Chapter 313： Issue currency!

Due to historical reasons, the currency used by Tuvalu citizens in their daily life has always been the Australian dollar. After Li Daniu succeeded to the throne, almost all the money he earned was in US dollars. Li Daniu changed into dollars.

Therefore, the currency commonly used in New Tuvalu has also changed from the Australian dollar to the US dollar.

For a country, without its own currency, it is like playing a house. Although printing currency is very simple, if you want your country's currency to be effective, you need the country to have a certain economic strength, or even A certain amount of gold reserves.

Tuvalu used to be one of the least developed countries in the world, and its economic strength was naturally very poor, let alone gold reserves, so it was impossible to issue its own currency. If the issuance is mandatory, it is very likely that, like a certain country, the billion-dollar bills are still on the ground and no one will pick them up.

Burns continued: "Our country now has the ability to issue its own currency, and even because of some of our domestic industries invested and built by you, such as airports, ports, and villa areas, our country's currency can be used by other countries. admit."

"This proposal is very good." Li Daniu hadn't thought of this at all before. Whether a country's national strength is strong or not, the most obvious manifestation is how many countries recognize the currency issued by this country.

Take the United States for example, although there are still some small debates about whether it is the world's most powerful country. But no one can deny that the US dollar has become the most widely used currency in the world, not one of them.

Li Daniu doesn't know much about currency, but he also knows that currency is directly related to a country's productivity, so he asked: "We don't have any productivity in our country, and the government doesn't have any major financial sources at present. Is it really appropriate to issue currency?"

Burns said: "If it is issued by our government, then this currency does not have much practical significance. But if it is issued by you, then, according to your relevant industries, you can definitely make the new currency, in a very short period of time. , and become the mainstream common currency of our country.”

"I'll issue it?" Li Daniu was stunned for a moment. Although he is the king of New Tuvalu, there is no such thing as a feudal country in modern society, and New Tuvalu is no exception. Otherwise, why set up one? What about the prime minister and the government?

The king's currency issuance, or the ancient emperor's currency issuance, is based on their supreme power in the feudal era, but Li Daniu has been avoiding showing his supremacy in New Tuvalu.

For a country that needs to rely on foreign immigrants to increase the number of its citizens, the power of the king is too great, which will make many people who yearn for New Tuvalu dispel their thoughts of immigrating to New Tuvalu.

"Isn't this a bit inappropriate?"

Burns laughed and said: "If it is issued directly in your name, it must be somewhat inappropriate, because it is equivalent to issuing currency by individuals. But if it is issued in another way, it will definitely not exist. Inappropriate question."

"Oh... are you still playing tricks in front of me?" Li Daniu looked at Burns who was a little proud, and laughed in his heart. It can be said that this proposal of Burns is the one that Burns proposed most to Li Daniu since Li Daniu succeeded to the throne. Heartfelt proposal.

Is there any achievement that can be compared to the currency issued by itself, recognized by a country, and even recognized by the whole world in the future?

Burns said embarrassingly: "Your royal family and the government jointly set up a bank, and then the bank provides it to issue currency. Your royal family provides value protection for the currency, while the government provides legal protection for the currency."

Although Li Daniu, as the king of New Tuvalu, has the right to appoint a prime minister and even change the law under certain conditions. But Li Daniu also has to abide by the laws formulated by the government formed by the prime minister. This mutual restrictive relationship is the reason why New Tuvalu can get so many immigration applications.

In modern society, who wants to immigrate to a dictator's country?

Citizens of New Tuvalu also abide by the laws formulated by the government and passed by the people of the whole country in their daily lives. Instead of obeying the orders issued by Li Daniu, who is the king, even Li Daniu has no right to order any citizen of New Tuvalu to do something that this person does not want to do.

Units including the public security, procuratorate and law are also under orders from the government, not directly from the palace.

Although many people in foreign countries still believe that these restrictions and freedoms are superficial, in fact the government is still controlled by King Li Daniu. But for more people, absolute equality? It really doesn't exist in this world.

Isn't the United States, which claims to be an elected president, actually controlled by some consortiums?

For many people, Li Daniu himself has become the richest man with hundreds of billions of dollars through his own "efforts". Welfare, how could it be possible to abuse power because of money?

As for abusing power because of beauty?

Millions of school-age women have said: We don't need His Majesty the King to abuse his power, we are willing to be more proactive.

After hearing Burns' suggestion, Li Daniu understood instantly, and said, "If I do this, do I need to prepare some gold reserves? After all, our country is currently in the stage of investment development and has not produced its own productivity. .”

Burns said: "This is very necessary, because the currency itself has no value. What makes the currency generate purchasing power is the economic strength and credibility of the institution that issues the currency. You do not lack economic strength, but your economic strength It’s all in some industries, and these industries are not suitable as a currency’s value-guaranteed reserve, so a certain degree of gold reserves can make the currency become the mainstream currency more quickly.”

"Aside from gold reserves, what else do we need to do?" Li Daniu asked humbly.

Burns replied: "In addition, your industry, as well as government industries, must be willing to accept this currency and use this currency. Such as electric companies, water companies, and those who provide citizens with daily necessities. The mall and so on..."

"How do you talk about this? You're right?" Li Daniu was very curious.

Burns said with some shame: "Actually, when I was studying abroad, the main thing I learned was financial knowledge."

"Then you can temporarily serve as the governor of the new Central Bank of Tuvalu." Li Daniu was too lazy to listen to those troublesome things, waved his hand and said: "Make specific plans and plans, and then I will solve the problems you can't solve. problem will do.”

"Actually, this plan was completed when I returned to Tuvalu to work. When I was studying abroad, I always dreamed that one day our country can issue its own currency instead of using other countries' currencies. "Burnes said with some excitement: "According to the current development of our new Tuvalu and the future development trend, I have made changes to the previous currency issuance plan."

"Then tell me, what are the problems?"

"The first is the magnitude of the gold reserves In fact, you don't need to issue as much currency as you need to reserve as much gold. In the current situation of our new Tuvalu, this ratio can be put above 1-100. The second is to determine the value of the new currency. In the early stage, we cannot let the market determine the value of the currency, but should set up a price bureau to price the goods. Finally, it is the number of currency issued in the first issue, which we cannot do at one time To issue currency that exceeds the total economic strength of our country will only cause currency devaluation.”

"1-100?" What Li Daniu thought of at the moment was that many countries don't have much gold reserves at all, but they can issue trillion-level currencies. This also shows from the side that the current new Tuvalu, in terms of national strength, There are still very large gaps in many countries.

Burns comforted: "Your Majesty, I believe that in the future, our new Tuvalu will not need much gold reserves, and we will be able to issue a lot of currency."

"Then determine the domestic purchasing power of the new currency based on the current purchasing power of the U.S. dollar." Li Daniu said: "Then issue a relative amount of currency based on the current total amount of currency required. As for whether foreign countries recognize it or not, it is not our current able to grasp."

Dollar? Burns was once again shocked by Li Daniu's ambition. According to Li Daniu's usual style of acting, he set the domestic purchasing power of the new Tuvalu currency at the same level as the US dollar, that is, he wanted to make the new Tuvalu currency , replace the status of the US dollar, and even exceed the current status of the US dollar in the world.

Is this possible? (To be continued.)