The comprehensive audit operation deployed by the Central Bank of the Far East has forced 11 domestic commercial banks with serious violations to withdraw from the financial market, while at the same time, the other commercial banks that have survived have also experienced the test of the storm, and have become more standardized and healthier in terms of financial and operational aspects.
Therefore, when the collapse of the paper money bubble in the Asshan Empire in late August caused the people of the Far East to panic and run to the banks to ask for the exchange of banknotes for real money, most of the banks appeared to be calm, and their solid gold and silver reserves were enough to cope with the turmoil.
At the same time, the central bank's headquarters in Colasburg duly made public solidarity.
In an interview with the "Voice of the Far East" and the Motherland Daily, Roland said that the central bank has noticed the panic caused by the imperial financial crisis, and on the one hand, it will do a good job of propaganda to appease the people, and on the other hand, it will also provide help to financial institutions that need to re-lend and rediscount at any time, so that the domestic financial order can be restored as soon as possible.
Roland's speech is actually equivalent to a reassuring pill for financial institutions across the country: don't be afraid, if you don't have real money, you will come to the central bank to borrow, and the "central mother" will never stand idly by In fact, there are not many commercial banks that actually apply for relending from the central bank.
If the financial system of the empire was a papier-mâché building built on the sand, then the financial system of the Far East was a reinforced concrete fortress capable of resisting at least an earthquake of magnitude 8.
If the position of the commercial banks in various localities is tight, they can directly find a temporary loan from their local counterparts to solve it, and they will not be able to rush to the headquarters of the central bank of the capital to move a few boxes of gold and silver nuggets back.
By the end of August, the run had become a rarity, and the financial turmoil that had been devastating to the Assanian Empire had calmed down with just a few leaves in the Far East.
However, Roland did not dare to let his guard down, and at a cabinet meeting, he presented a report on the imperial currency reform of 1623 and 1624 and the resulting financial turmoil, for the country's politicians to learn from it.
In fact, Roland was the first person in the entire world of Varess to accurately predict the inevitable failure of the imperial monetary reform, and as early as last February, just after returning from the holy city of Assan, he harshly criticized Frank's gold money reform at a cabinet meeting, and asserted that the imperial gold money would inevitably trigger a national speculative spree and collapse when the speculation tide reached its peak.
Over the course of the year, the trend of the Imperial gold banknotes was almost exactly in line with Roland's predictions, and Roland also made a fortune in this speculative frenzy with superhuman foresight, and by the way, pierced this gilded bubble.
"The repetition of the same words over and over again is annoying, and I have criticized enough of the ills of the Imperial Gold Reform in the past two years to not want to say the same thing again to show off my vision, on the contrary, I am going to say a few words that are out of place."
At the cabinet meeting, Roland gave a fair assessment of the reform of the imperial gold banknotes.
"If we look at the reform of imperial gold money from a historical perspective, we will find that the paper money system established by Frank and John Lauer had many advantages ahead of its time, and compared with this historic innovation, the shortcomings of the imperial gold money system are only minor, but unfortunately the success or failure of a project often depends not on how grand its blueprint is, but on whether the details are impeccable."
"Over time, when the market returns to rationality, it will be recognized that John Raul is generally right that there is not much money in circulation relative to the size of the empire's economy, and that the current turmoil is nothing more than a temporary irrationality in the market."
"Mr.
Keynes was right, however, that, as he once pointed out, market irrationality often lasts longer than you can tolerate."
Roland is a pun here.
The copyright of the above quote belongs to the great Sir John Maynard Keynes, but it has also been quoted more than once in the world of Vares in his articles under the pseudonym "Liszt Keynes".
To put it bluntly: the child died, and the milk came, but unfortunately it was too late.
Over the years that Roland has been in politics, one of the things that touches him the most is "talking about people when he sees people, and talking about ghosts when he sees ghosts", and this is precisely the most important professional skill of a politician.
The mystery lies in choosing different angles of elaboration for different audiences, and it is possible to tell the truth, but it is just a selective truth.
For example, in response to the imported panic caused by the collapse of the empire's gold money, Roland did not criticize the imperial rulers much when facing His Majesty the King and the cabinet ministers, but spoke highly of Frank and John Lauer, sympathizing with their unfulfilled ambitions.
But when he speaks to the people, he can no longer maintain this position of "reasoning among the people", and inevitably follow the trend to criticize the imperial bureaucracy for being mediocre and incompetent, bringing disaster to the country and the people, and playing the good paper money system badly, our Far Eastern government is different, so you see that the purchasing power of gold and silver banknotes in the Far East is still very strong, and there is no harm if there is no comparison, think about what kind of life the imperial people are living now, and then think about the comfortable life of our Far Eastern people, This is not the contrast between national self-confidence and pride On the first weekend of September, Roland went to the "Fireside Chat" studio to talk to the host Rogge about the fashionable topic of the imperial financial crisis, and half-jokingly expressed the following emotion: "Thank you to the Imperial Government for coming forward and giving a vivid patriotic education to all our people in the Far East."
Roland's strange sense of humor was finally used in the right place this time.
Rogge laughed heartily when he heard it, and the Far Eastern listeners in front of the radio also laughed from ear to ear, and after thinking about it carefully, it was really like this, as for the feelings of the people of the empire who were also sitting in front of the radio, I am afraid that it is not covered by a simple "sadness".
When it came time to answer the letter from the audience, Rogge put away his smile and solemnly read a very representative question raised in the letter: "The Assanian Empire and the Far East both introduced paper money, and now that the empire's paper money has collapsed and prices on the market have skyrocketed, will the same crisis be repeated in the Far East?"
Roland straightened up from the sofa and replied with a serious face.
"This listener has a very pointed question, and I must give the most candid answer."
"First of all, we have all noticed the similarities between the monetary systems of the Empire and the Far East, such as the fact that paper money is circulated in both countries instead of the traditional gold and silver coins, which can easily lead to associations: the shortcomings of the imperial paper money system, whether the Far Eastern paper money system will also exist, whether our gold and silver money will repeat the mistakes of the imperial gold money, will it also depreciate sharply, thus causing hyperinflation, as the empire is currently experiencing":