The spirit stone contains spiritual energy, which is a precious consumable for the cultivation of Jiuzhou cultivators to break through and upgrade, kill people and grab treasures, and participate in auctions. According to ancient legends in the cultivation world, cultivators in the ancient and medieval eras directly use spirit stones as currency.

However, using spirit stones as currency soon revealed huge drawbacks: spirit stones are special commodities that have both the dual attributes of high-end consumer goods and financial products. There are also commodities that are very similar to their properties on the earth, that is, Feitian Moutai.

Although these products are hard currency, they are naturally not suitable for use as currency. The reason is very simple:

The essence of money is the medium of transactions.

The amount of currency issued by the monetary policy authorities should theoretically be determined based on the total market currency demand, and the total amount of currency issuance should also be adjusted according to the actual needs of economic development, neither too much nor too little.

But whether it is gold, spirit stone, Bitcoin, or Feitian Moutai, they all have fatal flaws as currencies, that is, the growth rate of output cannot be controlled independently, so the social money supply cannot grow simultaneously with the total economic volume. The consequences caused by mismatch between the total currency and the total economic volume are undoubtedly catastrophic.

Let's give an inappropriate but simple and intuitive example of a gold standard:

Suppose there is only one wealth on the earth - flour; there is only one currency on the earth - gold; there is only 100 tons of gold and 1 million tons of flour in the world, then at this time, each ton of gold is worth ten thousand tons of flour.

With the development of the global economy and the improvement of labor productivity, assuming that the world will have wealth of 2 million tons of flour in a few years, but if the total amount of gold is still 100 tons, then one ton of gold is now worth 20,000 tons of flour.

In this process, flour was clearly created by workers, but the wealth of the people who hoarded gold increased by 100% out of thin air.

This example of flour and gold is theoretically not accurate, because the total supply of money is also related to the rate of currency circulation, but it still roughly illustrates the inevitable collapse of the gold (spirit stone) standard system: that is, with the development of the economy, the total global gold (spirit stone) output cannot keep up with the economic growth rate, and gold will naturally appreciate, thereby encouraging everyone to hoard gold instead of creating wealth, which has a negative incentive for workers.

Workers will find that they have worked hard to make flour for half a day, but they have made wedding dresses for the people who stock up on gold. Since that's the case, who still works to create value? Isn't it better for everyone to go to speculate on gold!

In this case, the outbreak of the monetary and financial crisis is the inevitable result.

Just like the collapse of the earth's gold standard, the spirit stone standard monetary system also caused a strong deflation effect in the short term because the total amount of money issuance (spirit stone output) cannot meet the needs of economic development.

Similar to Feitian Moutai, both high-end consumer goods that are very easy to be hoarded. The higher the price, the easier it is to be hoarded. However, because the downstream consumption demand has always been very strong, this leads to the deflation trend of spiritual stones being more violent than gold, and quickly triggered the first spiritual stone financial crisis.

In order to solve the spiritual stone financial crisis, cultivating economists of all generations have successively launched the [three-primary currency system] in which spirit stone, gold and silver are linked to each other, and the [Jiuzhou Monetary Union System] similar to the Bretton Woods system on Earth.

These two generations of monetary systems were eventually destroyed again by the second and third spiritual stone financial crisis because the primary currency was never completely decoupled from the spirit stone. Now the [Spirit Stone Credit Monetary System] in the Jiuzhou Cultivation World is the fourth generation of cultivation currency system established during the third spiritual stone financial crisis.

This fourth-generation chief designer of the monetary policy of cultivating the truth is known to everyone in the Jiuzhou cultivation world. It is Lu Yang, the first president of the Spirit Stone Reserve Bank, known as the "Cultivation Finance Emperor". He is also one of the three immortals who ascended to the heavenly world in the past 500 years in the cultivation world.

Now Li Qingyang, the third president of Lingshi Reserve Bank, is a registered disciple accepted by President Lu Yang that year.

Li Qingyang was originally from the Jindao Sect, an unknown small sect in Zhongzhou. It is said that when the Jindao Sect was at its most downturn, Li Qingyang was the only commander left in the entire sect. In addition, Li Qingyang had only a pitiful inferior spirit root in his cultivation qualifications, and the entire sect was facing the crisis of being cut off from incense.

But just like the protagonist of the online article, Li Qingyang showed outstanding math and finance talents since childhood. After entering the middle stage of Qi refining, he was fortunate to be highly appreciated by President Lu and became President Lu's right-hand assistant.

His personal resume can also be described as luxurious.

From an economic and mathematics consultant in Wuliangjian School, to the director of the Research Department of the Cultivation Finance Supervision Committee, to the assistant of the second president of the Lingshi Reserve Bank, he returned to the Chairman of the Cultivation Finance Supervision Committee, and eventually replaced President Li Rui and became the third president of the Lingshi Reserve Bank, and held the highest authority of the Cultivation Finance for two hundred years.

According to rumors, this interesting story happened on the eve of President Lu Yang's ascension to the fairy world:

Someone asked President Lu Yang: "Who is qualified to manage the Spirit Stone Reserve Bank after you ascend to heaven?"

President Lu replied: "Li Rui, the Supreme Elder of the Wuliang Sword Sect, can do it."

Another question asked: "Elder Li doesn't have much life span. After he dies, who can serve as the president of the Lingshi Reserve Bank?"

President Lu replied: "Li Qingyang of the Golden Knife Sect can do it."

Someone asked, "What should I do after Li Qingyang's life is exhausted?"

President Lu just smiled and said, "Don't ask me about such a distant matter, as the junior monks will deal with it."

This plot of "The President Lu Entrusts Orphan" is well-known in the Jiuzhou cultivation world, and this joke itself is not fabricated out of thin air.

After all, the president of the Spirit Stone Reserve Bank is the most core position of the Wuliang Sword Sect, and its importance is no less than that of the head of the Wuliang Sword Sect.

But Li Qingyang has never officially joined the Wuliang Sword Sect, and even worked part-time as the head of the Jindao Sect for more than 300 years, developing the Jindao Sect from a small sect that is deserted into the top ten second-rate sects in Zhongzhou.

Although Li Qingyang is the most famous cultivation economist in the Jiuzhou cultivation world today, he can serve as the third president of the Wuliang Sword Sect Spirit Stone Reserve Bank as his foreign monk, and he still needs strong people to stand up to the public. And the great figures who have such prestige have only a handful of history in the Jiuzhou cultivation world.

Considering the relationship between President Li and President Lu in his early years, the joke "Dragon President Lu's Orphan" is quite credible.

Unfortunately, President Li Qingyang's talent for cultivation is really limited. Even though the Wuliang Sword Sect is fully providing him with cultivation resources, even if he gains infinite merits by taking over the financial power of cultivation, his cultivation still stops in the early stage of the Golden Pill.

For a cultivator with inferior spiritual roots, this kind of cultivation is unprecedented and has never come. It is not an exaggeration to say that Li Qingyang is the most powerful cultivator with inferior spiritual roots in the history of the cultivation world of Jiuzhou. However, even a cultivator with the early stage of the Golden Pill, his lifespan will not exceed 600 years, not to mention that Li Qingyang only has one level of cultivation in the Golden Pill.

After hundreds of years, this legendary economist of cultivation finally ushered in the end of his life!

However, this President Li Qingyang has been in charge of the highest financial authority in the cultivation world of Jiuzhou for hundreds of years. He is simply a figure like a sea god in the cultivation finance realm. His prestige is higher than that of the heads of the seven major sects of Jiuzhou.

When he suddenly heard the news that he was about to die, even ordinary drinkers in Haiyacheng would inevitably feel unacceptable.

As soon as the news came out, the girl's newspaper boy was surrounded by people. No one asked the price at all, and they threw the spirit stone coins into her hand just to take the lead and learn the details of the important news. The heavy newspaper bag that the newspaper girl was wearing crossbody was quickly sold out.

Before she could recover from her surprise, Yang Lu shrugged at her and said, "What did I tell you? I'll reveal a little bit of information to everyone's appetite. It's much better than hiding it. This kind of sales method is the so-called hunger marketing!"

Just then, two more newspaper boys rushed over from the corner of the street.

Obviously, these low-level newspaper boys are not short of smart people, and there are many people who can think of coming to the tavern to promote newspapers.

Unfortunately, because the newspaper girl threw a bombshell in the first place, almost all the drinkers have a newspaper. The remaining two newspaper boys read it around, but they didn't see anyone in need of the newspaper, so they had to sigh and leave in disappointment.

Seeing the desolate figures of the two newspaper boys slowly disappearing in the wind and snow, the newspaper girl was only grateful.
Chapter completed!