Rise of the Argentine Empire
#159 - US Capital Invasion and the Argentine Banking Industry
“I didn't expect this day to come so quickly.”
After reading the announcement issued by the Argentine government, Saint-Herse finally realized the seriousness of the matter.
American capital has always been a major enemy. Saint-Herse was always prepared to confront the powerful American capital and see how they were economically colonizing Argentina.
From the moment Evita was laid to rest, Perón's power began to wane. An economic crisis caused by the excessive issuance of banknotes and the indiscriminate distribution of money to labor unions was already approaching Argentina, just like the economic crisis in Western Europe. The Presidential Palace had also begun attempting to negotiate with the United States since the end of last year.
This man-made crisis was so absurd.
The Presidential Palace tried to get the United States to lift its unilateral economic blockade of Argentina, but Eisenhower had just taken office, and his task was to resolve the Korean War. Argentina, a small country, was not worth mentioning. Of course, American capital would not miss this excellent opportunity, especially the vast oil capital.
To be honest, there is a particularly deceptive saying: "So far from God, so close to the United States."
This sentence can be applied to any country in the Americas.
But in fact, from Canada in the north to Chile and Argentina in the south, the differences are ridiculously large.
The decline of any country begins from within, and Argentina is such a country. External pressure is only a small part of it.
After all, without military aggression, it is difficult to destroy a country in this day and age.
Saint-Herse also sent people from the Falcon Bureau to keep an eye on Perón at the Casa Rosada. The current Perón has gradually lost the support of many people. After finishing his work each day, he likes to spend time alone with a few small dogs, often wandering on the lawn of the Casa Rosada garden, like a senile old emperor in the final days of an empire, reminiscing about the past.
Normally, Perón would not step down until two years later, but the situation is now changing.
Even the shirtless ones and the labor unions have begun to oppose Perón.
They have no work and are now reduced to needing direct relief.
At least they could survive back in their hometowns.
During Perón's second election, Perón promised bread, jobs, and housing.
Now there is nothing, only disappointment and unemployment.
They feel they have been deceived.
Standard Oil of California belongs to the Rockefeller Consortium and does not have a deep relationship with the California Consortium. It listens more to the wishes of the Eastern Consortium.
The California Consortium is a new major consortium that rose after World War II, including the Bank of America Group, the San Francisco Group, and the Los Angeles Group.
The economic strength of these three groups grew rapidly during World War II with the rapid development of California's arms industry, especially the growth rate of financial capital, forming a large consortium centered on the Bank of America.
Argentina is currently, at its root, still an agricultural country. Saint-Herse cannot persuade the Presidential Palace. Arturo of the Radical Civic Union also believes that American capital intervention in Argentina has benefits.
Saint-Herse convened the senior management of New Argentina Media. With other methods already in effect, he only had one last resort: public opinion propaganda.
New Argentina Media Headquarters,
“The reason I called everyone here this time is for one thing: to promote the agreement between Standard Oil of California and the Presidential Palace.”
He plans to start with propaganda, exaggerating the amount of Argentina's oil reserves, making the Argentine people feel that they are "selling at a loss," increasing the difficulty for Standard Oil of California, and preferably messing it up or delaying it.
Saint-Herse still lacks time.
“Okay, boss, we will increase our publicity efforts.”
“Standard Oil of California wants to obtain mining rights, it needs 500 million US dollars.”
“This is really terrible.”
“Each plantation of the United Fruit Company in Central American countries not only forms an economically self-sufficient system, but also formulates its own laws, establishes its own military camps, and can even arbitrarily arrest and rob workers, becoming a local 'country within a country'. The United Fruit Company also colludes with reactionary forces in various countries to manipulate the politics of various countries.”
“I believe everyone does not want to see such a future, right? Our Argentina is just a larger Cuba, and even the eight million people of Cuba are controlled by the United Fruit Company. The same is true for the more than 18 million Argentines.”
“Boss, the population was probably around 19 million last year.”
“Has it increased so much?” Saint-Herse was a little surprised. He didn’t expect it to increase by more than one million in three years, which is still okay. The higher the base, the better.
“Yes, because the growth of foreign trade has brought a lot of immigrants, plus some population censuses.”
“Okay.”
In later generations, the most obvious examples of economic colonization are Ukraine and South Korea. Their countries have obviously been economically colonized.
Although on the surface, the locals are still in power, they have no say or sovereignty in the economy (and at the same time in politics), just like the South Korean Samsung Group being controlled by the United States.
South Korea opened up trade and finance in the 1990s, and as a result, during the 1997 Asian financial crisis, South Korean companies closed down one after another and were bought cheaply by Americans.
Saint-Herse is also facing such a dilemma, but unlike Samsung, Saint-Herse is not that weak, and Argentina is not that weak either.
Argentina has a large enough strategic depth.
Although the current Standard Oil of California is considered a low-price acquisition, it is not a direct acquisition of finished product companies.
The United States has a long way to go to turn Argentina into a raw material production base and a dumping market.
The real start will be after the Perón era is over. Now it’s just testing the waters.
They even have to face repeated difficulties from the government, such as being forcibly nationalized after building good infrastructure.
Foreign investment is a good economic booster if used well, but a sharp sword towards the people if used poorly.
During the privatization and foreign capital invasion process in Argentina in later generations, a large number of workers will be laid off.
This is their method of saving costs and then making profits, simple and direct.
Anyway, if you can’t solve the problem, solve the person who caused the problem.
......
In fact, Argentine universities are like German and French universities, with no restrictions on graduation time. In fact, not many people can graduate on time within 4 years, and even fewer graduate early.
Saint Hérse handed over his position as president at the New Youth League's welcoming meeting, with Powell taking over as the second president.
A student club can serve as a bond, but it will take at least 10 years for them to fully develop. Saint Hérse is trying to make investments for 10 years later, as these people are Argentina's future.
Some outstanding members were developed into peripheral members of the Falcon Bureau.
The Falcon Bureau received a massive amount of financial support from Saint Hérse and began to recruit peripheral members on a large scale.
In addition, the current employment situation in Argentina is not very good, and some outstanding graduates cannot find jobs.
In the end, Saint Hérse didn't spend too much energy on the matter of American capital; he was investigating a suitable acquisition target.
He plans to buy a bank.
Banks are a national strategic industry, directly related to the lifeblood of the country. France's rapid rise after World War II was also related to their many state-owned banks. Argentina has too many private banks and too few state-owned banks.
The Argentine government simply cannot utilize bank funds, but keeps printing banknotes. I don't know if this counts as losing a watermelon for a sesame seed.
According to Saint Hérse, it wouldn't be difficult for the Argentine government to solve the problem of lacking money. Stabilize the currency, open more state-owned banks, and restrict private banks.
Argentina currently doesn't have many banks, only about 100. Basically, each province has at least 2 or more banks. There are not many national banks, mostly state-owned banks, but half of the banking capital is on the private bank side.
This is the root of the contradiction. The presidential palace is holding a bank that can lay golden eggs, but it is not producing any results.
Only printing banknotes, printing banknotes.
Saint Hérse wants to get rid of Perón as soon as possible.
In Argentina, a bank job is a golden rice bowl—stable work, generous pay, and high social status. Many bankers' sons inherit their fathers' businesses, forming bank families over the years.
The financial district of Buenos Aires is commonly known as "La City", like Wall Street in New York and the City of London. This famous "La City" street is narrow and crowded, lined with bank buildings, cafes, bars, and cigar shops.
The most bank employees in Argentina are distributed here, while Redwood Investment initially set up its company outside the financial street to save money.
The gap between Argentine banks and American banks is too big now. If American banks are modern banks, then Argentine banking is modern banking. The gap is still relatively large.
Roughly equivalent to the level of the American banking industry in the 1930s.
The Bank of the Province of Buenos Aires is the oldest bank in Argentina.
Cohen Consulting, Andrew collected a lot of suitable information.
Saint Hérse looked at the 14 suitable acquisition targets in his hand with interest. These 14 banks represent 21 Argentine business families, controlling Argentina's largest financial assets, banks.
Argentina's banking industry is actually developing quite well now. Argentinians lost confidence in the peso starting in the 1970s. That was the real madness, replacing all pesos with the more stable US dollars.
Now Saint Hérse is starting to do the same. He has no choice.
While Saint Hérse was carefully reviewing these materials,
He suddenly thought of a shell company, Argentina Redwood Investment, this shell company seems to be still running.
Argentina Redwood Company and the American Sequoia Company were originally headquarters and branch relationships, but later American Sequoia became independent directly.
The current Argentina Redwood, supports several people, he dare not speculate on stocks in the Argentine stock market.
The entire market value of the Argentine stock market is less than 100 million US dollars, and it is impossible to exert the role of the financial market.
The more Saint Hérse looks at Argentina, the more bizarre it is.
Normally, countries that lag behind should make reasonable use of many national resources. Banking, financial securities, and oil are all good things. Why don't they make good use of them, but only use such low-level methods.
Issuing a billion US dollar of national debt is much better than selling national assets.
But Perón is about to step down anyway, this is the wheel of history.
Saint Hérse drove to the Redwood Company according to his memory.
If the finance department hadn't shown that it was still paying wages, he would have thought it was completely abandoned.
"Hello everyone, I don't know if you still remember me."
Saint Hérse was also a little embarrassed, knocking on the glass door.
Bucharest Redwood is almost the earliest established company. Now is this only my second time here?
It's also my fault, I never pay attention to this, and the people in the finance department also think that Bucharest Redwood Company is really a branch of the Redwood Fertilizer Plant, but to be honest, Redwood Company has never lost money and has even made a little money, which is the most bizarre thing.
"You are the boss, Saint Hérse Cohen, boss, it's been two years, you finally came over, I don't know how to describe my current mood."
A young man wearing glasses stood up, with a rather complicated expression.
"Thomas Clardy, I didn't expect you to still be here."
This young man named Thomas was hired by Saint Hérse. He seems to have graduated from the University of Salvador. If it weren't for his poor English, he would have been sent to American Sequoia together.
"Mainly because we get paid every month, we are reluctant to leave."
Saint Hérse also seemed to intentionally or unintentionally ignore this Redwood Company, which surprised him. Now this company only has 5 people, which is indeed pitifully small compared to 20,000 people.
After Sain left Argentina, he also forgot about this Redwood Company. After all, he only stayed for three days before going to the United States, although he was nominally the general manager of Argentina Redwood, and he only returned to Argentina once.
"Thank you for staying here."
The office here is not big, only one room in size, with more than 20 desks. Sain took away 16 people, 9 stayed in Argentina, and 3 left. This is a forgotten corner.
He and Little Knicks purchased and set up this decoration back then. The monthly rent is still being paid, which is probably the benefit of a unified financial center.
In January two years ago, he came to the University of Buenos Aires in Argentina to take the exam and incidentally established an investment company for the purpose of going to the United States.
"Do you have any financial statements and planning statements now?"
This matter is still a bit shocking to Saint Hérse. I didn't expect that there would be such a day. I even forgot about my own industry. Maybe this is the result of having too much wealth and too much to remember.
"Yes, boss, I'll get it for you to see."
Thomas took out a thick report.
Saint Hérse carefully looked through this report, which was recorded very carefully. They even achieved self-management. Not only that, but they also used company funds to purchase bonds, investments, etc., and they could actually make a profit of about 10,000 US dollars per month, which is terribly strong.
Every expense is written out, these five people are really good.
...
I didn’t have time to finish writing it today, the following is still a 300-word draft, it will be updated before 2 o'clock.
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