Villager of Daming

Chapter 936 Economic and financial interlocking

The four brothers knew how rich Xiaqiu Village was. Their father had given them such a large piece of land, but the people nearby wanted to farm it and they didn't have enough manpower.

Xiaqiu Village has always used those lands to grow medicinal materials, cultivate seeds, grow pasture and improve livestock and poultry varieties.

All other industrial technologies were given to the Ming Dynasty, leaving little money for the village itself. With abundant cash flow, they all made investments with a long payback period.

For example, the village spent its own money to build the coastal road from Huangchi River to Danyang Lake, and helped expand economic forests and cultivated land for planting and soil and water conservation at Shijiu Lake.

According to the model of Xiaqiu Village, it would take thirty years for an investment to fully recover its capital, and no businessman would learn to do this.

This return is not the return of the original investment, but includes currency depreciation due to inflation and normal borrowing profits, which is calculated as compound interest.

For example, for thirty years, the currency will depreciate by 1% every year, and the interest on the loan will be 5% per month, not 3%.

At first, the stipulation was that the monthly interest rate should not exceed three cents. Later, the master of Xiaqiu Village gave me a question book, and the money was very low.

That is, the interest on money "voluntarily borrowed" by the gold and silver shop managed by the imperial court is 5% per month and 6% per year.

This is how Xiaqiu Village calculates the thirty-year investment and reporting cycle. That is, in terms of currency devaluation, one percent per year for thirty years is 74 percent, and an additional 26 percent is needed.

Ten thousand guan in thirty years turned into 12,600 guan. There were fluctuations. The sudden depreciation was severe, and the loss had to be made up.

There is no compound interest within one year for monthly interest calculation. There is compound interest between years, which is 5.7435 times.

Then this multiple is multiplied by the multiple of currency depreciation, and the data is seven point six one two three.

If you invest 10,000 guan this year, you should have 76,123 guan in thirty years.

Money is after deducting all costs. This cost includes labor costs, maintenance costs, depreciation costs, tax costs, working capital possession costs, non-recurring profit and loss costs...

If you look at it carefully, you can see that the profit is not huge at all. After including all possible impairments, after accrual, a profit of 7.612 times will be obtained in thirty years. This is the return ratio of Xiaqiu Village. .

Normally, this is not how it is calculated. If it were true, everyone would be doing this, and who would be engaged in finance?

Xiaqiu Village just followed the calculation, and it still made people feel that they were at a disadvantage. With Xiaqiu Village's ability, it would take thirty years to earn more than seven times?

Everyone had their own ideas, but Zhu Wentian's idea was simple. Seven times more than normal in thirty years, Xiaqiu Village did not take any advantage.

Because the next few years will be a period of technological and economic explosion, Xiaqiu Village has chosen the route of not promoting inflation and serving the country and the people.

It is only for this investment and does not represent all investments in Xiaqiu Village.

Just like treasury bonds, it depends on whether it has fixed interest or floating interest, the degree of inflation and the method of interest payment.

The fixed interest is 6% per year, and the interest is paid every half year. Then after thirty years, it will definitely not be 6% as a whole.

The interest paid half a year can be reinvested, and the interest is compounded.

Or when you buy it, the interest rate is fixed at 6%, and this treasury bond can be used as a mortgage, a fixed-rate loan, with an interest rate of 8%.

As soon as the mortgaged money was obtained, inflation hit the market. In order to cope with inflation, the reserve requirement ratio was raised.

Banks had to raise interest rates on deposits to stabilize reserves and adjust interest rates on floating lending.

When it reaches 10%, you can put the mortgage loan money into it. In this way, you can earn an extra two percentage points while guaranteeing a fixed interest rate of 6% on the national debt.

It mainly depends on whether it is fixed or floating, the degree of currency depreciation and whether anti-inflation is purchased.

It is quite troublesome to calculate, but as long as there are rules, it can be calculated. What Zhu Wentian calculated was to avoid risks and earn more than seven times in thirty years. This was for the Ming court to see.

This investment is not an investment of all the money of Xiaqiu Village, but a part of each store and the factory behind it.

Next, Zhu Wentian plans to let all the independent stores in Xiaqiu Village cross-shareholding with each other, combining two-by-two with two-three, three-four, four-five...

In the store joint model, etc., the new economic entity after the union will once again cross-shareholding with other economic entities.

Then each original store will be cross-shared with each operating entity individually, or even a new economic operating entity will be established.

Different companies, subsidiaries of different companies, different subsidiaries, independent, non-independent...

They continue to cross shareholdings, mutual guarantees, related transactions, fund lending, capital betting...

The purpose of this is not to make things difficult for the imperial household department, but to teach them how to sort out this relationship.

At that time, some businessmen think they are smart and try their best to create cross-shareholdings to avoid tax audits.

As a result, when they met the auditors from the Household Department who had been tortured almost crazy by Xiaqiu Village, the people from the Household Department would sneer: That's it? Do you need me to teach you a lesson? Hey Hey……

……

"It seems that it is really not easy to find food from the river. The tools of the fishing industry are too backward, and many fishermen who are ordinary fish cannot catch them."

Zhu Fan talked about the advantages of technology and the fishermen who do not have this kind of industrial technology and can only rely on their own experience and skills.

The team came to the Fenshui River, where a small steam engine boat was trawling to catch fish in preparation for today's noon and evening.

There are also fishermen here. The fishermen row small wooden boats and then throw spinning nets. They are made of hemp rope and have lead pendants underneath. When they are thrown out, they create a big circle.

The rotating net has a characteristic that it will leak fish. Before the lead pendant is closed, the fish must be ensured to be within the closing range of the net.

Fish that are too big cannot be brought up with the rotary net. When the fish is pulled up, the fish will fall down.

The rotary net is a net that is collected by lifting and pulling. Before and after the collection, fish may leak out of the net mouth.

Small steamboats are not, they are nets, and any fish larger than the mesh size will be caught in the nets.

The spinning net is not just thrown out casually. It needs to look at the water flow, the swaying of the river surface and the shadow in the river under the sun, the air pressure, and the underwater conditions.

Generally, there are many fish at the junction between shallow water and deep water. When the water flows, they will rush downward, and then there will be more oxygen, so the fish will run there to breathe.

When the air pressure is low, the fish are close to the water surface, and when the air pressure is normal and the sun is sufficient, the fish will sink, and the person casting the net must understand this.

Fishing people use their experience and skills to cast their nets for a living, while steam engine trawls are unreasonable and can just be turned back and forth.

"So today at noon we eat smoked fish flatbreads. It's similar to the bacon flatbreads we eat at home, right?"

The fifth child, Zhu Xi, was not thinking about people's livelihood at all. He was thinking about what to eat for his next meal.

If the fried noodles are short of meat, the people need to supplement the meat. Buying other meat in large quantities will increase the price of local meat.

It is most convenient to eat fish. There are a lot of fish in the current season, so grass carp, carp, and bighead carp can all be smoked.

The head of bighead carp does not need to be smoked. It has a big head. If you eat the head alone, you will sweat a lot in hot weather. If you need to add salt, braise it with sauce. Otherwise, steam it with black bean paste.

(End of this chapter)