Will bonds shrink? What does that mean? That is, the equivalent bonds of tens of thousands of rubles issued by the government to itself, which are not worth so much money?

That's not going to work! Gilnenko sat up from the couch with a bone, since these equivalent bonds do not hold their value, they must be exchanged for rubles!

That's right, that's it, for rubles! Gilnenko admired his mind very much, the Soviet Union had just collapsed, and in a few months, he had read a lot of Western economic books, which opened his eyes and knew how to hype up in order to increase his wealth. The West is beautiful, even if you sit at home, you can make money!

When Gilnenko quickly ran to the bank, he found that in front of the deserted state-owned banks in recent months, there was a long queue again, and the citizens were hoping to exchange the equivalent bonds in their hands for rubles!

In the face of this situation, the Russian government departments have been slow to respond, neither come out to refute the rumors, nor have they adopted any favorable means of administrative interference.

The issuance of currency requires reserves, the initial currency issuance, is based on gold or silver as the principal, can be exchanged at any time, to ensure the value of the currency, after the end of the gold standard system, and the use of the issuance of treasury bonds and other ways to ensure the value of paper money, and later, without reserves, arbitrary over-issuance of currency, will lead to serious inflation and currency depreciation, which also indicates the collapse of the national economy.

And these equivalent bonds, originally used state-owned enterprises as the principal, have full value, but now, under the analysis of Western experts and scholars, the assets of these state-owned enterprises are overvalued, which indicates that the equivalent bonds in hand are not worth so many rubles at all!

Panicked citizens, in order to ensure that the equivalent bonds in their hands do not shrink. They began to exchange rubles.

The state-owned banks simply cannot cope with such a large flow of people, and the Russian government has not yet issued a new ruble, which is completely the original ruble of the former Soviet Union, and those currencies cannot support the huge exchange of hundreds of billions of rubles.

Thus, black market trading began. In the continuous exchange, these equivalent bonds are also depreciating rapidly.

Only by selling off state-owned enterprises and exchanging these equivalent bonds can we stop this momentum! As a result, at the suggestion of American experts one after another, Russia had to speed up the process of privatization of state-owned enterprises.

Who will have enough money to buy those state-owned enterprises? Of course, it is the financial institutions that hold a large number of equivalent bonds, and most of these financial institutions are opened by foreign companies!

It's a time of panic. In order to prevent the depreciation of equivalent bonds, the Soviet government constantly urged state-owned enterprises to be acquired by foreign companies, and those foreign companies also lowered the purchase price, which in turn showed that the equivalent bonds were indeed shrinking, and further promoted the depreciation and exchange of private equivalent bonds.

Within a month, a bond of one hundred rubles equivalent. It can only be exchanged for one ruble in cash, which is equivalent to the wealth of the Soviets. In an instant, it shrank a hundredfold.

At this time, foreign companies are smiling, and they are constantly buying various Russian enterprises with the deposits they have previously absorbed, and buying Russian state-owned enterprises with money borrowed from Russia, this kind of empty glove white wolf trick. In the West, it is no longer effective, and in Russia, which has just carried out a market economy, it is simply an important means of accumulating wealth.

With the exception of the key military industry and state-pillar enterprises, most of the state-owned enterprises have become enterprises controlled by foreign companies. Even the famous Northern Shipyard, an enterprise mainly used to build nuclear submarines, almost became a shipbuilding company controlled by the Germans, but thanks to the timely intervention of the Ministry of Defense, the acquisition was not completed.

Russia has finally turned state-owned enterprises into private ownership, but it is ironic enough that privatization has given control to foreign companies.

The Russian government breathed a sigh of relief that privatization was finally coming to an end, they did not know that the real storm had not yet begun!

At the beginning, those foreign banks, relying on high interest rates, attracted a large number of depositors, and those equivalent bonds, a large number of foreign banks, and they used these equivalent bonds to acquire a large number of Russian enterprises, completed a gorgeous transformation, leaving only a tail, those depositors of the principal, interest, how to repay?

Not to mention the principal, even the interest, is enough for these bankers to worry about, although these equivalent bonds have long since shrunk sharply, and they can't come up with enough rubles to pay for it, the money has long been spent!

This is the most critical step in the whole process, speculators are looking at the United States, and the American experts really live up to the trust.

US Deputy Secretary of the Treasury Summers wrote a letter to the Deputy Minister of Finance of Russia, in which he gave detailed instructions on how Russia should formulate and implement economic policy, that privatization has been completed, and that it is time for Russia to step into the fast lane of capitalism and take off at high speed! Now Russia is still facing a big problem, that is, the black market trading of rubles!

The black market trade in the ruble actually began in the Soviet era, when the Soviet ruble was just after World War II and production was resumed. The ratio of the exchange of dollars is about 0.65 rubles to 1 dollar, at this time, the ruble is more valuable than the dollar, this situation lasted until the eighties, as the Soviet Union began the war in Afghanistan, the Western world in order to impose sanctions on the Soviet Union, began to encourage the oil-producing countries in the Middle East, increase crude oil production, reduce the price of crude oil, dozens of dollars a barrel of oil, forced down to a few dollars, the Soviet Union completely relied on the export of oil to develop the way of economic development has been greatly impacted, the ruble began to depreciate.

In 89, the Soviet government announced the latest exchange rate, 6.26 rubles to 1 dollar, nearly ten times more depreciated than the original, so that it is no longer cost-effective to go to the official exchange of rubles, and the private black market ruble exchange transactions have intensified.

In the free Western world, there is no possibility of black market currency trading! If you want the economic development of the Soviet Union to become the pride of a free world like the United States, you need to implement an open ruble policy, let the ruble and the dollar float freely, and make the underground black market ruble trade disappear!

If Yeltsin's senior advisers at this time were really economic experts, they should know that there were many precedents, just in the eighties, the Hong Kong dollar crisis, the pound crisis, and the financial turmoil in Southeast Asia all started from the currency crisis! The implementation of free floating, which requires a strong foreign exchange margin to back, otherwise, under the malicious sniping of international capital, Russia's economy will also be collapsed!

It is a pity that the Russians at this time, apparently not aware of this, have lived under the Soviet system for so many years, and their hatred of the Soviet Union, the planned economy, and the yearning for the free world make Russia hope that it can cross the past and enter the Western family in one step.

So, in the face of this proposal of the US Deputy Secretary of the Treasury, after discussion, it was adopted, and the ruble exchange rate market was opened!

The decision-makers of the policy at the top will never see what the lower strata of the population really need, history will give them a correct evaluation, they will be crucified in history, and the Russians who have come through that dark age will be spit.

After the opening of the ruble exchange rate market, the citizens of the entire Russia are doing one thing, exchanging the ruble in their hands into dollars!

At the beginning, the state issued bonds of equivalent value, but as a result, these equivalent bonds depreciated rapidly, and the slowest convert, a hundred rubles of bonds could not be exchanged for one ruble!

Now, to be able to exchange freely, it is natural to exchange the rubles in your hand for dollars! The dollar is the currency of the entire Western world, the most preserved, what if the ruble in one hand shrinks sharply, like the equivalent of a bond a few months ago?

Citizens of all Russia frantically crowded the doors of banks, hoping to exchange their rubles for dollars, and at the same time, the exchange rate of the ruble against the dollar began to fall rapidly.

A hundred rubles for a dollar? The person at the end of the queue listened to the news of the person who had exchanged it in front of him, and his heart was already unacceptable, but when he got to the window, the latest exchange rate was already three hundred rubles to one dollar!

The entire Russian citizen is crazy, the ruble in his hand is no longer worth anything, it must be exchanged for dollars! After the bank closes, they even queue up at the bank gate all night to wait for the next day's exchange.

The panic of the depreciation of the ruble is staged throughout Russia, and the wealth of many people has been wiped out overnight, and they still can't figure out what is going on with this alcohol?

What's going on? If you want to be a student, you have to pay tuition! To learn from the West the model of the advanced liberal world is to pay the price!

Every pore of capitalism is evil, and the people of the former Soviet Union, have you forgotten what you said in your primary school textbooks?

In the whole of Russia, there is only one type of person who is the happiest, and that is those who hold high debts.

The ruble is no longer worth much, and now you still want the original deposit and interest? Absolutely, all for you! Now those banks opened by the Western world are full of rubles like waste paper, and you can want as much as you want!

The foreign exchange market of the ruble finally collapsed completely, and half a month later, the exchange ratio between the ruble and the dollar has become 1,300 rubles to one dollar, and the cold winter of the Russian economy has come.

The rapid depreciation of the ruble has led to an increase in prices, and now, the shelves of domestic stores are still full of goods, but Russian citizens no longer have enough money to buy them, and there are many zeros on the labels of those goods.

The financial tycoons, on the other hand, have gained a lot of wealth, they first used borrowed money to buy a large number of Russian companies, and then used the currency devaluation to escape huge debts, this game of empty gloves and white wolves is quite good. (To be continued.) )