Go back in time and be a chaebol

Chapter 1117: Sharing the Meat (Third Update, Please Subscribe)

Whoever controls world finance controls the world.

This statement may not be entirely true, but it is absolutely correct. And history has proven this time and again.

It is for this reason that Li Yian has always been committed to building Nanyang into another world financial center - the third world financial center besides New York and London.

To this end, it is not only close to the UK and the US in terms of judicial system, but also close to the UK and the US in terms of financial legislation. The core is to seamlessly take over the status of the world's financial center. Of course, making Yong'an a "world financial center" after London and New York is just one part of it.

The world's financial center is important, financial security is equally important, and the right to speak in the financial system is even more important. Unfortunately, due to the late establishment of Nanyang, its right to speak in the international financial system is almost... equal to nothing!
"…On December 45, 12, the Bretton Woods Agreement was signed at the U.S. State Department. Thus, the International Monetary Fund and the World Bank were officially established. The International Monetary Fund established an international monetary system based on gold and supported by the U.S. dollar, that is, the gold-dollar standard."

This is America’s selfishness!
The actual meaning of this system is that the US dollar is gold and gold is the US dollar. It is precisely because of this status that the US dollar has become the international settlement currency and eventually the hard currency of the world.

In the study of the "Daming Palace", when listening to Wang Lisen's introduction of the international financial system, although Li Yian had a certain understanding of it, he did not interrupt him, but flipped through his report. It must be said that his report was indeed very exciting.

Seizing the seat and eating meat - who would object to such a thing?
“…The principle of the plan drawn up by Harry de White, an economist at the U.S. Treasury Department at the time, was that the fund would be paid by each member country in gold, national currency and government debt, and the subscription share would depend on factors such as the country’s gold and foreign exchange reserves, national income and changes in the balance of international payments, while the amount of each country’s voting rights would depend on the amount of its share paid.

This provision can ensure that the United States has the largest share and the greatest voice. Since voting on major issues requires a four-fifths majority vote, the United States, which has the largest number of votes, also naturally has a veto.

This naturally met with opposition from other countries, and many countries expressed dissatisfaction with the shares stipulated in the fund. However, as a result of the debate, except for the increase in the shares of the Soviet Union and Tangshan, the others were still passed as originally proposed.

Then the Bretton Woods Agreement was signed, and the International Monetary Fund and the World Bank were officially established.

Taking a deep breath, Wang Lisen pointed at the poster and said:

"The total amount of the International Monetary Fund was originally $88 billion, of which the U.S. share was $27.5 billion. Each member country has a fixed voting right of 250 votes, and one vote is added for every $10 of its share. In this way, the U.S. voting rights account for 27% of the total voting rights. Our voting rights are low, essentially because of our small share. We only have $1.75 million, which is undoubtedly completely inconsistent with our position in the world economy."

Nodding slightly, Li Yian smiled.

"So, you thought of taking the seat and eating the meat!"

"Correct!"

Wang Lisen said.

"During the negotiations, only the Soviet Union and Tangshan saw their shares increase. Tangshan's share was raised to $5.5 million after negotiations, and the Soviet Union's share was also raised to $12 billion. In fact, according to the calculations at the time, its share was only about $5 million. To be honest, I don't know why the Soviet Union was able to obtain such a large share. After all, the issue of fund share is how much share a country has in the capital of the IMF, and how much say, influence and control it has in the organization."

Li Yian smiled, he knew the reason.

There is an unknown inside story about the Bretton Woods system, that is, its designer was a Soviet spy. Harry White, the designer of the entire IMF and the Bank, and the Assistant Minister of the Treasury, was a Soviet spy.

Therefore, when this system was established, it was inclined towards the Soviet Union.

But what surprised many people was that the Soviet Union was also a participant in the Bretton Woods system, but it withdrew later.

The official view of the Soviet Union, which signed the treaty at first but later refused to join, is that the United States designed this system as a trap for the Soviet Union.

Soviet spies designed a trap targeting the Soviet Union...it's exciting to think about it.

"Although the Soviet Union signed the "Final Resolution of the United Nations Monetary and Financial Conference" and its two annexes, the "Agreement of the International Monetary Fund" and the "Agreement of the International Bank for Reconstruction and Development", also known as the "Bretton Woods Agreement", the conference stipulated that the terms decided by the governments of various countries must be approved by Congress before the end of 3, and the country will be considered to have officially joined. But then the Soviet Union sent a telegram saying that we haven't thought about this issue yet. At that time, the United States also gave the Soviet Union a three-month extension period, so at the March board meeting, the Soviet Union participated as an observer rather than a director. But... Later, because the relationship between the United States and the Soviet Union was deadlocked, two years later, the Soviet Union and the Central and Eastern European countries it controlled successively refused to join or withdraw."

After a slight pause, Wang Lisen raised the corner of his mouth and said:

"This has resulted in a loophole - the quotas of the Soviet Union and Central and Eastern European countries are still hanging there as the quotas of the founding members."

Li Yian smiled and said:
"That's what you mean, someone left the table but the meat was still on the plate, right?"

"Yes, in fact, our share was taken from the shares of Poland, Hungary and other countries. Since we can take their share, why can't we take the Soviet Union's $12 billion share?"

Looking at Your Excellency, Wang Lisen said.

"If we get this $12 billion share, plus the previous $1.75 million share, our voting rights in the International Monetary Fund will reach 13.5%, which is half of the United States. This means that we will become the third largest shareholder of the IMF after the United States and the United Kingdom!"

Half of America!
13.5%!

When hearing this number, Li Yian's eyebrows slightly raised. It must be said that this number is really very tempting. In another world, both the University of Tokyo and Japan, after becoming the world's second largest economy, have been tirelessly pursuing to expand their share in the International Monetary Fund, from 3.72% when the representation rights were restored, to 6.4% later by taking advantage of multiple capital increases. Its goal is to expand its voice in the international financial system.

"It would be great if this could be achieved, and the plate of fat meat is indeed there, but the problem is that the Americans may not be willing to let us eat this plate of meat. This is the biggest problem, isn't it?"

Facing your question, Wang Lisen pursed his lips, thought for a moment, and said.

"If we ask for it, they definitely won't give it to us. In that case, let's force them to take us back to the restaurant and put the plate of meat in front of us!"

Wang Liren's suggestion made Li Yian raise his brows slightly and said.

"Oh! Tell me."

"Soviet Union!"

Wang Liren said directly.

"For the United States, the biggest threat is the Soviet Union. We have news that with the development of the role of the CMEA controlled by the Soviet Union, the calls for the establishment of Soviet versions of the World Bank and the International Monetary Fund are gradually increasing in the current Soviet Union and Eastern Europe, hoping to form an international monetary system independent of the US dollar. Of course, this is limited to the Soviet bloc. If we show interest, I believe it will definitely bring a shock to the world!"

It's more than just a shock!
It's just terrifying!

After the Cold War, whether it is NATO, the Warsaw Pact, or the CMEA and the Bredesen System, they are essentially confrontations between two major groups. This confrontation is not one of you in me and me in you, but a clear-cut confrontation and competition.

The Soviet Union's current CMEA is essentially isolating and opposing the economy, market and finance from the Western world. Now that Nanyang has joined, this news will definitely scare people to death.

"Ha ha!"

Li Yian laughed.

"Believe it or not, if what you said today gets out, the Yongan Stock Exchange will drop by at least 10% tomorrow. By then, I don't know how many people will send you bullets."

Sending bullets is a light punishment, and someone might even actually go to his doorstep and shoot. After all, Nanyang has not implemented a real gun ban, and those who meet the requirements can still apply to purchase weapons such as shotguns, so there are still a lot of guns in the private sector.

If anyone knew his suggestion, they would probably open fire. After all, this was like handing Nanyang to the Soviets.

Maybe someone will shout "God punish the traitors."

"Someone should be shooting at my house."

Wang Lisen shrugged his shoulders and said.

"But this is the only way. Only in this case will the Americans agree to transfer those shares to us in order to win us over. We arrived at the restaurant and came to the table, but what was left on the table were other people's leftovers. If we want to eat meat, we have to eat from other people's bowls. There is no other way. Since the Soviets have withdrawn, we can't let them continue to occupy the plate!"

"You are quite right,"

Li Yian nodded and said:

"We really cannot just be satisfied with the leftovers of others, and increasing our voice in the international financial system is also related to the financial security of Southeast Asia."

After thinking for a while, Li Yian added:

"Let's keep this secret for now, but we must eat this piece of meat. But before we eat it, we have to figure out a way to get it into our stomachs! Hmm..."

In fact, what he didn't know was that this piece of meat was eventually eaten by others - divided up one by one by West Germany, Japan and other countries that had newly joined the International Monetary Fund.

To a certain extent, the problem that Nanyang is facing now is nothing more than whether to take the big goose for itself or to share the big goose with other countries.

After a slight pause, Li Yian continued.

"You can set up a top-secret team to study how to eat this piece of meat. It's good to take risks, but you have to be careful. As for Russia..."

After thinking deeply for a while, Li Yian came up with an idea...

(End of this chapter)