Ye Lun is worthy of being an early cultivation economist who is as famous as Bo Nanke. Although Bo Nanke was not born at that time and the cultivators did not discover the three laws of cultivation, some cultivators have vaguely felt the negative correlation between the number of cultivators and the concentration of spiritual energy.

Ye Lun keenly realized that with the recovery of the cultivation population, the spiritual energy of the cultivation world will gradually become thinner, and spiritual stones will have huge appreciation potential in the long run. If the spiritual stones are used as the basic currency in the cultivation world to build a unified monetary system, once the spiritual stones appreciate significantly, it will inevitably trigger a financial crisis.

Therefore, when designing a spirit stone-based currency system, the risk of a sharp appreciation of spirit stones must be taken into account.

So Yelun coordinated the seven major factions and established the first currency alliance across the Jiuzhou cultivation world - the seven major factions currency alliance, and formulated the official exchange rate between spirit stones, gold and silver.

Among the seven major currency alliances, Yelun defeated the opposition and set the official exchange ratio between spirit stone, gold and silver at 1:5:100. In other words, the official exchange rate of spirit stone and precious metals was almost five times the market exchange rate at that time.

This practice can be said to have caused a thousand waves in one stone. At that time, a large number of cultivators took the initiative to exchange all the stock spirit stones that they could not use into precious metals.

Faced with tsunami-like doubts, the seven major monetary alliance led by Yellen went against the opposition. Not only did it consume all its gold and silver reserves, but it also used all the precious metal outputs of gold and silver mines under the names of the seven major monetary institutions to sign IOUs, which met such a strong exchange demand.

The stock of folk spirit stones has been plundered by the seven major currency alliances in almost a few years.

In addition, Ye Lun also instructed the seven major factions to firmly control the seven super spirit stone veins in their hands. Without approval, any form of spirit stones is strictly prohibited from flowing out to prevent the pressure of running gold in the market.

Doing so can maintain the stability of the official exchange rate on the one hand. On the other hand, the seven major factions can also make full use of the opportunity that the spiritual stone market price is lower than the official price and make every effort to accumulate spiritual stone inventory.

What surprised Lu Yang the most was that Ye Lun also creatively invented a new type of cultivation financial derivative called [Spirit Stone Gold Forward Switch Agreement], which is specially used to hedge against the risks of future appreciation of spirit stones.

Because the exchange rate of spirit stones set by Yelun was too high, when the seven major currency alliances were established, many cultivators no longer had enough spirit stones to exchange for gold.

In order to meet the needs of cultivators for more gold, Ye Lun created this kind of weird thing like spirit stone futures.

Don’t cultivators have no spiritual stones in their hands?

It doesn’t matter. As long as you sign an agreement, after you have a spirit stone in the future, no matter how the exchange rate of the spirit stone fluctuates, you can exchange 1 spirit stone for 4 taels of gold.

This is actually equivalent to a betting agreement. The seven major spirit stone bulls represented by Ye Lun bet on the future spiritual stones that will have room for appreciation of 300%, and bet against the spirit stone bears composed of a group of private wealthy people and cultivators.

Since the richer the cultivator, the longer the life span, the maximum period of this bet agreement can even last for one or two thousand years.

Although the exchange of this forward exchange agreement for the spirit stone gold is 1:4, 20% lower than the official card price of 1:5, cultivators at that time generally believed that the currency alliance led by Yelun could not maintain such a deformed spiritual stone gold exchange ratio for a long time, and the official card price of spirit stone will definitely return to the market price in the future.
Chapter completed!