Chapter 5020 Traffic Restrictions

The next day, there were still many, many people withdrawing money.

Of course, most people who withdraw money still withdraw money from current passbooks. As for time deposits, no one has touched them yet. However, the amount of cash in the bank continues to drop rapidly every day. Before this, it was mostly people who saved and people who took away. Banks sometimes just serve as a money transfer station. Money is always stored here, it just moves from one account to another.

It's good now. All the money in the current passbook has been withdrawn. The money in the bank's vault seems to be getting less and less. What if everyone really doesn't want interest and comes to withdraw money?

"Boss, what do you think they will do?" Melissa asked.

Lin Feng smiled slightly.

"They can do many things, such as spreading various remarks and telling everyone that withdrawing money will cause bank currency shortages, lead to bank financial constraints, endanger the normal financial order of society, and cause companies to be unable to get loans and factories to be unable to operate normally. If construction begins, the final result will be social and financial collapse, and everyone will be unlucky!" Lin Feng chuckled, "It's a pity that such remarks are of no use to the Chinese people." Lin Feng shrugged, "China's five thousand years of history and culture are unique. Let the Chinese people believe that it is safe to put it in their pocket! Banks are safe. But if the bank makes this statement, then people will definitely be suspicious of the bank. If I deposit my money in the bank, I can withdraw it. Now you make such a statement and say that I can't withdraw it. If it comes out, it will affect the social and financial order and lead to China's financial collapse. This will not make people keep their money in the bank, but they will think, my God, I can't withdraw my money. The truth is, this is too scary, so in the end, people will definitely choose to withdraw their money like crazy!”

Melissa thought for a moment and nodded. She has been in China for so long that she finally understands the uniqueness of China. The world is divided into China and the world. What I mean is that China is completely different from the rest of the world. What is popular in the world may not be popular in China. And this rule. This is the experience summed up by countless world-class manufacturers after paying countless painful prices.

Foreign citizens will naturally understand that if they withdraw all their money, it will inevitably cause a bank run and a series of unpredictable financial events. Therefore, everyone will be very sensible. As long as the bank does not have major financial problems and may go bankrupt, then no one will run on it. But in China, the more you say you can't withdraw money, the more money you have to withdraw.

This principle. Just like before, there were rumors that the central bank was preparing to introduce thousand-yuan banknotes. This proposal was put forward by Zong Licheng, a member of the National Committee of the Chinese People's Political Consultative Conference and vice chairman of the Shandong Federation of Industry and Commerce, at the 2004 National People's Congress. His reason is the rapid development of social economy today. Per capita wages have risen to a high level, and prices have continued to rise. When consumers spend more and more money at one time, it seems a bit inappropriate to use hundred-yuan bills.

Large-denomination RMB has many advantages and benefits. First, it is easy to carry, second, it reduces the time in the circulation process and improves efficiency, and third, it saves paper. This is beneficial to the country and the people. However, this was fully opposed by the people, who said that issuance of 1,000 yuan would bring disaster to the country and the people. Once issued, prices will inevitably rise. Even to the point where it is unattainable. Many people even insulted Zong Licheng as a lackey of the capitalists. They are the pawns of corrupt elements. Ultimately, the proposal was rejected.

But is it really impossible to use large amounts of RMB?

In fact, from a financial perspective, it is related to the economic level of a country. When a country's economic level rises to a certain level, it can issue large amounts of currency to meet market needs. After all, when you want to buy a building, you need to pack a suitcase of money, which is a bit out of place. Although you can transfer money directly, sometimes cash is more convenient. Especially when you go shopping in a mall, you buy something, open your wallet, and put down a lot of money, which is undoubtedly very bloated. In this case, it is undoubtedly more convenient to issue large-denomination banknotes.

But why are Chinese people afraid? The reason is that large-denomination banknotes were also issued during the Republic of China. On August 19, 1937, the Nationalist Government implemented currency reform, abolished legal tender, and circulated gold yuan notes. The legal currency was recovered by converting 1 yuan of gold yuan coupon into 3 million yuan of legal currency. Three months after the issuance of the gold yuan coupons, prices skyrocketed and the currency value plummeted. It was common for people to carry sacks of money and still not be able to buy a single piece of cornbread. As a result, prices at that time completely collapsed and the market was completely chaotic. Eventually, in the first half of the following year, it was rejected by the masses. The masses would rather barter than accept the use of legal currency.

Therefore, Chinese people are afraid that this situation will happen again after using large-denomination banknotes. What if, after the issuance of 1,000 yuan banknotes, you could buy a bowl of beef noodles with 10 yuan, but as a result, after the issuance of 1,000 yuan banknotes, you may not be able to buy it with 20 yuan. Isn’t this a scam? Therefore, the Chinese people are firmly opposed to it.

However, from the actual situation of each country, whether the country issues large-denomination RMB or not, prices will rise, inflation pressure will rise, and RMB will depreciate. This has nothing to do with whether large-denomination RMB is issued or not. Moreover, we have entered the era of "cards". Not to mention that employees of units no longer use cash to pay wages, but directly use "bank cards" to count; even when people go shopping in shopping malls, they are used to "swiping cards" instead of cash. Therefore, whether it is large-denomination RMB or small-denomination RMB, it is just a number for units or consumers. The size of RMB has no practical significance. From this perspective, issuing or not issuing large-denomination RMB is the same, and it does not affect the circulation of currency at all. It is just a number.

Of course, this can also be said from a certain perspective. Since everyone is used to it, it is possible not to issue large-denomination currency. However, from the perspective of domestic economic level and consumption habits, large-denomination RMB is more convenient for Chinese people's consumption habits. After all, Chinese people like to carry cash. As for why the United States does not issue large-denomination RMB, it is determined by the consumption habits of Americans. In the United States, you can use credit cards wherever you go, even in the smallest convenience stores. Moreover, Americans usually pay their bills monthly. All kinds of income will be sent to them at the end of the month, and then they will pay the bills in cash all at once.

Therefore, Americans really don't need higher-denomination currencies. Moreover, it's not that the United States has not issued higher-denomination currencies. Historically, the United States has issued large-denomination bills of $200, $500, $1,000, $2,000, $5,000, and $10,000, but they stopped issuing them in the 1940s. Finally, due to the popularity of credit cards, the United States entered a credit society and decided not to issue bills with a denomination greater than $100 in the future. However, the large-denomination bills that have been issued have not been invalidated and can participate in market circulation. Of course, even if you have those large-denomination bills, no one will spend them. Because their collection value has far exceeded their face value.

Of course, what I'm talking about here is the panic of the Chinese. If you don't let me withdraw the money I deposited in the bank, saying that it will affect China's financial order, then the result is that I will definitely go to get it back. If the bank releases such a statement, the result will be panic withdrawal of people, and eventually a run on the bank.

"What will the bank do?" Melissa asked.

"Haha, I think the bank's trick now should be to delay!" Lin Feng smiled.

Delay? How to delay?

The next day, after the four major banks discussed all night yesterday, the four major banks released a message - all time deposits must make an appointment 15 days in advance to withdraw money.

Undoubtedly, this message is used to deal with the run on the bank proposed by Lin Feng this time. The real deposits are all in time deposits. If the time deposit cannot be cashed, at least it cannot be cashed immediately, then will the bank still be afraid of withdrawing money? All of you retail investors come, I am not afraid. After all, if everyone's cash is really enough, most of them will be deposited in time deposits, and will not be placed in current accounts. After all, the interest rate difference is too big.

After learning that the bank has launched this policy, all real estate companies breathed a sigh of relief. This time, they don't have to worry about banks withdrawing loans. If Lin Feng really stops lending money, and even asks them to repay the money, then almost half of their companies will collapse. Now that the bank has introduced this policy, an unprecedented policy, it is obviously ready to fight Lin Feng to the end. This is also sending a signal to tell them to stand up straight and not to fall down. Persistence is victory!

"Boss, now the four major banks have restricted cash withdrawals. What should we do next?" Melissa asked.

Lin Feng smiled.

"I expected that the first step of the four major banks would be to restrict cash withdrawals. Because this is the usual routine of these state-owned enterprises, they are cautious and use restrictions on cash withdrawals to test everyone's reaction. And this is their most wrong step. They must not do this. If they do this, they will be in trouble!" Lin Feng smiled coldly, "It is better to simply announce that the current account is not due and cannot be withdrawn than to restrict cash withdrawals!"

Then, Lin Feng posted a Weibo.

"In order to respond to Comrade Xiaoping's call, those who get rich first will lead those who have not yet become rich. I will set up the 'Fengshen Venture Capital Fund', which will guarantee 10% of the principal every year, with no upper limit. Welcome everyone to buy!" Lin Feng posted a Weibo. (To be continued)