From Arms Dealer To King of War

  Chapter 945 Buying and selling!

  Is it really possible to buy and sell a country's basic industries?

   In fact, it can!

  The economic order established during World War II was essentially a dollar economy.

  If you want to develop, you need external input of funds and technology, and these things will eventually be converted into dollars and converted into debts.

   There is no real "aid" or "aid construction". Unless the prefix "free" is added in front of it, it is actually a low-interest or interest-free loan that needs to be repaid!

  No country in this world can be completely self-sufficient. If they need to buy things, they need dollars or euros to do transactions.

  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 you won't be able to buy goods from other countries.

  If you want to meet domestic development needs, you have to borrow dollars.

  When the debt is getting bigger and bigger, but there is no sound asset support, the country's finances will be overwhelmed in the end.

  When a government is insolvent, the result is bankruptcy and liquidation, and all government-owned assets and public facilities will become non-performing assets.

  At this time, asset management companies will enter the market to take over the offer at a low price, nominally injecting their own funds to revitalize these assets, but in fact the holders of these assets have changed from the state to enterprises or even individuals.

   Of course, this is only a big aspect, and government bankruptcy is relatively rare, so it is sometimes difficult for people to understand, how can a company eat so much?

To use the simplest analogy, if a small town wants to develop, it will consider loans or issue bonds to raise funds, and then invest in basic projects, such as energy, electricity, roads, schools, hospitals, and public transportation. Prepared items are essential...

   But if the town's economy doesn't do as well as expected, then there will be debt overdue.

   This situation does not exist when the economy is better, because the bank is willing to provide new loans to let you repay the old debt, and the town can also issue new bonds to repay the previous bonds.

   But when the economy is bad, the bank will ask you to pay off the loan in advance, and the bond will be ignored.

  There is nothing wrong with this as a business practice, because non-performing loans are a major loss for banks.

  And 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 reduce their own responsibilities.

  These companies won the debt at a price of about 30% off, and then they can negotiate with the town government.

  The town definitely doesn’t want to go bankrupt, so it’s definitely willing to accept negotiations and work out a so-called repayment method.

  The most gentle means is that I will give you time to draw up a repayment plan that I can accept, and repay the loan slowly so that you can avoid bankruptcy.

  For example, I ask you to mark out parking spaces on all public roads. If the residents of the small town don’t want to watch the town go bankrupt, they have to pay high parking fees when they drive out.

  The most vicious method is bankruptcy and liquidation, taking away the pension funds of small town residents, public maintenance funds, and even selling your government building and all government-held assets.

  This kind of practice is not uncommon in the United States, not to mention Afica. Some small towns are eaten by capital in this way.

   There is another method that seems fair, that is, you package your public assets to me, such as waterworks, power systems, sewage treatment systems, etc...

  I can provide funds to ensure the operation of these projects, but the ownership needs to be changed, and the price increase is certain, and the future development of the town needs to listen to opinions.

  Why in Hollywood movies, the villains are always some super capitalist corporate giants?

  Basically in all movies or games with cyberpunk elements, the government is subservient to the enterprise.

  It is because Europeans and Americans are more familiar with the operation of the mainstream rules of the world, and they know that there are such super giants in certain corners of the world.

   This thing is not a simple fantasy, but like the Terminator, it is a kind of worry for people about the future.

  Because this possibility exists absolutely, the key to decide whether it will appear is the people who control these enterprises rather than the law.

   Of course, if you are a subject of national power, you can choose to renege on the debt, and the result is obvious.

  The country's credit rating has declined, making it impossible to obtain loans from international banks.

  Without loans, without externally input equipment and technology, you can’t mine mines, and you can’t pump out oil.

  If you are a country dominated by processing industries, you cannot purchase raw materials without obtaining loans, and then exporting is out of the question.

  When the people in charge of this country are not smart enough to submit to such rules, then your country will change hands.

   Sometimes you don't even feel this change!

   Finally when people are pushed to the limit, the 'revolution' occurs.

  The most successful semi-revolution in modern times occurred in Venezuela. Comrade Lao Cha revolutionized most of the oil group’s life. He thought he could lead the Venezuelan people to control their own destiny with oil funds...

   But he missed the multinational agricultural groups that control most of Venezuela's agricultural land, causing Venezuela to walk with a limp.

  So when Venezuela was blocked and sanctioned, it happened that the local people could not eat, but Venezuela was still a food exporting country.

  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 you want to break free from the rules set by others, but you don't have the determination to overthrow everything with one shot. The "revolution" is doomed to be futile.

  Boss Qiao is not the first to hear about such a company. In fact, there are 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 Joe’s impression, sooner or later the managers of such a company will be put on street lights.

  In fact, P·B's influence and investment in Central Africa are enough for Boss Joe to completely control the country.

   But as a Chinese, he never thought in this direction.

  What he always thinks is to control a point, and then use it to leverage external funds to make a big cake.

  Even though he is the largest investor in Sangha Town, he still handed over the right to operate and manage those infrastructures to the Sangha Town government at the beginning.

  He initially just wanted to maximize his own iron ore profits, but what he got in the end was a thriving city, what the people wanted, and an emerging market covering millions of people.

  Boss Joe is the uncrowned king of Central Africa, but he never thought of taking away the infrastructure of Central Africa.

  Because in his mind, the function of this thing is to serve people, but to lose money, which should not be his responsibility.

  Even if Cleverley popularized the operation mode of Barclays, he still couldn't imagine how this company makes 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?"

   Qiaojia spread his hands and said, "I was thinking, what exactly does Barclayd Asset Management want?

   Disturbing the Congo and blocking Central Africa with a virus, what can he gain?

  What I don’t understand the most is how to make money by taking over the operation of so-called basic projects? "

   Cleverly listened, and suddenly laughed...

The old guy sat on the sofa and laughed, and it took nearly a minute before he wiped the saliva from the corner of his mouth in embarrassment and said, "Jackal, you have created a great situation in Central Africa and North Kivu Province of the Congo, don't tell me I don't know anything about this kind of thing.

   As far as I know, your bank provides most of the mortgages in North Kivu.

  Once the North Kivu provincial government goes bankrupt and the Congolese government is unable to provide assistance, then you are the actual owner of North Kivu’s infrastructure and mineral resources.

  You ask me how to make money? "

   Qiao Jia heard it, and suddenly reacted...

  Infrastructure is the engine booster of other industries. Maintaining the infrastructure and maintaining the infrastructure with meager or even no profit can retain the population, maintain stability, and ensure the normal operation of other industries.

   No wonder Barclays has a book market value of only 4 billion pounds, because most of the infrastructure assets they hold actually require long-term investment.

   And holding these assets, you will firmly hold the right to speak...

  I can turn your country into a mess at any time, so when my subsidiary or partner wants to acquire some profitable industries or resources, do you dare to talk nonsense with me?

   At this time, Choga looked back and saw that Barclays was actually not a giant compared to his own bank.

  But in fact, Barclays's model is much more ingenious and safer.

  Imagine that in the same North Kivu province, once Boss Joe takes over most of the industries there, once someone instigates a riot, Boss Joe must be the one who gets hanged from the street lights.

  As for Barclays, he can put on a little white flower posture and tell everyone that I am helping you.

  These Europeans and Americans used economics and sociology to establish an extremely complicated system.

   Look at the part from any angle, and you will find it reasonable.

  As long as you get used to the rules they set, then if you want to break it, you will first have to face huge internal disagreements.

  This is the experience accumulated by Europe and the United States from the colonial era to the post-colonial era. Countries without this experience cannot compete with them at all.

  The old Americans are simple in this respect. They have 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!

  England is especially experienced in this area!

  Compared with France's rigid financial and industrial control, England's flexible control is more effective and concealed.

   Of the 18 Commonwealth countries in Afika, at least one-third of them are developing well.

  The national infrastructure of Namibia and Botswana is really not too bad, but there are not many rich locals there, and the poor still account for the majority, and they are really poor!

  This kind of hidden exploitation is very deadly, and sometimes it even makes local people feel that there is something wrong with them.

   Then some people began to study desperately with the rules formulated by others, the books and research reports they wrote.

  Take the answers given by others to push back, trying to find a way to save yourself, but never consider that maybe some things are not in tune with you from the source.

   This kind of thing is outrageous, but very realistic!

  The most outrageous thing is that, looking at Cleverley's performance, England itself doesn't seem to get much benefit from Barclays.

  Boss Joe, who suddenly realized, looked at the smiling Cleverly, rubbed his swollen temples, and said, "Well, I understand a little bit, Barclayde is the leading shark.

  Just like that guy Soros, once he discovers the opponent's weakness, he can unite a lot of international capital to enter the market and share the food.

   Now it's caught, so it can go die!

  When this behemoth falls, there will be a lot of meat left. "

   Cleverly nodded and said: "Now you have trapped a group of sharks in a mansion, and let them face the threat of the virus all day long.

   Jackal, you've won!

  The virus released by Barclays became a noose around their own necks. "

  While speaking, Cleverly looked at Choga with admiration, and said, "Jackal, the smartest thing about you is that you don't simply use violence to solve the problem, so other people can't use methods outside the rules to target you.

  But you have to think clearly, when you show enough weight, your opponent's methods of dealing with you will upgrade in the future.

  Barced is actually not too powerful, otherwise they wouldn't work hard in this rotten place of Congo.

  However, Congo’s status in the world’s mining industry is really not low. Once the integration is completed, with your current development speed, sooner or later you will touch the sphere of influence of those real giants...”

  (end of this chapter)