Compared with large-scale industrial production that has just begun to prevail in this era, the organizational difficulty of the banking industry may not be particularly high.

However, the profits are far beyond that.

If large industrial production wants to make high profits, they can only seek monopoly.

In the financial industry, monopoly is of course more profitable, but even if it is not monopoly, the profit is scary.

After all, large-scale industrial production requires the production of products step by step, the sales of products, and the dangerous leap from nothing to something, from products to money.

For banks, what comes in is money and what goes out is money.

Guess how much I'm going to pay?

There are too many places to operate when money goes in and out.

Even Clayton Investment Bank's actual investment expenditure is much smaller than what it seems.

Because the money invested does not enter all the money into the hands of investors, but is a special accounting responsible for auditing.

If you have this fund request, the accounting will judge whether it is reasonable or not. If it is reasonable, send the money to you.

In other words, as long as the accounting does not agree, the so-called investment amount is only a maximum amount, not the actual money.

These amounts, the money that really represents, actually still exists in Clayton Investment Bank's account in Bank of America.

According to this fund management system, even if Clayden Investment Bank only has one thousand dollars, it is possible to invest an entrepreneur with a venture capital of ten thousand dollars.

If you take a bigger step, you can even invest 100,000 US dollars to entrepreneurs.

Of course, they would not realize this without saying it to entrepreneurs and outsiders.

They didn't realize that the expenses they applied for were already all the money from Clayden Investment Bank.

In their opinion, Clayden Investment Bank is so rich that it is unimaginable.

The money from Clayden Investment Bank seems to be inexhaustible.

This illusion will always exist as long as you spend all the money from Clayden Investment Bank without once.

In ordinary savings banks, there may be depositor runs, but under the review system of Clayden Investment Bank, the authority possessed by investors is much smaller than that of ordinary people. In this case, how can funds run out?

Even if the money from Clayden Investment Bank has dried up, the funds from Bank of America have not dried up.

Clayden Investment Bank can lend enough money from Bank of America to survive the crisis.

As for how much money Bank of America itself has, even the middle and senior staff of Bank of America may not be sure of it.

Because gold and silver coins enter Bank of America, Bank of America issues bank vouchers.

An honest bank can issue one dollar bank vouchers for every dollar of metal worth of income.

But how could there be such a stupid bank?

Almost all banks want to turn a dollar of gold coins into a hundred dollar bank voucher.

Such magical operations are not just this wave.

But wave after wave.

Just imagine, Clayden Investment Bank’s investment in investors is issued in the form of US banknotes.

But in fact, Clayden Investment Bank did not have as many bank bonds as they claimed to have invested, but instead dismantled the east wall and repaired the west wall, with three bottle caps on the heads of ten investors.

However, the US Bank of America issued by Bank of America by Clayton Investment Bank, which expanded the metal currency by a hundred times.

In this way, does anyone know how much metal currency the US banknotes that reach the entrepreneurs actually have?

However, they don't have to care about this.

When the market recognizes the US banknote, the US banknote can be circulated at its face value.

So, some people say that the essence of the banking industry is confidence.

Because if there is no confidence and a run occurs, this monetary system that has expanded by unknown amounts will collapse quickly.

In this way, the hypocritical monetary system seems useless.

However, everything has two aspects, and you need to look at it dialectically.

Too many bank vouchers will collapse the financial system and make people feel that money is worthless. Originally, one dollar could buy a child, but now it takes ten dollars to buy one. This is inflation. Because the amount of bank vouchers in circulation is greater than the value of the goods circulating in the market.

There are only so many products, and of course money is not worth much.

But if there is only metal currency and no bank coupons, you will encounter another problem: there is too much goods and only so much money.

No one is willing to sell their products and goods at a lower price. There is a large amount of goods on the market, but no one buys them.

This phenomenon of deflation is also undesirable.

Therefore, if you want to maintain normal operation of a financial system, you must have enough money and not overload the currency.

Doug had the confidence to ask Lincoln to give him a central bank in the United States because the trend of the central bank is inevitable. No matter who issues it, there must be enough paper currency.

Can Bank of America be the central bank without Lincoln’s support?

No, no, no, no, no.

What is impossible is that it is impossible to have legal currency issuance power. Over-issuance based on metal currencies always has the risk of being run.

Moreover, as the scale of banks expands, the number of bank bond issuances will increase.

Once any turbulence occurs, even if the confidence does not disappear, as long as there is a slight run in the era, it may collapse immediately.

However, if there is a central bank designated by the state, the situation will be different.

The central bank designated by the state, even if it is based on metal currencies, has issued bank bonds. There are many ways to denie it.

First, the country's future taxes can be used as collateral to guarantee it.

In other words, don’t think I don’t have money here now. You can’t pay for it.

However, I have future taxes as collateral. Are you afraid that I will have no money?

If you are afraid that you will not be able to collect taxes, and to that extent, can you exchange them for bank coupons? What's the point?

Because... this country no longer exists.

In addition, metal currency can be used as anchor points and conceptual garment foreign exchange can be used as anchor points.

For example, for every pound you own, two dollars will be issued.

You don't know how much pound I have, I say that the amount I release is as much as I do.

The last, and most powerful killer move is to completely decouple from metal currency.

Transfer all the issuance of currency to credit.

Right! That's right!

The paper in your hand is either a bank voucher, or a real dollar!

What?

You ask where this paper is worth his denomination?

Look there.

There are artillery and guns there, and a majestic army.

I said he is worth it, you said he is not worth it?

I don’t know if I’m too kind or you’re too arrogant.

If you have the ability, you will hit me. If you hit me, you will say whatever you say. You will say it is waste paper or waste paper.

But if you can't beat me, sorry, I said that this paper is money, and it is money.

Of course, ordinary central banks will not only do one of these things, but will do all three things.

Do it at the same time, interspersed, and do it in various ways in different ways.

You can't even find out that they have done so.

Because they have the right to speak and the right to final interpretation. No matter what they do, they are actually the final decision.

They gave some simple concepts, with gorgeous and complex concepts, saying that this is science. If you don’t believe it or you question it, it means you don’t believe in science!

Even when you use simple and easy-to-understand words to others how rogue the central bank is.

The central bank will also give you a hat, "You are a civil science! Because you don't use complex formulas and digital model to prove what you say, so you are a civil science!

What? You said the principle is very simple?

It's okay without those formulas?

Sorry! You are a civil servant!”

Even, they would use the paper they issued to buy all the scholars they could sell.

All scholars say that it is right, do you say that it is wrong, do ordinary people believe in authority? Or do people believe in civil science liars in the words of authority?

The answer is naturally self-evident.

Therefore, Doug Clayden wanted to establish a central bank that belonged to him but served the entire American people.
To be continued...