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Text Chapter 637 Big turning point!

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    "Who is shorting the United States?"  "America is not a sheep!"  ¡·In the following rest days, the news that Europa airdropped 680 million pounds of American agricultural products spread across North America like a sickle in the hands of the devil, and dark clouds gathered over the United States of America.  [Absolute power] After the post-war European war, gold and silver concentrated deflation, unlimited credit transactions, weak purchasing power of old Europe, artificially enlarged emerging Chinese market, Soviet food dumping and other factors were entangled together, the weakness and powerlessness of agricultural products finally  As a result, a mere US$3.2 billion in short orders turned out to be the straw that broke the camel's back.

    The impact can no longer be described in words!

    April 21st.  Before the market opened, the New York Stock Exchange was already crowded with people.  Many people sell their stocks after getting the news. They no longer believe in phone calls and would rather drive hundreds of kilometers to sell their stocks.  Fei Owen, who was the first to arrive at the exchange, and his partners witnessed an unprecedented dark week in the history of world securities!

    In the first second after the gong sounded, all stock prices surged down like a flood. In just one hour, 6 million shares were sold. The New York Times and the Dow Jones Industrial Index all plummeted by 20%.  By the time the market closed in the afternoon, the turnover rate had reached 13 million shares!  In this way, the infamous "Monday Ghost" was permanently recorded in history!

    On April 22, the situation continued to deteriorate, and the stock index fell another 31 points.  President Hoover, who had just taken office and was still not over his joy, could not sit still. He immediately summoned American bankers such as Merlin and Morgan to rescue the market. The capital tycoons who had already made a lot of money pretended to collect US$200 million. Even the China Investment Corporation  Contribute $30 million to the rescue fund.

    On April 23, the bailout fund published a "Declaration of Conscience" from the capital tycoons in the New York Times. New York Stock Exchange President Richard Wayney personally participated in the battle. The stock index began to rebound strongly in response to this stimulus.  But the building is about to collapse, and a mere US$200 million cannot support the crazy influx of selling orders. Moreover, there are many stocks sold by the predators themselves, so the stock index still fell by 16 points.

    On April 24, facing the avalanche of falling stocks.  The new U.S. President Hoover delivered a national speech in an attempt to stimulate a new round of investment: "The production and distribution of goods by American enterprises are based on soundness and prosperity, and the fundamentals of the U.S. economy have not changed."  However, the market slapped him hard the next morning.  same day.  The New York Times Index fell 49 points, and the Dow Jones Index plunged 38 points, a daily decline of 13%.

    After this day, no one dared to come forward to save the market

    Saturday, April 25th, the darkest day arrived.  Because investors were worried that major negative news would break out on the holiday, only 10 minutes after the market opened, a wave of selling was fiercer than the meat grinder of Verdun.  Everyone is selling stocks regardless of price!  The trading floor is in chaos!  Faced with the terrifying sight of an 80-point drop in an instant, those so-called stock tycoons who initiated hundreds of times their investment through credit transactions finally couldn't stand the excitement, and some even jumped from tall skyscrapers.

    By the time the market closed, it had plummeted. In just one week, the stock index fell from the highest point of 386 points to 280 points, a drop of 23%. The 16.87 million shares and the total amount of US$920 million on that day became the highest record in history. The "Monday ghost" has not yet dissipated.  Go, "Black Friday" will completely drag the United States into hell.  The Great Recession has officially begun!

    The next few weeks were without any struggle, and by May 13, the Dow Jones Industrial Average had dropped to 190 points.  A drop of 51%!  Tens of billions of dollars have been wiped out!  Although there were several rebounds in the middle, especially after Yang Qiu's visit to the United States, the stock index once returned to 290 points, but it fell sharply six times, and by the end of 1931, the Dow Jones Index only had 40 points left!  The important U.S. Steel stock price fell from $262 to $21 per share, and General Motors fell from $92 to $7.  The worst thing was Marconi and other American radio companies. These stocks never rebounded despite some people deliberately shorting them.  By May 1930, Marconi's stock price had dropped from $78 before the crash to 35 cents!  !  !

    ??The crazy credit transaction of using 1 dollar to buy 50 or even 100 dollars was completely bankrupt, and the millions of middle class people who made their fortunes in stocks were wiped out!  News of millionaires committing suicide appeared every day, and tens of thousands of companies declared bankruptcy due to cutoffs in capital flow. In just three months by the end of June 1929,  The number of workers unemployed due to the stock market crash is as high as 5.4 million!

    Some people are ecstatic when they jump off a building!  Although only US$200 million of the London short orders belonged to CIC, and the rest belonged to European Jewish groups such as Rothschild, under the influence of leverage trading, the 200 million short orders still brought a total of US$850 million to CIC.  Well worth the reward!  This return made the losses in the crazy selling wave in the United States insignificant.

    In the following weeks, the tragic Wall Street storm began to spread to various countries, and major exchanges such as London, Paris, Frankfurt and Tokyo stock prices plummeted.  But this plunge is very different from that in the United States.  The more important ones are psychological effects and concerns about the shrinking of the country's export industry. Of course, it is more of a speculative factor.

    ??????????????????????????????????????????????The news and the falling index made everyone who originally thought Yang Qiu was exaggerating shut their mouths. Even Li Yuanhong, who was worried about not being able to step down safely, temporarily put aside his worries and spent the whole day studying how to use this opportunity to do something.  Even many experts from the increasingly famous National Science and Technology Alliance (Longmeng) were invited to come and gather around the map of the United States with their knives and forks to excitedly discuss which company or research institute they should target.  Take action.

    On the contrary, the old European capital tycoons headed by the Rothschild family did not end the harvesting operation after harvesting tens of billions of dollars. While encouraging international capital to flee the United States frantically, taking away countless gold and silver to complete the largest sheep shearing operation in history,  He sets his sights on the world's second largest upstart again!

    At the end of May, this whirlwind finally reached Shanghai.  After several small declines at the beginning of the month, the Shanghai Securities Exchange experienced its first plunge on May 29. Foreign capital and banks entering after the silver crisis began to short-sell China, threatening to bring down the world's second-largest upstart.  By June 7, the Shanghai Stock Exchange Industrial and Commercial Index had fallen by more than 20%!  In addition to the plunge in stocks, tea, raw silk, ready-made garments and other companies that rely heavily on foreign trade had numerous orders withdrawn overnight, and even the most prosperous exports of tungsten and tung oil came to an abrupt halt.  After the "Shanghai Communique", the three major pricing powers of tungsten ore, tung oil and raw silk controlled by the Republic of China, which relied on huge resources, also plummeted for the first time, with prices plummeting by 40% in just two days.

    Some people used to say that the market in the Republic of China was difficult enough to be disrupted by the Great Depression, but in fact, unless the country was closed, foreign trade and openness gradually increased as the country embarked on the path of capitalism.  Especially since trade with the United States accounts for more than half of all foreign trade, many industries are also facing the risk of recession.

    "International capitalists continue to party, and domestic speculators take action after the silver crisis!"  Overnight, the golden decade after the European War seemed to be over.  Just at this time.  Yang Qiu's special plane also landed slowly at Hongqiao Airport.

    Zhang Wenjing and Xu Xiujun, who had arrived early, waited for him to get on the bus and immediately took out a report: "The stock index has dropped to 257 points, a drop of 20%. There are people in the futures market who specialize in shorting soybeans, silk and tung oil, with orders worth 1.7 billion.  . Minister Yan Xishan met with the Shanghai industrial and commercial community yesterday, and directors of various banks and general managers of various groups are on their way. Shanghai has collected 200 million and is ready to start. Zihong and I have calculated that as long as we collect  With enough 1.5 billion, all the empty orders can be wiped out, leaving them unable to walk around"

    Zhang Wenjing quickly stated his rescue plan.  But the problem is Yang Qiu didn't say anything after reading the plan.  He really doesn't care about the mere 1.7 billion yuan worth of empty orders. Is there any possibility of a surplus of agricultural products in the country? The only trouble is the 2 billion US dollars in export orders. However, this amount of money cannot be digested internally. What really attracts his attention is  The US investment in China after the silver crisis exceeded US$4 billion!

    So he suppressed the rescue plan and asked: "After the silver crisis, do you still remember the last clause of the US investment terms in China?"

    The silver crisis was the first time the Republic of China came into contact with international capital, and it also caused a major reversal in China's financial industry.  Since then, stock and futures have been divided into industries, credit transactions have been controlled, and foreign exchange controls have cut off the free entry and exit of international capital.  So as finance minister and central bank governor.  The two of them had already memorized all the details of that year, and immediately thought of the reminder: "If the company cannot operate normally or cannot operate for more than one year, the Chinese government has the right to automatically redeem the shares or control."

    The two people¡¯s eyebrows jumped fiercely, this is so close!  I really want people to pry open his head and see what¡¯s inside!

    "It is necessary to get back the shares, but if we do not save it, the market will be more chaotic. It is no longer 18 years ago. Now our industrial and commercial scale is very large, especially the scale of light industry has increased several times compared with the European War. If we do not save it,  If this happens, many garment factories and textile factories will close down."

    Zhang Wenjing reminded him gently, but Yang Qiu sighed deeply in his heart: "Wenjing, do you know what you lack most? From our perspective, we must learn when to give up and when to hold on! The financial crisis is terrible.  Land, but have you ever thought about it, crisis is actually an opportunity for the market to adjust itself! Just like when a person is sick, only by cutting off the carrion can new meat grow. Only by squeezing out the bubbles can the real good things be revealed. As for what you said  How many of those enterprises have good assets? Most of them are small and dilapidated, and dozens of them together may not be able to produce as much as a factory in the United States. Even if these factories go bankrupt now, the economy will improve in two or three years.  If it skyrockets, it will not cause much harm to the national economy. What we want to preserve are agriculture, manufacturing, petroleum and energy industries, electric power transportation and other high-quality industries that are involved in the lifeblood of the country. In this way, even if all other branches and leaves are cut off  , the national economy will not be affected!"

    Yang Qiu looked out the window, his eyes as firm and scary as the substance: "We have been parents for 18 years and have laid the national industrial foundation. How tall the future buildings can be, we can only rely on parents' orders to achieve glory."It¡¯s time to adjust!  Let the industrial and commercial circles collect money. Instead of bailing out the market and ruining the market, let them use the money to directly cut down all the poor quality tea trees, subsidize the sowing of better varieties, merge small and dilapidated textile factories and silk factories, and transform state-owned enterprises into  Sell ??all factories in China except core industries to them, open energy and transportation to them, open post and telecommunications to them  "

    The two of them were completely stunned. They didn¡¯t expect that Yang Qiu would either not make a move, or it would be a fatal blow!  He is actually planning to take advantage of the country¡¯s economic turmoil to perform such a major surgery!  But the two men also had to admit that it was completely impossible to perform such a major operation without damaging the national economy. Only in such a rare economic crisis can rapid adjustments be made.

    The pain is only temporary, just like the tea tree. When better quality tea trees grow up in two or three years, the adjusted and upgraded economy will be reborn!  There was only one problem they couldn't figure out: "It's okay to take advantage of the crisis to reform, and you can get it back after two or three years of hardship at most. But if we make such a big adjustment, aren't we saving those foreign businessmen and allowing them to grow bigger?"

    Make it bigger?  Beautiful thought!  Yang Qiu raised the corner of his mouth and smiled coldly: "Don't worry, I have asked the Ministry of Justice and the Taxation Department to name and audit the accounts! All orders given to them will be canceled before the end of the month! Unless they can raise funds within a year  Own international orders!¡±.

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