Chapter 74 Why Chiang Kai-shek Lost the Currency War

Currency issuance is the most important power in human society, and it is also the most secretive and difficult to control.Currency drives the wheels of the economy, controls the balance of politics, and controls the pace of war.For the emperors throughout the ages, whoever discovered the secret of monetary power will have the upper hand in winning. A unified currency is a prerequisite for consolidating the regime. Without a unified currency, there will be no unified finance, and it will be difficult to achieve a unified political territory, and it will be impossible to establish a unified military force.Whether it is the success of the Meiji Restoration in Japan or the failure of the Qing Dynasty's "Westernization Movement", whether the currency is unified is the key factor for success or failure.Both Mao Zedong and Chiang Kai-shek realized the importance of a unified currency, which is why there are the National Bank of the Soviet Area and the Central Bank of Nanjing, and their primary responsibility is to control the power of currency issuance.

The most important difference between the currency of the Soviet area and legal currency and gold round coupons is who exactly the currency power serves.The currency of the Soviet area serves the people, and Chiang Kai-shek's currency serves the four major families; the currency of the Soviet area grows in practice, and Chiang Kai-shek's currency declines in foreign theory; The 13-day issuance and return of "Red Army Tickets" focused on credit, and the "Golden Yuan Tickets" were issued 34,000 times more in nine months, with the purpose of plundering. There is another important difference between the Soviet area currency and Chiang Kai-shek's currency, which is whether the currency issuance can be independent.The currency of the Soviet area is independent, and Chiang Kai-shek's currency is dependent on others; the currency of the Soviet area has eliminated the intervention of foreign capital forces, but Chiang Kai-shek's currency has become a fat sheep for the US, British, and Japanese powers; The financial sovereignty of banks and foreign exchange management was handed over; the currency of the Soviet area was not judged by the foreign advisory committee, but the currency of Chiang Kai-shek was directly controlled by the British and American committees.

Another difference between the currency of the Soviet area and Chiang Kai-shek's currency is whether the currency is based on the principle of practice.The builders of the currency in the Soviet area did not have a profound foundation in monetary and financial theory, but Chiang Kai-shek’s currency decision-makers were full of foreign ink; Dare to try the price standard to stabilize prices and people's hearts. Chiang Kai-shek's currency is stuck in gold and silver and securities issuance preparations, but repeated deception of the people eventually leads to hyperinflation. Why did Chiang Kai-shek lose the currency war?

This is because his monetary power only considers the well-being of a very small number of rich people, and despises and tramples on the interests of the majority of the poor. The final result can only be that his regime and his currency are abandoned by the majority of people!