Comprehensive martial arts: starting from the leader of the clan

"You can react, you are still a little alert!"

Jiang Feng nodded and smiled. He was afraid that the price had risen for a month, but he still didn't notice it!

"Dad, why is this happening?"

Jiang Rizhao has learned poetry, astronomy, geography, and mathematics since he was a child, but he has never learned economics.

This can't be blamed on him, there is no economics class in the Seven Kingdoms.

Without a suitable environment, Jiang Feng didn't teach it deliberately!

This time Jiang Feng didn't stop the printing of money, which may not be without the intention of taking the opportunity to teach them a lesson.

Anyway, he saw the whole process, so he didn't let the economy get out of control!

Jiang Feng smiled and asked, "Do you know what my purpose is in printing money?"

The brothers and sisters frowned and thought about his question, and each had their own answer.

Jiang Ziyan said first: "You don't need to spend money from outside to print money yourself!"

"Printing money is cheaper than mining!"

Jiang Rizhao figured it out. Under the premise of mature papermaking technology, the cost of printing banknotes is much lower than the cost of developing gold and silver mines.

Several people have no financial knowledge, and this question is too profound, so he asked a simple question: "What is money?"

"Gold, silver and the banknotes we issue are all money!"

"Jewelry and jade can also be used as money!"

"There are also various cultivation resources!"

Several brothers and sisters didn't know why their father asked this, and they all spoke up. Jiang Rizhao concluded: "Everything with value can be considered money, right?"

"According to Rizhao, everything with value is considered money. We commonly call them general equivalents!"

Jiang Feng didn't study finance in college, but 23 these knowledge are all within the scope of nine-year compulsory education, so naturally he would understand!

Huang Rong smiled and said, "Before there was a formal currency, the ancients adopted barter. The emergence of money is equivalent to having a constant value. As an intermediate medium for barter, it is much more convenient than barter! The term general equivalent is appropriate!"

Everyone just didn't learn financial knowledge. After Jiang Feng reminded them, they quickly understood the meaning of this word without his explanation.

"Why did gold, silver, copper, and the paper money we issued replace other items and become general equivalents?"

Jiang Feng guided everyone's thinking!

"Because it can be accurately measured!"

Jiang Ziyan raised her hand, as if she was back in the classroom when she was a child.

Jiang Feng grabbed the sand on the ground, sprinkled it from his hands, and said with a smile: "Isn't it difficult to measure this sand by bucket?"

He pointed to the river in the distance, "Isn't it difficult to measure the water in the river?"

Jiang Qianchuan said confidently: "Because these items have value in themselves!"

Everyone nodded: "Yes, these things have value in themselves, so they can become general equivalents!"

"No, gold, silver and copper have value, but our banknotes are made of paper!"

Jiang Rizhao frowned, thinking that this might not be the correct answer!

The other people also pondered, Jiang Rizhao was right!

Huang Rong rolled her eyes, "Because the banknotes are printed by the Jiang family, they can be circulated as money!"

"That's right, even if other people printed money, no one would admit it!"

Everyone suddenly realized it!

Jiang Feng smiled and said, "Do you take the money and use it outside?"

Murong Jiutian shook his head and said, "Outside is still gold and silver. I have been wandering around the world and have never seen other places using Jiang's banknotes!"

Jiang Feng joked, "According to what you said, the money printed by the Jiang family can also be used outside!"

"That's because the outside world doesn't know that this is the Jiang family's money!"

Jiang Yuyan wrinkled her nose and snorted softly!

"Now I am issuing banknotes in the outside world. Do you think it can replace the status of gold and silver?"

Jiang Feng said without comment.

"This..."

Everyone was thinking deeply. Jiang Rizhao pondered for a while and said truthfully: "I'm afraid it won't work. Gold and silver have been circulating in the outside world for countless years. It's impossible for the family's paper money to replace gold and silver, at least now!"

"Why is it possible in the secret realm, but not outside?"

Jiang Feng didn't give the answer directly, and the impression he made was profound!

"Because the family has the final say in the secret realm, the secret realm belongs to the family, so naturally what they say is what they say!"

Jiang Feiliu's cold face showed pride.

Jiang Feng smiled and said with his hands behind his back: "The Jiang family is not the only one that has the final say. Have you seen them use paper money? Or did they not think of this method!"

Everyone was silent after hearing this. It's understandable that one or two of them didn't expect it. It doesn't make sense to regard all the top forces as fools.

Jiang Feng didn't teach poetry and songs when he was a child, but he took time to give them logic lessons.

Several people have known how to look at things dialectically since childhood!

"I know, it's because of the family's reputation. What the family does is to make the secret realm better. Others believe in the Jiang family!"

Jiang Rizhao dares to be sure that this time is absolutely right!

"What you said is a little bit related, or more accurately, it's credit!"

Jiang Feng explained: "From the beginning of the development of the secret realm, we used our own people brought in from the outside world, so there is no problem with credit. The reason why our banknotes cannot be used in the outside world is that the credit of the Jiang family has not yet reached the point of being circulated throughout the world, and the credibility is insufficient!"

"What is the essential relationship between this and the rise in prices?"

Jiang Rizhao looked puzzled.

Jiang Feng turned around and asked, "Abi, tell me, how many banknotes have we issued in the secret realm?"

"Master, not counting the 20 billion issued by Rizhao a while ago, a total of 100 billion has been issued, equivalent to more than 60 million taels of silver!"

Azhu knows the data well.

Tianque City invested a total of about 200 million taels, which does not mean that the Jiang family issued 200 million taels of silver. Money is in circulation and has flowed back into their hands through house sales and other means.

IssuedThe amount of banknotes is far less than the investment.

Jiang Feng nodded and said: "Rizhao, you have newly issued 20 billion, which is equivalent to a 20% increase in the money on the market in a short period of time. Do you know what this means?"

Jiang Rizhao knew that the problem was with him, but he didn't know why more money would lead to rising prices.

Jiang Feng didn't blame him. He thought these things were simple because he had learned them. It was difficult to understand the relationship between them without real experience.

In the previous life, finance was so developed, and there was still an economic crisis!

He explained the reason: "The materials on the market have not increased in a short period of time, but the circulating banknotes have increased by 20%."

"I just said that money is a general equivalent. Assuming that the total value of materials circulating in the secret realm is 100 billion, and now 20 billion more have been issued, the extra money has no corresponding material support. Everyone is scrambling for the same thing, which will inevitably lead to rising prices."

"You can also regard people as materials. The labor cost of building a city is higher than expected because of insufficient personnel. If you want to recruit people, you have to compete with other industries for people. Everyone needs people, and others are waiting for the price. Won't the wages go up? The boss of the stone mining also needs to recruit people. His recruitment cost is high, so won't the price of stone go up?"

Everyone suddenly realized that the truth was like this.

Jiang Rizhao felt that he had done something stupid, and worriedly said, "This will bring trouble to the family!"

Jiang Feng said, "It won't have much impact in the short term, but if the banknotes are issued without limit in the long run, 100 yuan last year can only buy things worth 80 yuan this year, and 60 yuan next year. What do you think will happen year after year?"

"The Jiang family's currency will lose its credibility!"

Jiang Rizhao's heart sank. No one wanted the money they worked hard to earn to become less inexplicably.

The people may not dare to resist head-on, but it will definitely affect their enthusiasm for doing things, leading to unpredictable consequences!

"That's right! The essence of paper money is supported by credibility. Without credibility, the paper money issued by the Jiang family is worthless!"

Jiang Feng wanted to test him and asked, "What do you plan to do?"

"Continue to recruit people from outside. If there is a shortage of supplies on the market, mobilize supplies from the outside!"

Jiang Rizhao pondered!

Jiang Feng smiled and said, "To what extent is the supply?"

"Is there any need for 457?"

Jiang Rizhao asked humbly, and the others listened carefully.

"If you mobilize a large amount of cheap resources from outside the secret realm, it will be beneficial to the people in the secret realm in a short period of time!"

Jiang Feng changed the subject: "But have you ever thought that in addition to the Jiang family, there are other people in the secret realm engaged in various industries such as breeding and textiles. The influx of a large amount of cheap materials will inevitably impact their sales. They can't make money or even lose money. What will they do?"

"Stop operating!"

Jiang Ziyan's eyes flashed.

"Yes, if we stop operating, there will be many more unemployed people. The people will have no work to do and no income.Even if the prices are lower, they can't afford to buy things, and more businesses will go bankrupt. This will create a vicious cycle and go to another extreme! "

"Hiss!"

Everyone felt cold in their hearts. After reasoning step by step, it was exactly the same as what Jiang Feng said. They didn't expect that a small supply of materials would contain so many truths.

Jiang Feng looked at the brothers and sisters who were sweating coldly and smiled: "The supply of materials in the market is insufficient, which will cause prices to soar. This is called inflation. The oversupply of materials will cause businesses to compete to lower prices, and prices will go down step by step. In the end, businesses can't make money, close down, and people lose their jobs, forming a vicious cycle. This is called deflation!"

"Dad, what should we do? ”

Jiang Rizhao had a bitter look on his face. He had issued a banknote once, but it actually affected the entire secret realm. If he did not realize the harm and continued to issue banknotes, the damage to the Jiang family in the future would be immeasurable.

Several children suddenly felt that it was not easy for their father to be the head of the family. Although he did not seem to have to take care of specific things, he had to check all matters in the family and pay attention to whether the family had deviated from the correct course at any time.

They had only built a city, but they had caused such a big mess.

The difficulty of managing the Jiang family's external industries was ten times or a hundred times more difficult than building a city, but his father managed it in an orderly manner.

Several people could not help but show admiration in their eyes!

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