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The second step of shock therapy is the "double tightening" policy of fiscal and monetary policy, which was launched almost simultaneously with the price reform policy.

The main reason for fiscal austerity is to increase revenue and reduce expenditure.

The tax incentives previously formulated were all abolished, and all goods were subject to 28% value-added tax, while excise tax on imported goods was added.

In tandem with the revenue increase measures, the government has cut public investment, military spending, and office spending.

Extrabudgetary funds were included in the federal budget, local governments were restricted from using bank loans to cover their deficits, and strict restrictions were put in place.

In case some local governments oppose the central government.

The tightening monetary policy includes raising the central bank's lending rate, establishing a reserve requirement system, and implementing loan limit management.

In this way, the flow of money is controlled and inflation is curbed at the source.

This time, however, the government miscalculated.

As a result of excessive tax burdens, business production has shrunk further, and unemployment has surged, forcing the government to increase relief subsidies and direct investment.

The fiscal deficit has risen instead of falling.

Tight credit has led to a serious shortage of working capital for enterprises, mutual arrears among enterprises, and increasingly serious triangular debts, forcing a large number of enterprises to close down.

The government had to loosen monetary policy.

In 1992, an additional 18 trillion rubles were issued, 20 times the amount issued in 1991, and the fiscal and monetary austerity policy was aborted amid the roar of the printing press.

The third step in shock therapy is large-scale privatization.

Gaidar believes that the main reason why the reform is full of dangers and crises is that the state-owned enterprises are not the main players in the market, and the competition mechanism does not work.

Price reform is like building a tower in the sand, and it will collapse when it encounters a storm.

Privatization was necessary for successful reforms, and in order to speed up the privatization process, the Government initially resorted to free gifts.

Assessed by relevant experts,

1/3 of the total value of state property in Russia is about 1.5 trillion rubles.

It just so happens that the population of Russia is 150 million, and the property used to belong to everyone, but now it is distributed to individuals, and everyone has a share.

As a result, each Russian received a 10,000 ruble privatized securities, which he could purchase freely with a certificate.

However, by the time the privatization was officially launched, it was October 1992, and time had passed, and 10,000 rubles at this time was only enough to buy a pair of high-end leather shoes.

It has depreciated dozens of times.

The privileged took advantage of the opportunity to buy privatized securities on a large scale, so that a large number of state-owned enterprises fell into the hands of the privileged and nouveau riche.

Their primary concern is not the long-term development of the enterprise, but the profitability as soon as possible.

Employees can neither receive dividends nor have the right to participate in decision-making, being a monk for a day and hitting the clock for a day, no one cares about production and operation, and the company's efficiency is deteriorating.

The result is a group of oligarchs who are harmful to the country's economy.

Shock therapy has undoubtedly failed, and it has almost halved Russia's GDP to just 10% of the United States.

The country's economy has been hit hard.

This is the time when the evils of shock therapy are in full swing, and the failure of reforms has led to further instability in the already precarious domestic situation.

If the Western countries stab Yeltsin in the back again, it will undoubtedly make Yeltsin's situation worse.

Thus, at the end of the bilateral meeting with the United States, the head of the Russian delegation promised to appropriately reduce the territorial claims to Sakhalin.

But declined to disclose the specific scale.

After walking out of the conference room, Joseph refused the reporter's request for an interview and left the conference hall directly, coming to the White House, which was not far from the venue.

In the President's Office,

Bush is discussing with CIA Director Gates the recent signing of a comprehensive patent licensing agreement between the Russian Government and the British Government in Hong Kong.

"The missing agents have returned," Gates said. ”

"According to them, they were being held in a basement where it was not clear and that they were released after a few days. ”

Bush frowned slightly: "It's that simple?"

As a successful politician who has come through countless guns and arrows, he instinctively feels that it is certainly not as simple as Gates said.

Gates shrugged his shoulders: "Of course it's not that simple. ”

"We've tested the agents' blood, and there's a suspicious chemical in it, presumably the remnants of some kind of psychotropic substance. ”

Bush asked, "Are you saying they were drugged, but they didn't know about it?"

Gates nodded: "It should be so."

Bush said thoughtfully: "It seems that Wei Xiong has a good counterintelligence department, and he may already know about us." ”

"I guess so. ”

After a pause, Gates asked meaningfully, "What do you think?" If I'm not mistaken, he has a good relationship with George. ”

Bush did not deny: "Yes, yes, but we are now focused on national interests." ”

The implication is that he has a clear distinction between public and private, and will not affect his decision-making because of personal relationships. Gates just smiled at this.

"But we don't have any reason to do anything, do we?"

Bush suddenly changed his words: "He has not broken the law, at least not the law of the United States, and it should be the Russians who should be looking for him." ”

Gates looked helpless: "But the Russians don't seem to want to pursue it." ”

Bush sneered: "Those barbarians have always been short-sighted, and a large land area is important, but the most important thing in a country is its scientific and technological strength. ”

"I don't even understand such a simple truth. ”

Gates smiled noncommittally: "During this time, I have been investigating how Wei Xiong secretly sent those scientists to Hong Kong. ”

"All the information points to one person, Osipov. ”

Osipov Bush frowned and said, "If I'm not mistaken, this man should be the head of the KGB's Sixth Bureau." ”

Gates nodded: "That's right. ”

"He was in charge of the counterintelligence agencies of all the scientific institutions of the USSR, but he himself betrayed his country, so ...... It's as simple as that. ”

There was a hint of abruptness on Bush's face.

No wonder such national treasure scientists as Liantupolev, Spaisky, and Belyakov were brought to Hong Kong, and the Soviet authorities did not know about it.

It turned out to be a self-theft by a guard.

"As you just said, Wei Xiong has a good counterintelligence agency, and this agency should be Osipov in charge. ”

Bush leaned back in the executive chair and lit himself a cigar.

After a while, he said lightly: "What a magical man, I originally thought I had put him in a high position." ”

"Now it seems that it is still underestimated. ”

Of course, he would not think that the relationship between Wei Xiong and Osipov was dominated by Osipov, so how did Wei Xiong get a high-ranking KGB official to be loyal?

This alone shows that Wei Xiong's means are extraordinary.

"Knock knock knock. ”

There was a knock on the door, and then the secretary pushed the door and walked in: "Mr. President, Mr. Joseph is here to report to you on the progress of the Six-Party Talks." ”

"Let him in. ”

Gates stood up: "Then I'll take my leave first." ”

Bush nodded, groaned, and said: "The people sent to Hong Kong don't have to be withdrawn, but don't go too far." ”

Gates and Joseph met at the door, and the two staggered past after saying hello.

"How's it going?"

Bush gets straight to the point. Before that, of course, he sat down in the chair across from him. Joseph didn't talk much nonsense either.

Directly: "Russians are still the same greedy for land. ”

"Chikokin has promised to make concessions, but has refused to say how much they will make concessions, and I think they should have limited concessions. ”

Bush slowly exhaled a smoke ring.

The reaction of the Russians is not surprising.

I wondered how I could get Russia to make greater concessions. Of course, he did not target only Russia, but Sakhalin alone.

The United States will also force Sakhalin to make further concessions.

But since Sakhalin has already made such big concessions first, Russia should naturally respond, otherwise the negotiations simply cannot proceed.

In fact, Sakhalin will make concessions first is also due to pressure from the United States.

At least that's what he thinks.

Because before Posaryev left for Moscow, the head of the US delegation, Joseph, went to Vladivostok to hold talks with Posarev.

Pondering for a moment,

Bush opened his mouth and said: "When you go to visit Chikokin in the evening, you say that Russia cannot be superficial and must make substantial concessions. ”

"Otherwise, the IMF will re-examine the loan to Russia. ”

……

On the morning of the 15th, the meeting continued.

It can be seen that the face of the head of the Russian delegation, Chekokin, is not good-looking, especially when he looks at Joseph, the head of the American delegation.

At the beginning of the meeting,

Joseph, head of the US delegation, first said that the negotiations must not be deadlocked, and progress must be made, so that it is in the interests of all parties present.

Then Chikokin said that Russia was willing to make concessions,

Surrender of territorial claims to the Autonomous Okrug of Koryak, Magadan Oblast and Kamchatka California.

This concession was undoubtedly significant, but Sakhalin could not accede to Russia's insistence on territorial claims to the entire Republic of Yakutia and Chukotka autonomy.

Negotiations have re-entered the bargaining phase.

By the time the meeting was adjourned, no further progress had been made.

Back at the hotel, Chikokin poured himself a glass of wine, raised his head, drank it all in one gulp, and then slammed the glass on the table.

Cursing: "Damn the Yankees, one day you'll regret it." ”

Originally, according to the plans drawn up, he was only going to give up Magadan Oblast, but the threat of the Americans forced Russia to compromise.

The dire economic situation has left Russia in dire need of an IMF loan.

Of course, Yeltsin promised to give it up because these lands now do not belong to Russia, but are occupied by Sakhalin.

Even if Russia does not give up, it is very unlikely that it will be able to get it back.