Super Biotech Empire

Chapter 727 The Hope of the Financial Industry

Issuing additional currency is indeed a way to increase the government's fiscal revenue, but the imperial cabinet has only issued currency three times so far, and each time it was carried out under the condition of insufficient market circulation. Chen Lu is still a little reluctant to issue currency when the market has not yet said that there is a shortage of currency, because for the empire, there is an iron law in currency, that is, to ensure that the star currency does not depreciate. This is what the empire has done for two hundred years. One thing she did well, she didn't want to break this iron law.

The main reason why the empire was able to issue currency only three times even though the economy had grown several times was because the empire has now achieved the ultimate in monetization. Everyone's funds have become a string of numbers on the bank account. They only change when they are in use, and the change is just from one bank to another. But because there is a way to preserve the value of assets such as gold and antiques in troubled times, many people turn the numbers on their bank accounts into value-preserving items that can be seen one by one. In this way, the circulation of the imperial currency is actually not that difficult, so the empire does not need to issue a large-scale additional currency, but only maintains market demand.

"Sister, why do you have the idea to invite me to dinner?" Chen Yi walked into a box, looked at Chen Lu who had been waiting inside and asked with a smile.

Chen Lu envied her younger brother's laid-back look, but of course she was just envious. She didn't answer her brother's question immediately, but said: "The dishes are getting cold, let's eat first."

"No, let's talk about things." Chen Yi said with a smile, their strength is at the level of Wu Zong, even if they don't eat for three days, there is no problem. Moreover, as a younger brother, he knew very well what kind of temper his sister was like, so he must have something important to do for him.

"Well, I actually asked you to come here to verify a question. If the empire issued an additional trillion star coins, would it have any impact on your companies? Star coins must maintain their value. This is the iron law that the empire has maintained over the years. I don't want to break it like this "Chen Lu said with some melancholy, she decided to investigate after thinking about it, so Chen Yi, the younger brother who owns the company, became his primary target.

Chen Yi frowned a little, so if the empire issued an additional trillion star coins, the related costs would definitely be imposed on their companies, unless the empire was holding a technical exchange meeting and then distributed the trillion in the form of technical assistance go down. But this is impossible, he guessed that the empire intends to use this money to maintain the price of vitality blocks.

So he asked: "The empire intends to use the one trillion star coins issued to stabilize the price of the vitality block?"

"Yes, at present, the vitality block in the imperial treasury is our only guarantee, so its price cannot fall, and the current price is very good. After all, if the price of vitality block is low, the corresponding supply has not increased, which will greatly increase Those who disrupt the market are the people at the bottom who will be exploited in the end. If this happens, then the empire’s practice of supporting the people at the bottom will be completely bankrupt.” Chen Lu didn’t hide it either, after all, Chen Yi is not an outsider.

Chen Yi obviously couldn't digest this matter. After all, he is only the chairman of a company now, and he doesn't have a deep understanding of finance. However, he still understood what his sister said. It is very likely that the empire will issue this trillion star coins, and what he has to do is to find a gap for the additional issuance of this trillion star coins, and can ensure that the value of the currency is not too large. fluctuated and prices did not increase.

"Sister, in fact, according to the current economic scale, if this trillion yuan is slowly put down, the market can still digest it." Chen Yi obviously can't think of any other way, so he can only say this.

Hearing what her younger brother said, Chen Lu also understood that the decision on this matter still needs to be made by the cabinet and her, so she dared to take a gamble. She left shortly after lunch and went off to do some research elsewhere.

Three days later, at the cabinet meeting, Chen Lu put forward a proposal to issue an additional one trillion star coins. This is actually helpful for the empire, after all, a slight inflation will greatly promote economic growth. Therefore, the cabinet directly agreed, and on the second day after the cabinet agreed, a large amount of funds entered the Yuan Qi block market and began to buy Yuan Qi blocks wantonly, slowly stabilizing the price of Yuan Qi blocks at 6 billion star coins price above.

The price of the Yuan Qi block was originally 10 billion star coins, but since the Yuan Qi block entered the credit point exchange system of the empire, the price has slowly dropped, and the purpose of the empire is to stabilize the price of the Yuan Qi block at around 7 billion . This price not only allows the empire to make some profits, but also prevents the people from selling their credit points in exchange for vitality blocks, which will cause insufficient supply and demand in the market.

The major companies and families of the empire are aware of this action, and they are still helping the empire to stabilize the rise in prices. After all, with the additional issuance of one trillion star coins, how could prices not increase. In fact, the empire has been acting as a market regulator until now, ignoring the various rules that have been formed, which has caused many companies headaches.

Now that the empire has begun to issue additional currency, the financial system has also slowly seen the hope of issuing national bonds. From the establishment of the empire to the present two hundred years, the empire has issued two national bonds, one is the Venus energy block production project. Treasury bonds are only corporate bonds. And it was fully paid in the second year after Jinxing was put into production. Another time, it was issued when the empire was in crisis. At present, this kind of national debt is still circulating in the market, and many of them have become collectibles.

National debt is a good asset preservation method and an important part of the financial system. However, because the high-level policy of the empire tends to be conservative, the financial system of the empire has been greatly flawed so far. Many people have already responded to this question to the cabinet, but the high-level officials of the empire seem to have not heard these voices, and there is no answer at all.

In fact, this is quite normal. When the empire was first established, it used a way of running a company to govern the country. Su Yan, the president of the Imperial Central Bank, was only a vice president of the Star Group at that time, and he only knew a little about finance. Not very proficient. Since it is a corporate governance method, all the people in the empire become employees, and all their wages come from the profits of the 'company'. This determines how much the empire spends and how much it spends. As for financial means such as loans, it has become a thing of the past for the empire.

Therefore, after the additional issuance of one trillion yuan of currency, many banks have suggested to the cabinet to issue imperial treasury bonds to maintain the empire's scarce capital needs.

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