Rebirth of the Evil Life

The next day, there were still many people withdrawing money. Of course, most of the people withdrawing money were still withdrawing money from the current account. As for the fixed deposit, no one has touched it yet. But the amount of cash in the bank is constantly decreasing every day. In the past, there were mostly people depositing and withdrawing. Sometimes, the bank only serves as a money transfer station. The money is always stored here, just transferred from one account to another. Now, the money in the current account has been withdrawn, and the money in the bank vault is getting less and less. What if everyone really doesn't want the interest and comes to withdraw money? "Boss, what do you think they will do?" Melissa asked. Lin Feng smiled slightly. "They can do many things, such as spreading all kinds of rumors, telling everyone that if everyone withdraws money, it will cause bank currency tension, leading to a tightening of bank finances, which will threaten the normal financial order of society, and will cause companies to be unable to obtain loans and factories to be unable to operate normally. The final result is a social financial collapse, and everyone will be in trouble!" Lin Feng laughed, "It's a pity that such rumors are useless to the Chinese people." Lin Feng shrugged, "China's 5,000 years of historical and cultural uniqueness have made the Chinese people believe in one thing, that is - put the money in your pocket and feel safe! Of course, it can also be said to be down-to-earth. In the hearts of the people, money is better placed anywhere than in their own mouths. The money in the bag is reassuring. Of course, now everyone believes that it is safe to put it in the bank. But if the bank makes this statement, then the people will inevitably doubt the bank. Think about it, if I deposit money in the bank, I should be able to withdraw it. Now you make such a statement, but say that I can't withdraw it. If I withdraw it, it will affect the social financial order and lead to the collapse of China's financial system. This will not make the people continue to keep their money in the bank, but they will think, my God. I deposited my money and can't withdraw it. There is actually such a reason, which is too scary. So, in the end, the people will definitely choose to withdraw their money frantically! "Melissa thought about it and nodded. She has been in China for so long, and finally understood the uniqueness of China. The world is divided into China and the world. What it means is that China and the world are completely different. What is popular in the world may not be popular in China. And this rule. It is the experience summed up by countless world-class companies after paying countless painful prices. Foreign citizens will naturally understand that if all the money is withdrawn, it will inevitably cause a bank run and a series of unpredictable financial events. So everyone will be very rational. As long as the bank does not have major financial problems and may go bankrupt, people will not run on it. But in China, the more you say that you can't withdraw money, the more you want to withdraw money.

This is the truth. Just like before this, there was a rumor that the central bank was preparing to launch a thousand-yuan banknote. This proposal was proposed by Zong Licheng, a member of the National Committee of the Chinese People's Political Consultative Conference and vice chairman of the Shandong Federation of Industry and Commerce, at the National People's Congress in 2004. His reason is that the social economy is developing rapidly nowadays. The per capita wage has risen to a high level, prices have been rising, and consumers are spending more and more money at one time when consuming. It seems a bit inappropriate to use hundred-yuan banknotes.

The large-denomination RMB has many advantages and benefits. First, it is easy to carry, second, it reduces the time of circulation links and improves efficiency, and third, it saves paper. This is beneficial to the country and the people. However, this was fully opposed by the people, saying that issuing a thousand-yuan RMB is a disaster for the country and the people. Once issued, prices will inevitably rise. Even to the point where it is difficult for people to reach. Many people even insulted Zong Licheng as a running dog of capitalists. It is the claws of corrupt elements. In the end, this proposal was rejected.

But is it really not possible to issue large amounts of RMB?

In fact, from a financial point of view, it is related to a country's economic level. When a country's economic level rises to a certain height, it can issue large amounts of currency to meet market needs. After all, it is a bit inappropriate to buy a house but need to carry a box of money. Although you can transfer money directly, sometimes cash is more convenient. Especially when you go shopping in a mall, etc., you buy something, open your wallet, and a large pile of banknotes is undoubtedly bloated. In this case, issuing large-denomination banknotes is undoubtedly more convenient.

But why are Chinese people afraid? The reason is that large-denomination banknotes were also issued during the Republic of China. On August 19, 1948, the National Government implemented currency reform, abolished legal tender, and circulated gold yuan coupons. The legal tender was recovered by converting 1 yuan of gold yuan coupons into 3 million yuan of legal tender. Three months after the issuance of gold yuan coupons, prices soared and the currency value plummeted. There were many cases where people could not buy a steamed bun with a sack of money. This led to a complete collapse of prices at that time and a complete chaos in the market. Finally, in the first half of the following year, the public refused to use it. The public would rather barter than accept this legal tender.

Therefore, the Chinese people are afraid that such a situation will happen again after the use of large-denomination banknotes. What if, after the issuance of 1,000 yuan banknotes, 10 yuan can buy a bowl of beef noodles, but after the issuance of 1,000 yuan banknotes, 20 yuan may not be able to buy it. Isn't this a pitfall? Therefore, the Chinese people are firmly opposed.

However, judging from the actual situation of each country, whether the country issues large-denomination RMB, prices will still rise, inflationary pressure will still be high, and the RMB will still depreciate. This is different from whether the country issues large-denomination RMB. is irrelevant. What's more, we have now entered the era of "cards". Not to mention that employees in the unit no longer use cash to pay wages, but directly use "bank cards" to count them; even when people go shopping in shopping malls, they have become accustomed to "swiping cards" instead of using cash. Therefore, whether it is a large denomination of RMB or a small denomination of RMB, it is just a number for the unit or consumption, and the size of the RMB has no practical significance. From this perspective, issuance or non-issuance of large-denomination RMB is the same and does not affect the circulation of currency at all. It is just a number.

Of course, this can also be said from a certain perspective. Since everyone is used to it, there is no need to issue large denomination currencies. However, from the perspective of domestic economic level and consumption habits, large amounts of RMB are more convenient for Chinese people's consumption habits. After all, Chinese people like to carry cash. As for why the United States does not issue large denominations, this is due to the consumption habits of Americans. You can swipe your card wherever you go in the United States, even at the smallest convenience store. Moreover, Americans usually pay monthly bills. For various incomes every month, bills will be sent to them at the end of the month. At that time, they will pay back the bill in cash in one lump sum.

Therefore, Americans really do not need higher denomination currency. Moreover, it is not that the United States has not issued higher denomination currency. Historically, the United States has also issued large-denomination banknotes of US$200, US$500, US$1,000, US$2,000, US$5,000, and US$10,000, but they stopped issuing them in the 1940s. Finally, due to the popularity of credit cards, the United States entered a credit society, and then It has been decided that banknotes with denominations greater than $100 will no longer be issued in the future. However, the large-denomination banknotes that have been issued are still not invalid and can participate in market circulation. Of course, no one will spend those large denomination banknotes even if they have them. Because its collection value has far exceeded its face value itself.

Of course, what I’m talking about here is the panic mentality of the Chinese people. If you don't let me withdraw the money I deposited in the bank, saying it will affect China's financial order, then the result is that I will definitely get it back. So if the bank makes such remarks, the result will be panic among the people and eventually lead to a run.

"So what will the bank do?" Melissa asked.

"Haha, I think as for banks, their tactic now is to delay!" Lin Feng smiled.

drag? How to drag?

The next day, after discussions last night by the four major banks, the four major banks released a message - all time deposit books that want to withdraw money must make an appointment 15 days in advance.

Undoubtedly, this news was used to deal with the bank run crisis proposed by Lin Feng. The real majority of deposits are in time passbooks. If the fixed deposit book cannot be cashed, at least it cannot be cashed and withdrawn immediately, then will the bank be afraid of withdrawing money? I’m not afraid of all of you retail investors coming. After all, if everyone really has enough cash, most of them will be deposited as time deposits instead of current deposits. After all, the interest rate gap is too big.

After learning that the bank had launched this policy, all real estate companies breathed a sigh of relief. This time, they don’t have to worry about banks withdrawing loans. If Lin Feng really stopped lending and even asked them to repay, then almost half of their companies would collapse. Now that the bank has introduced this policy, an unprecedented policy, it is obvious that Lin Feng and Lin Feng are prepared to fight to the end. This is also sending a signal, telling them to straighten their backs and don't lie down. Persistence is victory!

"Boss, now that the four major banks have restricted cash withdrawals, what should we do next?" Melissa asked.

Lin Feng smiled.

"I expected that the first step of the four major banks would be to restrict cash withdrawals. This is because this is the usual routine of these state-owned enterprises. They are cautious and first use restrictions on cash withdrawals to test everyone's reaction. And this is their biggest mistake. They must not do this. If you do this, they will be in trouble!" Lin Feng smiled coldly, "If we restrict cash withdrawals, we might as well just declare that the current period will not expire and we will not be able to withdraw cash!"

Later, Lin Feng posted a Weibo post.

"In response to Comrade Xiaoping's call, those who get rich first will lead those who have not. I will establish the 'Fengshen Venture Capital Fund', with 10% of the capital guaranteed every year, with no upper limit. Everyone is welcome to buy!" Lin Feng released Weibo. (To be continued)