Beiyang reactionaries

Wang Yongjiang said: "There are many gold and silver jewelry from rich families, and many landlords are willing to hide gold at home. Prime Minister, don't underestimate some landlords. When I was in charge of building the police system in Fengtian, some landlords there , there are dozens of kilograms of gold hidden in their homes. Some Manchu and Mongolian nobles have even more gold in their homes. Some have hidden hundreds of kilograms of gold. There are also some rural landlords who hide a few kilograms of gold. "

"In other words, the gold is in the hands of these people?"

"Yes. For people like them, they don't trust anyone. It is very common to hide gold at home, and it is also the safest way for them. Because every time there is turmoil, gold is a hard currency. Compared with our current issuance In their eyes, gold is more valuable and more reassuring.”

"kindness."

Duan Xun understands this.

Because after the Revolution of [-], how many currencies were issued in China.It is estimated that there are hundreds or even hundreds of currencies. Each province issues a currency, each warlord issues a currency, and each powerful bank issues a currency, including those issued by banks. .But none of those currencies have much credit.

Including the banknotes issued by the Beiyang government at that time, it has been depreciating.

Therefore, for those landowners, paper money has no credit.Maybe when it will depreciate, maybe when it will be a pile of waste paper.

The best is gold.

"It's not a good thing."

But this is not Duan Xun's purpose.Duan Xun frowned, thought for a while and said, "Prime Minister Wang, tell me. Is there any way to get them to hand over the gold."

"Prime Minister, do you want to reserve gold? I am against exchanging all this gold."

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"Prime Minister, I am against the exchange of all these golds."

"how?"

"Prime Minister, at present, the gold owned by the people in our country is not circulated in the form of currency, and more is hoarded for value preservation. Even in the past, gold was rarely used as currency. If we exchange all the gold, we need to print a lot of paper money. At that time, the number of banknotes in circulation in our country will increase greatly. The rapid increase in the number of currency in circulation will definitely affect our country’s prices.”

Wang Yongjiang shook his head.

Oppose Duan Xun to exchange these gold.

No one is sure how much gold the Chinese folk have.However, Wang Yongjiang predicts that the amount of gold among the Chinese people is more than a thousand tons.Even if there are [-] tons, Wang Yongjiang thinks it is normal.Because China is a big country, the amount of gold owned by the people is definitely very considerable.

If all are exchanged, how much currency will need to be issued at that time.

According to the current gold price, the price of one gram of gold is about one dollar, and one hundred tons of gold is worth about one hundred million dollars.If it's a thousand tons of gold, that's a billion dollars.Of course, after World War I, the price of gold in the world has been relatively sluggish, and the price has dropped by more than half.But even in a downturn, if so much gold is recovered, how much currency will need to be issued at that time.

At least 30 billion legal tenders must be issued, and possibly even more.And the current fiscal revenue of China is only so much, and it just exceeded 20 billion French currency last year.

If 30 billion legal currency is issued, what kind of scale should it be.

At that time, the economy will really blow bubbles.

Wang Yongjiang is absolutely opposed to this.Since the national public issuance of banknotes and legal currency becoming the only monetary unit, inflation has been relatively serious within two years.Although it can still be controlled, it is actually more serious.

If you change to gold again, inflation will be double what it is now.If inflation really hits around 15.00%, inflation is too high.

Moreover, as long as inflation starts, it is very likely that inflation will continue to be driven by panic.And some smart people will understand how to hoard and how to make a fortune.And whenever that happens, the entire economy is shaken.

This all needs careful consideration.

"Is there any way to suppress inflation."

"Prime Minister, it is almost impossible according to the current situation. Because we need currency now, we need enough currency to pay for the cost of industrial construction. As long as we want to develop industry, we must increase the supply of currency year by year."

Inflation is scary.

But for the current situation of such a large investment in China, inflation is necessary.Because the government needs to use inflation to reduce its financial pressure.Now how much money China invests in industrial construction every year, so much money the government can't get out at all.Therefore, the only way to reduce financial pressure is to adopt the loan model and increase the money supply.But the result of this is to increase domestic inflation.

But if inflation is too serious, there will be many problems at that time.

"Hey--"

Duan Xun sighed.

Duan Xun didn't expect there to be so many questions.Obviously knowing that there is still a lot of wealth in the country, especially a large amount of gold among the people, but they can't get it back.

Wang Yongjiang is in charge of the economy, he said no, and Duan Xun is not good either.

Because Duan Xun is also worried that once the government uses banknotes to withdraw gold in large quantities, the number of private banknotes will increase too fast.The consequences of too much paper money are serious.

"But we still have to find a way."

Although Duan Xun had concerns, he quickly made up his mind.To Wang Yongjiang: "Now the world's gold and silver prices have dropped a lot, and they have almost bottomed out. But gold and silver prices cannot be so low for a long time. Now is the best time to buy gold and silver. And the important thing is that our government has Only by having sufficient gold and silver reserves can we not panic. As long as we have enough gold and silver reserves in our hands, we can cope with changes in the international environment. We do not have much foreign exchange reserves, and it is impossible to use foreign exchange reserves to hoard gold and silver. The best way is to collect enough gold and silver from the country. Collecting gold and silver from the country to complete the gold and silver reserve is the lowest cost method.”

"I also know the importance of gold and silver."

Wang Yongjiang nodded.

Gold and silver are natural currencies, especially gold.At present, most countries in the world are on the gold standard, and gold is currency.Under the current situation that China does not have enough foreign exchange, gold and silver are foreign exchange.

But gold and silver are so easy to hoard.With that little foreign exchange in China, there is no ability to hoard gold at all.After all, it is the best way to search for domestic gold.

What the government issues is banknotes, and what is returned is gold. This is a good deal, and this is the lowest-cost deal.And these gold can be used to buy materials, and the big problems of the government can be solved in a few clicks.

But Wang Yongjiang shook his head slightly, and still said: "Prime Minister, but I still say the same thing. We can't exchange gold on a large scale like hoarding silver before. Once this happens, our economy will definitely be impacted. With the current economic development of our country Looking at it, it is normal to increase the money supply by about [-] million a year. If the money supply is increased in order to exchange for gold, then the speed of the money supply is too fast.”

"Think of a way. You can take your time, but you must also collect the gold from the private sector. I hope that within three years, our country will have a gold reserve of about [-] tons."

"Five hundred tons?"

Wang Yongjiang took a deep breath.

Now the government's gold reserves are only about 130 tons.If you want to own 500 tons within three years, that is to say, you need to get back about 370 tons from the private sector, which can be exchanged for 120 tons a year.

120 tons, that is, the government has to print about [-] million more French currency every year.Now in order to make up for the fiscal deficit and to dilute the government debt, a lot of money supply has been increased every year.

If on this basis, [-] million legal currency is added every year, the situation will be really serious.Because the annual increase in money supply is likely to reach eight or nine billion French currency, or even more than one billion legal currency.

This is serious.

"Prime Minister Wang, look at this."

"This is?"

"The economic data of the United States, the economic data of countries such as Britain, France and Germany, and the economic data of Japan. There is the analysis of our consulate, and there is also my analysis below."

Wang Yongjiang took it over and took a closer look.

economy?

In fact, Wang Yongjiang has never accepted formal modern economics. He learned it step by step in real life.For this, he learned a lot about economics.

Moreover, these people have been in charge of the economy and are very sensitive to economic data.