Soviet Godfather

Vol 5 Chapter 259: The Budapest Agreement

The three sovereign countries suddenly announced the use of the same currency overnight, with mutual exemption of tariffs, and even people and goods can freely enter and exit the border without being inspected by border inspectors. This kind of scene that exists in human ideals has appeared in human society for the first time. How can it not attract attention?

For the three contracting countries, the plan to accept the Bank of Colombia is really helpless. Whether it is Czechoslovakia, Poland, or Hungary, the ratio of huge foreign debt to GDP has reached the point where the government is unable to recover. Looking at the world, only the Bank of Colombia can save them. As for the right to hand over the money, it is a measure that the governments of the three countries have to take, because if there is no credit guarantee from the Bank of Colombia, the currencies issued by the three countries are basically no different from waste paper.

This scene in three small backward countries in Eastern Europe has set off a lively discussion all over the world, especially those countries in Eastern Europe that have fallen into economic crisis just after leaving the control of the Soviet Union, and they are very concerned about the Eastern European Central Bank. Just after the three countries signed the Eastern European Unified Market in Budapest, Bulgaria and Romania also showed strong interest. Representatives of the central banks of the two countries took the initiative to come to Warsaw to contact the Bank of Colombia to discuss the issue of accession.

Mikhail knew that when Eastern Europe was in trouble, signing a treaty like this was actually a last resort for all countries. In order to avoid the eye-catching unique business, and to allow the Bank of Colombia's business in Eastern Europe to operate for a long time, a special clause is reserved in it, which is to wait until the governments of various countries have fully repaid their debts, and can redeem them from Bank of Colombia Return to normal rights and interests such as currency issuance rights and tariff rights. This treaty was initiated by Mikhail. This also makes the representatives of the three countries that have signed the treaty more confidence in Mikhail and the Bank of Colombia. But in fact, the chance of triggering this clause is extremely slim. Sergei and Mikhail are just using this clause to silence the opposition of the three countries. Just look at old capitalist countries like the United States and Britain, and you will understand that their debts will only increase and they will never be able to pay them back.

Debt is always a powerful weapon for international capitalists to control state power. The reason why American politics can be manipulated and controlled by big consortia is not because big consortiums provide candidates with large amounts of election funds, but because they are in the election process. Commitments to employment, social security, and even the economy require consortiums to come up with real money to support, and most of the funds spent by the government come from the national debt issued by the central bank. If the big consortium does not pay for the government’s national debt Credit guarantee, then the government cannot have the money to do what it wants to do. This is true whether this government was established by an army coup, democratically elected, or the dictatorship of a certain dictator. As long as this state power wants to exist for a long time, it cannot do without the support of capital.

The preparations for the Eastern European Central Bank will take time, but the large amount of national debt that the Bank of Colombia has recovered from international creditors during this period has allowed the Bank of Colombia to obtain generous returns. Because of the credit guarantee of the Bank of Colombia, coupled with the general optimism of investors on the unified market of the three countries, the national debts of Czechoslovakia, Poland, and Hungary, which were originally defined as junk by the three major international rating agencies, have regained a stable level, which allows the Bank of Colombia These bonds in hand have greatly increased the value. The preparations for the Eastern European Central Bank are actually not complicated. It only needs to draw some staff from the Bank of Colombia. Mikhail will naturally serve as the chairman of the bank, and Jeffrey Sachs, the father of shock therapy, will serve as the chairman. Chief Economist of the Eastern European Central Bank. As for the design of the Eastern Euro style, it will be publicly solicited from the people of the three countries.

For the sake of stabilizing prices and increasing employment rates, the contracting states of the Bank of Colombia signed an energy cooperation agreement with the Soviet Union’s Eurasian Gas Group. According to this agreement, the Eurasian gas pipeline project will enter the territories of the three countries through Poland. Provide them with a stable supply of natural gas. Because Eurasian Gas Group is a foreign-invested company operating bots, that is, constructing and operating transfer projects, the three countries did not regard Eurasian Gas Group as a Soviet enterprise. At the same time, some companies under the Gorky Group have also begun to enter these three countries one after another~www.readwn.com~ The Volkswagen Group has taken a fancy to Skoda Motors and intends to merge Skoda Motors into a subsidiary of Volkswagen. After the merger, Skoda Auto will become a sub-brand of Volkswagen just like Polonez Auto in Poland. The Skoda Industrial Group in the Czech Republic will receive capital injection from the Blackstone Group, and the Blackstone Group will provide funds to help the Skoda plant upgrade its equipment and divest its debts. The British Power Corporation is very interested in the power markets of the three countries and has begun to lobby the governments of the three countries to sell state-owned power grids and power generation companies, and the British Water Group has also shown great interest in the water supply markets of the three countries. Tonya wants airports and railways in Czechoslovakia, Hungary, and Poland. Kalim hopes to dump more food and agricultural products here, and Eva hopes that this place can become the next market for Iridium.

The subordinate companies of the Gorky Group are eager to annex the infrastructure markets of Eastern European countries. And Sergei Sha is considering the problems after the disintegration of the Soviet Union. From the current point of view, the independence of the three Baltic countries will be irreversible, but after the independence of the three countries, whether they can be included is the issue of Sergei’s concern. If the three Baltic countries can join, then even the Soviet Union It's really disintegrated, but can a market that is larger than the original Soviet Union's territory be formed? Although everyone is nominally a sovereign country, they use a unified currency and have a unified central bank. From an economic point of view, this is a unified whole, and for Sergei Shah, economically controlling the original sphere of influence of the Soviet Union is much easier and smarter than relying on force and ideological control. Much. In this process, the rich energy resources of the Soviet Union will be the key to forcing countries to escape the control of the Bank of Colombia. 2546...

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