Flowers, Swords and France

[Although the author has tried his best to make this chapter simple, it may still be a little obscure. However, please read it patiently because it is very important. Thank you...]

As a time traveler, Charles has always felt very lonely.

It is not a personal loneliness. In fact, he was born as an orphan, and he was very lucky to have his loved ones after traveling through time. He loves his grandfather and sister very much, especially his sister.

This kind of loneliness is spiritual.

Coming to the era nearly 0 years ago, it is still a foreign country. The language, customs and humanities are very different from those in the 21st century, making this kind of spiritual loneliness inevitable. It took him many years to overcome this psychological barrier. At one point, the Marquis of Treville even worried that he was a little autistic. Fortunately, he finally adapted to it, grew up slowly, and spent his childhood and adolescence.

But this is just adaptation. That kind of spiritual loneliness lies in the deepest part of his heart and has been lingering.

So, it is not difficult to understand his excitement now. He finally found someone to talk to - no matter who he is!

Baron de Bovan, who was standing opposite, was also somewhat excited. Although he had foresight, his ideas did not receive much approval within the Bank of France, because after all, they seemed too unorthodox. The young man in front of him could actually understand his ideas, see their benefits, and even pointed out the obstacles faced by this idea, which really surprised him.

So the two of them started chatting with great interest.

"There is no way. People now recognize this, as if they can't sleep well without holding a few gold coins in their hands." Charles also poured himself a cup of tea, and then looked at his reflection in the red tea.

Whether it is gold or silver, the annual increase is limited. In this case, it is impossible to realize the large-scale expenditure required by the government. With such expenditure, the government's gold reserves will inevitably flow out in large quantities along with the supply of currency. After the World War, the Americans took away 96% of the world's gold reserves, but they only kept the dollar and gold linked for 30 years (1944-1973). In the end, when other countries used their own dollars to conduct a large-scale run on the dollar, President Nixon had to announce that the dollar would float freely and decouple from gold.

"Money is metal. In today's scientifically advanced world, this remnant of medieval thought still lingers in the Bank of France, hindering the development of France. It is really a pity!" The baron couldn't help but sighed, as if thinking of the many setbacks he had encountered. "Currency is just a medium of exchange, and it carries guarantees and credit. A bill signed by me can still be circulated in the market even if it says 1 million on it; and what about others? They may not even dare to accept an IOU of 100 francs!"

As he spoke, the baron couldn't help but laugh sarcastically.

"So, now that everyone thinks so, France will have to continue to suffer in the economic downturn."

A step ahead is a genius, a few steps ahead is a madman. If we abolish the gold standard right now, it will cause panic and devalue the currency to the point of being worthless, regardless of whether it can be done or not.

"Even if the gold standard cannot be abolished for the time being, the government should implement the policy you mentioned. Since it is a good thing and beneficial to the country and the people, why not do it?" Charles' eyes were firm. "By expanding debt and a certain degree of deficit, the government can raise enough money to do so."

The value of this idea is obvious - during economic downturns, the government should launch large-scale construction, such as railways, roads, water conservancy, etc., to stimulate economic development.

First, this can allow companies to obtain profits to maintain survival, and companies are the cornerstone of national economic development. Only when companies are in good operating condition can the government obtain more taxes to start education, national defense and other necessary matters.

Second, this can allow the working class to obtain funds to maintain their lives and avoid social unrest caused by large-scale unemployment. Even if moral factors are not considered, at least the country can maintain a certain degree of stability.

"That makes sense!" The banker couldn't help but smile again.

This is exactly what he thought.

Charles picked up the teacup and took another sip of tea. He used this time to sort out his thoughts and then spoke again.

"To be honest, I think France needs to build a huge railway to connect every town by rail, and this will take more than ten years or even longer."

"This requires a huge amount of money." The banker's reaction was unexpectedly calm. Perhaps he had seriously considered this issue.

"Yes, it's too much to be panic." Charles nodded in agreement. "But doesn't such a huge project fit your idea?"

The banker frowned, obviously thinking about Charles' words.

"It is indeed very attractive, but it will cause the government to owe a huge debt, a huge debt of perhaps billions, and the government may have problems repaying it in the future." After a moment, the baron expressed his considerations and concerns, "Although in my opinion, the government can and should stimulate the economy by borrowing a lot of money, but there will always be a limit. Excessive debt will cause the government to go bankrupt."

"Large-scale construction will stimulate the development of our country's industry and increase the government's tax revenue; at the same time, our country should hinder the import of foreign goods with high tariffs, and then encourage the export of domestic goods, which can also increase the government's tax revenue. As long as the policies are implemented appropriate, and the scale of construction has been refined If you plan carefully, you can maintain the country's financial security." Charles replied firmly, because mercantilism is nothing new. It has been France's national policy since the time of Louis XIV, and it will be even more so in Germany and Japan in the future. This is what China will do in the future.

Then, his voice lowered a lot, "Besides, wouldn't the huge debt and financial difficulties provide the government with an excuse and reason to expand the central bank? France needs to build a bank within a bank to serve as a central bank." to manage the entire banking industry, and the Banque de France is capable of taking on this important task.”

"Excuses and reasons?" The baron's eyes lit up, and then he looked at Charles with some hesitation, "But there will be political turmoil. And the resistance from other banks will not be small, and no one will want to have another master on their head... …”

"That was more than ten years later, and political turmoil is not terrible. It is just a change of political leaders several times. As for the resistance of others..." Charles suddenly laughed, "They will eventually understand what the general trend is. Unstoppable."

Looking at the young man's genial smile, the banker inexplicably felt a terrible feeling.

Of course, although it is easy to talk about it on paper, it may not work in practice. Young people's ideas are always very simple and beautiful, but they cannot see the difficulties in implementation because they have no real experience. Moreover, he now has no ability to implement what he said.

This was just a casual conversation after all.

However, no matter what, having this insight is already better than most people. This young man is at least worth making friends with, and maybe the future is limitless.

Just when he was secretly giving this young man high marks in his heart, this young man who had already impressed him with admiration surprised him again.

"In addition to the obstacle of the gold standard, your idea also has a more fatal problem..."

"What?" He subconsciously raised his voice, then regained his senses instantly and asked again, "What question are you referring to?"

"In the midst of an economic crisis, if France implements the policies you mentioned alone, it will undoubtedly benefit a lot and be able to survive the crisis and usher in a new round of economic prosperity. But..." Charles paused intentionally. Then he looked up at the Baron and said, "What if every country did this?"

"What if every country does this?" the Baron muttered to himself.

"If every country does this, there will eventually be a very long period of economic stagnation. In order to maintain the previous stimulus effect, the government can only continue to stimulate the economy until it can no longer sustain it." gave his answer.

The key point of Keynesianism is that when the economy is in recession, the government uses reverse stimulus to vigorously stimulate, using future money (debt) to maintain production and employment in the prosperous era, and wait for the end of the crisis. During an economic crisis, if one or two countries implement stimulus policies alone, they will be able to do well when other countries suffer from economic sluggishness and shrinking production due to the crisis.

Read the original article in Liu#9@书/吧!

But what about when every country does it?

After World War II, Keynesianism became a prominent theory, and various countries competed to implement expansionist economic policies. Governments used huge expenditures to stimulate the economy and maintain high employment rates, thus ushering in the prosperous period of the post-war world economy for several decades.

However, one day, prosperity will reach its peak, and no amount of stimulation will have any effect, and the crisis will continue.

In the 1970s, Western industrial countries experienced stagflation, a phenomenon that coexisted with economic recession, high inflation rates, and high unemployment. The stagflation that lasted for more than ten years made every Western industrial country miserable, no matter how much stimulus policies were invested. To no avail.

The same is true in the 21st century.

Everyone can only continue to waste away like this and continue on the existing track. In the end, it can only be seen who can't hold on and leave the stage first, giving up their own economic territory and market share.

But what about in the early and mid-2000s? In that situation without being deterred by weapons of mutually assured destruction?

That's war.

Use active rather than passive acts of war to eliminate or weaken the opponent's economic status and international market share. Since the beginning of the century, a country has not gone to war because of honor or diplomacy, but only to ensure its own country's economic status.

However, these are probably not what the banker in front of me can think of.

In fact, it was not something that Charles could have thought of alone.

But, I thought about it.

Because what stands behind me is nearly two centuries of history in the future.

"Sir, this issue is very complicated. In fact, it cannot be explained clearly in one or two sentences." Charles' figure suddenly seemed a little mysterious. "But, I must say one thing, if France, or any country, If you want to realize your country's dream of standing proudly in the world, you must put aside your illusions and arm yourself, and build an army that can at least guarantee death with your enemies. If a nation wants to stand among the world's powerful nations, it must master it by itself. own destiny."

His words made the banker thoughtful, and he didn't even speak for a while.

Charles took out his pocket watch and looked at it, then nodded and said goodbye.

It was rare for him to have a good chat with someone, and he felt very happy at this moment. But there was no need to say too much, this was enough, enough.

Baron de Bovan looked at Charles's departing back and thought about something.

"If you are really the grandson of the Duke of Treville, it would be great."

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