  When it comes to the financial industry, it is definitely not something that can be explained clearly in a few sentences, and Chen Xu is only scratching the surface.  After thinking for a moment, Chen Xu grabbed four teacups and placed them in front of him. He took out a banknote and placed them not far from the teacups.  "If these four teacups represent Dayan's entire wealth," Chen Xu paused and added, "The wealth I'm talking about is not money, but the value created by the people across the country, such as agricultural products and handmade products.  . Just like our soap and folding umbrellas, they are all wealth." Mengyao was the first to understand, and then Feng Che nodded. To put it simply, wealth is the income from labor.  "This banknote is all the money in circulation in Dayan." He said.  Chen Xu picked up the brush and drew an equal sign between the banknote and the tea cup, "I can consider them to be of equal value. This banknote can buy these four cups." "That's true." Hearing from Feng  Chen Xu smiled slightly at Che's words, and took out another banknote from his body.  "This is the banknote printed according to what you said. Two banknotes, four cups, which means that one banknote can only be exchanged for two cups." Hearing this, Mengyao's eyes lit up.  "Mr. Sir, one banknote originally could buy four cups. Now that more banknotes have been printed, one can only be exchanged for two cups. The cups have not changed. This can only mean that the banknote is worthless." "Why is the banknote not valuable?  Is it valuable?" Feng Che asked in confusion.  "Because you printed more banknotes but failed to make the same number of cups." Hearing Mengyao's words, Chen Xu smiled and said to Feng Che, "Second brother, my wifeHis IQ is absolutely top-notch.  " Mengyao was a little embarrassed by Chen Xu's praise. She lowered her head. She couldn't help but think that Xianggong was the real one. Feng Che nodded in agreement. He suddenly said, "Then even if my IQ is not first-rate,  It¡¯s still second-rate, right?  " "I think it's a bit confusing!  " Feng Che: "" Back to the subject, Chen Xu continued to tell the story of the banknotes and cups. "If you print three more banknotes, it means that the banknotes of the same denomination can only buy one cup;  An additional 3,999 banknotes were printed, which means that every thousand banknotes of the same denomination can buy one cup.  By the same token, if the imperial treasury is empty and it makes copper coins and prints banknotes to artificially create inflation, can you imagine what kind of situation it will cause?  "What's the situation?" "In the morning you carried a sack of radishes and exchanged it for a banknote. In the evening you will find that a sack of banknotes can't be exchanged for a radish." Mengyao said "Yeah", and Feng Che asked.  , "What will be the consequences?" "The reason why silver notes can be circulated is because they are backed by the imperial court. It is the imperial court that gives silver notes the same value as gold and silver. If the imperial court makes money without restraint, what will follow?  It is the collapse of credibility. Once credibility collapses, silver notes will become a pile of waste paper, which cannot be used to buy anything or be exchanged for gold and silver. " "At that time, the only thing the people in the country trust is real gold and silver, but not everyone has gold and silver reserves.  . How can you let those who don¡¯t have gold and silver survive? People depend on food, and they will die if they don¡¯t have enough food. In order to survive, people can change their lives for food, not to mention that there are powerful enemies who are watching, and there is rebellion inside.  The faction rose up, can you imagine what kind of tragedy it would be?" Mengyao's face turned pale, and Feng Che was sweating profusely. He really didn't realize that printing banknotes could have such unpredictable consequences.  Once the situation develops to this point, not to mention that the emperor will not forgive him, he himself will not be able to forgive himself.  Feng Che originally thought that if there were loyal ministers in the civil service and strong generals in the military, the country would be able to enjoy long-term peace and stability. But now it seems that it is far from that simple. A slight oversight by those in power could lead to the court being in ruins.  Thinking of this, he couldn't help but glance at Chen Xu. The seventeen-year-old Minister of War had overall military and political power, and his status was second only to the emperor. But who could know the hard work behind this prominence?
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