Chapter 951: Buying and Selling!
Is it really possible to buy and sell a country's basic industries?
In fact, you can!
The economic order established in World War II was essentially a dollar economy.
If you want to develop, you need to import capital and technology from outside, and these things will eventually be converted into dollars and converted into debt.
There is no real 'aid' or 'aid construction', unless the prefix 'gratuitous' is added in front, otherwise they are actually low-interest or interest-free loans, which need to be repaid!
There is no country in this world that can be completely self-sufficient, they need to buy things, they need dollars or euros to trade.
But if you don't have enough industrial products or natural resources to export, you won't be able to get enough foreign exchange and buy goods from other countries.
If you want to meet your domestic development needs, you have to borrow dollars.
When the debt grows larger and larger, but there is no sound asset to support it, the national finances will eventually be overwhelmed.
When a government becomes insolvent, the result is bankruptcy and liquidation, and all government-held assets and public facilities become non-performing assets.
At this time, there will be asset management companies entering the market to take over at a low price, nominally through their own capital injection to revitalize these assets, but in fact, the holders of these assets have changed from the state to enterprises and even individuals.
Of course, this is only a big picture, and government bankruptcies are relatively rare, so it is sometimes difficult for people to understand, how can a company eat so many things?
To use the simplest analogy, if a small town wants to develop, it will consider taking out loans or issuing bonds to raise funds, and then invest in basic projects, such as energy, electricity, roads, schools, hospitals, public transportation, etc., which are necessary for economic development......
But if the town's economy doesn't grow as well as expected, then there will be debt overdue.
This doesn't happen in good times when the economy is good, because banks are happy to make new loans to pay off old debts, and towns can issue new bonds to pay off old ones.
But when the economy is bad, the bank will ask you to pay off the loan early, and the bond will go unnoticed.
This is a business practice that is understandable, as non-performing loans are a significant loss for banks.
When the bank finds that the loan cannot be recovered, they will dispose of the non-performing loan to the asset management company in order to relieve their liability.
These companies will take the debt at a price of about 3% off, and then they can negotiate with the town government.
The town certainly doesn't want to go bankrupt, so it's certainly willing to accept negotiations and draw up a so-called repayment method.
The mildest way is for me to give you time to draw up a repayment plan that I can accept, and repay the loan slowly so that you don't go bankrupt.
For example, I ask you to set aside parking spaces on all public roads, and if the residents of the town don't want to see the town go bankrupt, they have to pay a hefty parking fee when they drive out.
The most vicious means of liquidation are bankruptcy, taking away the town's pension funds, public repair funds, or even selling your government building and all government-held assets.
This kind of practice is not uncommon in the United States, not to mention in Afika, and some small towns are eaten by capital in this way.
Another way that seems fair is that you package up your public assets and give them to me, such as waterworks, power systems, sewage systems, and so on......
I can provide funds to keep these projects running, but the ownership needs to be changed, the price increase is certain, and the future development of the town needs to be listened to.
Why is it that in Hollywood movies, the villains are always some super-capitalized corporate giants?
In almost every cyberpunk movie or game, the government is subservient to corporations.
It is because Europeans and Americans are more familiar with the operation of the mainstream rules of this world, and they know that there are some supergiants in some corners of the world.
This thing is not a simple fantasy, but like the Terminator, it is a kind of anxiety about the future.
Because this possibility is absolute, the key to determining whether it will arise is the people who control these companies, not the law.
Of course, if it is a subject of state power, you can choose to repay the debt, and then the result is obvious.
The country's credit rating has deteriorated and it is unable to obtain loans from international banks.
Without loans, without external input of equipment and technology, you can't extract minerals, and you can't pump out oil.
If you are a country with a processing industry, you can't buy raw materials without getting a loan, and you can't export it.
When the people who run the country are not smart enough to succumb to such rules, then your country will change hands.
Sometimes you don't even feel the change!
Finally, when people are pushed to the limit, the 'revolution' appears.
The most successful half of the modern revolution was born in Venezuela, and Comrade Lao Cha revolutionized most of the oil conglomerates, thinking that he could lead the Venezuelan people to control their own destiny with oil funds......
But he missed the transnational agricultural groups that control most of the country's agricultural land, leaving Venezuela limping along.
So when Venezuela was blocked and sanctioned, it happened that the local people could not eat, but Venezuela was still a grain exporter.
With Venezuela's oil and gas resources and domestic agricultural resources, it is possible to establish a communist society, and they have also had such a stage.
It's a pity that if you want to break free in the rules set by others but don't have the determination to overturn all the shots, the 'revolution' is doomed to be in vain.
It's not the first time Boss Qiao has heard of such a company, there are actually management companies in China that have taken over a large number of non-performing assets, but he really didn't realize that this kind of company can buy and sell countries.
In Boss Qiao's impression, in such a company, managers will sooner or later be hung with street lights.
In fact, Pยท B's influence and investment in Central Africa are enough for Boss Qiao to completely control the country.
But as a Chinese, he never thought in this direction.
What he always wants is to control a point, and then use a point to leverage outside funds to make the cake bigger.
Even though he was the largest investor in the Sangha Township, he initially gave the Sangha Township Government the right to operate and manage the infrastructure.
He started out just to maximize the benefits of his iron ore mines, but what he ended up with was a thriving city, a popular market, and a new market for millions of people.
Boss Qiao is the uncrowned king of Central Africa, but he never thought of taking away the infrastructure of Central Africa.
Because in his mind, the role of this thing is to serve people, that is, to lose money, which should not be his responsibility.
Even if Cleverly was exposed to the operation mode of Barclayde, he still couldn't imagine how this company could make money?
Cleverly probably didn't expect Boss Joe to be so 'ignorant'......
He hesitated for a moment and said tentatively, "Jackal, what do you think now?" โ
Joe Jia spread his hands and said, "I'm wondering, what exactly does Barclayde Asset Management want?"
What can he gain by disrupting the Congo and blockading Central Africa with the virus?
What I don't understand the most is how to make money by taking over the so-called basic project operation? โ
Cleverly listened and burst out laughing......
The old guy sat on the sofa and laughed, and after nearly a minute he wiped the spit from the corner of his mouth in embarrassment, and said, "Jackal, you have created a great situation in Central Africa and the Congolese province of North Kivu, don't tell me you don't know anything about this kind of thing."
As far as I know, your bank provides the vast majority of mortgages to North Kivu.
If the provincial government of North Kivu goes bankrupt and the Congolese government is unable to provide assistance, then you are the de facto owner of the infrastructure and mineral resources of North Kivu.
How do I make money, you ask? โ
When Qiao Jia heard this, he suddenly reacted......
Infrastructure is the engine booster of other industries, and maintaining infrastructure with low profits or even no profits can retain the population, maintain stability, and ensure the normal operation of other industries.
It's no wonder that Barclayde has a book market capitalisation of just ยฃ4 billion, because most of the infrastructure assets they own require long-term investment.
And if you hold these assets, you will firmly hold the right to speak......
Lao Tzu can turn your country into a puddle of mud at any time, so when my subsidiaries or collaborators want to buy some profitable industries or resources, do you dare to talk nonsense with me?
At this time, Joga looked back and saw that compared to his own bank, Barclayde was not actually a giant.
But in fact, Barclay's model is much more clever and safer.
Just imagine, in the same province of North Kivu, once Boss Qiao takes over most of the industries there, then once someone instigates a riot, Boss Qiao must be the one who hangs the street lamp.
As for Barclayde, he can put on a little white flower posture and tell everyone, I'm helping you.
These Europeans and Americans used economics and sociology to build an extremely complex system.
Look at the part from any angle, and you'll feel that it's reasonable.
As long as you're used to the rules they've made, then if you want to break it, you first have to face huge internal divisions.
This is the experience accumulated by Europe and the United States from the colonial era to the post-colonial era, and countries without this experience will not be able to play with them at all.
Lao Mei is simple in this regard, they are simple and crude regulations, if you take my assistance, you must establish a political system according to my requirements.
And those powerful countries in Europe want hidden rule!
The UK is particularly experienced in this area!
Compared with the hard control of French finance and industry, the flexible control of the United Kingdom is more effective and hidden.
At least one-third of Afika's 18 Commonwealth countries are doing well.
The infrastructure of countries such as Namibia and Botswana is really not too bad, but there are not many rich locals there, and the poor are still the majority, and they are really poor!
This kind of hidden exploitation is so deadly that it can sometimes even make the locals think that they have a problem.
Then some people began to hold the rules set by others, write books and research reports, and go to the study of death.
Take the answers given by others to push back, trying to find a way to save yourself, but never considering, maybe something is out of tune with you from the source.
This kind of thing is outrageous, but it is very realistic!
The most outrageous thing is that, looking at Cleverly's performance, England itself does not seem to have received much benefit from Barclay.
Boss Joe, who suddenly came to his senses, looked at the smiling Cleverly, he rubbed his swollen temples and said, "Okay, I kind of understand, Barclayde is a leading shark."
Just like Soros, once he discovers the weakness of his opponent, he can unite a lot of international capital to enter the market and share the food.
Now it's caught, so it can go to death!
When this behemoth falls, there will be a lot of meat left. โ
Cleverly nodded, "Now you've trapped a bunch of sharks in a mansion and kept them scared of the threat of the virus.
Jackal, you've won!
The virus dropped by Barclayde became a noose around their necks. โ
Saying that, Cleverly looked at Joga with an appreciative look on his face, and said, "Jackal, the smartest thing about you is that you don't simply use violent means to solve the problem, so others can't use extra-rule means to target you."
However, you have to think carefully that when you show enough magnitude, your opponent's tactics against you will escalate in the future.
Barclayde is actually not too strong, otherwise they would not have worked hard in this rotten place of Congo.
However, Congo's position in the world's mining industry is really not low, and once the integration is completed, at your current rate of development, sooner or later it will touch the sphere of influence of those real giants......"
(End of chapter)