Let me simply clarify your doubts. First of all, we have not adopted the two methods you mentioned, because those methods have interest as you mentioned, and the larger the currency issued by the country, the higher the interest. , which will cause a waste of funds. In our country, the central bank directly issues currency and enters the market through several methods.

The right to issue currency in the United States is not in the hands of the government, but is controlled by the Federal Reserve. The issuance of the U.S. national currency must be the U.S. government issuing Treasury bonds, and then the Federal Reserve issues currency through the Treasury bonds. Therefore, the U.S. government will always owe money to the Federal Reserve, and it will require huge amounts of interest. For example, in 2008, the U.S. government owed the Federal Reserve $80,900 billion in debt, and the annual interest was as high as $200 billion.

In addition, regarding China’s specific currency issuance process and system, at least until now, there is no authoritative theory, because the central government has never really made it public, but the main method of currency issuance is certain.

Currency issuance is divided into four types according to its nature: economic issuance, fiscal issuance, hidden fiscal issuance, and credit issuance. (1) Economic distribution. Refers to currency issuance banks adapting to the needs of national economic development and issuing and releasing currency in a planned manner through credit procedures. This kind of issuance is guaranteed by sufficient commodities and materials, is consistent with the demand for commodity circulation, meets the requirements of the laws of currency circulation, and can ensure the stability and normality of currency circulation in the market. It is a normal issuance. (2) Financial issuance. Refers to currency issuance to cover fiscal deficits. After the fiscal deficit occurs, the bank overdrafts directly occupy bank loans, causing an imbalance in credit balances and forcing banks to issue currency. This kind of issuance is excessive issuance without material support, which will inevitably lead to too much currency in circulation, causing price increases and inflation. It is an abnormal issuance. (3) Hidden fiscal issuance. It refers to currency issuance caused by false fiscal balance and real deficit. It is caused by false fiscal revenue. The most prominent manifestation is that under the traditional planning system, industrial production is separated from the market, and the products are not marketable and of inferior quality and high price. After such products are purchased and underwritten by the commercial sector, the enterprises pay taxes and profits to the state, forming fiscal revenue, while the commercial sector Products are overstocked or even scrapped, occupying a large amount of funds. In this way, on the one hand, part of the revenue generated by the fiscal system has no material guarantee; on the other hand, the funds of the commercial sector are squeezed out, and bank loans must be obtained for turnover, which increases bank loans and forms a hidden fiscal issuance. (4) Credit issuance. The issuance of money by credit. The issuance of appropriate credit currency is necessary to meet the development of the national economy. However, if bank loans are not strictly controlled and the loan extension exceeds the needs of production development and commodity circulation expansion, it will also cause excessive currency in circulation and cause inflation. Currency Devaluation, price rise. Currency issuance must comply with the objective requirements of currency circulation laws. In our country, currency issuance adheres to the policy of stable currency and adheres to the principle of concentrating currency issuance power on the central government and planned issuance. The issuance of RMB is based on the annual balance of the national economic plan and the needs of national economic development. The maximum issuance limit is approved by the State Council and is implemented by the People's Bank of China.

Based on the specific national conditions, our country should place more emphasis on these methods, which should mainly be economic issuance and credit issuance. Because the real and specific information is not known, everyone uses various methods. Information infers that the main driving force for China's economic growth is foreign trade. Therefore, for a long time, our currency issuance has closely followed foreign exchange, that is, we issue one dollar of RMB for hedging for every dollar that comes in. However, as the rogue United States continues to accelerate U.S. dollar issuance (because the U.S. dollar has received support from the international financial market and is willing to exchange money for U.S. dollars, the inflation rate in the United States has been maintained within the safety line.) Therefore, the Chinese government began to slowly decouple from the U.S. dollar in order to stabilize the personal currency. , and our second economic driving force is investment, but it is completely unknown how the central government adjusts this. As for domestic demand, it is an issue that China has always paid little attention to. It is only used as a means of adjustment and buffering to stabilize the market.

Let me explain, what I mean by no interest is relative to the currency issuance method of the United States. What I mean is that China's currency issuance system will not generate additional government consumption. There is an absolute difference between the two interests. When the U.S. currency is issued, the U.S. government will bear the interest on the base currency. However, the issuance of base currency by the People's Bank of China means that the government's finances do not require additional expenditures. Specifically, the central government provides a commercial bank with, for example, 150 billion in base currency, and then the bank lends it to company A through commercial credit. Then company A deposits the money into bank C, and bank C then gives the money to company D. , this may continue, and in the meantime, companies will retain a certain amount of liquidity, and banks will also have a certain position, not to mention the reserves that banks have to hand over to the central bank. The circulation process in this process produces actual currency issuance (the number of circulations is the currency constant). The bank's assessment of the borrower's asset capacity and repayment ability during the lending process is an assessment of social wealth. If If there is a mistake, it will be equivalent to issuing too much currency, that is, some currency represents some non-existent value.

Therefore, we can see that the central bank controls the issuance of base currency and can also affect the monetary constant. Therefore, our country has relatively effectively controlled the issuance of currency circulation, and the interest generated in this process is the profit of commercial banks and the reserves turned in. There is also a central bank. The central bank is not profitable in this process, and the central government has no additional expenditures. If you still have any questions, you can send me a message. It is relatively empty after 9pm.