Cao Cao seemed to grasp something from Liu Ba's words, yet his mind was destined to have nothing to do with finance. Even though Liu Ba had explained to this extent, Cao Cao still did not understand.
"Ming Gong, if you consider the deposits Chen Zichuan signs as IOUs, you'll understand," Liu Ba said with a bitter smile. He had thoroughly understood how Chen Xi operated, but understanding it didn't help prevent it.
Cao Cao opened his mouth; the truth was surprisingly simple. It was just under a different name, and it was interest-free loans. In the Han Dynasty, what was most famous was usury, where big merchants backed by aristocratic families dared to lend to the state and actually recovered both principal and interest.
Now Liu Ba was telling him that Chen Xi's method was borrowing money, then writing IOUs, but his IOUs had a different label and came with the ability to trade, making those who borrowed feel convenient and overlook that it was essentially interest-free borrowing...
