Chapter 1157 Inflation
Chapter 1157 Inflation
“My lord, the plan put forward by Minister Zhou and Minister Li is indeed very detailed.”
Murong Yan's voice was clear and calm.
"But they only saw the huge benefits that establishing the Royal Trading Company could bring us."
"But they failed to see the enormous risks hidden behind this."
"risk?"
Lin Zhen, Zhou Xing, and Li Ge were all stunned.
They couldn't figure it out.
What risks could there be in such a lucrative and risk-free opportunity?
"Of course there are risks."
Murong Yan nodded, her gaze sweeping over the three of them.
"And it poses a huge risk that could shake the very foundations of our nation!"
Her voice is not loud.
But it struck everyone's heart like a heavy hammer.
Have you thought about this?
"This time, we raided the most prosperous and powerful families in the entire Jiangnan region."
"What an astronomical figure their accumulated wealth is over hundreds of years?"
"Now, we're going to put all this wealth back into the market through auctions."
What kind of consequences will this have?
She looked at the three bewildered people and slowly uttered two words.
"Inflation".
"Inflation?"
Zhou Xing and Li Ge, two native ancient people, were obviously hearing this word for the first time.
Lin Zhen's pupils suddenly contracted!
He instantly understood what Murong Yan meant!
inflation!
How could he forget this most basic yet fatal economic principle?!
Assuming the total amount of goods in the market remains constant.
Once a large amount of over-issued currency floods into the market.
That would inevitably lead to soaring prices and currency devaluation!
In the end, it will be the ordinary people at the bottom who suffer!
They had painstakingly saved up their life savings.
It could turn into a pile of worthless waste paper overnight!
This is indeed a huge hidden danger that could shake the very foundation of the nation!
"Yan'er, you..."
Lin Zhen looked at Murong Yan, his deep eyes filled with indescribable shock and admiration.
He really didn't expect that.
Her Majesty the Empress, relying solely on her innate keen intuition.
He saw through this deadly trap that even he himself had overlooked!
"Your Majesty... what exactly does this inflation mean?"
Zhou Xing and Li Ge still looked completely bewildered.
Murong Yan patiently explained it to them in the simplest and most understandable language.
"This is like how there were originally only one hundred steamed buns in our Chang'an city."
"There are only a hundred people who want to eat steamed buns."
"Everyone had only one coin."
"Then a bun will only cost one coin."
"But now we've suddenly thrown ten thousand strings of cash into Chang'an."
"Everyone suddenly had a hundred coins in their hands."
"But there are still only those hundred steamed buns."
"Do you think the steamed bun seller would still sell them for only one coin each?"
"He'll definitely raise the price! To ten coins! Or even a hundred coins each!"
"At that time, those poor people who have little money or didn't manage to grab any money will no longer be able to afford steamed buns!"
They will starve to death!
"And once a large number of people starve to death."
"Then chaos will not be far off!"
Zhou Xing and Li Ge listened to this analogy.
A fine layer of cold sweat instantly appeared on his forehead!
They finally understood!
They finally understood just how terrible the risk His Majesty had described truly was!
They were just thinking about how to turn the confiscated gold and silver into money.
But I never thought of that.
Once this money flows into the market without restraint...
What a devastating impact this will have on the entire country's economic system!
"Your Majesty...Your Majesty is wise!"
"Your Majesty... Your Majesty, we were foolish!"
The two old men knelt down again with a thud.
This time, they were genuinely convinced!
They looked at the young, yet extraordinary empress before them, a woman of unparalleled talent.
My heart is filled with nothing but awe and endless worship!
"Okay, everyone, get up."
Lin Zhen looked at the two frightened old men, their faces ashen, and waved his hand helplessly.
Then he turned to look at his serious-looking little wife, who was sitting upright.
A doting smile appeared on his lips.
"Then, in the opinion of our wise and mighty Empress..."
"How should this matter be handled?"
He deliberately emphasized the words "Your Majesty the Empress".
Murong Yan rolled her eyes at him.
But a barely perceptible hint of smugness flashed in his eyes.
She can showcase her talents in front of the man she loves.
And, it gained his approval.
She enjoyed this feeling very much.
She cleared her throat and spoke slowly.
"This matter is not difficult to resolve."
"We can't put all our treasures up for auction at once."
"We must control the pace."
"A steady stream."
“We can start by establishing a treasury directly under the Royal Household Department.”
"All the gold, silver, jade, antiques, and calligraphy and paintings that were confiscated were uniformly registered, appraised, and valued."
"Then each month or quarter, only a small portion of the most exquisite treasures will be auctioned off."
"This way, we can ensure that a good price is achieved at every auction."
"It can also prevent a large amount of hot money from impacting the market in a short period of time."
"Moreover," her eyes gleamed with wisdom, "the money we collect from auctions cannot be directly put into the national treasury and distributed to officials and soldiers."
"We must use this money to do some real business that can truly create value!"
"For example, we can use this money to set up our own textile factory, porcelain factory, and shipyard in Jiangnan!"
"We will produce our own silk and porcelain, and build enormous treasure ships capable of sailing thousands of miles!"
"Then we will sell these goods, which we produce ourselves, to the Western Regions and overseas through our own caravans!"
"Go and make money off those people from the Western Regions and the foreign barbarians!"
"Only in this way can we truly transform those 'dead money' that we've seized into living money that can continuously create wealth for our Great Qian!"
"This is the true foundation of a strong nation!"
These words once again plunged the entire dining room into a deathly silence.
Zhou Xing and Li Ge were completely speechless.
They just stared blankly at the young empress sitting in the main seat, speaking eloquently and radiating wisdom.
I feel like my worldview has been turned upside down once again!
Lin Zhen was also deeply impressed by Murong Yan's grand and insightful vision.
He originally thought that his proposed "stock" plan was already ahead of its time and shocking enough.
But now, compared to his wife's "globalization strategy" of developing real industries and expanding overseas trade, it seems...
It's like comparing a small fry to a big fish!
bestfiction