Zhang Yunfei asked about financial reform, Jameson God.

"Boss, don't you know how you plan to reform and implement the gold standard?" James asked.

"Yes, I plan to implement gold standard reform in Fengtian Province, Honolulu and the Philippines. I wonder if you have any suggestions?" Zhang Yunfei replied.

James thought about it and replied: "There are several types of gold standard systems. Each country implements different gold standard systems according to its national conditions. The simplest one is the gold standard system (go1ddspedard), which is the earliest form of the gold standard currency system, also known as the classical or pure gold standard. Free minting, free exchange and free gold export are the three major characteristics of this currency system. Under this system, governments of various countries stipulate the gold content of the currency in legal form. The comparison of the gold content of the two countries is the basis of the currency basis for the exchange rate. Gold can be freely exported or imported into the country, and a price flow mechanism of minting is formed during the export process, which automatically regulates the exchange rate. The exchange rate under this system has little fluctuation due to the role of coin parity and is limited by the gold conveying point...."

Zhang Yunfei asked, "Since it is the earliest one, then this is the one in your country!"

James replied: "Yes. The other is the gold nugget standard (goo1ddbu11ionnstandard), which is a disguised gold standard that handles international settlement with gold nuggets, also known as the gold bar standard. Under this system, gold nuggets are stored by the state as reserves. The exchange relationship between various currencies and gold in circulation is restricted, and free exchange is no longer implemented. However, when needed, the gold nuggets can be exchanged with paper money to the central bank of the country in a specified limit. Therefore, this currency system is actually a gold standard with restrictions attached to restrictions...."

"There is also a gold exchange standard (go1dexdard), which is a gold standard system that maintains foreign exchange in a gold nugget or gold coin standard country and allows its own currency to exchange foreign exchange without restrictions. Under this system, only bank bonds are circulated in China, and bank bonds cannot be exchanged for gold, and can only exchange currencies of countries that implement gold nugget or gold standard. In addition to gold, international reserves also have a certain proportion of foreign exchange. Foreign exchange can only be exchanged for gold abroad. Gold is the last means of payment. Countries that implement gold exchange standard must maintain a fixed ratio with other countries that implement gold nugget or gold coin standard, and maintain the stability of their currency value by unrestricted buying and selling foreign exchange...."

"I wonder which gold standard you want to use?" James first gave Zhang Yunfei a long introduction and explanation, and then asked Zhang Yunfei which one he wanted to choose? There are many factors that included Zhang Yunfei's exam.

Zhang Yunfei smiled slightly, and his eyes suddenly became deeper, making James, who had been watching Zhang Yunfei's heart tremble. James suddenly felt that his intentions seemed to have been seen through by Zhang Yunfei, but he was not the kind of person who was willing to admit defeat. He immediately looked at Zhang Yunfei with his unique eyes.

Being strong is respectful, and it is a law that can work no matter when and where.

Zhang Yunfei knew James' intention in his heart, and he became more interested in this foreign guest-star new subordinate. According to Zhang Yunfei's understanding of history, although the gold standard seems to be flawless at present, if the war language suddenly breaks out or the economic expansion language, it still cannot escape the law of being eliminated.

Zhang Yunfei knew that China would not be able to compete with these European and American powers in the short term. Because China's basic industrial capabilities, which are the so-called hard power, are far behind that of developed countries. Therefore, if you want to pass their local language, you can only make a fuss about other local soft power.

Soft power is nothing more than various systems and guiding ideology. Although Zhang Yunfei doesn’t understand it very well, he knows that gold, as a tool for currency circulation, will definitely be replaced by paper money.

Zhang Yunfei said: "First, the growth rate of gold production is much lower than the growth rate of commodity production. In the future, gold cannot meet the needs of expanding commodity circulation. This greatly weakens the base of gold coins circulation. In addition, the distribution of gold stocks in various countries is unbalanced. The five countries of the United States, Britain, Germany, France and Russia account for two-thirds of the world's gold stocks.

Most of the gold stock is controlled by a few powerful countries. It will inevitably lead to the free casting and free circulation of gold coins, weakening the foundation of gold coins circulation in other countries. If war breaks out, gold is concentrated in the warring countries to purchase arms, and stop free export and cash out banknotes, which will eventually lead to the collapse of the gold standard."

With the warning of future generations, Zhang Yunfei naturally had to take many fewer detours than other countries. This is how to seize the shortcuts and catch up with European and American countries. Only in this way can we shorten the strength gap with the European and American powers as soon as possible. Zhang Yunfei has already taken the shortcuts on naval shipbuilding. Then we must take the shortcuts on financial reform.

James nodded. He was very surprised by Zhang Yunfei's analysis. Although he might not be able to have sex, at least his boss has no vision. For James, who has always been the best, it would not work if he did not have a strong person to control him.

Zhang Yunfei did not answer him directly, but James knew that Zhang Yunfei must have a new reform idea.

So James asked: "The implementation of the gold standard requires that there is enough gold as the basic support point. This is the most important thing. I wonder if you have enough gold, boss?"

Zhang Yunfei replied proudly: "Of course, I have a gold reserve worth 200 million US dollars, plus a 55 million pound loan from the Bank of England and HSBC. I will discount all of this loan into gold as the basis for implementing the gold standard reform, and with the current scale of China Merchants Bank, I believe it is enough!"

James shook his head and said, "I'm so sorry, I shouldn't ask such a nutritious question! I should think that you have found a huge treasure of shipwrecks from Spain! In fact, in your territory, you can implement financial reforms with a 100 million dollar gold reserve. Of course, the more gold reserves you have, the better your reputation and the better the implementation of reforms."

Zhang Yunfei said intimately: You know that I have made a fortune in Spain. I have gone to have too much fortune. What I said will scare you to death!

"So what if reforms were implemented throughout the Qing Dynasty? How much gold would be needed?" Zhang Yunfei asked.

James replied: "From the survey of the Oriental Bank I run on your country, although your country's industrial capacity is relatively poor, your country's overall GDP is still very large, conservatively estimated to account for 100 million gold reserves in the world. If it is reformed, it will require at least 100 million gold reserves to barely supply the domestic market's currency circulation. If you want a risk-free reform, you will need at least 300 million pounds of gold reserves!"

Zhang Yunfei took a breath and asked for 300 million pounds? Why didn’t I realize that the Qing Dynasty was still so rich?

"This is a bit exaggerated! The Qing Dynasty's central government only earns 70 to 80 million taels of silver every year. How can it take 300 million pounds to reform? If it is exchanged for silver, it would be 2.1 billion taels!" Zhang Yunfei asked in disbelief.

James put on an expert look and said, "Boss, you are not an expert, of course you don't know the reason! Your country's people have been dominant in the East for more than two thousand years, and this accumulation of wealth is beyond the reach of our British Empire.

What's more, your country has a population of 450 million. Even if you calculate it by the minimum value of one or two silver per person every year, it is 450 million taels per year. As measured by the standards of ordinary people in your country, the annual living expenses are 24 taels, which means that they have to create at least 24 taels of value to survive. Boss, you should know how to calculate this simple mathematical problem!"

Damn! Zhang Yunfei was a little depressed and thought to himself: I also studied politics and economics when I was in college. Although I was careless, I still understand this truth.

Seeing Zhang Yunfei nodding, James continued: "Your country's tax revenue is only 70 to 80 million taels of silver, which is what he asked for. To be honest, I have never seen a central government as bad as your country!"

Well! Zhang Yunfei's eyes widened and looked at James in disbelief, but James did not dump him. He picked up the wine glass and continued to talk while drinking.

"Your country has been a country with shortage of silver since ancient times. When the total economic volume is small, silver can be replaced as circulating currency. However, your country has never been a country with a small economy. Such a huge economy must have a huge amount of currency to adapt to its development. But no one in your country can point out this shortcoming, and of course we foreigners will not say it. Today I will tell you when you are the boss of my country!"

Zhang Yunfei stared at James and continued to be speechless...

"The central government finances of your country are even more idiotic. Even though you know that there is little silver, you have to collect silver if you collect taxes? Although one tael of silver is equal to one copper coin, the common people can earn two thousand copper coins, but they can't exchange one tael of silver! In order to be able to exchange it for silver to pay taxes, they have to use two thousand copper coins to exchange for one or two dozen silver with the bank. This is how the money in your country and land is made away by us foreign banks. We don't need silver, but we have silver..."

...

I don't know how long it took, James kept drinking and talking more and more, telling all the stories of how he started from scratch, how he ran a bank, and how he was framed and went bankrupt over the years.

I met a close friend with a thousand cups of wine. I am afraid that James has opened his mind to Zhang Yunfei and treated him as a friend.

Even though Zhang Yunfei was very drunk, he became a little drunk after being pestered by him. Fortunately, Sir Dou Nale, who ran away by making coffee, appeared in front of the two of them at this time.

After drinking a cup of hot coffee, Zhang Yunfei became much more awake, but James was drunk and fell asleep on the coffee table.

"He has been suffering in the past few years!" Sir Dou Nale shook his head and said, "I have never seen him say so much since he went bankrupt. Thank you, Mr. Zhang. He is a financial genius and I hope you can take good care of my friends!"

"Of course! I believe he and I will become good friends!" Zhang Yunfei nodded with certainty and replied. At the same time, he thought to himself: Damn, I haven't finished asking yet? Do I still want to be a financial tycoon? Why did I fall asleep?
Chapter completed!