Soviet Godfather - v5 Chapter 251

Jeffrey Sachs was hired by the Bank of Columbia to promote his “shock therapy” in Eastern Europe. This is not a whim of Sergei Sha. Sergey Sha has a profound consideration of his plan.

From the current point of view, it is no longer possible to rule the vast Eastern European region by political or military means. The people on this land chose to abandon the Stalinist system economy that they had adhered to for decades. With the fall of one state after another, these countries gradually got rid of the control of the Soviet Union and began to face the world on their own.

When the newly elected regimes began to take over their own countries, the governing governments of most Eastern European countries felt at a loss. Because what they are facing is not a vigorous country. The first thing they have to face is huge foreign debt, high prices, and a domestic economy that is on the brink of collapse. The Stalin system left behind a large number of low-efficiency state-owned enterprises that could not generate profits, and the shrinking of the light industry and food industry brought about by the Stalin-style economic model caused the prices of the household goods urgently needed by the domestic people to rise, and the people could not even afford the high prices. Cost of living. In this case, the leaders of the new regime have no other choice but to continue printing money and subsidizing their citizens to purchase daily necessities. But subsidies can only make inflation worse.

Facing their huge foreign debts, the governments of Hungary, Poland and other countries felt at a loss. They are unable to repay these loans on their own strength, but if they cannot obtain new financing, they cannot import sufficient consumer goods from abroad to meet the needs of the domestic people. In this case, they have only three paths before them. One is to seek financial support from the United States to repay their foreign debts. This path may seem simple but very complicated. After all, the U.S. money bag is not determined by the president but by Congress. In the face of countries such as Poland and Hungary that lack their own hematopoietic capacity, the U.S. Congress will not agree to throw taxpayers’ money into these puddles. Therefore, Walesa has nothing to do except cursing the U.S. government for its unbelief.

The second way is to request an emergency loan from the International Monetary Fund, but the loan conditions are very harsh, and it is very likely that the Polish government will lose its tax and tariff rights. In addition, it is actually an international organization manipulated by the United States, and it is very likely to carry some private goods of the Americans themselves. For example, additional conditions such as the deployment of US missiles in Poland or the establishment of US military bases in Poland. Once Poland chooses to cooperate with it, it means that Poland will become the forefront of the blockade of the Soviet Union and the watchdog of the United States. Even if Walesa did not understand this truth, those intellectuals in Poland would understand it, so this road is actually a dead end.

As for the third way, it is to issue treasury bonds to powerful financial institutions and private investors in the world. This road is also an impossible task for countries such as Poland and Hungary, because their credit ratings are now all junk grade, and normal investors will never lend them a penny. The interest offered by creditors who are willing to lend them money is not much stronger than loan sharks, so this road is still a dead end.

Is there a fourth way out of the three? Of course there is, and that is the package of foreign debt and economic transformation solutions proposed by Columbia Bank and Jeffrey Sachs. Specifically, the plan is that the Bank of Colombia takes over the central banks of these countries and provides funds for these countries to repay their debts. At the same time, these countries must carry out economic reforms in accordance with the economic policies proposed by the Bank of Colombia and Jeffrey Sachs. This will inevitably involve “shock therapy.”

For the government of the host country, the funds provided by the Bank of Colombia can meet the huge foreign debts of these countries. At the same time, Glencore, as well as the large number of agricultural, animal husbandry and food companies acquired by Seriosha in the United States can also participate in providing sufficient food and light industrial products for these countries. This is simply a set of programs customized for these countries.

For the Bank of Colombia, once a country accepts the Bank of Colombia’s plan. The Bank of Colombia will automatically be upgraded to the central bank of this country. It will monopolize the currency issuance power of the host country, manage foreign exchange and gold and other reserve assets, and regulate the inflation of the host country through interest rates. In addition, the bulk commodities and livestock products under Sergei Sha’s can also be dumped in Eastern Europe to gain a stable market. This plan is definitely an opportunity for the Gorky consortium to dominate Europe.

Jeffrey Sachs first came to Poland to meet with Walesa to discuss economic issues in Poland. Why choose Poland as the first stop? First of all, this is where the Gorky Group has been operating for many years. Secondly, it is located at the doorstep of the Soviet Union, and its geographical location is very important. Finally, Glencore now regards Poland as a dumping ground for agricultural products, and has actually implemented its plan to control the supply of the Polish market.

Walesa was naturally welcoming to Jeffrey Sachs’ arrival. Because Jeffrey Sachs has just achieved great success in Bolivia, and the situation that Bolivia faced at the beginning, even a layman in economics can see how similar it is to Poland now. So when Jeffrey Sachs put forward a package solution for foreign debt and economic transformation in front of all the cabinet members of Walesa ~ www.mtlnovel.com ~ most cabinet members of Walesa felt a little moved.

“Professor Sachs, do you really think that Columbia Bank’s plan can save Poland’s economy?” Walesa asked still a little worried.

“Mr. Prime Minister, this plan has been discussed repeatedly with the Bank of Colombia. It contains my experience and lessons in the reform process of Bolivia. I believe that as long as your country accepts the Bank of Colombia’s plan, within a week, Inflation in Poland will be brought under control. And I know that in a few months, your country will have a large amount of debt due. If the debt defaults, I think you don’t need to tell you about the situation. “Jeff Risachs said confidently.

These words really shocked Walesa. Now Poland needs to import a large amount of food and daily necessities from abroad to maintain the people’s livelihood, but if the debt defaults, Poland will no longer be able to raise funds from international sources. The money for importing flour is gone.

“Mr. President, it’s already the case anyway, why not give us Bank of Colombia a chance? I don’t think anyone besides us is willing to lend money to Poland, right?” Mr. Mi, President of Bank of Colombia, who has been silent. Hail whispered to Walesa suddenly with a smile on his face. ()