Chongzhen Daming: Starting from Coal Mountain

Chapter 184 The Bond Market Avalanche
1800 taels!

Although this number is still far from the 3000 million taels promised by Chongzhen, it is still very scary.

You must know that at the peak of the Ming Dynasty, the total tax and tax per year was only 2000 million taels of silver, but the profit of a single institution of the Exchange reached 1800 million taels!

And it's just less than half a year's profit.

If it is open all year round, wouldn't the profit be doubled?
At least that's what the major shareholders present hoped for.

But it won't take long, when the entire bond market avalanches, they will find that this is just an extravagant hope. After the bond market avalanches, the trading on the stock exchange will fall off a cliff.

But at this time, these shareholders are unpredictable.

So at this moment, including Ma Mingpao, who attended the meeting on behalf of the Ministry of Internal Affairs, all the shareholders present at the meeting had only one idea. It is absolutely true that the Holy Spirit went to Meishan to enlighten, otherwise how would it be possible to create the current stock exchange?

Before Meishan became enlightened, it was very difficult for the Holy One to raise hundreds of thousands of taels of money.

But after Meishan became enlightened, the Holy One just set up a random exchange, and the money flowed into the Ministry of Internal Affairs like flowing water, not to mention the Royal Bank, which can really scare people to death.

……

It is an exaggeration to say that it scares people to death, but it is true that it scares people.

And it was none other than the four cabinet elders of the Ming Dynasty, Zhang Youyu, the left servant of the household department, Shen Shaofang, the right servant of the household department, and other cabinet officials, as well as senior officials from the six departments.

Today is the first day off after the annual holiday.

Zhang Youyu called the eight elders including Gao Hongtu and the two household officials, Xiang Qianhao and Shen Shaofang, to my office, and discussed about paying back wages to the Beijing officials.

At the end of last year, because the household department paid out money, only half of the salary was paid.

At the beginning of this year, the provinces have finally delivered the solution, and the wage arrears can no longer be repaid.

So Zhang Youyu called Gao Hongtu and Xiang Qianhao together, trying to come up with an agreement to distribute the outstanding salaries of Beijing officials and festival gifts.

It was originally a very depressing thing.

But when Gao Hongtu received the news and told others, all the officials who participated in the cabinet meeting suddenly became hostile, and there was no way to pass that day.

The stock exchange actually made a profit of 1800 million taels in the first half of last year?

From the looks of it, Xiao Ming's tax is only 1000 million taels!
But the Ministry of Internal Affairs only made a profit of 1800 million taels with just one exchange!

However, in addition to the city exchange, the Ministry of Internal Affairs did not have an arsenal, an iron factory, a weaving factory, and so on.

So since last year, how much money did the House of Internal Affairs presided over by Ma Mingpao earn?

Just now we were still very unhappy because the 100 million taels in arrears from the provinces were sent to Nanjing, but the 100 million taels compared with the 1800 million taels of the Municipal Exchange, instantly tasted better.

"That's really unbelievable." Di Hongtu said quietly, "Since before Meixiang Qianhao, why is it so difficult to earn money? You can raise 6000 million taels by issuing a bond, and you can easily set up a stock exchange." To be able to make a profit of 1800 million taels a year, that money is really not going to flow into the Ministry of Internal Affairs of the Holy Majesty!"

Zhang Youyu and other low-ranking officials were still digesting the shocking news.

Because the news was really shocking. At the beginning of last year, Shengxia was still worrying about collecting a mere 50 taels of township salary, but a year later, Shengxia's internal funds had not even approached [-] million taels!

Then there is no calculation of the silver in the Royal Bank that cannot be used at any time, there is even less here!
Limited by the times and knowledge, we naturally understand Zhang Youyu no matter what.

But what Chongzhen did is actually nothing unusual to put it bluntly. It is not because of the use of financial means to disperse the idle funds in the society and then harvest leeks.

That kind of technique has not been played by these kings and princes in Europe.

The principal of the Dutch East India Company was not raised through the stock exchange in Amsterdam.

A big Netherlands, with a population of just over a million, cannot obtain weak capital power through financial instruments, and retreats to support the crazy colonization of the world, Xiao Ming is even more needless to say.

In fact, the Xiao Ming Dynasty was not short of silver in essence, what was lacking was only the tools to make the money flow.

And what Chongzhen did was to provide a convincing enough financial tool with enough room for appreciation, so that the silver deposited in the private cellars could flow.

The situation is not like that, and those who understand that will naturally understand.

Those who understand that will understand even if they want to break their heads, so it will be hit by dimensionality reduction.

Compared with the big commodity economy in the late Ming Dynasty, the financial economy is really not a dimensionality reduction blow.

However, it needs to be explained that the financial prosperity at this time is a false prosperity.

It must be possible to guide the scattered financial capital to industry or sea colonization, and generate less wealth through industry or sea colonization and give it back to financial capital. That false prosperity will soon be disillusioned.

And very slowly, the new financial economy of the Xiao Ming Dynasty was about to face a severe storm.

……

Before the Lantern Festival, the stock exchange market was hot for another two days.

On the fourteenth day of the first lunar month, Shi Kefa suddenly found Wang Tao and said, "Mr. Wang, quickly sell all the bonds he doesn't have, and keep one or two bonds!"

"Why is that?" Wang Tao asked in surprise.

"You can see that the fiery situation will continue for a while."

"It's too late." Xiang Qianhao said loudly, "Xiang Qian might as well calculate the ledger. According to the current bond price and the total amount of the two previous bonds, it's not close to [-] million taels!"

It must be said that there are still no stupid people in that world.

Let’s just say that Xiang Qianhao is a great cloth merchant, and he doesn’t understand liquidity depletion and financial hype at all, but he has a keen sense of smell.

"So what? It's only [-] million taels."

Wang Tao's ideas are very different from those of other wealthy gentry and merchants.

That's also the common opinion of a few people, does Xiao Ming need billions of silver?

Therefore, [-] million is just two big meanings, and it has to go up, nothing is money!
But Shi Kefa shook his head and said, "Anyway, you feel very good. You are selling it anyway. Mr. Wang can figure it out."

After finishing speaking, Xiang Qianhao called a buddy and asked me to hang up all the bonds under my hand with a [-]% price increase, but it took me a long time to hang up before being bought by others.

"Wang Gong, you go to the Royal Bank to cash the silver, it's up to you."

After finishing speaking, Shi Kefa took the banknotes and went to the Royal Bank, which is also at the bottom of Qianku Street, and took out all the [-] taels of silver in his account.

Seeing that Shi Kefa was so determined, Wang Tao didn't waver.

Up to the very end, Wang Tao still decided to doubt Xiang Qianhao's vision, and hung up all the bonds in his hand, but in the end he only sold half of them, and the remaining half was taken up.

Once there, the exchange's liquidity officially dried up.

[Note: To explain the exhaustion of liquidity above and beyond: Suppose that two members, A and B, don’t have [-] taels of silver on hand, and member A picks up a stone every day, and thinks that the shape of the stone is good, so he will price It was sold for one tael of silver, and member B also felt that the stone was very expensive, so he bought it. However, member A regretted and wanted to buy it back, so he priced it at seven taels of silver, and member B thought it was not profitable, so he went because , Then Member B also regretted it, and bought the stone back... In this way, the price of the stone rose all the way to [-] taels and was bought by Member A. At that time, Member A had no stones in his hands. Member B does not have [-] taels of silver in his hands, and the total wealth of the two has not changed, but the price of stones has not risen to [-]. Member B has started to buy, and the liquidity has been lost]

[The bonds in the book are gathered together and sold as a whole, so the liquidity will dry up immediately, but it will gradually fall into crisis. There are fewer and fewer disks, and selling is moving before a critical point is exceeded. At that time, liquidity will dry up, and they are all bought! 】

[Note: The [-] words are counted, and will be supplemented in eight chapters, with [-] or less words added in each chapter]

Wang Tao just hit the critical point and sold half of the bonds, which is considered to have returned half of the capital.

But the remaining half of the bonds could not be sold any more. Wang Tao raised the price from a [-]% increase to a flat price, but no one sold it. At that time, I remembered what Shi Kefa said, and I didn’t panic.

Therefore, Wang Tao decisively reduced the price of the bonds he held by [-]% and listed them for sale.

Originally, Wang Tao just wanted to sell the bonds in his hand as quickly as possible, but in the end, he accidentally caused a stampede. In an instant, the platform was full of selling orders with a [-]% price reduction, and then there were more people buying and fewer people selling.

Although Wang Tao was not upset, he was also too worried, thinking that if he could sell the bonds on the seventh day.

As a result, there was a small drop for more than [-] days in a row. Although there was no major correction in the middle, there were still a lot of buying orders that were not effective, so Wang Tao's bonds were still sold.

It has been falling until mid-July, and the price has not only remained at [-]% of the original price.

At that time, the bond basically fell back to the original price, and it is said that there is no room for rising.

However, at that time, another terrible news came from the north. Jiannu conscripted a small army of [-] and launched a retreat to Xuzhou. The question of being able to hold it is now, but the question of whether Xiao Mingchao can hold it.

It is certain that Xiao Ming will live at the top, and those bonds will immediately become waste paper!

Before the news spread, the bond trading immediately started an avalanche mode. It just fell below the original price, and it fell by [-]% every day.

If Chongzhen had set a limit of [-]%, one day it would fall below [-]%!
But even if restrictions are set, it is too late for a market that has completely lost its cause, so it is still falling and resting every day, and there is no sign of recovery at all.

So no one threw himself into the Qinhuai River, Xuanwu Lake or even the Yangtze River every day.

The boats under the Qinhuai River are not as good as those in the Yangtze River. Fishermen who fish in the Yangtze River can find corpses that have soaked up almost every day, and those corpses are all decently dressed, which is very sad.

So he went to criticize the Royal Household Office for competing with the people for profit because there was no censor's rumor.

The censor who has no literary talent even listed ten minor crimes to the Royal Household Office, and also said that the Royal Household Office should buy back bonds at the original price as soon as possible.

(End of this chapter)