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Text Chapter 1149 Trade Channel

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    *** ¡°Shilang Xu, our country itself is also short of copper. Although large-scale copper mines have been discovered in Yanran Mountain and Nanhua Continent, due to their remote location and relatively high mining costs, they are still insufficient to supply domestic demand. ~¡± ¡°  What Sima Ge Lao said is that even if Persia maintains its copper market, the two leading products of cotton fabrics and carpets will be greatly impacted, and our country will definitely form a huge trade surplus with the Persians.  A large amount of gold and silver has flowed to our country, Qin. Soon, it will be enough to cause a shortage of gold and silver in Persia. " Qin Mu nodded and said, "Even if it is not to impact the carpet industry in Persia, it is still necessary for our country.  Develop this industry to increase the income of people in remote areas. To have a faster impact on Persia, some barriers need to be removed in the trade agreement. Otherwise, Persia will set up trade barriers and impose heavy taxes on specific commodities.  It will not be easy for Daqin to increase its trade surplus. After the Persian envoys arrive, we must pay special attention to this aspect and take a longer-term view when negotiating trade agreements. The more detailed and comprehensive the agreement, the better, to prevent them from setting up trade barriers in the future.  . Otherwise, I am afraid I will have to launch another expedition. " "Don't worry, Your Majesty, I will ask the scholars of the Department of Commerce to discuss this matter and submit the detailed charter as soon as possible. " "Well, that's good."  Silver coins are currency. As long as the trade surplus continues to expand and a large amount of domestic gold and silver flows to the Qin Dynasty, Persia will definitely experience a money shortage, that is, deflation.  Severe deflation will trigger a continued decline in the price of goods. The continued decline in prices will damage debtors, which will then affect production and investment. At the same time, producers will reduce profits or even lose money, and then reduce production or stop production.  Reduced investment in production will lead to increased unemployment and reduced income, exacerbating the lack of aggregate demand and forming a vicious cycle.  This will lead to a depression in all industries.  A large number of people are unemployed and have no livelihood, and social conflicts will inevitably intensify, which will eventually lead to political turmoil.  The economic base determines the superstructure. For a country to become strong, it is absolutely inseparable from the support of the economic base. Da Qin has the ability to influence the Safavid economy, so there is really no need to launch an expedition for the time being.  Qin Mu suddenly remembered something, and beckoned the young eunuch to bring him a book, and then said: "This is a book about the Ottoman Dynasty that was just translated by the Hanlin Academy. I took a look. There is an analysis by an Ottoman scholar in it.  Ministers may wish to take the time to read the article on the current situation faced by the Ottomans. He mentioned in the article that since the Renaissance and the Great Geographical Discovery, Europeans have had a broad perspective on the world, and their armed merchant ships.  Sailing all over the world, and controlling major waterways and important ports around the world, this will have a serious consequence. Originally, goods from the Far East and India were mainly transported to Egypt through the Red Sea and landed in the Suez area of ??Egypt controlled by the Ottoman Empire.  The Mediterranean was resold to European countries. The Ottoman Empire actually became a wholesaler of goods from the East and the West. In this process, the Ottomans could reap multiple profits once they resold them, and the huge financial resources ensured the prosperity of the Ottoman Empire.  . But now the situation has changed. The Europeans have opened up a new route. Goods from the East and the West travel from India to the West Coast of Africa to reach Europe. As a result, the Ottomans landed in the East and West.  The status of Western goods wholesalers was replaced by Europeans. After the Europeans shipped the goods back, they made four to five times huge profits due to the loss of trade control.  The huge profits that belonged to the Ottomans were made away, and not only were there no huge profits from resale, the Ottomans also had to pay several times higher prices to buy goods from the Europeans, causing a large amount of gold and silver from the Middle East to flow to Europe, and money appeared.  The Ottoman Empire also used silver coins as its currency, but it did not produce much silver. The emergence of money shortage severely hit the Ottoman Empire's economy. The annual revenue dropped significantly, and the treasury deficit became more and more serious.  Under this situation, the Ottomans could only deal with the money shortage problem by devaluing their own currency. Once the currency devalued, it would inevitably lead to inflation. In the past few decades, the inflation rate in the Ottoman Empire has reached an alarming level, and the average price has increased by four times.  times, food prices increased nearly fifteen times. The Sudan could only issue a decree to forcibly prohibit price increases. The entire Middle East was facing the problem of inflation. The Ottoman Empire forcibly suppressed domestic prices, triggering rampant smuggling trade;  Smuggling abroad will lead to an even greater shortage of domestic goods, and price inflation will become even more severe.The vicious cycle of control will eventually lead to the collapse of the entire social system.  This Ottoman scholar was clearly aware of these problems, so he reported to the Ottoman Sultan and suggested vigorously developing naval power in the Gulf of Aden area on the southern side of the Arabian Peninsula, the entrance to the Red Sea; the purpose was to control maritime trade channels and allow  Only by returning the goods from the East and the West to the Red Sea trade channel and regaining control of the trade channel can we fundamentally solve the Ottoman domestic financial deficit and money shortage problems.  I don¡¯t know what the ministers thought after hearing this, but after reading it, I was deeply shocked. Firstly, I lamented that the Ottomans had such broad-minded scholars. Secondly, the impact of the control of trade routes on a country was shocking.  .  Third, currency problems have such serious consequences for a country.  Among them, there are too many things that I, Da Qin, can learn from and study with all my heart.  Therefore, I hope every minister can read this book.  Only by clarifying the stakes will we be able to avoid making the same mistakes when formulating major national policies today.  " "Yes, Your Majesty.  " The ministers sitting here looked solemn. Perhaps because of the geographical location, Daqin does not need to worry too much about these Ottoman problems, but there are indeed many things worth learning from. " So will China face similar problems? You  You may think that China has silk, porcelain, and tea. These alone are enough to maintain a trade surplus without worrying about money shortages. Indeed, this understanding is correct in China's history.  But they were often troubled by money shortages. This was mainly due to the government's policies or numbness. For example, the policy of banning seas in the Ming Dynasty made silver expensive and copper cheap in the country. People usually used copper coins, but they had to pay taxes.  The exchange of copper coins for silver means that the people have to pay a lot more taxes, and the people all over the world suffer. Another example is the Qing Dynasty. Before 1800, the entire society was relatively stable, but due to opium smuggling.  Trade, a large outflow of China's silver, led to a serious domestic silver shortage; It is no exaggeration to say that the decline of the Qing Dynasty originated from this. Why Lin Zexu strongly wanted to ban smoking was not because of the serious domestic silver shortage.  If the contradiction continues like this, your own country will collapse without being beaten by others. The formation of these problems is not obvious at the beginning. It will only make you feel the pain over time.  By that time, the problem is often very serious. Therefore, those in power must have a deep understanding and a far-sighted vision to detect these problems early and formulate targeted policies to nip the problem in its infancy.  After thinking for a while, he said: "Your Majesty, no wonder the ocean-going fleet reported that there are signs of strengthening naval construction on the Arabian Peninsula controlled by the Ottomans.  From this point of view, it is necessary for Daqin to respond in advance. Now that Li Ding has gone to war with the Ottomans, and the Persians have also sent envoys to sue for peace, it is better to let the ocean-going fleet go to the Arabian Peninsula and eliminate the Ottoman navy.  " Qin Mu pondered and said: "You ministers must have a deeper understanding of the importance of maritime trade channels.  Please see, although it takes more than a hundred miles to travel from the Red Sea to the Mediterranean via the Suez region, it is actually much more affordable to take this route than to take the Xizhou.  The problem is how to control the Red Sea and the Suez area. Only by controlling these areas can we control this most important trade route in the world.  ¡± ****************** ps: Dear friends, here comes the second update, please give me a monthly pass! The second half of the year is coming, please give me a monthly pass! (To be continued, please search Piaotian Literature, Novels  Better updates faster!
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