Chapter 1,483 Causes of Inflation

"I have a deposit certificate for one gold coin, and the bank has a claim for one gold coin. Needless to say, the deposit certificate can be exchanged for one gold coin.

However, the claim on this gold coin is money owed to the person who borrowed the money, but it is also an asset to the bank.

Since it is an asset, it can be bought, sold, and transferred to anyone. Because anyone who takes over this debt has the right to take back a lent gold coin from the borrower.

Can't this be considered money? "If you think about it carefully, think about it seriously, there is nothing wrong with it. But Brutus fell into an inexplicable tangled state.

Lin continued: "The story is not over yet. Of course the person who borrowed the money had a purpose, so he spent the gold coin.

And this gold coin will become a reward, or the price paid for purchasing a certain product, and it will go to the second person.

The man deposited the gold coin in the bank again and received a certificate of deposit for one gold coin. The bank lent the money again and obtained a claim on one gold coin. "So now there is a total of four gold coins in the market books.

They were two deposit certificates worth one gold coin, and two claims worth one gold coin. When this gold coin passes through more banks, even though more people owe money, it can create more book value at the same time. ""But there is only one gold coin.

Where does the rest of the money come from? Brutus said. The magician in front of him took out a voucher issued by a certain bank from nowhere. It was quite beautifully made.

The textures are detailed and complex, and there are even other details hidden in the details. They are full of modern banknote anti-counterfeiting measures on earth.

Lin held the two ends of the banknote and pulled it symbolically. This action made the Lord of Wealth suddenly realize.

I dare to say that the purpose of this paper is not just to be lighter than gold coins and easy to carry. There are other purposes. "There is always only one gold coin.

But as long as the bank recognizes the value of the voucher and the market recognizes its value, then a gold coin can theoretically generate countless book values ​​under the operation of the bank.

Vouchers can be issued for these book values. The only way to reduce this book value is to pay off the debt.

When all debts are reduced to zero, the actual real value, that is, that gold coin, will remain on the market. "At this point, a certain magician took a breath, looked at the golden leopard who was bowing his head in thought, and asked: "After listening so much, do you hear anything? Brutus raised his head and said, "According to your statement, inflation does not happen just because someone prints too many vouchers, lowering the real value represented by the face value of the vouchers."

In fact, in the process of bank lending, money will also increase. "Yes, Your Majesty." You know my situation too.

In my hometown, it is known that printing money indiscriminately will cause inflation. So, if the authorities with the power to print money stop printing money, inflation will not happen.

However, the fact is that regardless of whether the government prints money indiscriminately, inflation still occurs every year.

why is that? "Because the real point of inflation is naturally caused by banking operations. It cannot be stopped, but can only be suppressed.

No one dares to talk about this to outsiders, but it is true. I used to hear people say that using money to make money is the fastest way.

I always thought this sentence was an exaggeration and a ridicule, but I never thought that this sentence was actually a truth describing the real situation. "As a god who plans to start from this aspect, it is certainly impossible for the Lord of Wealth to give up his original idea based on these alarmist words.

She tried to argue: "But didn't you also say that as long as the debt can be fully paid off, the market will return to its original state." "Hey, Your Majesty, just think about it."

People have good fortunes and bad fortunes, and investment also has profits and losses. What if you encounter someone who refuses to pay, or who deliberately defaults on the debt based on his power, so what should you do?

Besides, I haven’t introduced the factor of ‘interest’ yet. "In the situation I just mentioned, for every gold coin you deposit, you can get one gold coin in interest.

Every time you borrow a gold coin, you also need to pay interest on one gold coin. How would things change after adding this element?

What if banks then trade their claims and convert them into cash that can be used directly? "The loan sharking of one loan and one repayment is a common thing in the land where the financial economy is not developed.

After all, the risk of borrowing is too high and there are not enough benefits. Who is willing to lend money to others? No matter how close you are.

That's why Brutus didn't worry about whether such an example would be too exaggerated. As for the science of mathematics, especially simple addition, subtraction, multiplication and division, it is not difficult to learn it based on the wisdom of the gods.

Not to mention that within the concept of the Lord of Wealth, such knowledge can also be used to calculate how much wealth one has.

After hearing the situation described by the magician in front of him, Brutus could easily come up with the result. The problem is that when the first debt is due to be repaid, there is only one gold coin on the market. Where is the second gold coin to pay interest?

To solve this problem, it is not difficult to say, but it is not easy to say that it is simple. That is to borrow a second gold coin and pay the interest on the debt of the first gold coin. Anyway, it is just paper no matter how you borrow it.

Then you can relax for a while until the time limit for the second debt expiration comes. Well, it seems that the day when the debt in the market will be completely discharged is far away.

The Lord of Fortune concluded. But this also made Brutus think of another question and asked: "How was this matter resolved in your hometown?" "My hometown." Someone showed a strange face, winked, and after some struggle He said: "Before the leeks that have been harvested sprout again, the idle sickle will of course be used to find a new batch of leeks.

Cut it and look for it, cut it when you find it, cut it and look for it again, and so on. To put it simply, the dividends brought by growth are used to offset the increase in debt in the market. "There are two main ways to grow here.

One is the growth of external profits. It can be trade, it can be plunder, it can be war. Anyway, it is just robbing other people's things to pay off the debts you owe.

But this is just a way to pass the loss onto others, not a real solution to the problem. "The other is population growth.

Although the debt existing in the overall market is increasing, as long as the population growth rate is greater than the debt growth rate, then these debts will be equally distributed to everyone, there will not be much pressure, and it may even feel like it will Slowed down somewhat. "At this time, people will say: Because people in the past suffered like this, it is okay for people today to be equally miserable, and maybe it is easier.

But if the population growth rate is not as fast as the debt increase rate, this means that the burden shared equally on everyone will increase.

It was hard enough before, but life is even harder now. In such an environment, it is difficult not to be complained about. "However, as the population increases, it can be expected that debt will increase faster in the future.

Although the current maturing debt problem has been suppressed for the time being, the future problems will be even greater. In other words, this whole system is like taking poison to satisfy your hunger.

In the end, you can only choose one of two endings, either starve to death or be poisoned to death. "After someone complained about his situation, the owner of wealth looked at him in surprise and said, "This is not a solution. Lin spread his hands and said frankly: "It's not really the case."

But you can choose to die early or die late. "Then why do people in your hometown choose to do this?" Brutus asked puzzledly.

After thinking about it, Lin explained: "Although prepaying for the future is a poison, it is undeniable that this poison can give you the opportunity to grow in the present."

If one country does this and other countries don't follow suit, it won't even have a chance and may be eliminated before it can grow stronger. "Then everyone can only hope that their physique is good enough and they can take a little more poison without dying.

Then, before the poison is released, these toxins are continuously transferred to other countries, delaying the time when one's own poison will cause sudden death. "Lin's explanation obviously did not satisfy the Lord of Wealth.

She asked another question that she had never asked before: "If all this is as you said, it is full of shortcomings and traps.

So what does the person who designed it all gain? "Financial power, military power, and personal strength are all designed to be converted into power."

Control other people's lives, control other people's life and death. When money reaches a certain level, money is just a number to those at the top.

What they care about is what these numbers can bring, not the numbers themselves. "As for the debts that need to be repaid in the future, as the designer of the rules of the game, how can he not know how to avoid or pass them on?

Even though the changes in the overall social environment are constantly slipping into the abyss, when it comes to individuals, some people will definitely suffer and others will take advantage.

Since I can take all the benefits and others swallow the bitter pills, then how bad has the world become, if it has anything to do with these people?

right. "After hearing this, although Brutus still had a lot of questions in his mind, he was a lot less worried about taking the path of banking and lending.

The reason is that gods and mortals are different. Mortals would like to become the group of people at the top of the pyramid in capital society.

However, how can the gods satisfy the faith of only a few people and the curses of the vast majority of the remaining people?

This is not to mention the issue of how much faith a small number of people have. The consensus among the gods is that unless they are devout people, those who reach the top in a certain field will have weaker beliefs.

Because they believe more in what they believe in, rather than placing most of their feelings on a certain god. "But!" Someone suddenly shouted, throwing out a turning point.

The money leopard cooperated very well and asked, "But?" When the financial and economic environment of Midi continues to develop, sooner or later it will hit a bottleneck.

At this time, lending, which has the function of regulating financial funds, is inevitable. Because continued obstruction will prevent people with redundant funds from taking full advantage of their own advantages, and will also make people with limited ability and creativity suffer from insufficient funds to realize their ideas.

——" Someone spread his hands helplessly, "But when that time comes, I don't know how to go.

Perhaps His Majesty Brutus can be wise enough to find a way out. My only idea is to let the claims be treated as claims and not be treated as assets.

But what the future world will look like and how to face it is not my business. "