At present, the Federal Reserve is printing money, and the increase in liquidity will accelerate the depreciation of the dollar. However, China's holding of US Treasury bonds is also a helpless move. Before there is another international currency, holding dollar bonds is the best and most helpless choice. Gresham's Law: Gold and silver have a certain exchange rate under the condition of implementing the dual standard system of gold and silver. When the market price of gold and silver is inconsistent with the legal price, the metal money (good money) whose market price is higher than the legal price will gradually decrease, while the metal money (bad money) whose market price is lower than the legal price will gradually increase, resulting in the phenomenon of good money withdrawing and bad money flooding. If there are two bakers: one sells soft and sweet bread with delicious stuffing and childlike innocence; The bread sold in another shop is dry and rough, and the weight is not enough. It may still be an expired product, but the price is half lower than the first one. Which chef do you think will sell bread well? The answer is not necessarily what you think, it must be the first. Why? This leads to Gresham's law. Gresham's law is an economic law, also called the law that bad money drives out good money. It means that under the dual-standard currency system, when two currencies circulate at the same time, if one of them depreciates, the "good money" whose actual value is higher than the legal value will be generally confiscated, gradually disappear from the market and eventually be expelled from the circulation field, while the "bad money" whose actual value is lower than the legal value will flood the market. Most people have had the experience that when there is both new money and old money in their wallets, everyone is willing to spend the old money to buy things and leave a "new ticket". The reason is simple, because of the preference for new funds. From this preference, every bud of Racine's law appeared. This rule is named after Sir Thomas Gresham (15 19- 1579). Gresham is a famous British financier and philanthropist, and the founder of the Royal Stock Exchange and Resham College. Because he knew everything about money and transactions, he became the main strategist of Queen Elizabeth I's monetary system reform. His business includes negotiating royal loans with Flemish businessmen, buying armaments and smuggling gold into Britain. His family is rich and prominent, and he invited the Queen of England twice. Gresham became a famous figure in the history of currency after he put forward this rule in 1580. This law has been in effect since human beings gave money a certain value. Back in ancient Rome, people used to cut a corner from gold and silver coins, which meant that when money was used as a medium of buying and selling, the value content of money decreased. The ancient Romans were not fools. They soon realized that money was getting lighter and lighter. When they knew the truth about the decrease of money, they accumulated enough gold and silver money to use those that they didn't have. This example shows that bad money squeezes good money out of circulation. In order to control the spread of this phenomenon, the government issued sawtooth currency with tiny grooves on the edge of full-value currency. If the groove on the edge of the currency is flat, people will know that the currency has been tampered with. In China, as early as the 2nd century BC, Jia Yi of the Western Han Dynasty once pointed out the fact that "money rape is increasing day by day and money is dying day by day". Here, "money rape" refers to bad money, while "money is positive" refers to good money. The theory that emerged when the gold and silver standard system was implemented. At that time, both gold and silver were legal compensation currencies and had the same value at a certain price in law. But in reality, the mining cost of gold and silver and the market supply and demand can't change completely synchronously. So when gold is more valuable than silver, people will inevitably store more valuable gold and use relatively worthless silver, because the exchange is calculated at the legal price rather than the actual price. If silver is relatively more valuable, bad money becomes gold and silver becomes good money. Entering the era of paper money circulation, the shortage of money is more obvious, and the state must also have more powerful means to ensure its legal compensation. It was also at this time that Gresham's law began to be questioned by some scholars. In fact, if there is no good money, or a strong government prohibits the use of good money, bad money will never be used up. An obvious example is that at the end of the Republic of China, legal tender depreciated and prices soared, and people began to use silver dollars and refused bad money. Although the government of the Republic of China at this time could not deal with the People's Liberation Army, it could still prohibit people from using silver dollars and then confiscate the silver dollar coupons. However, people did not accept the silver dollar coupon for this reason. Many private organizations began to pay rice, and social exchange degenerated into the era of barter. The root of the problem is that bad money drives out good money, which is not produced under the premise of competition. The issuance of each currency is forced by the state to be accepted by the people. Although the payer is willing to use bad money, the payee will not accept it. Only the state can ensure that the bad money accepted by the payee can continue to circulate, the bad money can continue to exist, and this law can continue to play its role. In other words, if the country abuses the right to issue money and plunders folk wealth through the trick of "bad money drives out good money", this process can be said to be a process of enhancing the credibility of the government. When this consumption process exceeds a certain limit, people may also reject the so-called legal compensation currency and make the currency spontaneously establish new laws through free choice. Although Gresham's law is a famous law in the field of money and finance, it also tends to be generalized in the commercial field, such as the example we mentioned at the beginning. Later, people used this rule to generally mean that things with low value will squeeze things with high value out of the circulation field, mainly referring to the fact that fake and shoddy products challenge genuine products in various channels and have a tendency to expand and spread. For example, when the economic order and legal constraints in the software market are not perfect, or the work cannot be well coordinated, pirated software will affect the production and sales of genuine software, thus endangering the healthy development trend of the software industry. This trend is similar to "bad money drives out good money", which can be called "piracy drives out genuine money", which is an abnormal market state. In addition to business and finance, this phenomenon also exists in other areas of society. Wu Si, a scholar, once put forward the viewpoint of "eliminating honest officials". I suggest you look at his hidden rules, which is helpful to understand this rule. To help us understand, we provide another story published in Southern Weekend. A doctor who came back from studying abroad, a standard "turtle", works in a big hospital in a city. Doctors are not only superb in medical skills, but also noble in medical ethics, conscientious and conscientious in their work. That's all. This doctor has a "quirk", or a "bad habit" brought back from abroad, that is, he never "receives" the "red envelopes" handed over by patients in private. This is enough, which immediately aroused the unanimous anger of most doctors. So, in the end, the hospital came forward, suspended the doctor and terminated the employment contract. Of course, according to Chinese mainland's rich struggle experience for many years, he didn't simply let him walk away, but also buckled a few modest hats, stating that doctors have always been incompetent in their sacred posts, which led to doctors being unable to find jobs everywhere after being laid off, so they had to be forced to migrate and go abroad again to find another way out. In the 20th century, Italy produced one of the greatest writers and thinkers, Calvino. Calvino wrote: In a country where everyone steals, the only person who doesn't steal will be the target of public criticism. Because there is a black sheep in Aries, this black sheep is an "alternative" and will definitely be fired. In the absence of good order and restraint system, what will the mechanism of bad money driving out good money and beating rice bring to the whole society? This problem deserves our deep thought. Credit currency is functions of money currency which is stipulated by national laws and can be used independently without any precious metals. At present, the currencies issued by countries all over the world are basically credit currencies. Credit currency is a credit circulation tool provided by banks. Its own value is far lower than its currency value, and unlike alternative currency, it is completely decoupled from precious metals and no longer directly represents any precious metals. It is the product of the further development of monetary form and the direct result of the collapse of metal monetary system. In the 1930s, a worldwide economic crisis occurred, which caused economic panic and financial chaos, forcing major capitalist countries to break away from the gold standard and the silver standard one after another, and the paper money issued by the state could no longer be exchanged for metal money. Therefore, credit currency came into being. Today, almost all countries in the world adopt this currency form. Credit currency is issued by a country's government or financial management authority, and its circulation is required to be controlled within the needs of economic development. Theoretically speaking, as a general medium of exchange, credit currency must meet two conditions: 1. Legislative protection of currency issuance; People have confidence in this currency newspaper.