Beiyang 1917

"Old Lin, let's not talk nonsense about declaring war on Germany and China's mobilization and dispatch of 300 million troops, that is, only mobilizing and training an expeditionary force of 30 people, plus the mess of sorting out Beijing banknotes, tell me how much I have Fiscal gap? With the boxer indemnity suspended by the four countries for ten years as collateral, the Ministry of Finance can only issue 3.8 million ten-year government bonds. The 3.8 million government bonds are used as a second mortgage. How much borrowing share does Japan want? You give Tell the truth!"

Wang Geng stared at the 57-year-old Lin Quanzhu, wondering how this guy takes care of himself?How could I be so young when I was 57 years old?

"So Karma! 3.8 million! Wang Sang, your appetite is really overwhelmed! Your President Yuan's big aftermath loan was 2500 million pounds in name, but the actual income was only 998 million pounds, which is 500 million yuan. That’s all, you’re going to borrow 3.8 million now?”

Lin Quanzhu was obviously taken aback, he didn't expect Wang Geng's appetite to be so big!

"The times are different, Lao Lin. When the European War broke out, which country, Britain, France and Russia, did not owe billions of dollars in foreign debts? Can a mere 3.8 million oceans scare you and Japan? China has a population of 5000 million, and each person is divided into 8 cents 4! And this is a 40-year national debt, can it be compared with Lao Yuan's [-]-year national debt?" Wang Geng brainwashed Lin Quanzhu.

Nima, in the previous life, the sum of the eight Nishihara loans between the Duan Qirui government and Japan was 14500 million yen. This yen contained almost 1897 grams of gold when Japan realized the gold standard for the second time in 0.75. It was the most before At that time, two yen was exchanged for one dollar.

With the progress of World War I, the gold-silver ratio dropped from 1915:1 in 39 to 1917:1 in 25 at this moment, and the exchange rate of the yen against the ocean, which maintained the nominal gold standard, also fell all the way. It is equal to 10 silver dollars = 4.88 U.S. dollars = 10 yen. Little Japan took advantage of the opportunity of World War I to make a fortune. At this moment, he really has funds. It is estimated that he can borrow 3.8 million yen from them! , Wang Geng thought in his heart.

"Wang Sang, according to your statement, in the future, your government's Ministry of Finance will issue 3.8 million public bonds secured by boxer indemnities, but you will get 3.8 million yuan from the market, and then use this public bond as collateral to borrow money from us. , Isn’t this a second mortgage? There’s something wrong with your algorithm. When the payment is due, your government will not repay 3.8 million yuan, so it will be doubled!” Lin Quanzhu came back to his senses and said In a cold sweat!

"Old Lin, aren't you talking nonsense? Using public bonds as collateral to borrow from you is of course a second mortgage. If I exchange cash with you for Japanese yen, I will still borrow a dime? Then the whole thing is foreign exchange, right? It's worth 3.8 million The Gengzi indemnity is the guarantee for the repayment of the public debt, and this public debt is the collateral for me to borrow money from you, don't you understand?" Wang Geng was a little frustrated!

"Wang Sang Wang Sang, don't worry! I'm really confused. It seems reasonable for you to say this, but why do I think it's a bit mysterious!" Japan, a senior diplomat who came to China 30 years ago Minister Lin Quanzhu was completely taken aback by Wang Geng.

"I really can't do anything about you. Your Japanese government has suffered a loss and didn't let you become the Minister of Finance. How can you not understand the calculation? Okay, let me tell you again, just once!" Wang Geng choked out angrily. He took out the cigar in his hand, pulled it from the low table a few times, pointed to a green plate and said,

"The green plate is the Gengzi indemnity for the next ten years, the red plate is the government bonds that the Ministry of Finance will issue in the future, and the two white plates represent the current banknotes in the market and the new banknotes to be issued by the Bank of China. Understood?" Wang Geng raised his eyes and asked Lin Quanzhu.

The Japanese envoy looked at the plates in front of him, nodded in puzzlement, he didn't dare to express his position indiscriminately for fear of showing cowardice, and just waited for Wang Geng to explain.

"This green plate, because it is the Gengzi indemnity for the next ten years, so it can only be used as an option and credit collateral at this moment, and it cannot be used as currency to buy things directly in the market. Is this understandable?" Wang Geng explained patiently.

Lin Quanzhu nodded when he heard the words, thinking that if I can't understand this, then I am not a high-achieving student who graduated from Tokyo Imperial University in Japan. At the age of 57, I lived directly on a dog!

"Isn't the Chinese-government short of money? If it prints banknotes indiscriminately to advance government funds like before, then the printed banknotes will be the experience of Beijing banknotes. There is no ocean to pay for the depreciation, because the printed banknotes have no corresponding commodities and goods. Is the collateral the anchor of the currency, and less money in the market will inevitably lead to inflation and financial disorder, is that easy to understand?"

Lin Quanzhu nodded, and Wang Geng continued to say,

"China - the government uses the green plate Gengzi indemnity as collateral, sells the red plate bond to the market, and exchanges it for the currency that can be used directly. It is these two white plates, oceans and banknotes. Understandable? After the bond is issued, the government Ministry of Finance I have two white dishes to do my own thing, and the market has public bonds to wait for the return of investment annual interest. Of course, this public bond is still a trading product listed on the exchange, and it can be cashed in listing and trading, understand?"

"Well, it's easy to understand. Everyone does it like this. Wang Sang, what do you mean, are you using this public bond that will be listed in the market in the future as collateral to exchange white plates with us again?" Lin Quanzhu said hesitantly. .

"That's it. The 3.8 million public bonds actually need to raise 3.8 million from the domestic market, and then borrow 3.8 million from the foreign market. The government should essentially get 3.8 million in cash flow, and domestic investors and banks still have 3.8 million in cash. Liu, this is a collateral worth one yuan, and a capital worth two yuan, otherwise what is it called a loan! Of course, the external loan part is mainly used for the purchase of overseas machinery and equipment and raw materials!" Wang Geng laughed road.

"Wang Sang, you are so cunning, your conscience is so unreliable! I understand now, but the Empire of Japan must have the first priority in repaying your national debt when it comes due!" Lin Quanzhu suddenly After waking up, Wang Geng’s strategy of issuing public bonds and mortgaging the second daughter’s marriage is essentially nothing more than using a collateral of one yuan to make a business worth two yuan!The extra dollar is the new banknote issued by the Bank of China!

According to Wang Geng’s strategy, the Ministry of Finance uses the green disc as collateral to exchange the yellow disc for two white discs, and then the bank consortium and social investors who hold the yellow discs will exchange the yellow discs from borrowers in Japan or the United States. The third and fourth white plates, so that the Ministry of Finance has one green plate and two white plates, Chinese syndicates and social investors have two white plates, and foreign syndicates such as Japan or the United States have only one yellow plate!

"No problem, Lin Sang, you just need to know about this matter. We will use the 6-year Boxer Indemnity Bond with an annual interest rate of [-]% to be issued by the Bank of China as collateral for the loan from Japan. What do you think?" Wang Gengcheng Hot strikes force Lin Quanzhu to express his position!

"I have to ask the country for instructions on this matter. I have to ask the country for instructions. 3.8 million oceans are almost 3 million yen in loans. This amount is too big...too big...the country may be noisy! Wang Sang, are you sure, Both the Ministry of Finance and the Bank of China are under your leadership? You must know that the loans between China and Japan have always been through the channels of the Bank of Communications and the Ministry of Communications. That is Xu Youzheng's world. The Ministry of Finance is flexing its muscles?"

"You don't have to worry about this at all. Xu Youzheng and I are both brothers under the prime minister's command. Is there any problem with sincere unity? Lao Lin, you really have to consult with the country about the loan. Don't forget that I came back from studying in the United States. When I come back to the United States I can't be sympathetic when people approach me. How many billions of dollars the Morgan family is waiting to invest in the Chinese market through me!

At that time, half or more of the loans will be allocated to Americans, but don't blame me for not giving Japan a chance!Ten-year annual interest rate of [-]% and boxer indemnity as a mortgage loan, where can I find such a good investment opportunity? "

Wang Geng patted Lin Quanzhu, whose eyes were wide open, with a sincere expression on his face.

"So Karma! You have been educated! Wang Sang, I hope we can unite sincerely and promote the Sino-Japanese diplomatic relations and friendship to a broader future. I am optimistic about you! Premier Duan has a subordinate like you, China is really lucky!" Lin Lin Quan Zhu held Wang Geng's hand with a sincere and expectant look on his face.