The film and television world begins with the battle for the throne in Kowloon

Chapter 1069: Political Discussion in the Imperial Study (VIII)
Li Yan smiled slightly. The Eagle Sauce of later generations had no complicated methods of plundering the world. They just relied on powerful military force to maintain the operation of the entire dollar system, and naturally they could plunder the wealth of the world, without having to go to the door to rob.

However, it seems like something is missing?
Li Yan suddenly thought that the U.S. dollar was initially pegged to gold. After the collapse of the Bretton Woods system, it was pegged to oil to ensure the strength of the U.S. dollar.

Gold is a rare metal, and the real support is silver. Doing this yourself is equivalent to linking silver with the Tang Dynasty treasure notes.

At present, the place with the most silver in the entire East is Iwami Silver Mine in Japan. Although it is in the hands of the Turks, it is actually in our own hands. As long as we control the influx of silver, this system can be maintained for the time being.

Sooner or later, Japan will be handed over to the Tang Dynasty, but not now. Currently, silver mines must be used as a guarantee of friendship between the Turks and the Tang Dynasty.

In addition, oil was not popular in this era. It was a product of industrial society. The most solid necessity in this era was food.

Well, that’s right!

By stipulating that large-value grain transactions must use Tang Dynasty treasure notes, the treasure notes can be promoted compulsorily and allowed to be used by other surrounding forces and countries, thereby slowly affecting their internal economies.

Thinking of this, Li Yan's forehead was full of sweat. Thanks to him, the small countries surrounding the Tang Dynasty were basically incorporated into the territory of the Tang Dynasty.

The countries west of the Pamir Mountains are still too far away. Compared to Middle-earth, they are like another world.

At present, the only places that can be truly influenced and controlled by using treasure notes are the feudal states in the west and the Turkic Khanate in the north. However, this is also a good thing. With a smaller scale, the court of the Tang Dynasty can also learn and summarize the experience and methods of using currency in a small-scale economic exchange.

When Li Yan was flying into the sky, several important officials in the imperial study were also filled with great joy.

When they heard that they could get huge profits by issuing treasure notes, the ministers' eyes lit up, wondering whether Li Yan's logic was feasible and whether there were any loopholes. Liu Bo, in particular, thought to himself that the emperor was still doing the same thing as he did in the beginning.

Profits are earned by printing money.
But why did the emperor's system sound feasible, but Liu's bank was bankrupted by himself?
Liu Bo looked at the paper, silver and eggs in front of him, and then thought about his own bank, and fell into deep confusion.
Zhang Sun Wuji timely added: "If you look at it this way, it is also simple. If you find that the treasure notes in the market have depreciated, it means that the amount of treasure notes is greater than the amount of materials. Then the court will recall some treasure notes to increase the value of the currency."

"If you find that the treasure notes on the market have appreciated in value, it means that the material economy is booming and the treasure notes are running out, so you have to print and issue some to lower the value of the currency."

"And the issuance and redemption of each treasure note also corresponds to corresponding actual wealth such as gold, silver and copper, thus maintaining a balance between the three."

Cen Wenben also understood a little bit at this time, and said excitedly: "I understand. If this system is established, the court will actually have a huge regulatory agency, an auxiliary agency independent of the usual administrative system."

"Once the volume reaches a certain level, if something urgent happens in the Tang Dynasty, we can temporarily issue a batch of treasure notes."

"The market's reaction is slower. By the time the market reacts, we have dealt with urgent matters and can calmly recover the banknotes. Without affecting the overall situation, many things have a chance to be buffered."

Li Yan praised him generously: "Lord Cen is indeed a mature and experienced man who is good at planning for the country. Once he understands the rules here, he will see further and think more deeply."

"In the past, the imperial court did not have much flexibility. When faced with natural disasters or man-made disasters, the imperial court would simply issue decrees and ask everyone to tighten their belts to cope with the situation. If they could cope with the situation, everything would be fine. If they could not cope with the situation, at best the country would be ruined."

"In serious cases, the dynasty will be overthrown and the people of the world will be plunged into disaster again."

"If this Finance Temple is established, the court will have two major backers, and will be able to deal with any crisis with ease."

Zhang Sun Wuji was stunned and asked in surprise: "Your Majesty, isn't there only one piece of treasure note? Why are there two big pieces?"

After everyone sat down, Li Yan said, "Have you forgotten that the four major departments under the Ministry of Finance are actually divided into two major parts, the Baochao Tizhu Department and the Baochao Issuing Department. These are two aspects of the same thing."

"As for the Datang Asset Management Bureau and the East Factory, that's another matter."

"Issuing and managing currency is the cornerstone of the court. The silver collected here cannot be easily moved."

"I know that some of you just now thought that this money could be directly allocated to the national treasury for use in emergencies. Or in times of war, it could be directly allocated to the army for use, but I tell you, this is absolutely not possible."

Seeing that everyone was confused, Li Yan turned to Liu Bo and asked, "Sir Liu, of the silver collected by your bank, generally speaking, how much can you lend out to earn interest, and how much should you keep in the warehouse for guests to exchange?" "Your Majesty, my previous bank only lent out 50% to 70% at most."

Liu Bo thought for a moment and said, "Leaving 50% is the safest, and basically there won't be any problems. Leaving 30% will allow the bank to earn the most interest. If the silver left in the treasury is less than 30%, the bank will be at high risk at any time."

"Once the customers who deposited money here found out that the bank was short of money, they would come to withdraw money in fear of the bank going bankrupt. And the money they lent out could not be recovered in a short time, which would cause the bank to fall into crisis."

"This kind of run is the most terrible. No matter how much money you have, you can't handle it. At that time, I was young and didn't know the seriousness of the matter. I was confused for a moment, which led to the collapse of my family's bank in the run."

Li Yan smiled slightly. The cash left in the warehouse for circulation is the reserve ratio of the bank in the future. When the total amount of currency issued or deposits reaches a certain level, the currency can be adjusted to the market by adjusting the reserve ratio.

If Li Yan remembered correctly, the reserve ratio of major banks in later generations was reduced to about 10%.

However, this can only be achieved in a strong and secure country, a stable and prosperous economic environment, and because the people have extremely strong trust in the court.

At present, the Tang Dynasty is in turmoil, with aristocratic families causing trouble at home and powerful neighbors outside. The country has also experienced drastic fluctuations due to the succession of different emperors from generation to generation. It is obvious that it is in an unstable and chaotic world.

The people would not have that much trust in the court, so it would be impossible to achieve that.

The private banks would only lend out 70% at most, leaving 30% in reserve; but Li Yan thought that the court should be more cautious, first lending out 30% and leaving 70% to ensure absolute safety. After running for a period of time and having some confidence, they could then increase it to 50%.

As for the 70%, don't even think about it in the short term. If private banks go bankrupt, it will at most affect a small number of big households, but if state banks go bankrupt, the entire country will be in turmoil.

This size of beast is already very scary in this era. Li Yan is not a professional, lacks knowledge, and has no idea how to operate it. I think it's better to be conservative and do it bit by bit!

This concerns the lives of tens of millions of people, so it cannot be treated as a joke.
After Liu Bo's detailed explanation, several ministers also spoke up and discussed freely. The atmosphere in the imperial study was quite lively. After about half an hour, everyone finally understood the operating rules and some common sense risks.

Li Yan then continued, "In fact, the banks of the major aristocratic families are all similar now. At most, they lend out 50% to 70% of their money to earn interest."

"And the other two departments I am going to set up are just to receive this part of the money."

"Everyone knows that the rich and powerful families make their money by operating various industries, in addition to land. If they can do it, why can't the court do it? If the court is based on governing the country, it can reasonably use the capital of the Tang Dynasty and operate some industries."

"I can tell you that the profits earned here are likely to exceed the national treasury, doubling the court's current available financial resources."

Seeing that the ministers had different expressions, Li Yan said unhappily: "I know that you are worried that the court's business will affect the court's reputation and compete with the people for profits, but have you ever thought that those nobles are doing it anyway, so they are not competing with the people for profits?"

"Since they can do it and make a lot of money, why can't the court's tax source be expanded to increase revenue?"

Li Yan looked at Zhangsun Wuji as if he was looking at an aristocratic family: "They run their business for their own personal gain, while the court runs it for the sake of national economy and people's livelihood, to reduce the burden on the people and to benefit the people. The reputation of the court can only get better and better, not worse and worse."

"If you say this action is competing with the people for profit, then the court will issue a decree that the nobles are not allowed to engage in business, and they are not allowed to compete with the people for profit; if you say this action does not involve competing with the people for profit, then they can engage in business, and the court can naturally do the same."

Zhang Sun Wuji felt guilty when Li Yan looked at him, and said awkwardly: "I personally think that the emperor is right. As long as the money earned is used for national economy and people's livelihood, it is not competing with the people for profit, but benefiting with the people."

Xiao Yu, Cen Wenben, Liu Bo and Ma Zhou also agreed: "Your Majesty is right, this move is for the benefit of the people, and we agree."

"Ok!"

Li Yan nodded in satisfaction, looking away and said, "What's more, the court has a huge amount of capital, and they are also operating some super-large projects that ordinary people cannot operate, such as salt, iron, grain, and other items related to the national economy and people's livelihood as well as the security of the court."

(End of this chapter)