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Chapter 1741 Meeting my son again

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    "Is it because Mr. Zhao's family has a mine?"

    Jiangnan Group does have many mines. Every year, the gold and silver shipped back from mines in Japan, Taiwan, Luzon, Java, and Mindanao are equivalent to more than 40 million taels of silver.

    ¡°Coupled with the Maritime Silk Road and European trade via the Cape of Good Hope, there is a net import of more than 30 million taels per year.

    However, in the face of the rapid expansion of the economic scale, these 70 to 80 million taels of imported currency are still far from enough.

    The biggest flaw of the precious metal standard is that the amount of currency issuance must be linked to the amount of gold and silver in stock.  But the problem is that when society enters a period of rapid development, it will inevitably lead to a rapid increase in the total value of social commodities. Failure to issue sufficient currency will lead to severe deflation.

    What happens when an economy enters deflation?  The simplest thing to say is that the money in people's hands is becoming more and more valuable.

    The appreciation of this currency itself will consume the consumption and investment desires of most people, leading to insufficient total social demand, reduced economic growth, and falling product prices.  Everyone will desperately hoard money, further leading to more serious deflation.

    The result is like a person losing blood, and the result is fatal.

    In another time and space, economic historians have long reached a consensus that the Ming Dynasty was largely killed by the sudden onset of deflation.

    The Ming Dynasty was a silver-poor country, with an annual silver output of only about 300,000 taels.  At the beginning of the 16th century, the total silver stock in the country was only 50 million taels.  Therefore, society has been in a state of severe deflation, and social and economic development has been stagnant for a long time.

    Beginning in the 16th century, the world entered the Age of Discovery, international trade exploded, and silver from Japan, Europe and America poured into the Ming Dynasty.  In 1631 alone, the amount of silver imported into Macau via Manila was as high as 14 million taels!

    Hundreds of millions of taels of overseas silver poured in, nourishing the Ming Dynasty's dry body like never before. The economy suddenly burst out with endless vitality, the society was unprecedentedly prosperous, the urban population surged, agriculture was rapidly commercialized, and industry and commerce gave birth to capitalism.  bud.

    As a result, the merchant class became extremely rich, every family of scholar-bureaucrats went into business, and ordinary people along the coast became well-off, and even had enough money to read, read, and travel.  People in inland areas also moved their families to the coastal areas south of the Yangtze River in search of food and clothing.  The Ming Dynasty seemed to have entered a prosperous age during the Wanli period.

    ¡°However, no one realizes that this new commercial and secular world relies far more on silver than the West relies on Chinese goods.  However, the entire empire was only immersed in the golden age of silver, and had no intention of taking the initiative to hold the lifeblood in their own hands.

    History soon revealed its cruel side.  First and foremost, the Japanese Tokugawa shogunate suddenly banned the outflow of silver; Philip II also strictly restricted the scale of the galleons trade, causing the Ming Dynasty's two major sources of silver to dry up at the same time.

    Therefore, the inflation caused by the great prosperity of the commodity economy that began in the Longwan years quickly entered a state of deflation.  At that time, the Ming Dynasty had already implemented a whip law across the country, and people had to pay taxes by selling grain and other agricultural products, or selling their own labor in exchange for silver.  Deflation makes food cheap and silver expensive, which greatly increases the burden on the people and creates a deeper economic crisis.

    The country could not collect taxes, which triggered a serious financial crisis. It had to cut back on expenditures and abolished the national post system, making a Shaanxi post official named Li Zicheng a laid-off worker

    ??~~

    Now, because of Zhao Hao and his Jiangnan Group, the total value of social goods has increased rapidly, far exceeding the growth rate of imported gold and silver.

    If we continue to strictly follow the regulations and issue silver certificates as much as the gold and silver income is earned, it will inevitably lead to severe deflation.  And because the scale of the Ming Dynasty's commodity economy was several times larger than that of another time and space, once an economic crisis breaks out, the damage caused will be many times more serious!

    The court does not know about this crisis and cannot solve it. Only Zhao Hao and Jiangnan Group are responsible for it - they must provide sufficient liquidity for society.

    There is no other way. If you want to wear the crown, you must bear its weight.

    By controlling the currency issuance of a country, you control the lifeblood of the country.  But it also puts the task of maintaining the country's financial stability on its shoulders.

    The reason why serious deflation did not occur in the Ming Dynasty was mainly due to the excessive issuance of silver notes by Jiangnan Bank.

    After nearly twenty years of circulation throughout the world, silver notes have become the recognized currency symbol of the Ming Dynasty.  Even the government and the imperial court have accepted and used silver notes.

    Especially in the consciousness of the younger generation, money is silver notes, and silver notes are money.  Many young people have never even touched silver, which is heavy and difficult to divide Well, actually, it is mainly because of poverty.

    Today, few people use silver notes to exchange money from banks.  ?Opportunities are getting rarer and rarer.

    The master and apprentice were looking up at the sky when they heard a passionate "Oh Tosama" coming from the sea!

    Everyone looked at the sound, and saw that on the pier of the city, the Monetic Co., Ltd. posted the highest specifications.  All the senior leaders, led by President Sen Rikyu, respectfully welcomed Zhao Hao.

    But the one who danced and shouted loudly was Tokugawa Ieyasu, who was short and fat and looked like a big raccoon dog.

    Zhao Hao smiled and waved to the shore. Time flies so fast. He has not been to Japan for eight years.

    "Alas" Zhao Shizhen on the side sighed depressedly. It was completely different from the high expectations he had when he came last time.

    Last time I came here to get a wife, but this time I wanted to marry off my daughter.

    Can it be the same?

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