blackstone code

Chapter 1055

Mr. Truman was a little fascinated by the wonderful future described by Lynch. He hoped that the Federation would be a powerful country, and he even hoped that he could become the first president of this country!

Yes, he didn't tell anyone about his thoughts, he kept it deep in his heart.

When Mr. President faced the oppression of capital and could only choose to compromise, he knew that if he kept relying on others, the federal political system would never evolve.

Some long-standing social problems can never be changed.

To change this status quo, the best way is to carry out a change, a change, and he must also grasp the supreme power of this country!

Otherwise... just like last time, those capitalists have countless ways to make him bow his head.

He swallowed a mouthful of saliva, a little "thirsty", longing for the future, longing for Lynch's description, and longing for power!

"But we can't let people from other countries print new federal sols. They won't do that unless we make them part of us."

At this point he made no secret of his more radical ideas, as soldiers always do, and in some ways more radical.

The education they received at the beginning was to tell them that whoever has the biggest fist should listen to him.

If someone is disobedient, beat them until they do.

Lynch shook his head, "As long as they use Federation Sol, we can achieve this goal."

"Why do they use Federal Sol?", Mr. Truman asked quickly.

Lynch also answered quickly, "Because we can promote the Federal Sol to become an international settlement currency."

"You can propose to Mr. President and Congress that the Federal Sol become the settlement currency for international trade."

"And now, we have a great opportunity!"

Mr. Truman seemed to know what Lynch was talking about, "You mean arms sales?"

Lynch nodded, "Yes, but this is just one of them. For arms sales, add a clause in the negotiations that the Federation's foreign arms sales only accept payments in Federal Sol and refuse payments in other currencies, and it will be the same in the future. .”

"Increasing the weight of the Federal Sol in the international currency market will only do us good, not bad."

Mr. Truman knows this truth. When everyone is using Federal Sol, any policy adjustment may affect the whole world.

But he also has a question, "Why do other people use our currency, they can exchange some when they need it."

"Because the Federal Sol is more stable..." Lynch paused for a while, and then moved the topic to other places, "Do you know about the recent fluctuations in the precious metal market?"

Mr. Truman nodded, "Yes, I know, it is said that the price of silver has risen many times."

Lynch nodded, and gave a relatively more accurate number, "It's more than ten times!"

"Before silver rose, all countries had the habit of storing gold, and before that, most of the world implemented the gold standard system..."

Mr. Truman has heard of the term gold standard system and has a little understanding of it. He knows that it probably refers to a system in which currency is linked to gold, such as "gold coins".

Currencies in some places, especially coins, are made of gold, with a little bit, or a circle, or most of them made of gold.

Before paper money appeared, there was such a phenomenon in the currency of the Commonwealth. At least five cents began to exist in gold.

The gold is a pinpoint-sized star in the upper center of the reverse of the coin.

On a one-dollar coin, on the outside of the obverse of the coin, there is a circle of pure gold.

If someone finds that the gold on the coin has disappeared during the transaction, they can reject it and call the police.

In some places, silver or gold is simply used to mint coins. Of course, the coins they mint are relatively thin, and the thinnest one is not much thicker than a piece of paper.

until the birth of banknotes.

In fact, the current paper currency is not completely credit currency, because the current federal paper currency system is based on another currency system based on the gold standard.

It is not a pure gold standard, because there is no gold in paper currency that people can see and measure with the naked eye.

But people can use banknotes to go to the bank to cash in the corresponding gold directly, so at the beginning of the birth of banknotes, some people also called banknotes "gold coupons" or "gold exchange coupons".

Because money can be exchanged for gold, many times these "banknotes" are only regarded as a voucher for exchanging gold.

This is also the case now, except that people can not only "exchange" gold directly from banks, but also "exchange" gold with banknotes in some gold and silver jewelry stores.

No one will question the value of these banknotes, because it breaks away from pure "credit", and it has become a manifestation of wealth polymorphism.

People never doubt the currency in their hands!

"...Even now, the currencies of various countries are more or less related to the relationship with gold."

"The value of gold continues to increase, and the purchasing power of currency continues to increase. Of course, this is without additional issuance."

"Now that there are new precious metals in the market that are challenging gold, that's actually not a good thing for the monetary systems of various countries."

"The gold currency system that people have built for tens of hundreds of years is collapsing. Once silver replaces gold, do you know what will happen?"

Mr. Truman shook his head, "I don't know, I didn't specialize in this."

"The monetary order of the entire world will collapse, and the exchange rate will be chaotic. Some countries may insist on the relationship between gold and the current currency, and some countries may try to implement a dual-track system, using the old or new currency to lock in silver and gold respectively."

"No matter what they do, the exchange rate in international trade is chaotic, and you can't normally settle the exchange rate between different reference objects in two countries."

"If at this time, there is a currency that can stand out stably..."

Lynch smiled softly, "What do you think they will do?"

Mr. Truman slowly realized the wonder of what Lynch said, "If it were me, I would find a way to make the currency I use and this stable currency anchor to a certain extent in terms of exchange rate, at least There is also a need to build closer relationships.”

"But if the price of gold collapses, we should also be greatly affected. Why is the Federal Sol not in chaos?"

The smile on Lynch's face became weird. He took out a cigarette again, bowed his head, opened the cigarette case, took out one, put it in his mouth, and lit it...

After a clear and long ding sound, he closed the lid of the lighter, and the moment he raised his head, a puff of smoke spit out from his mouth.

Through the smoke, Mr. Truman saw a... like a mocking smile, "Because victory will be on our side."

Mr. Truman didn't seem to understand, he looked at Lynch patiently.

"It's actually very simple. Science and technology, military equipment, these can be used as a guarantee for the stability of the Federal Sol exchange rate, and we will re-establish an international monetary system with gold as the core."

"Technology and productivity are the most critical strengths we can use!"

"Now people buy a bullet from the federation, let's say it costs 25 federation sols."

"When the 'disaster' strikes and they still need 25 Federal Sol to buy a bullet, they will realize the stability of the Federal Sol!"

Mr. Truman seemed to understand a little bit, but he seemed to understand nothing, "Because we only accept the settlement of Federal Sol?"

Lynch nodded, then shook his head again, "The chaos won't last long, if we attack the BY market, raise the price of gold again, stabilize the price of gold, and establish a more accurate exchange system."

"Let people see the anti-risk ability of Federal Sol and our control over the world economy, what will they do?"

"They will increase the foreign exchange reserves of the Federal Sol, which is what we want. The more they store, the easier it is for us to control the world's economy."

Mr. Truman interrupted Lynch slightly, "Like what we did to Nagalil!"

"Yes!"

Mr. Truman thought about this matter seriously. In fact, this matter as a whole is not as simple as Lynch said. There are many complicated situations involved.

But this did not prevent him from seriously considering this matter.

"So... what does this have to do with what you said at the beginning?" Mr. Truman asked, "What does this have to do with us making money?"

Lynch took a puff of cigarette, crossed his legs, and turned slightly sideways. He spit out the cigarette with a half-smile, "Because I plan to snipe Baiyin!"

"And before that, I plan to snipe gold first and let gold plummet first. The plummet of gold will cause the capital of various countries, and even the government, to adjust their gold reserves in order to avoid risks."

"And this will also shake their national currency's drastic changes in the international currency exchange rate market. When people focus more on silver..."

Lynch chuckled a few times, "We can eat cheap gold while attacking silver, so that silver and gold, the two things that have dominated the world's currency value for many years, will lose their role in a short time!"

"Currencies that use these two precious metals as a reference for the actual value of the currency... will be completely confused!"

"According to my understanding, more than 90.00% of the countries in the world are using these two precious metals as the guarantee of currency value!"

Mr. Truman was silent for a long time after listening, and Lynch did not urge him.

About seven or eight minutes later, Mr. Truman also lit a cigarette, "In the final analysis, you still want to make money, don't you?"

Lynch smiled and pointed at him, "You can't lie to me, and I'm also a patriotic person!"

Shorting gold, shorting silver, and even buying some gold when the price of gold is low, Lynch will definitely make a lot of money.

And the federation will pay for what he did, that's the key.

But Mr. Truman couldn't refuse the request because it was too tempting.

He will not object to what is beneficial to the country and the people.

(End of this chapter)