The key question is how much it will fall......

On the night of 18 March, almost all the leading figures in the financial and political circles of East Asia gathered to discuss how much the banknotes issued by the Chinese Nationalist Government should fall.

Kasumigaseki, Tokyo, Japan, Prime Minister's Office.

Japanese Prime Minister Yuyuki Hamaguchi was also in his prime minister's office at this time, with the leaders of Japan's financial circles, calculating how much the Kuomintang's fiat currency would fall, or rather, ...... How much does Japan want it to fall? As a matter of fact, Japan was the driving force behind the "fiat currency crisis" encountered by the Nationalist Government this time, but it was the elites in Japan's political and financial circles who were presiding over the conspiracy, not the Japanese Army, which only knew how to act recklessly. So so far, they've been very well hidden. So much so that the Chinese and national capitalists who participated in the crackdown on fiat currency did not know anything about it

Yuyuki Hamaguchi, known as the prime minister of the lion, is sitting behind his desk with a faint smile on his face. Today seems to be the happiest time since he became prime minister, and the Shina, which is almost about to climb to the head of the Japanese Empire, has finally fallen on his head this time, and it turns out that he is still a little worried, and he always feels that it seems to be a run on fiat currency with the hard-earned money of the Japanese people...... There's a little bit of risk. It is not that I am afraid that the Kuomintang will be able to conjure up some tricks to turn the tide, but I am worried that those American conglomerates on the other side of the ocean will pull the Kuomintang at a critical moment. According to the report of the Consulate General of Japan in New York, John Jr. Ponel Pete. Morgan, who personally visited the Kuomintang delegation last month, controls a total capital of $74 billion. In fact, he doesn't need to take out a penny at all, he only needs to say a word at a critical moment, or even make a look, to make the "chaebols" in this room lose money in fiat currency speculation. But now, the Kuomintang actually "fled without a fight" at a critical moment, and chose the shameful "non-resistance policy" to give up the entire Northern Branch banknote market to the golden bills of Great Japan......

However, Hamaguchi still has some troubles at the moment. Although this time without a fight, half of China's banknote issuance market is about to be handed over. But...... Those chaebols who don't actually have much money are now gearing up to take advantage of the victory.

"Your Excellency the Prime Minister, according to the information available to the Bank of Japan and the Ministry of Finance. At present, the Nationalist Government has issued a total of more than 6 billion yuan of fiat currency, and the total amount of fiat currency amplified by the 'multiplier effect' of the banking system is as high as 20 billion yuan, and the largest concentration of these fiat currency funds is Shanghai, the financial center of the current China, or more precisely, the Shanghai Public Concession and the French Concession. It was a place where it was difficult for the National Government to fully control it, and the foreign exchange control measures promulgated by the National Government were ineffective there. According to statistics, the major branches and foreign banks in the Shanghai Concession now hold a total deposit of more than 5 billion fiat currency, accounting for a quarter of the total supply of fiat currency, and if half of this money hits the market in the next few days......"

The man who spoke was Junnosuke Inoue, the most famous banker in Japan at the moment, and is now the Minister of Finance in the Hamaguchi Cabinet and the Governor of the Bank of Japan (the Bank of Japan).

Hamaguchi Yuyuki shook his head slowly, and there was no trace of a smile on his slightly serious face: "If you calculate according to the exchange of one dollar for five fiat currencies, there are two and a half billion fiat currencies to hit the market, and only five hundred million dollars are needed to eat them all." The Nationalist Government currently has about 800 million US dollars in its possession, as well as an unknown amount of gold reserves. Furthermore...... There are more than 1.5 billion silver dollars and 150 million taels of silver in the ten major banks and central banks of China. That's not much of a reserve compared to the Empire, isn't it? Why should we defeat them? ”

"Hahaha...... Your Excellency, Prime Minister, we are not trying to bring down fiat currency. We are businessmen, not soldiers. The businessman's job is to make money, to make money for the Empire, and now is the best opportunity. "This time it was a big fat man in a crisp suit. This guy who looks like he has at least two hundred pounds, there is so much meat on his face that there is no place to pile up, and the fat all over his body is trembling when he laughs, Baron Iwasaki Koyata, the head of the Mitsubishi chaebol of Japan.

"What? Don't break fiat? Hamaguchi Yuyuki was stunned when he heard this, and his two already gray eyebrows gradually twisted.

Seeing the prime minister's puzzled face, a hint of pride flashed on Iwasaki Koyata's fat face, and he laughed: "What is listed on the Shanghai Stock Exchange is not just a fiat currency. There are also hundreds of stocks, dozens of bonds, precious metals such as gold and silver, as well as commodities such as oil, flour and coal. As soon as the market opens tomorrow, everything there will be a huge shock, and we have already mobilized a huge amount of money to Shanghai, ready to attack at any time. During this period, the Bank of Mitsubishi, the Mitsui Bank of the Mitsui Zaibatsu, the Sumitomo Bank of the Sumitomo Family, the Yasuda Bank of the Fuji Foundation, the Yokohama Zhengjin Bank, the Bank of Korea, and the Bank of Taiwan borrowed a total of 1 billion fiat currency in cash from the major banks in Shina and the European and American banks in Shanghai. In addition, there are also large banks in Tianjin, such as the North Fourth Bank, the Beiyang Industrial Bank, the Frontier Bank, and the Guanyin of the Three Eastern Provinces, which have also prepared more than 100 million legal currency in cash. A total of 1.6 billion fiat currencies can be used to short China's stock market and bond market, and speculate on commodities such as oil, flour, and coal. ”

Hamaguchi Yuyuki himself is also known as a financial expert, and when he was picked up by Iwasaki Koyata, he immediately realized: "Hehe...... The people of the Iwasaki family are really masters of business. So quickly found an opportunity to make money from such a chaotic situation. The Kuomintang and the pro-Kuomintang Jiangsu-Zhejiang consortium and the Nanyang consortium will inevitably defend the fiat currency tomorrow. In order to stabilize the fiat currency, they will inevitably tighten the monetary system and raise the interest rate of bank lending, which will cause blood loss in the bond and stock markets. At the same time, the panic caused by the 'fiat crisis' can also prompt investors to sell bonds and equities and move their money to commodities that can hold their value. And you will take advantage of the situation to sell bonds, stocks, and speculate on materials, so that you can turn the wealth of the people of China into the empire without bloodshed. ”

Junnosuke Inoue smiled and added, "The benefits don't stop there. At present, the top ten banks in China can hold a large number of stocks and bonds, if the stock market and bond market plummet at the same time tomorrow, these banks are very likely to go bankrupt and fail, thus dragging the economy of China into the abyss...... I don't think the GCD people in China will give up such an opportunity, right? ”

"Well, you guys did a great job this time. It's just that...... Have you taken into account the attitude of the Anglo-American consortium? In case they make a move......" Hamaguchi touched his beard and said the hidden worries in his heart. Compared to Japan, the current relationship between the Chinese Kuomintang regime and Britain and the United States seems to be much closer. The Japanese chaebols in front of them may be able to easily defeat the Chinese chaebols, but compared with the British and American chaebols, they are vulnerable.

"Your Excellency the Prime Minister, please rest assured. We are fully sure that the Anglo-American consortium will not be a good thing to do. The answer to the question was a clear-faced old man named Takuma Tuan, the chairman of the Mitsui Joint Stock Company and the helmsman of the Mitsui zaibatsu, and his knowledge of the financial circles in Europe and the United States was second to none in Japan. He smiled slightly, and said:

"In fact, the huge amount of money we mobilized this time is deposited in the accounts of major British, American and French banks such as HSBC, Citigroup, Macquarie, and Crédit Agricole. And those accounts will also be used to impact the financial sector of China. As far as we know, the European and American banks have not informed the National Government of anything. These European and American conglomerates are not controlled by their own governments, and their sole purpose is to create wealth for their shareholders. Therefore, at the critical moment, they have already done their best if they don't fall into the well and step on the foot, and it is completely unrealistic to let them help. ”

Hamaguchi Yuyuki sighed lightly and said with a smile: "Since Tuanjun has said so, then what is there to worry about as the prime minister?" After all, this time it is mainly the funds of the chaebol. But...... You also have the hard-earned money of all the people, so please be cautious, and you must not lose the money of the people."

……

Zheng Tieru, president of the United Reserve Bank of China, immediately exclaimed as soon as he heard the news that the Kuomintang was preparing to impose foreign exchange controls

At this moment, he and Zhang Naiqi were drinking tea in a guest room in the palace of King Shuncheng, discussing what tactics should be adopted tomorrow to attack the Kuomintang reactionaries economically. Mao Zemin suddenly threw himself in, holding the newspaper he had just translated in his hand. This is the news from Yan'an, northern Shaanxi, which is absolutely reliable.

Mao Zemin obviously ran over, panting, picked up the tea bowl on the table and took a big sip, and then spit out a little tea powder: "Mr. Zheng, what do you say?" The Kuomintang controlled foreign exchange, how could it be over? They still have so many foreign exchange reserves, as well as gold and silver, and hundreds of thousands of troops, how can they ......"

Zhang Naiqi smiled coldly: "Of course it didn't fall all at once. It should be able to last for a few years, but once this finance is over, hehe...... How long will they last? They are the capitalist system. ”

"Are their finances finished?" Mao Zemin pulled over a chair, sat down, picked up the telegram in his hand and read it twice. It doesn't seem to say that the Kuomintang's finances are about to end, but it just says that their fiat currency may fall sharply, and as for how much it will fall, he should consult two experts, Zheng Tieru and Zhang Naiqi.

"Of course it's over." Zhang Naiqi sighed: "Luo Yaoguo is okay as a general commanding a war or something, and he wants to play finance...... Hmph, he's still tender. Hu Hanmin actually listened to his idea to carry out foreign exchange control, can this kind of system be carried out in a country like ours? None of the countries have been reunified, and there is such a country as the concession China. Are you in control? What's even more dangerous is that the financial center is still in the Shanghai Concession. If they take out their foreign exchange reserves to stand up, they may still have a chance to survive. But now ......"

Mao Zemin frowned and glanced at this national capitalist who always spoke half-talking. A hint of unhappiness flashed on his face: "Can Mr. Zhang make it clear?" ”

Zhang Naiqi shook his head and sighed: "This is like two armies holding each other, and our side may not necessarily win." After all, we can only raise a billion fiat dollars at most. And this is still a ceiling, because we have leaked the news here, and the pro-Kuomintang banks will definitely tighten the monetary base. It is possible that we only have less than a billion fiat currency of ammunition, and their foreign exchange reserves are 800 million US dollars, silver dollars should be 1.5 billion, and gold is always a few million taels. In addition, the pro-Kuomintang commercial banks also have a lot of foreign exchange ...... If they face it head-on, it is still possible to get through it. But these guys are too weak, and they actually chose to flee without a fight, so as not to let the family chase and kill, and lose a big loss? The capital that was originally on the sidelines will now definitely join the ranks of shorting, and now it is not only fiat currency that can be shorted, but also stocks and bonds. In addition, it can also speculate on flour, coal, oil and other commodities, especially flour, which is directly related to the price of grain in the areas ruled by the national government...... Tomorrow will definitely be fiat currencies, stocks, bonds plummeting, and flour skyrocketing. In addition, the top 10 banks in the South now have a lot of stocks and bonds in their hands. If these two things plummet at the same time, the capital of the banks would immediately shrink dramatically, and if they didn't do well, they would go bankrupt one after another. Will the KMT's economy be sustained in this way? Hehe, they're going to die now, maybe next year today, this Beijing city will be the people in charge."

Mao Zemin glanced at him with a complicated expression, and the two proud national capitalists in front of him didn't know in their hearts whether they should be happy? Or should you be afraid? He really couldn't imagine that his party would be able to give these national capitalists more benefits than the Kuomintang.

"Mr. Zhang, Mr. Zheng. What do you think our Reserve Bank of China should do tomorrow? Mao Zemin took a deep breath, squeezed out some smiles on his face, and asked again.

"This ...... After all, we are a bank, or a banknote issuer. Zheng Tieru seemed to be a little hesitant: "Naiqi, this kind of speculative trading is sometimes difficult to talk about." Maybe...... The imperialists will come to their aid and help the Kuomintang tide over the difficulties......"

"Hehe, don't think about this. It would be nice if those imperialisms did not fall into the ground. Zhang Naiqi's view is the same as that of Tuan Zhumei. He sneered: "The Kuomintang is in a catastrophe, our United Reserve Bank of China, or we will transfer ourselves to Tianjin tomorrow, and then see if there is anything to speculate." Mr. Mao, what do you think? ”

Mao Zemin stood up and paced inside the room with his hands behind his back. Speculate...... Sounds like "opportunistic". Speculation with the capitalists is "right-leaning opportunism", but this mistake is very serious, and this time the task has been overfulfilled. And this money is not personal, if something goes wrong, I can't keep it, and my brother is afraid that he will also fall

"Mr. Zhang, Mr. Zheng. Our party has always been down-to-earth and will never make such speculative money" Thinking clearly about the relationship, Mao Zemin turned around and looked at the two capitalists with a straight face: "The main reason why our party participated in the initiation of this United Reserve Bank of China is to let the people have a paper currency with a good reputation and will never depreciate. It is not to engage in speculation and disrupt the financial order, still less to make profits. Since the Kuomintang's fiat currency is about to withdraw from the northern market, our first step will naturally be achieved. So we don't support speculative ways to make profits, you know? ”

……

At this time, the meeting in the building of the Central Bank of the Kuomintang was still going on. However, there were a few more people in the conference room. They are Chen Jiageng, president of the China Railway Corporation, Lu Yunhuai, president of the China Iron and Steel Corporation, Ma Junwu, president of the China Military Industry Corporation (concurrently vice minister of the Ministry of Armaments), Deng Zeru, minister of industry, Chen Guangfu, president of the China International Commercial Bank, and Lu Zuofu, general manager of the Minsheng Company. These people were not in Wuhan in the first place, but they arrived by plane after receiving an urgent notice.

"Tomorrow's financial situation will definitely be shocked, and the four things in the Shanghai Stock Exchange, such as fiat currency, bonds, stocks, and flour, should be the most critical." Chen Guangfu, who is known as China's best banker, was standing in front of a blackboard at this moment, writing in chalk the eight big characters of "fiat currency, bonds, stocks, and flour."

Chen Guangfu smiled slightly: "Our people here can already represent nine of the top ten banks, except for the Bank of Communications, everyone is in the same boat this time, but I believe that as long as everyone can work together, we will definitely be able to tide over the difficulties." Because, our opponent has not calculated one thing, that is, tomorrow's financial war is fought on our home field, the rules there are all set by us, and the referee is also our people, if they know each other, if they don't attack, we will give up the plate of the north French currency, and there is no problem in maintaining the stability of the south, if they want to attack, there is only the battlefield of the Shanghai Stock Exchange, then we will eliminate them there."

"So how are we going to get rid of them?" The question was naturally asked by Luo Yiqun, the most honest executive president in the venue.

"I don't know yet." Chen Guangfu shrugged his shoulders and said with a smile: "Tomorrow we will fly back to Shanghai early in the morning to prepare for battle." But we're definitely going to win, and Dean Luo doesn't have to worry about that at all. However, those who lose are afraid that they will be very unconvinced. Auxiliary Commander (Luo Yaoguo): Are you sure to defeat them? ”。