Li Rui originally asked Lu Yang with a dead attitude, but he didn't expect that this question was exactly what he wanted.

After pondering for a moment, Lu Yang said: "I have already thoughts about how to create a credit-based spirit stone currency. It mainly depends on whether the seniors of the Jiuzhou Monetary Alliance have the courage to continue to carry out the promotion. In fact, I think the third spiritual stone financial crisis is a good opportunity. Now that it is impossible to stop this financial crisis, I suggest that the Jiuzhou Monetary Alliance further fuel the fire, take the initiative to take action as an official position, demolish the existing monetary system, and create conditions for the establishment of a credit monetary system..."

Because the cultivation of this world of cultivation is too boring, Lu Yang, as a person who can still be distracted during cultivation, proposed the idea of ​​the credit currency system for cultivation, and was bored, he also seriously thought about how to establish a credit currency system for cultivation.

Combining the experience of the earth's capital market, especially central banks in various countries, he has really come up with a very feasible strategy.

When Li Rui heard that Lu Yang seemed to have a certain plan, he quickly asked: "Do you actually have an idea? Tell me quickly!"

After considering the words and sentences, Lu Yang slowly spoke: "When credit currency is just starting, it is definitely difficult for ordinary cultivators to accept it. According to the theory of 'quantitative easing' I mentioned before, that is, 'buy assets based on credit and use assets to support credit', the first step is that we must find an asset that is comparable to the credit of the spirit stone itself to serve as the first anchor of the credit currency."

Li Rui asked in confusion: "Your theory of quantitative easing is indeed exquisite. However, the spirit stone is the most powerful hard currency in the cultivation world. I really can't imagine any assets that can be compared with the spirit stone in credit."

When it comes to quantitative easing, we have to mention it is the [central bank balance sheet theory] of the central bank on earth.

Any modern economic entity has a balance sheet, which records the assets and liabilities of this entity. The central bank, as the currency issuer, is naturally no exception. The gold standard is actually the simplified application of the central bank's balance sheet theory.

Under the traditional gold standard system, the assets of the central bank are the inventories of gold, and the liabilities of the central bank are the issuing paper money. In theory, everyone holding money is the creditor of the central bank and has the right to exchange money for gold from the central bank.

In this case, the central bank's balance sheet must be completely balanced, and the assets and liabilities must be completely equal, otherwise there will be redemption problems. Because of this, the total size of the central bank's balance sheet (that is, the total amount of money in society) is locked by the total amount of gold reserves under the gold standard.

The Bretton Woods system and the Jiuzhou Monetary Union system are essentially aimed at issuing as much money as possible, artificially causing the balance sheet of the currency issuer to be imbalanced and the liabilities are greater than the assets. Therefore, it is necessary to increase the obstacles to redemption of gold (spirit stone) without affecting the credit of the paper currency.

The credit monetary system adds credit assets to the assets of the central bank's balance sheet, and increases the money supply by issuing credit.

Under the traditional credit monetary system, the central bank mainly lends money to commercial banks and increases [debt claims against commercial banks] on the asset side, thereby injecting more base currency on the liability side.

Compared with the traditional gold standard system, the main progress of the credit currency system is to replace gold with [debt claims to commercial banks] on the asset side, converting the anchor of the currency from gold to [debt claims to commercial banks], thus getting rid of the restrictions on the issuance of money by gold reserves. Although under the credit currency system, the central bank also has gold on the asset side, the proportion of gold in total assets has been reduced to an extremely low level.

Quantitative easing is the most extreme method used by the central bank when expanding its balance sheet - that is, the central bank will print money directly to buy stocks and bonds. This practice seems crazy, but it is completely balanced at the central bank's balance sheet.

Because the banknotes printed by the central bank are not anchorless, but are anchored by stocks and bonds. When implementing quantitative easing, the central bank's liabilities are newly printed banknotes, and the corresponding central bank assets are the stocks and bonds purchased by these new banknotes.

This is what Lu Yang said, "using credit to buy assets and supporting credit with assets." This is a sentence he summarized to summarize modern credit and monetary theory.

On Earth, credit currency has been around for more than half a century. Quantitative easing was created after the bursting of the Japanese economic bubble in the early 1990s. This concept was first derived from the famous Maekawa Report.

So we can see that in the history of earth finance, commercial banks first came to the central bank to place credit assets for the media through commercial banks, establish a credit monetary system, and finally developed extreme applications such as quantitative easing.

But in the world of cultivation, since everyone uses sects as a carrier to carry out social activities, there is no system design like Xiuzhen Co., Ltd., which makes the credit market of the cultivation world naturally suffer from disability.

Not to mention that since ancient times, cultivators have focused on combat effectiveness and despised wealth accumulation. All their wealth is tied to one's own, and they may be killed by enemies at any time. Therefore, the development of the commercial banking system is seriously lagging behind economic development, and there are only backward financial institutions like money shops in the entire Jiuzhou land.

It is completely impossible to establish a credit monetary system based on the experience of the earth under the current conditions. Even if he can create a commercial banking system out of nothing within two months, the entire cultivation world will not be able to develop a credit environment that can support the operation of this commercial system for a while.

In this case, Lu Yang decided to take the wrong approach and act the opposite way, directly use quantitative easing killer moves to establish the credit of the Cultivation Credit Currency, and then slowly study the feasibility of the Cultivation Commercial Banking System.

Li Rui is also worthy of being a financial expert in the cultivation world, and he immediately realized the weakness of quantitative easing.

The previous central bank's balance sheet theory also mentioned that quantitative easing is reflected in the central bank's balance sheet, where stocks and bonds are recorded on the asset side and newly issued currencies are recorded on the liability side; this is exactly the same as under the gold standard system, where gold is recorded on the asset side and newly issued currencies are recorded on the liability side.

However, the credit of stocks and bonds is naturally incomparable to gold.

It is precisely because gold's credit is stronger than commercial banks' credit, and commercial banks' credit is stronger than stocks and bonds that human society has first had a gold standard (with gold as the anchor), then a credit monetary system (with bank credit as the anchor), and finally developed the ultimate killer move of quantitative easing (with stocks and bonds as the anchor).

Therefore, if you want to promote credit currency in the cultivation world, you must first find a financial asset other than the spirit stone that can effectively replace the spirit stone to support this kind of credit. There are no assets on the earth that are stronger than gold credit, but in this world of cultivation, the situation is different.

Hearing Li Rui's question, Lu Yang smiled mysteriously and said, "In this world, there is really an asset that is stronger than the credit of Lingshi, but it depends on whether the Jiuzhou Monetary Union has the courage to take out this asset as bait and establish a new generation of monetary system credit..."

Immediately afterwards, Lu Yang told his plan all.

With Lu Yang's introduction, Mo Yunlan's face changed drastically, and Li Rui also looked gloomy and gloomy. After Lu Yang's final introduction, Li Rui took a deep breath and said, "It turns out that there are talented people from the Jiangshan Dynasty. I didn't expect that our Wuliang Sword Sect would have such a monster as you. If your spiritual root qualifications are better, I'm afraid that the achievements will not be inferior to those of the head of Ma, which is a pity!"

Mo Yunlan also stepped forward to ask for instructions: "Master, should you ask the head of Ma and Master Luo to discuss it now?"

Li Rui wanted to raise his hand to send a message to the other two Nascent Soul cultivators, but then put his hand down and directly activated his spiritual energy and shouted: "Senior Brother, Senior Brother Luo, please come to the conference hall as soon as possible!"

The sound echoed in the Wuliang Mountains like a bell.
Chapter completed!