money week reporter Jiang Xun
last week, congfei widows and PWC girl died of unnatural deaths makes us sad, this week, medicine Xin of normal death penalty makes us little comfort. Another big powers but Newton, greater knowledge, greater days.
last week talked about why traditional Chinese regime is not easy, even as Chiang Kai-shek "all evils of the old days", even Katana into the internal organs are also "dying".
a very important reason, is the monetary mechanism. Chinese ancient banknotes is not just monetary, but also quietly becoming a government bond and eventually became An IOU. This is a knot, vicious circle, with the pangshi nature of the scam. Low volume, high monetary operation, this guarantees within the regime and will not go bankrupt, not like Western Europe since the 13th century as the Government again and again into the debt crisis, then forced to help the people. This is an important civilization of modern Western political and economic background and impetus.
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dollars index create 32 months low dollars required to fed "changing faces" us means short-term vulnerable difficult modified Exchange rate tools will into anti-inflation means China joined currency appreciation anti inflation army Greece will in two year recombinant debt dollars feiliu direct Xia strong dollars this is commodity currency by sought after AUD exchange rate frequency innovation high school quarter investment policy will hot registration in the European no China can. We say that there some unique smoothing mechanism – the European not stupid enough to hand over of power at International Conference Centre of the Royal family--so what?
the glitz of the powder of the Southern Song dynasty, because gold and silver, copper resources controlled by the fool in the North were plundered and monetary system to the point of inconceivable. To late, you know, they divided into four different national currency area, a set a, jianghan district, Yangtze-huaihe region set in Sichuan province, to imperial capital Hangzhou to other areas of the core is a set. Four regions are intertwined with various civil and official notes, is mashup of hard currency. But can still control the Southern Song dynasty southern regime's 153 years-if not the cruel oppression of Kublai Khan, there may be more.
the first factor is simple, country is big enough. Relatively closed economy, dissemination of information in a long chain, great imbalances in economic, dragging down currency circulation speed and width. You imagine, this kind of thing happens in Italy City States, Portugal or the Netherlands that tiny place, what are the results?
the second element, is the financial and taxation in the piston movement between Central and local, rather than the Government and civil interaction. Thus, financial power system with the zhajinhua game. And in medieval European City State, because they often war, and a does not look out on Rob Xia a large site, even than original of territory also large, ruled forces enough, so on delegate part nobles to agent local tax management--you to know, in here formation has most original of partnership system, and this is capitalism of important foundation--to created has a large unit civil strength, King no money has can asked they borrow.
the Chinese Central Government has no money to do? Or currency, death robbed the local money is then put in some right, does the Yuan dynasty in the Song dynasty, and later went out notes of Ming dynasty, they had to steal money, robbed civil robbed the place, in short not to borrow money. Both causes and effects of monetary hegemony, were also soft means to control economy.
the third factor, say it you don't believe, that is born Chinese and the fortress. In the financial field, is a wise man always had a way of manufacturing alternative currency in the dark society, to circumvent An IOU. Do not say of the ancient, you take a look at our House, garlic does it look like today? We also thank the strong fortress of parallel imports, so many years, they not only failed to rise, also discounted the huge liquidity, increasing the number of technical standards labor efficiency, and how grievances.
you look at the three relics of our ancestors, we really NEET. So smart, you tell me can you avoid the vicious circle of the Renminbi?
