Chapter 30 Currency Wars
"There are many bank accounts of the Qing Dynasty, but it is a mess. One is limited in funds, and the other is extremely restricted in the industry and region, which cannot withstand shocks or twists and turns." Yi Zhizu said with a solemn expression: "I predict that within a few years, Western Bank may come to the east. With the Qing Dynasty, the bank accounts of the Qing Dynasty, it cannot withstand the impact of the Western Bank with strong funds...
Once the money for the Qing Dynasty was controlled by Western Bank, the commodity pricing power of the Qing Dynasty for foreign trade would inevitably be subject to others. Pinghu Gong should know how important the commodity pricing power is for a country's foreign trade."
How could Wu Bingjian not know the importance of commodity pricing power? The Thirteen Corporations monopolized the foreign trade of the Qing Dynasty and had decades of open and secret struggles with the British East India Company, which actually revolved around commodity pricing power. Once commodity pricing power is controlled by others, it would be the end of being slaughtered!
After a while, he said in a deep voice: "What are your predictions that West Bank will come to the east? Is it because the British East India Company is about to withdraw completely?"
"Yes, it will be a matter of time before the withdrawal of the East India Company Agency. If the Qing Dynasty still does not have strong banks, the West Bank will come to fill this gap in large quantities." Yi Zhizu said: "There is another major reason, war! Once the Qing Dynasty starts war, the Qing Dynasty will be defeated. The status and treatment of foreigners in the Qing Dynasty will be completely reversed. Foreigners will come to the east and fill the various trading ports along the coast of the Qing Dynasty."
It’s war again. Today, Yi Zhizu’s topic seems to be centered around war, and it’s said more and more serious. Wu Bingjian glanced at him and said, “Are you so sure that a war between the Qing Dynasty and Britain will break out?”
Yi Zhizu nodded and said solemnly: "In my opinion, a war between the Qing Dynasty and Britain will inevitably break out in the near future, which is inevitable."
After a moment of saliva, he continued: "Pinghu Gong should know that Britain implements a gold standard."
Of course Wu Bingjian knew about this situation, and said at the moment: "The UK has not officially launched the gold standard for a long time, but it has only been more than ten years. But I feel that the UK seems to have been using the gold standard. The East India Company has been using silver to exchange gold or buying goods in Guangzhou for decades."
"The UK implemented a gold standard, and silver was not circulated in the UK at all. After the expansion of trade, the silver from the Qing Dynasty continued to flow out, and it was flowing out at a huge amount of at least five or six million taels per year!" Yi Zhizu said and bowed and said, "My younger brother, where did the silver of hundreds of millions of taels flow out of the Qing Dynasty?"
Where did the silver flow? Wu Bingjian was obviously stunned. Only people have always paid attention to the outflow of silver, but no one has ever asked where the silver flowed? No one has ever linked the British gold standard with the outflow of silver in the Qing Dynasty. What is the intention of Yi Zhizu's question? He couldn't help but frown.
Wu Changqing said directly: "The ones who trade with Thirteen are mainly Britain and the United States, and smuggled ruffians, that is, these two countries, silver flows out of the country, and naturally flows to Britain and the United States."
"What country does it mainly flow to?"
"Of course it's Britain, so there's still a need to ask? Britain accounts for 70% of the 13 foreign trade."
Yi Zhizu smiled and said, "Silver is not the currency of Britain and is not circulated in Britain. Moreover, what the UK promotes in its trade with other countries is not silver or gold, but pounds that are directly pegged to gold. What do the British want so much silver?"
Although Wu Bingjian was old, his reaction was faster than Wu Changqing. He blurted out: "What do you mean is that the British continue to expand the trade in crows and films, and intensify the loss of silver in the Great Clearance, and there is an ulterior motive behind it?"
"That's right." Yi Zhizu nodded and said: "The Qing Dynasty is the most important trading country in Britain's foreign trade. The Qing Dynasty had a silver shortage and an economic depression, which would inevitably greatly affect Britain's foreign trade. Under normal circumstances, the UK would try its best to avoid the Qing Dynasty's silver shortage and an economic depression.
But now even the Qing officials who do not understand the financial economy have noticed that the continuous large outflow of silver will cause serious consequences. How could Britain, which started with financial and trade, be so slow?"
Wu Bingjian nodded solemnly, agreeing with this statement. Not to mention the distance, just say that the Napoleonic War broke out in Europe twenty years ago, and the foreign trade of the Thirteenth Federation was also greatly affected, and the trade volume plummeted, and the Thirteenth Federation was difficult for merchants to survive. The Qing Dynasty and Britain were actually closely related to foreign trade, and they all prospered and lost.
Yi Zhizu was able to consider and analyze the impact of the loss of silver on the two countries from the trade relations between the Qing and the UK. He did not expect that Wu Bingjian was very pleased while sighing that he was not good at it. The boy of the Yi family was indeed unique in vision and meticulous in thinking.
After a moment of saliva, Yi Quest continued: "There is only one possibility. Britain did it deliberately, with the purpose of defeating the Qing Dynasty's silver system, destroying the Qing Dynasty's economy, and forcing the Qing Dynasty to accept the British pound, thereby promoting the hegemony of the pound all over the world.
The Qing Dynasty was unwilling to sit and see that silver continued to flow out in large quantities, so it had to ban smoking. In order to promote the hegemony of the British pound and implement the gold standard, the UK absolutely could not tolerate the Qing Dynasty, the world's largest silver standard country, which has the world's largest trading center, and the country with the most important foreign trade in Britain, the financial prosperity of the country, because this would directly threaten the hegemony of the British pound.
Therefore, a war between the Qing Dynasty and Britain will inevitably break out. This is a war between the gold standard and the silver standard, and it is also a war between the British pound conquering the world and establishing hegemony. It is inevitable!"
Wu Bingjian was a little lost, Yixiu was in a state of mind in today's conversation, and he kept hinting that war between the Qing Dynasty and Britain would break out, from the loss of smuggling silver to the tea of Assam, from the establishment of a bank to the hegemony of the British pound, all of which were around the Qing Dynasty and Britain. Is the war really inevitable and so close?
"In the eyes of my younger generation, Britain has already started a war against the Qing Dynasty... Britain continues to expand its ravenous trade, which is to start a war against the Qing Dynasty. This is a currency war, a bloodless war. The cruelty of this currency war and the damage caused will be far better than a war of siegeing cities and lands, because its purpose is to destroy the monetary system and economic foundation of the Qing Dynasty!"
Chapter completed!