Chapter 1246 A lost thought

After all, Li Zhongxin had been in contact with the Soviet trade for a period of time, so what about it! He knew a lot about what happened after the collapse of the Soviet Union.

Li Zhongxin vaguely remembers that as the former Soviet Union came to the brink of disintegration, the official exchange rate of the ruble depreciated sharply for the first time in November near the end of 1990, from 0.6 rubles per dollar to 1.80 rubles per dollar.

After the collapse of the Soviet Union in 1991, the leaders of the newly formed Russia used shock therapy in order to prevent the Soviet economy from collapsing directly.

What is shock therapy? In the mid-80s, the medical term shock therapy was introduced to the world's economic field by the American economist Jeffrey Sachs.

Shock therapy was proposed while Sachs was being hired as an economic adviser to the Bolivian government.

Bolivia is a small and economically backward country in South America, due to the long-term political turmoil and the government's economic policy mistakes, the resulting economic problems accumulated and unresolved, and finally led to a serious economic crisis.

In 1985, the Bolivian government had a budget deficit of 485.9 trillion pesos, about one-third of GDP, and inflation was 24,000 percent.

In 1984, the external debt was $5 billion, and the interest payable was nearly $1 billion, exceeding export earnings. During the period of 1980~1985, the living standards of residents fell by 30%, and the national economy was almost on the verge of collapse.

It was precisely in the face of such a sinister economic situation that Sachs, who was hired at a time of crisis, boldly put forward a set of economic programs and economic policies, the main contents of which were: the implementation of a tight financial and fiscal policy, the reduction of government spending, the abolition of subsidies, the liberalization of prices, the implementation of trade liberalization, the realization of exchange rate stability through currency devaluation, the further reform of the administrative and taxation systems, the privatization of some public sectors and enterprises, the reorganization of debts, the acceptance of foreign aid, and so on.

Because the implementation of this set of economic programs and policies has a strong impact force, it may cause huge shocks in the economic life of society in a short period of time, and even lead to a state of "shock." Therefore, people borrow medical terms and call this set of economic programs and policies put forward by Sachs to stabilize the economy and control inflation "shock therapy."

After the collapse of the Soviet government, after the Russian government came to power, they found that the economy of the former Soviet Union was already in a mess, and they were forced to relax the monetary system, issue an additional 18 trillion rubles, and carry out the applicable shock therapy to treat the country's diseases.

This was 20 times the amount of money issued in 1991 and directly led to inflation of up to 2000%, and the value of the old ruble fell sharply.

In 1993, the Soviet government had to issue a new currency to save the economy. In 1994, the official exchange rate of the ruble had fallen to more than 3,000 rubles per dollar.

Although Li Zhong did not remember how much it was, he knew what the trend of the ruble would be like after the collapse of the Soviet Union.

After Li Zhongxin threw money into the Soviet Union, he has always pursued such a policy, that is, through continuous adjustment, using the influence of the Zhongxin Mitsui Bank, he gradually turned the assets invested by the Zhongxin Mitsui Bank into US dollar assets, that is, they could realize the money and flow it outside the Soviet Union at any time.

After the collapse of the Soviet Union, Tadashi Mitsui Bank will not become a victim of the collapse of the Soviet Union because of this incident, but will earn countless fortunes from the collapse of the Soviet Union because of Li Zhongxin's foresight.

Regarding these things that he wanted to do after the collapse of the Soviet Union, Li Zhongxin would not say it in the open.

Even when he talked about this matter with Mitsui Masako, he also kept a lot of things, but the follow-up matters were all directly operated by Li Zhongxin under the direct command of the personnel of Zhongxin Mitsui Bank and Zhongxin Company in the Soviet Union.

The Soviet Union was one of the world's major powers at this time, and after the end of World War II, the Soviet Union became a superpower on an equal footing with the United States, and the United States and the Soviet Union competed for hegemony for decades in order to compete for world hegemony.

The biggest reason why the Soviet Union was able to wrestle with the United States was that the Soviet Union had heavy industry that could rival that of the United States, as well as the powerful military power derived from it, and the Soviet Union's powerful heavy industry made the United States look sideways.

Although Zhongxin Company does not need those heavy industry things, China needs it! In the future, through the efforts of Zhongxin Company, it will not only get a lot of heavy industry from the Soviet Union, but also introduce some Soviet scientists to China.

What about this kind of thing! Li Zhong knows very well in his confidence that even if he doesn't do it, those bigwigs in China will do it, but what! He will do this very well for the introduction of equipment and scientists, after all, the private company he represents has nothing to do with the Chinese government.

The cooperation between Zhongxin and Germino was what Davitt wanted to see, because Davit had already seen the hope of the Rothschilds rising in China at this time.

The car base jointly established by the Zhongxin Company and the Rothschild family began to expand significantly, but the Zhongxin car still felt that it was not enough to sell, and Davitt did not expect that China, a country that seemed very poor, would have such strong purchasing power.

Gemino came to Zhongxin's side this time, and brought follow-up cooperation projects for other types of automobiles, such as the cooperation of construction machinery vehicles, and several other cooperations, and they hope to make the automotive industry bigger and stronger through Zhongxin's side.

At this time, Gemino has a lot of cooperation with Zhongxin Company, but basically it is the cooperation between Gemino and Zhongxin Company, and there is almost no cooperation with the Rothschild family.

The last time he went to China, he was not only ready to negotiate with Li Zhongxin, but also had the idea of entering China without Li Zhongxin, but what about it! In many ways, he always felt that there was no follow-up guarantee.

Therefore, after Gemino came to Jiangcheng this time, he began to discuss some cooperation with Li Zhongxin on other aspects.

At this time, France's nuclear power equipment capacity and petroleum industry technology were second only to the United States, and the aerospace industry was second only to the United States and Russia.

However, none of these things are things that he can touch now, and these things cannot be operated by private individuals.

France's main industrial sectors are automobiles, aircraft manufacturing, electronics, electrical industry, chemical industry, textile industry, etc., among these projects, Li Zhongxin only has a vague idea of the automobile and electronic and electrical industry.