Dreaming back to 1949, the great powers were there to deceive us

Even Carter could see that excessive money issuance would lead to inflation, let alone American economists.

Less than 24 hours later, the US expert group reported that it would not only trigger inflation, but also hyperinflation.

Even if there is food to stabilize prices, it won’t work.

Their analysis is based on classical economic theory.

Hu Zhenhua put the analysis report aside with a smile and asked Carter beside him,

"What's the higher-ups' attitude? Do they agree to let me buy food on their behalf?"

Carter grinned and laughed happily.

"Why not? The Reds can conquer the world, but they may not be able to rule it! If we let them take a big fall this time, maybe your socialist market economy theory will become popular!"

Hu Zhenhua was apprehensive. What if he really messed up? It would cause endless harm. Although Chinese people like to save money, they were so poor right now, barely able to eat. What if he went to the market to buy things after getting his wages?

Hyperinflation is a huge blow to the newly born RMB!

In fact, Lao Hu was completely overthinking it. In the original time and space, between April 1949 and March 4, there was hyperinflation, and prices rose more than a hundred times. The prices of goods on the market were extremely high. For example, around 1950-3, 1949 yuan of the first edition of RMB was only equivalent to one yuan later, and 1950 yuan was equivalent to five yuan, which could buy about kilograms of pork. At that time, people needed to carry a large amount of small-denomination banknotes for transactions.

The reason for this was that China was in the latter stages of the Liberation War, and the economy was facing numerous problems, such as disrupted production and material shortages. Another important factor was that the reactionaries had issued too many gold yuan notes. To avoid losses for the people, the state insisted on exchanging them for RMB, which led to a serious oversupply of RMB in circulation.

The reason hyperinflation didn't occur at this time was because Hu Zhenhua, the traitor, imported large quantities of raw materials from abroad, produced them into industrial products, and put them on the market. Simultaneously, Hu lent large sums of money to farmers in Jiangbei and introduced production lines, greatly enriching the product range on the market and thus preventing a sharp devaluation of the currency.

But one thing is certain, the RMB circulating in the market at this time is still in a state of over-issuance, which is particularly evident in foreign exchange exchange.

After the liberation of the whole country, it will be inevitable to replace it with the new version of RMB.

Hu Zhenhua calmed himself down. The arrow was on the string and had to be shot!

Who cares? Don’t care about life or death. Just fight if you don’t agree!

Old Hu nodded slightly and said with a smile,

"Since they want food, then we'll stuff them to death. Let's start with 10 million tons! But Carter, they're paying with coal. Can you help me apply for an interest-free loan from the government to fund the purchase?"

Carter's face darkened and he shook his head like a rattle.

"The government has already given you too much in loans, and other companies are very dissatisfied. You should go the commercial loan route. I can introduce you to several banks."

Hu Zhenhua suddenly became unhappy and said coldly,

"Those companies only saw me eating meat, but didn't see me getting beaten. If it weren't for me, would Free Capital be able to enter the red market? How dare they compete with me!"

Old Hu suddenly stood up, walked back and forth, opened his collar, panted, and cursed,

"Why do people think fighting communism is my sole responsibility? This year's harvest of autumn wheat in the United States is priced at $74 per ton. Ten million tons is 1 million dollars. If I take out a commercial loan, even at a 7.4% annual interest rate, I'll have to pay thirty million dollars a year!"

"I can not make money! But I can't lose money! This 3 million will be subsidized by the US government, otherwise I will not participate in this!"

Carter didn't like Hu Zhenhua's tone. Subsidies were impossible. Knowing that the other party would suffer hyperinflation, the US government had no right to get involved. Therefore, Carter said lightly,

"You're buying food on behalf of the Red Government. How can they not remember your kindness? Let them pay the interest."

"They did promise to give me more coal, but I already have enough. If I want to convert it into cash in the future, I might even have to sell it at a discount. I can't count on making a profit!"

Carter shrugged.

"So you want to have it both ways?"

Hu Zhenhua was about to speak when Zhuge Lin opened the door and walked in. He placed a telegram on the table and said anxiously,

"Last night, Cargill raised its wheat prices by 5 percent, Bunge raised its soybean prices by 6 percent, and Archer Daniels Midland raised its corn prices by the same 6 percent! Overnight, grain prices across the board have skyrocketed!"

Cargill, Bunge, and ADM are three of the four most famous international grain traders, and they are all American companies.

Hu Zhenhua grabbed the crystal glass on the table and smashed it to pieces. He laughed in anger and said coldly,

"Alright, alright! You all want to suck blood from me, right? Then I'll let you suck as much as you want!"

Hu Zhenhua grabbed another crystal glass and smashed it to pieces.

Carter opened his mouth wide, not knowing what to say. There was no doubt that some politician had leaked the news that his company was about to purchase grain to the three major grain traders.

Carter was very angry. We have killed countless brain cells here, but you are sabotaging us over there!

Woodworms! Woodworms!

But you can't do anything about it. The reason they raise prices is to deal with the possible threat of war.

Carter wanted to say something, but Hu Zhenhua had already left in big strides.

……

Two hours later, TA also announced a price increase for grain and oil, significantly raising the prices of grain in Japan, Hong Kong, the East Asian Islands, and Southeast Asian countries.

A day later, TA's second-in-command, Guo Dachong, announced at a closed-door meeting that the group would purchase 100 million tons of grain in the future to cope with possible global unrest! He also hoped that each subsidiary would hand over a portion of its profits in advance.

No one knew how this news got out, but all the major mainstream media outlets reprinted it, causing a huge uproar.

At the same time, TA Grain and Oils was buying up large amounts of food all over the world. Seeing this, major farmers were reluctant to sell, and international food prices rose accordingly!