v3 Chapter 419： gold standard monetary policy

While the Dutch policy of integrating indigenous peoples is being discussed in Berlin, Dutch influence is also being discussed in London and Vienna.

In short, the integration of indigenous peoples in the Netherlands has aroused the curiosity and ridicule of various countries, who are all waiting to see the situation in the Netherlands.

But William IV in Amsterdam, the capital of the Netherlands, was as calm as ever.

He is convening this Dutch Privy Council meeting.

Participating in the meeting were Prime Minister Tolbeck and his cabinet members Jonrell, Home Secretary and Foreign Secretary Heisbet. Feng, Minister of Finance Jane. Feng. Cappello, Dutch Minister of Justice Ross, Minister of Industry Wem. Kurt, Education Minister Rudd. Bells, Director of Royal Dutch Intelligence Bill. Charlie, Director of the Netherlands International Intelligence Service McKay. Sean.

The military is Chief of Staff Mark. Lu De, Minister of the Navy Yang. Peter, Minister of War Pat. De Jong, Chief of Naval Staff Joseph. Kars, Army Chief of Staff Jopp. Il, Minister of Armaments Louis. Bell.

At the Privy Council meeting, Chancellor of the Exchequer Jane. Feng. Capellor is telling his detailed report.

"At present, many countries in Europe and the Rothschild family are not aware of the fact that our Dutch layout in the Americas, in addition to the political layout they have seen, in fact, we pay more attention to the financial power of the Netherlands in the Americas and the invasion- attack."

"The first was the Netherlands which was challenging the gold standard with the First World Revolution, Britain faced high debt after the Nine Years' War from 1688 to 1698 and the War of the Spanish Succession from 1702 to 1713, Britain Government taxes are barely enough to cover the interest on these debts, and the country's public credit is in dire straits to the point where it must try to reduce its debt.

At that time, the ruling Tory Party implemented a debt-to-equity swap plan for Nanhai Company, a platform that assisted the government in financing, and converted the national debt into the shares of the platform company, so that the government creditors became the shareholders of the platform company, and the national debt was written off. The scheme was welcomed by the UK market.

But Walpole, the first prime minister in British history at that time in 1721, thought that this would kill a dangerous speculative act of British business genius, who, like a demon, would make people sleep in the fantasy of wealth falling from the sky. In China, we no longer believe in solid labor, it will lead people astray, the essence of this plan is extremely evil-evil, it will only make the public fall into long-term madness and cannot extricate themselves. "

Chancellor of the Exchequer Jane. Feng. This allusion of Capefall made everyone present very quiet. In fact, many people heard about the financial transformation in the UK for the first time.

Even William IV.

Chancellor of the Exchequer Jane. Feng. Cappello said this, earnestly: "The result was as he expected, and then the credit expansion of the United Kingdom caused the entire United Kingdom to fall into a frenzy, but the crisis came one after another, and Broderick, a member of the British House of Commons, wrote at the time. A letter to Justice Middleton pointed out that the money supply has been pushed to the limit, and there is simply not enough precious metal reserves behind it to support it. For whatever reason, once people's confidence is shaken, the entire currency machine will Immediately fail.

Shortly after the congressman said it, credit expansion was sluggish, and the bubble burst. "

simple. Feng. Capel turned his eyes to all the members of the Privy Council, and finally said in a very loud voice: "Currently, the Commonwealth of Millikin is implementing a new currency and national debt. In fact, it is not much different from the policy implemented by the United Kingdom back then. The difference is that it is more internationalized. broad.

International capital giants including the Rothschilds and the Netherlands are involved.

Therefore, there is an increase in uncertainty about the national debt and currency issues of the United States of America.

Returning to the topic just now, the South-hai-event in England in the early 18th century had a huge impact on the United Kingdom and even the world. It was generally believed that there was not enough precious metal reserves to support the currency issuance mechanism, which led to the South-Sea Bubble. The culprit, the United Kingdom then set out to find an anchor for the issuance of currency.

In 1717, Newton suggested positioning the price of gold in a currency report: 3 pounds 17 shillings 10 pence per 1 ounce of gold, laying a theoretical preliminary basis for the relationship of the gold standard, and the United Kingdom of the British Empire has thus far led to the gold standard. road.

The establishment of the gold standard undoubtedly locked the economy in its initial stages. But in the long run, it has effectively avoided the lack of sufficient precious metal reserves to support the currency issuance mechanism, thereby stabilizing the British currency and prices.

It was this steady and even tight monetary policy that laid the foundation for the first industrial revolution that originated in Britain. "

No one in the entire cabinet showed an expression of impatience. Even the military representatives who were at a loss understood that this well-known financial actuary in the Netherlands had a purpose every time he issued a government report.

Sure enough, when they heard that the British gold standard was actually linked to the first world industrial revolution, they tried to make themselves more sober, so as to integrate into the situation of the Netherlands.

Chancellor of the Exchequer Jane. Feng. Cappello said: "John Kaye invented the shuttle in 1733; James Hargreaves invented the 'Jenny' spinning machine in 1765; James Watt improved the steam engine in 1769. The first industrial revolution - a symbol of life"

These are indeed representative of the rapid development of the British industrial economy, and the British economy led by them has embarked on the most prosperous economic country in Europe for more than a century.

"A loose monetary policy environment is not a necessary condition for innovation and even prosperity. On the contrary, a tight monetary policy environment is more conducive to great innovation."

"After talking about the first industrial revolution - the rise of the UK by relying on the gold standard and monetary easing policy Let's take a look at the current industrial state and monetary policy of the world.

According to what His Majesty said before, I am currently at a critical moment of the second industrial revolution.

Taking the United States as an example, in order to cope with the huge war expenditure, the Lincoln government of the United States of America suspended the gold standard system in 1862 and began a sharp money supply.

By the end of the Civil War in 1866, the dollar price of gold was more than 50% above the official price.

In October 1866, the Congress of the United States of America passed the Austerity Act, and the Treasury Department reduced the base currency by as much as 20% for nearly a year. Maintaining a medium-to-high growth rate, in the two years from July 1866 to June 1868, the growth rate of the United States of America maintained an average annual growth rate of 4%-5%. "

Chancellor of the Exchequer Jane. Feng. Capellor said: "During these seven years, the price level in the United States has been halved due to the tight monetary policy of the Lincoln administration, and at the same time, the rapid economic growth has occurred at the same time. The inability to coexist with high economic growth has now cast doubt on the validity of this widely accepted view.”

He said with a smile: "It was precisely because of this period that the American austerity policy and the migration of the Netherlands to the Far East took over the leadership of the second industrial revolution from Germany, led by Prussia."