Chapter 1764 War Bonds (Plus 1)

Raising taxes can only solve half of the military spending at most. This is just the beginning. With the subsequent huge war, the need is even more astronomical.

Therefore, it is necessary to raise more funds, and over-issue of currency is not enough, so there is only one way left.

"Looks like we need to issue war bonds." Roosevelt said, smoking a cigarette and looking at the branches blowing in the wind, "Our people, who love our country, will definitely buy our war bonds vigorously. "

War bonds are also a kind of national debt. As the name suggests, the country borrows money from the people. In the classification of national debt in the United States, war bonds are classified as E.E. Treasury bonds.

In fact, just before the Pearl Harbor incident, because the amount of aid to the United Kingdom and the Soviet Union was so large that it exceeded the normal ability to pay fiscal expenditures, the United States began to issue defense bonds for the purpose of assisting the Soviet Union and the United Kingdom.

At the time it was just called defense bonds, but now, when new bonds are issued, they become official war bonds, and the war has already begun.

Hearing Roosevelt's words, Treasury Secretary Morgenthau nodded: "Mr. President, issuing war bonds should be a good way. You are right, our people are patriotic, and now the whole country is about to face an emergency of life and death. , they will definitely buy our war bonds aggressively."

If you over-issue money, there will be a dire risk of inflation, but issuing war bonds is different, which is also a way to inspire people's patriotic enthusiasm.

Morgenthau agreed, and Marshall did not speak, and everyone present was supportive.

Until now, the only way to raise more money was to issue war bonds.

Now that the decision has been made, it is time to discuss the issue of how to issue it. This is not difficult for Roosevelt. Soon, Roosevelt will speak out the specific measures.

"Our war bonds, like the previous defense bonds, can be divided into two types: book-entry and paper. In order to ensure proper circulation, bearer paper-based bonds are the main method, and it opens using our US dollar anti-counterfeiting standards. Printing. Bonds come in 25, 50, 100, 200 denominations.”

Almost applying the original defense bond, Roosevelt took the last puff of cigarette into his lungs and exhaled slowly, with the stimulation of nicotine, Roosevelt felt his thoughts became clearer: "At the same time, our bonds have interest. For example For a bond of $25, the individual purchase price is only $18.75, and it matures in 10 years. Our U.S. government converts it to the full amount of $25. In this way, the equivalent annual interest is 3.33%.”

This interest rate is not high. If you consider the factor of inflation, it will just break the capital. Moreover, what will happen in ten years, let the president of the United States worry about it in ten years, and he will definitely not be in power until that time.

Borrow money now.

Roosevelt's suggestion was reasonable, Morgenthau said: "Okay, we're going to do it right away, so how much are we going to issue?"

Roosevelt threw away his cigarette farts and said, "Issue ten billion dollars first."

Ten billion dollars! This is definitely an astronomical figure. You must know that the gross national product of the entire United States is only more than 100 billion US dollars, less than 200 billion. Now, Roosevelt is equivalent to a tenth of the entire gross national product. Once received.

"If it sells well, it can be over-sold, with a limit of 20 billion. This is the first phase." Roosevelt said.

The gap in military spending is huge. As the war progresses, more will be needed in the future. The current 10 billion war bonds are just the beginning.

The problem of money is not difficult for Roosevelt. Roosevelt won the support of the people by successfully solving the economic problems of the United States. Although it is a state of war now, Roosevelt also believes that he can solve it completely.

War bonds, is a brilliant plan of Roosevelt.

It's just that Roosevelt didn't know that on the other side of the ocean, his opponent had already begun to arrange it in advance.

Disrupting the financial order in the United States, or even causing the financial system of the United States to collapse, is one aspect of the war against the United States. It would be too superficial to think that the war was only military.

In Europe, as Germany occupied various countries and implemented the euro, it made a lot of profits, gained wealth through foreign military wars, and then converted these wealth into the popularity of the domestic military industry. In this way, it is possible to advance Rapid growth in GDP across Europe.

This is how Cyric's war economy came about, and when the war is over, once Germany dominates the world, it will be easier to develop the economy. Europe, as an industrial center, dumping industrial products to the world will be able to maintain a modern life in Europe not to mention control of those oil-producing countries in the Middle East.

Now, Gu He Feng, who was sitting opposite Cyric, couldn't keep up with Cyric.

When Koga Feng was still immersed in the idea of ​​​​that his own side was in vain with balloons carrying dollars, Cyric had taken him to a new field and forged war bonds.

This thing is issued by the US government! What's the use even if you forge this kind of thing on your own side? Or like the ones just said, use balloons for airdrops?

"Of course it's the same way, mainly airdrops." Cyric looked at the already confused guy, and could only continue to explain to him: "The war bonds issued by the United States have many similarities with the US dollar. They are anonymous. If it is issued according to the denomination, then it has the ability to circulate."

Bonds are tradable, bearer, and have denominations. In the history of later generations, after the purchase of war bonds purely to support the country, there were only a few people who burned them in public, and it could even be said to be a show.

Most of the people bought it and kept it at home carefully, waiting to get the money from the government after the war was over.

If there is an urgent need for funds in the middle, the bond will be sold, so it can also be circulated.

So, what if all of a sudden there were a lot of war bonds? What if someone suddenly found out that the bond was fake? In fact, it's better than making counterfeit US dollars, making war bonds, and deliberately showing some tricks, so that people will know, no, there are fake bonds, don't buy them!

The U.S. government will also be very anxious, reprint war bonds, and tell the people that the bonds are safe and there is no problem. When the new bonds are printed, they will start to sell. It turns out that there are high imitations on the market.

In this way, the issuance of American war bonds can be greatly delayed. Americans have to revise, print, list, and identify the true and false again and again, and Americans cannot quickly raise funds through war bonds. , their government is going bankrupt.

Thinking of this, a smile appeared on Cyric's face.