Dreaming back to 1949, the great powers were there to deceive us

At the signing ceremony at noon, Hu Zhenhua mechanically signed his name and left in a hurry.

After all, he wants to create a character that is hollowed out!

Lao Hu’s reason was very sufficient, because James was here, and he was the military attaché of the US Consulate.

Wang Mo was immersed in the spotlight and didn't notice anything unusual.

As for Guo Dachong, he has not appeared since the morning. He rented a warehouse near the Modu Station and prepared to donate food to his brothers in the station!

Of course, it’s in the name of the Bureau Chief and Stationmaster Wang!

In the office, Hu Zhenhua handed a thin booklet to James.

"These are just some of my superficial views, please correct me if I am wrong!"

James opened it and found that it was in Chinese. He came from an intelligence background, so he naturally knew Chinese characters. Although he read very slowly, he could still understand the meaning.

Global currency theory!

That’s the name of this booklet.

In human history, there have been three global currencies: gold coins, British pounds, and US dollars!

Not to mention gold coins, which are precious metal currencies. Even in the 21st century, gold is still an important reserve for central banks of various countries.

In the 19s, with the victory of the British Empire in the Age of Discovery, the British pound became a global currency, a status that lasted for more than a hundred years.

After the end of World War II, with the rise of the US economy and the establishment of the Bretton Woods system, the US dollar gradually became the most important world currency and gradually occupied a dominant position in the international economic and financial fields.

Under the Bretton Woods system, the US dollar was directly linked to gold, and other currencies were pegged to the US dollar, with an adjustable fixed exchange rate system. This gave the US dollar a central position in the international monetary system, making it the primary currency for international trade, financial transactions, and reserves.

Many countries rely heavily on the US dollar for international settlements and reserve assets. While this system promoted global economic stability and development for a period, it also suffered from inherent contradictions and problems, ultimately disintegrating in the 20s. However, the US dollar's status as a global currency has persisted to a certain extent.

The reason why a chess piece remains on the chessboard is because it still has value.

If Hu Zhenhua doesn't want to be regarded as a spy by the Americans, he must demonstrate his value.

And monetary theory is an important means for him to demonstrate his value.

In fact, Hu Zhenhua cannot be said to be familiar with currency, but at least he is not unfamiliar with it.

After all, the Internet is so developed in later generations that we can often hear reports analyzing monetary hegemony.

James' eyes lit up after reading it. "Hu, you seem to be quite knowledgeable about the influence of currency."

"I know a little bit, a little bit. If you are interested, I would like to share it with you."

"Appreciate further details."

"Currencies can be divided into regional currencies and global currencies based on their scope of circulation. For example, the Nationalist government's gold yuan was a regional currency, completely unrecognized abroad. The US dollar and British pound, on the other hand, are global currencies, recognized by most countries and used as foreign exchange reserves and for foreign trade settlements.

The ultimate dream of any currency is to become a global currency.

A global currency has two major benefits:

First, a seigniorage can be charged, meaning goods and services can be purchased at the full cost of issuance alone.

Second, by adjusting the total amount of currency in circulation, the country can reap the wealth of other countries and even control their economies.

Currency is a continuation of a country's politics. For example, the ruble can only circulate within the polar bear's sphere of influence, and the dollar can only circulate within the United States' sphere of influence.

So is there any way to break this limitation?"

Hu Zhenhua kept the question in suspense, and only spoke again when he saw James looking at him expectantly.

"The answer is to expand its circulation. Take the US dollar as an example. Since the establishment of the Bretton Woods system, the US dollar has been pegged to gold and freely convertible, greatly enhancing its credibility. As a result, other countries have begun to accept the US dollar, greatly promoting its circulation around the world. When the surrounding areas of the polar bear are all using US dollars, it is inevitable that they will also need to reserve US dollars."

“However, the Bretton Woods system has a huge hidden danger!”

Seeing that Lao Hu stopped again, James couldn't help but ask, "What's the hidden danger?"

"The amount of gold in your country's reserves is limited, and as the economy develops, the amount of rice and dollars issued will inevitably increase year by year. My friend, what do you think will happen then?"

James immediately understood and replied, "The official and private exchange rates between gold and rice will be inverted."

He suddenly thought of something and exclaimed, "The US gold reserves will be quickly redeemed!"

James thought of more serious consequences. If the US dollar is no longer backed by gold, can it still be accepted by other countries?

For a moment, he fell into anxiety.

James's eyes fell on Lao Hu. Seeing how calm he looked, he must have a plan.

"Hu, please feel free to tell me how to solve this problem."

Hu Zhenhua smiled. "My friend, you're exaggerating. I still hold the same view as before: as long as we greatly promote the circulation of the US dollar before the Bretton Woods system collapses, and once the US dollar accounts for the vast majority of international settlements, even if it is decoupled from gold, countries will have no choice after they get used to it."

James nodded.

"But how to promote circulation?"

Hu Zhenhua spat out two words: "Loan!"

James looked at Lao Hu, his eyes once again flashing with wisdom, and said with a smile: "Like the 'Marshall Plan'?"

Loans have to be repaid in the future.

Take the Romantic Country for example. The only way to repay is with US dollars. In order to obtain US dollars, the Romantic Country can only increase trade with the United States, which invisibly deepens the relationship between the two countries.

Hu Zhenhua grinned and said, "My friend, are you thinking: Not all countries will accept loans from the United States?"

James nodded slightly, pointed to the north, and said, "At least, they may not accept it."

"not necessarily!"

James' eyes lit up and he asked, "Hu, do you have any good ideas?"

"As long as the loan is in dollars, does it matter who's doing it?"

James showed an expression of understanding: Hu Zhenhua meant that Tongan should come forward.

"Hu, do you mean that you businessmen should come forward?"

But Lao Hu shook his head: "My friend, you misunderstood. Directly lending rice yuan would be too obvious."

"Oh?"

Another surprise?

James quickly asked,

"What else can I do?"

Hu Zhenhua pretended to be mysterious and said with a smile,

"My friend, have you ever eaten preserved eggs?"

James didn't understand, but he still answered, "I have."

"Is it tasty?"

For foreigners, that black thing would be mistaken for dark food at first glance.

"It tastes good! Add some vinegar and it's cool and delicious."

Hu Zhenhua laughed heartily: "Only after you have tasted it will you appreciate its deliciousness!"

"Hu, I don't understand what you mean."

Hu Zhenhua pointed to the north and said, "My friend, how many of them have used rice?"

James suddenly realized: Only after trying it, will you know how delicious Mi Yuanxiang is.

"Hu, what I'm asking is how to get them to accept Mi Yuan?"

Hu Zhenhua pointed to the teacup: "My friend, please!"

The rich aroma of tea did not arouse James' interest at all.

Lao Hu took a sip and said, "My friend, what currency has our TA company been using?"

"Silver dollar!"

After James finished speaking, he suddenly became confused: "Using precious metals as circulating currency?"

No wonder James doesn't understand.

This is simply going against the world trend.

There are four major disadvantages of using precious metals as currency:

First, the cost is much higher than printing banknotes;

Second, coins will wear out during circulation, and precious metals will be lost invisibly;

Third, illegal cutting or melting of metals leads to circulation problems;

Fourth, metal currency is difficult to store, carry, transport and track.

Hu Zhenhua nodded.

"Yes, it is precious metal currency."

James couldn't understand Hu Zhenhua's train of thought and couldn't help asking, "The silver dollar may not last long. Your country's Yuan Datou is a good example. Hu, do you know why paper money replaced precious metal currencies?"

"know."

Hu Zhenhua spoke in a flurry of language, and his words were more comprehensive than those of financial experts.

Lao Hu is a poor student, but it depends on who you compare him with.

In this era, with his poor academic level, he can still defeat many professional scholars in seconds.

Of course, this is not a gap in knowledge, but a dimensionality reduction attack in vision.

James' eyes widened, still in disbelief: "It won't be long before all the silver dollars are exchanged."

Old Hu showed a sly smile: "This is inevitable."

"Then why are you still here?"

"Because only precious metal currencies can gain the trust of the people and circulate in Red China."

James laughed.

"Whether a currency can circulate depends on the attitude of the authorities. Even gold can be eliminated with just one ban. In the communist world, the government's control is unparalleled."

Looking at Lao Hu's half-smile, James suddenly felt like a clown.

His face turned a little red.

At the age of thirty, he couldn't even see through the thoughts of a young man.

"My friend, the government has banned the circulation of silver dollars, but why do ordinary people still like to use them?"

James was speechless. He really couldn't follow Lao Hu's train of thought.

“Because your currency is unstable!”

He looked at Lao Hu's half-smile and shouted impatiently,

"Hu, please stop playing dumb!"

Hu Zhenhua also noticed James's embarrassment and quickly explained, "Truth is determined by debate. Even with your knowledge, you can't find any loopholes. It seems my plan is foolproof."

This invisible flattery made James smile.

According to Hu Zhenhua's logic, James is the second smartest person in the world besides him.

"My friend, my plan is this: Tong'an will establish an industrial zone in the Magic City, opening numerous factories to produce light industrial products. Most employees will be paid in silver dollars, but management can choose rice dollars. Within specific areas, we will open stores that settle in rice dollars. Furthermore, management will travel abroad for business, and we will allow them to purchase scarce items on our behalf. With enough development, we can even establish a dedicated purchasing agency."

Hu Zhenhua stared into James' eyes: "My friend, am I clear?"

James frowned and asked, "Wait, why is it the Magic City? This is the territory of the National Government!"

Suddenly, he thought of something, frowned and asked: "Do you think the red power will take over the Magic City?"

"Let time prove this question."