Chapter 6826 Carrying it alone

The lives of the people in the Taican Continent area are even more difficult. In order to alleviate inflation, the Phoenix Holy Land can only raise interest rates on the Taican Continent, suck blood, alleviate its own inflation, and harvest the economy of the Taican Continent.

So Brother Yu has been suffering in his heart these past few years. The Prehistoric Alliance is also fighting wars everywhere. From time to time, others have to unite to fight against him, imposing economic sanctions and military strikes.

He had to maintain the funds provided by Xiang Chen and Mu Feng, who were spending a lot of money outside, and he also had to keep the economy within the Prehistoric Alliance from collapsing. It was a painstaking effort to avoid excessive inflation.

Fortunately, the system within the Prehistoric Alliance is huge, and the economies of the various large and small universes under its command have formed a good internal cycle in the past few years. If you impose external sanctions, the most you can do is make less money from export trade, and the prices of ordinary people will also be affected to some extent. , but food and clothing will not be a problem.

This so-called economic cycle can also be described simply and clearly.

The bank, the market, the people, and the alliance government, these four are integrated.

If part of the money earned by the people is deposited in banks and part is used for consumption, merchants in the market economy will make money, export goods to the people, and provide food, clothing, housing, and transportation for the people's daily lives.

And banks also have money to lend money to entrepreneurs and invest in construction.

Merchants make money and pay taxes. The alliance government has enough tax revenue to support the army, develop science and technology to strengthen the army, and protect the people from being invaded by foreign enemies. The excess money can be used to invest in social welfare, people's pension, medical care, and infrastructure. .

This forms an economic cycle, that is, when people make money, they have money to deposit in banks, and then they have money to spend, and only when they have consumption can the market economy grow.

Only when a restaurant has customers coming to eat can it make money to survive and pay taxes. Only when a clothing store has customers to buy clothes can the store survive and continue to provide the clothes that people need.

Only with the tax alliance can the official have money to support the army, invest in construction, and improve social welfare.

This is the whole cycle.

But when the war comes, everyone interrupts their own trade, economy, military expenditures increase, tax pressure increases, and the alliance's treasury begins to empty, it will form a series of economic collapse.

Suppose the alliance ran out of money and began to absorb a lot of money from taxes and people. The original tax of 100 jumped to 1,000, and the pressure fell on the merchants and people.

The merchant paid more taxes and the money he originally earned began to decrease, so he began to raise the prices. Ten yuan of noodles became fifteen, and a hundred yuan of clothes became two hundred.

However, the money in the hands of the people has decreased, and wages have not been able to rise. Living standards have naturally deteriorated. Because prices are high, people are afraid to spend money, and the market economy has begun to stagnate. This will form a vicious cycle. Eventually the economy collapsed.

This is the evil effect of inflation.

Money can only be used when it can be used, when the market is alive, when it can buy all kinds of necessary supplies, and when it can bring enjoyment to oneself, money is money, otherwise it is just a piece of waste paper.

This is also the reason why all forces encourage people to consume. If you don’t spend it and I don’t spend it, it will remain in your hands. Restaurants will close down because there is no one to eat, clothing stores will close down because there is no one to consume, and a series of problems will arise when the market economy begins to collapse. .

But it is also necessary for the alliance government to maintain prices at a normal level to avoid excessive inflation before people dare to spend money. Otherwise, when the monthly salary is 3,000 and an apple costs 30, how many people would dare to visit a fruit shop?

Assuming that the alliance prints money like crazy in order to alleviate this problem, the purchasing power of the alliance's currency will inevitably be impacted and the currency will depreciate.

When an apple costs 500,000 yuan, and the money that countless people have worked so hard to save is only enough to buy an apple, the consequences are unimaginable.

When the people can no longer live, that is the beginning of internal disintegration and the beginning of resistance.

To alleviate this situation, we must either open up trade, obtain cheap goods from other countries through trade, reduce prices and costs, and exchange what we need, or we must launch a war with other countries.

Rely on war to plunder the assets of the people of other forces, enslave other forces, and suck the blood of others to alleviate the inflation within your own force.

Therefore, Luo Yu's suffering and Luo Yu's pressure were very great. Although he did not charge in the front line, it was Mu Feng who stabilized him in the rear. Xiang Chen had the courage to charge into the battle!

However, when the world is unified, these problems will naturally be solved, and the economic routes of various places will be opened up. Places that were rich in apples in hostile areas were not allowed to hostile forces before, and trade will be opened after unified forces, and local apples can be safely transported to places where there are no apples.

The people who grow apples in areas that are rich in apples have money. Are there places to eat apples? In the past, an apple cost a sky-high price, but now you can buy apples at a low price. If everyone dares to consume, the market will get better and better, forming Good economic cycle.

The most typical situation is that when watermelons are in large quantities and in season, a panda eats a watermelon. The watermelon can only cost one or two yuan a pound at most, and a watermelon can cost more than ten or twenty yuan. The peripheral dogs eat watermelon for dozens or even hundreds of yuan, starting from it. Even the pig's watermelon rinds are considered a treasure by them, because there is no land to grow them in his small place.

If he can identify the right father and open up trade between them, and Panda's cheap watermelons can be shipped there, even if there are additional transportation costs, their prices will naturally come down a lot when the quantity is large.

When the Prehistoric Alliance takes over a place, the first thing it does is to immediately open up economic and trade restrictions between them, and use this method to alleviate the economic difficulties and inflation of both parties.

However, the effect of this approach is not very fast. It is better to achieve stable, long-term and sustainable development.

However, what these forces in the Phoenix Holy Land do is to directly suck the blood of the defeated areas, raise interest rates, and plunder their resources. They can quickly and violently restore their own local economy and suppress inflation quickly.

The disadvantage is that it does not care about the life or death of the defeated areas, but only treats the defeated areas as leeks to harvest.

The development direction of other forces outside of the Prehistoric Alliance is basically the Phoenix Holy Land, which sucks the blood of the world and enriches itself.

Only the Prehistoric Alliance is willing to adopt a sustainable development approach that is slow to produce results, but good for you, good for me, and good for everyone.

It is not that other forces cannot understand the development of the Prehistoric Alliance, but as a newly resurrected ancient force, they do not have the experience of economic stability that the Prehistoric Alliance has developed for so many years to slowly achieve it.

When everyone is rolling, each other uses the fastest way.

This is also one of the reasons why the leaders of the Dongsu Empire, Cang Lei, and Kunlun can quickly surrender after the defeat of these forces, after they can overcome their inner unwillingness.

Because they know that they just lost the opportunity to become the master of the world, but the imperial forces under their command will not end up with the tragic ending of being sucked blood and used as leeks.

Xue Lingxiao is not really a silly lover. She also knows that only the principles and development methods advocated by the Great Desolate Alliance can bring real prosperity and long-term stability to the world.

So she decided to be the one who stood out, even if it meant getting a bad name!

She knew that she would inevitably become a shameful scum in the eyes of countless people. Maybe people would gradually understand her after countless years, but not now.