Chapter 704

Jeffrey Sachs was hired by the Bank of Columbia to promote his "shock therapy" in Eastern Europe. This is not Xie liaosha's whim. Xie liaosha has a deep consideration of his plan.

At present, it is impossible to rule the vast Eastern Europe by political or military means. The people in this land chose to abandon the Stalin system of economy that they had insisted on for decades. With the fall of the Communist regime in one country after another, these countries gradually got rid of the control of the Soviet Union and began to face the world alone.

When the newly elected regimes began to take over their own countries, the ruling governments of most Eastern European countries were at a loss. Because what they are facing is not a vigorous country. What they have to face first is huge foreign debt, high prices, and the domestic economy on the verge of collapse. Stalin system left a large number of inefficient state-owned enterprises that could not produce profits. However, the shrinkage of light industry and food industry brought about by Stalin's economic model raised the prices of daily necessities urgently needed by the domestic people, and the people could not even afford the high cost of living. In this case, the leaders of the new regime have no choice but to continue to print money and provide subsidies for their citizens to buy daily necessities. But subsidies can only make inflation worse.

Faced with their huge foreign debts, the governments of Hungary, Poland and other countries are at a loss. They simply can't repay these loans on their own strength, but if they can't get new financing, they won't be able to import sufficient consumer goods from abroad to meet the needs of the domestic people. In this case, there are only three ways in front of them. One is to seek financial support from the United States to repay their foreign debts. This road seems simple, but it is actually very complicated. After all, the money bag of the United States is not decided by the president, but by the Congress. In the face of countries like Poland and Hungary, which lack their own hematopoietic capacity, the Congress of the United States will not agree to throw taxpayers' money into these puddles. Therefore, Walesa has no choice but to scold the US government for being dishonest.

The second way is to ask for an emergency loan from the International Monetary Fund. However, the IMF's loan conditions are very harsh, which may make the Polish government lose its tax and tariff rights. In addition, the IMF is actually an international organization manipulated by the United States, and is likely to carry some private goods of the Americans themselves. For example, the deployment of U.S. missiles in Poland, or the establishment of U.S. military bases in Poland and other additional conditions. Once Poland chose to cooperate with the IMF, it would mean that Poland would become the frontier of blocking the Soviet Union and the watchdog of the United States. Even if Walesa does not understand this truth, those intellectuals in Poland will understand it. Therefore, this road is a dead end.

As for the third way, it is to issue treasury bonds to powerful international financial institutions and private investors. This road is also an impossible task for Poland, Hungary and other countries, because their credit ratings are all rubbish. Normal investors will never lend them any money, and the interest offered by creditors who are willing to lend them is not much better than usury. Therefore, this road is still a dead end.

Is there a fourth road besides the three? Of course, that is the foreign debt and economic transformation package proposed by the Bank of Columbia and Jeffrey Sachs. Specifically, the Bank of Colombia will take over the central banks of these countries and provide funds for these countries to repay their debts. At the same time, these countries will carry out economic reform in accordance with the economic policies proposed by the Bank of Colombia and Jeffrey Sachs. This inevitably involves "shock therapy".

For the governments of the host countries, the funds provided by the Bank of Colombia can cope with the huge foreign debts of these countries. At the same time, Glencore, as well as a large number of agricultural, animal husbandry and food companies acquired by sherio SA in the United States, can also participate in providing sufficient food and light industrial products for these countries. It's a solution for these countries.

For CBC, once a country accepts CBC's plan. The Bank of Columbia will be automatically upgraded to be the country's central bank. It will monopolize the issuing power of the host country, the power to manage reserve assets such as foreign exchange and gold, and the power to adjust the inflation of the host country through interest rates. In addition, the bulk commodities and animal husbandry products of cheriosha can also be dumped in Eastern Europe to obtain a stable market. This plan is definitely an opportunity for Golgi to dominate Europe.

Jeffrey Sachs first came to Poland to meet with Walesa to discuss Poland's economic problems. Why choose Poland as the first stop? First of all, it is the place where Golgi group has been operating for many years. Secondly, it is located at the door of the Soviet Union, and its geographical location is very important. Finally, Glencore has now regarded Poland as a dumping ground for agricultural products and has actually realized its plan to control the supply of Polish market.

Walesa naturally welcomed the arrival of Jeffrey Sachs. Because Jeffrey Sachs has just achieved great success in Bolivia, and even the layman in economics can see how similar the situation in Bolivia is to Poland now. So when Jeffrey Sachs proposed a package of solutions for foreign debt and economic transformation in front of all the cabinet members of Vanessa, most of the cabinet members of Vanessa felt a little excited.

"Professor Sachs, do you really think the plan of the Bank of Columbia can save the Polish economy?" Vawensa asked with some uneasiness.

"Mr. prime minister, I have repeatedly discussed this plan with the Bank of Colombia, which contains my experience and lessons in the process of reform in Bolivia. I believe that as long as you accept the plan of the Bank of Colombia, the inflation in Poland will be controlled within a week. And I know that in a few months, your country will have a large amount of debt due, and if it defaults, I don't think you need to tell me... "Jeffrey Sachs said confidently.

This really gave Walesa a surprise. Now Poland needs to import a large number of food and daily necessities from abroad to maintain its people's livelihood. However, if Poland defaults on its debt, it will no longer be able to raise funds from the international community. At that time, it may not even have the money to import flour.

"Mr. President, that's already the case. Why don't we give the Bank of Columbia a chance? I don't think anyone else is willing to lend money to Poland now except us? " All of a sudden, Mihail, the president of the Bank of Columbia, whispered to Vanessa with a smile.