Because Mr. Zhao’s family has a mine?

The Jiangnan Group does have many mines, which can transport more than 40 million taels of silver back from gold and silver mines in Japan, Taiwan, Luzon, Java, and Mindanao every year.

In addition to the trade on Shanghai's Silk Road and European trade through the Cape of Good Hope, the net import of more than 30 million taels per year.

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

This is the biggest flaw of the precious metal standard system, which is that the issuance of money 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 technological improvement in the total value of social commodities. Failure to issue sufficient currency will lead to serious deflation.

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

The appreciation of this currency itself will wipe out the consumption and investment desires of most people, leading to insufficient total social demand, lower economic growth rate, and lower product prices. Everyone will desperately store currency, further leading to more serious deflation.

The result is like a person losing blood, everything is fatal.

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

The Ming Dynasty was a poor silver country, with only about 300,000 taels of silver produced each year, and in the early 16th century, the total silver stock was only 50 million taels. Therefore, society has been in a state of severe deflation and social and economic development has stagnated for a long time.

Since the 16th century, the world has entered the Age of Discovery, international trade has exploded, and silver from Japan, Europe and America has flocked to the Ming Dynasty. In 1631 alone, the silver imported from Macau through Manila was as high as 14 million taels!

The tide of hundreds of millions of taels of foreign silver poured in like a tide, allowing the long-dried body of the Ming Dynasty to be nourished like never before. The economy immediately burst out with infinite vitality, society was unprecedentedly prosperous, urban population surged, agriculture was rapidly commoditized, and industry and commerce produced capitalism.

The merchant class became rich, and every family of scholars and officials were doing business. Ordinary coastal people were able to survive, and even had the spare money to study, read, listen to opera and travel. People in the inland areas also moved their families to the coast of Jiangnan to seek food and clothing. The Ming Dynasty seemed to have entered a prosperous era during the Wanli period.

However, no one realized that this new commercial and secular world had actually depended on silver far more than the West's dependence on Chinese goods. The empire was only immersed in the prosperous era of silver and had no consciousness of holding the root of life in its own hands.

Soon history revealed its cruel side, and the Tokugawa shogunate of Japan suddenly banned the outflow of silver; Philip II strictly restricted the scale of large-scale sailing trade, causing the two major silver sources of Ming Dynasty to dry up at the same time.

Therefore, inflation under the great prosperity of the commodity economy that began during the Longwan period quickly entered a deflation state. The Ming Dynasty had already implemented a whip law across the country, and the people needed to sell their own agricultural products, or sell their labor for silver to pay taxes. Deflation caused low grain and high silver, which greatly increased the burden on the people, causing a deeper economic crisis.

The state cannot collect taxes, which has triggered a serious financial crisis, and has to reduce expenses, abolish the national post station system, making a postmaster named Li Zicheng become a laid-off worker...

~~

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

If the regulations are strictly followed, the amount of silver bills will be issued as much as the gold and silver income, it will inevitably lead to serious deflation. Because the scale of the commodity economy of the Ming Dynasty has expanded several times than that of another time and space, once an economic crisis breaks out, the harm caused will be many times more serious!

The court did not know about this crisis and could not solve it. Only Zhao Hao and Jiangnan Group were responsible for it - it must provide sufficient mobility for the society.

There is no way, if you want to wear a crown, you must bear the weight.

Controlling the issuance of a country's currency will control the lifeblood of the country. But at the same time, it also shoulders the task of maintaining the financial stability of the country.

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

Nearly twenty years after circulating in the world, silver notes have become recognized by the Ming Dynasty. Even the government and the court have accepted silver notes 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 the heavy and difficult-to-divided silver...

To this day, few people use silver notes to exchange silver from banks. If everyone does not exchange silver, the public will feel more at ease and no one will pay attention to the silver. How good is it to spend so much money on the bank every year? Why put it at home to recruit thieves?

Under this virtuous cycle, the rapidly circulating silver bills gradually decoupled from the silver sleeping in the warehouse and became the de facto currency.

The huge amount of silver is stored in the bank treasury of Jiangnan Bank and its more than 500 branches under it, making the entire society undoubted to repay silver bills.

This gave Zhao Hao the opportunity to avoid deflation by issuing silver notes over and continuously investing huge amounts of money into the society. He could even maintain moderate inflation to stimulate the sustainable development of the economy.

As the economy continues to develop, the demand for money becomes greater, and Zhao Hao has to continue to issue silver notes. As a result, the total number of silver notes is far greater than the amount of gold and silver inventories of Jiangnan Bank.

We can only wait until the economy is overheating and cooling down in the future before trying to recover liquidity... Central banks in various countries think so, but we have never seen anyone actually successfully reduce their balance sheets.

As the saying goes, it’s a good time to be super-launched, and it’s a good time to be super-launched until the whole family’s crematorium.

Whether it is gold standard or silver standard, as long as it is in the precious metal standard, this is an inevitable problem.

But Zhao Hao felt that he was far from the point of quenching thirst by drinking poison.

The economic expansion of the group will not always be so strong, and the Ming Dynasty's desire for silver will also have a limit.

The sailing trade with the Spaniards will sooner or later resume, and silver from Mexico and Peru will flow in.

The precious metal mines in Nanyang have just been mined, and gold mines in South Africa, Australia and North America will also be mined sooner or later...

Zhao Hao believes that the group will be able to make up for insufficient precious metals in ten or twenty years at most.

In fact, it doesn’t matter if it can’t be compensated, because this is not a real over-issuance - the amount of over-issuance of Jiangnan Bank is anchored by the newly added total output of society, so it will not cause serious inflation.

But there is a premise that the public must always maintain confidence in silver notes!

If the war with the court in the past few years will inevitably lead to a nationwide run... Depositors need to withdraw cash, and the silver notes on the market must also be cashed. All economic activities still need to cash out!

Where did Zhao Hao change so much cash for them? Once the repayment fails, what will await the Ming Dynasty will be extremely serious deflation!

He will also go bankrupt in this economic crisis, and may even go bankrupt in the group, and employees and coast guard officers and soldiers rebel...

Therefore, before resolving the silver crisis, Zhao Hao was absolutely unwilling to go to war with the court.

~~

There is also the problem that it is easy to conquer the world and difficult to sit in the world.

Outside his controlled area, there are more than 200 million people with extremely poor people, and they are intricately divided. Do you really want to take the group into the fire pit? Obviously, this situation that only absorbs labor and does not assume obligations is more beneficial to the development of the group.

Only when the strength gap between the two sides becomes even more disparate, and when more and more laborers flee overseas, the poor people can no longer suppress their resentment towards the vassal kings and gentry, will they welcome the king's army and support the group to smash the old world.

All these issues determine that the group must focus on me and slowly plan for it. Seize your own loopholes and create conditions to defeat your opponent!

After thoroughly clarifying his ideas, Zhao Hao did not leave the cabin and personally drafted a top-secret speech, "Our Next Road", but he hid the section "Silver Crisis". He prepared to unify the thoughts of senior cadres of the group at the 20th anniversary meeting at the end of the year.

~~

After he finished writing this important speech, the next stop at Osaka Bay will arrive.

The straight-line distance from Xishan Island is 1,500 kilometers, and radio reception is still normal!

This experiment was successful, which still made all researchers happy. Because this dispelled the new doubts that they had developed after their initial success - since the earth's surface is round, will the electromagnetic waves propagating in a straight line not be able to transmit long distances? And it takes hundreds of kilometers to build a relay station?

Now, the signals from Xishan Island Research Center can be received at such a long distance, which is enough to show that the radio waves are not affected by the bending of the earth's surface!

Zhao Hao was concentrating on writing his big articles and did not know their worries. Hearing the cheers of the researchers, he knew what was going on.

"In fact, it still has an impact. It is just that the reflection of the atmospheric ionosphere connects the wireless signals on both sides of the earth's 'hills'." Zhao Hao said with a faint smile.

Wang Zheng suddenly realized and immediately asked what the hell is the ionosphere of the earth.

Zhao Hao happily explained to his disciples that the opportunity to pretend to be Bo Yi is becoming less and less.

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

Everyone looked in the voice and saw that Sakai Company held the highest-level ceremony at the dock of Sakai City. All senior executives, led by President Chirijiu, welcomed Zhao Hao to visit.

But the one who danced and called out dad was short and fat, Tokugawa Ieyasu, who was a big crocodile.

Zhao Hao smiled and waved to the shore. Time flies so fast. He hasn't come to Japan for eight years.

"Oh..." Zhao Shizhen, who was standing beside him, sighed depressedly, completely incomparable to the great expectations he had when he came last time.

Last time I came to get married, but this time I wanted to marry my daughter out.

Can it be the same?
Chapter completed!