Chapter 953: Staying Ahead Is the only Way to Survive

"When domestic production technology cannot form an absolute advantage over other countries, too much pre-consumption will cause the domestic currency to depreciate."

After dawn again, Li Longji came to Lijiazhuangzi.

He wanted to discuss the trade and currency issues of Japan with Li Yi.

As a result, Li Yi talked about the currency theory, which was not purely financial, but included production technology and productivity.

And what he said was the reason why the countries on the other side of the earth had been desperately suppressing his country's electronic products and tertiary industries.

Electronic products belong to the field of science and technology. Once they are in operation, when the cost is lower than the actual value of purchasing materials, it will have an impact on its own country.

The tertiary industry is services, electronic services, that is, apps. Once the scale is large, capital outflow will occur.

So what is the most direct consequence? The depreciation of the domestic currency.

So the crazy president of the country on the other side of the earth is desperately trying to clean up these industries in Li Yi's country.

If it is not cleaned up, the currency stability of hundreds of years will be broken, and then the currency will depreciate, thus losing its international status.

The consequence of currency depreciation for international currencies will be a serious problem of currency reflux.

For example, m yuan is an international currency, and one trillion is issued.

Buy a lot of products from other countries, and these products are consumed in its own country.

Then the tariff is 5%. After twenty cycles, this trillion is no longer over-issued, and there is no need to devalue it. The money is earned back.

The products that other countries used to sell to him were all physical objects, such as ores, metals, leather, small commodities...

The physical objects themselves have value, even if they will break down.

But one day, an app from a country was thrown over, and the app is not a physical object, and then it made crazy money.

The money earned can buy the actual things of its country. If it is bought for one meal, domestic materials will flow out.

To buy food, so much money, domestic food prices will increase, resulting in m yuan inflation.

More similar things happen, and m yuan will continue to depreciate. In terms of high technology, it will lose its dominance. What consequences will it have?

The depreciation is too large, the credit is reduced, and then more countries holding m yuan will frantically use this m yuan to buy things in their own country.

m yuan itself is not the base currency, but a credit currency, and over-issuance needs to be balanced.

Once everyone uses this money to buy things from this country, the prices of things in this country will rise.

When inflation occurs, the people need to bear this loss.

The hard-earned money of the people is worthless, the purchasing power is declining, and the economic crisis breaks out.

This is the result of losing technological leadership and the tertiary industry of other countries grabbing the value of their own currency.

So they must impose sanctions and force you to sell the app.

Otherwise, their monetary system will collapse, the currency will flow back, resources will be spent, and inflation will occur.

That is to say, how much over-issued credit currency has been released by their country with technological advantages, and when technology cannot be dominated, how much damage will those credit currencies cause to themselves.

Li Yi did not talk about his own things at that time, but just explained this concept to Li Longji in a popular way.

Li Longji understood it, and now he wants to worship all the people who died in Lijiazhuangzi.

You are so great, you have lost a lot of people, and finally brought Li Yi to take over the manor.

This is how I met my brother Yi, oh, and my eldest brother. It was my eldest brother who went to the imperial manor first and found out the situation. It turned out to be my own brother.

"Brother Yi, is it that our technological advantage is that we can use technology to make up for the excessive issuance of currency to the outside world?"

Li Longji wanted to set up a special technology research and development institution immediately.

"Yes, including the price difference of technology and tariffs. The things sold to us by the other party have no technical content. We charge them tariffs, and they have to bear it.

We sell things with technology, and they dare not charge us tariffs.

Even if we don't sell them things with high technical content, they will not accept it no matter how much money they offer.

For example, lathes. The lathes in Zhuangzi have been improving, and the things made by lathes also contain high technology.

Lathes must not be sold. Tools produced by lathes are still subject to restrictions if others want to buy them."

Li Yi admitted that this was the case.

At that time, his country was subject to various technical restrictions, not to mention the mother lathe technology, and even the derivative products were not allowed.

But his countrymen at that time were awesome. Whatever you restrict me, I will fight in that aspect.

If you don't let me enter the space station for cooperation, I will launch the space station myself.

If you don't give me a 100,000-ton hydraulic press, I will build it myself and then sell a 200,000-ton hydraulic press.

Thank you, thank you for the adversity you gave us. We are like kites, soaring into the sky in adversity.

You don't sell us five-axis linkage, but now we also have 3D printing technology.

Technology has an upper limit to development. The development in ten years is leapfrogging, and every step after ten years is difficult.

Our country will catch up in these ten years, and then stand with you at every step.

Even overtaking on the curve, faster than you, because our foundation was more solid in those ten years.

You can stop it for a while, can you stop it for a lifetime?

Li Yi thought, showing a proud look.

My Tang Dynasty technology is limited, you can't catch up in a hundred years, and Japan can't either.

Japan is good at learning, it depends on who the opponent is, my China is better at learning.

Japan can endure hardships and brag to other countries, but you are not fighting enough in front of the Chinese nation.

Li Longji didn't know what his brother Yi was thinking, but suddenly found that his brother Yi was in a different state.

On the surface, he looked more peaceful, but the look in his eyes gave people a feeling of flying.

"Brother Yi?" Li Longji said carefully.

"What?" Li Yi also kept his voice down.

"Does your mother bed need to be strengthened?" Li Longji was worried.

"I built three sets, two of which are underground, and then once they can be improved and upgraded, they will be put underground first.

In fact, it is not necessary to do so, I am just cautious.

Others can't break in, even if they fight to the death to come in and take a look, it's useless, that thing is not just for looking at it."

Li Yi never worried about problems with his machine tool mother bed. UU Reading www.uukanshu.net

Now the mother bed in Zhuangzi is always updated, and the precision will be stronger from generation to generation.

In addition, he has enough theoretical support, and he will be able to produce semiconductors in a while.

"Wait for two years at most, maybe one year. There is no need for information transmission every ten miles. Logistics must be maintained. I will get something out, and we will send a telegram."

Li Yi revealed something in advance. The technology of telegram is now sufficient, in terms of hardware.

He does not need to take a detour, he has technical information, and he can get it directly.

"What is a telegram?" Li Longji has seen good lathes, which are not as good as the equipment in Li Yi's hospital, but they are good things that can be made by himself.

"Thousands of miles away, I write to you here, yes, even if it is a letter, a few breaths later, you receive the letter, this is a telegram."

Li Yi considered the words and tried to make it as simple as possible for Li Longji to hear.