Reborn in 2014: A One-Man Tycoon

Chapter 653 Drinking poison to quench thirst

"Are these capitalists crazy?"

Looking at the funds that had arrived in her account in real time, Yingdie exclaimed to Meng Chuan:

“There was a biopharmaceutical company that was clearly insolvent, yet they still acquired it at a 300% premium!”

Now it's time for the final accounting.

These past two days, Yingdie has been frantically selling off Rothschild's assets for Meng Chuan.

What Yingdie couldn't understand was...

Many companies, despite having a market value of 1000 billion, have people willing to pay 2000 billion to buy them.

In particular, a biopharmaceutical company.

After Mengchuan's massive vaccine was launched, its stock price plummeted.

They are on the verge of bankruptcy.

Its market value has dropped from a peak of $5000 billion to $1500 billion.

However, someone was still willing to offer 4500 billion to acquire it outright.

Meng Chuan leaned back in his chair and said wisely:

"The Rothschilds monopolized 20% of the global rare metals trade, 40% of the art auction market, and had countless political and business connections."

“These are resources that new capital can’t get even if they fight tooth and nail to acquire.”

"Now they can buy it with money, which is a bargain for them."

"So they're not buying the company, they're buying tickets to the market."

Yingdie nodded, seemingly understanding but not quite.

A week later, Yingdie finally submitted her final report to Meng Chuan.

Her voice carried a hint of disbelief:

“After deducting the $10 trillion paid to the US government and adding the proceeds from the sale of assets, we actually received $31 trillion.”

"Now we can take this money back to China at any time."

Yingdie paused as she spoke:

"We can only transfer this money back to our domestic company in the form of additional investment."

Yingdie said with some heartache:

"However, 25% of this money still needs to be taxed domestically."

According to domestic law, if this huge sum of money were to be brought back to China, it would be considered as profit for Meng Chuan's domestic companies.

Profits are subject to corporate income tax, which is generally 25%.

31 trillion US dollars is equivalent to 214 trillion RMB.

Paying 25% would be equivalent to 54 trillion RMB.

This money pained Yingdie deeply.

Meng Chuan smiled and said:

"Don't feel bad about it. This is a windfall. We don't need the money right now. It's only right that we contribute to the country."

Before the stock market crash, Meng Chuan was obsessed with money.

But now, Meng Chuan has no interest in money anymore.

Even if it's 31 trillion US dollars.

For Meng Chuan, it was no different from 31.

Anyway, Meng Chuan was going to spend that money domestically anyway.

Money loses all its value if it isn't spent.

Therefore, we should contribute to the country and make it stronger.

Meng Chuan was quite happy to see this.

As for the remaining money, it was actually enough for Meng Chuan to squander as he pleased.

Yingdie nodded, but then frowned again:

"Furthermore... after receiving that ten trillion dollars, the United States has announced an increase in its military budget and plans to deploy a new missile defense system in the Asia-Pacific region. This money seems to have really given them more confidence."

Shadow Butterfly does not want to see the United States become powerful again.

The whole of America is celebrating right now.

With this money, the pressure of the fiscal deficit can be alleviated.

Most importantly, the United States can invest more money in military development.

Upon hearing this, Meng Chuan looked up at Ying Die, his gaze deep and unfathomable, as if it held a vast ocean within it.

"You think this ten trillion is a shot in the arm? No! It's actually a death warrant."

Meng Chuan calmly said:

"The US government has forgotten that more money is never better; the key is where it comes from and where it goes."

"The ten trillion yuan they obtained was not wealth created through real industry, nor was it foreign exchange earned through technological breakthroughs. It was 'quick money' obtained by selling off the foundation of the country. It's like a gambler mortgaging his ancestral home as chips, seemingly piling up on the gambling table, but in reality, he has already gambled away all his future options."

Following his words, Yingdie suddenly realized:

"You mean...inflation?"

"more than."

Meng Chuan smiled faintly:

"The first poison is excessive money supply. The US M2 (broad money supply) was like a balloon that had been inflated to its limit. Suddenly stuffing in ten trillion dollars will either dilute the money supply by printing money like crazy or cause interest rates to skyrocket. The former will turn the dollars in people's hands into worthless paper, and the latter will directly crush the real estate and stock markets."

Meng Chuan picked up the financial newspaper on the table and pointed to the headline on the front page: "US Plans to Launch Trillion-Dollar Infrastructure Project":

“Look, they’ve already started throwing money around. Those people in Congress only know how to use ‘spending money’ to please voters, but no one has thought about what this money will eventually become without corresponding goods and services to support it.”

"Last year a gallon of gasoline cost $2, next year it may cost $5. Bread, milk, electricity... all the cost of living will skyrocket."

Yingdie thought of the people holding signs that read "10K FOR EVERYONE" and suddenly felt a chill.

"They thought getting $10,000 was a good thing, but they didn't realize that this amount of money couldn't even keep up with six months of inflation."

Meng Chuan nodded:

"That's right. What's even more ruthless is the second poison—accelerated industrial hollowing out."

Meng Chuan's voice deepened:

"The companies that the US government bought with trillions of dollars seem to have preserved their technology, but in reality, they have become the biggest 'white knights'. The factories left behind by the Rothschilds have long lost their core competitiveness, and they need to keep throwing money at them to keep operating. But the government's money is limited. If it is given to these sunset industries, emerging technologies, new energy, and biomedicine, which are the areas that should really be supported, will only be left with nothing."

Meng Chuan paused, a hint of sarcasm in his voice:

"Do you think Elon Ma started the rocket company in the first place?"

"While Elon Ma does have a space dream, what's more important is that he knows the U.S. government will inject at least $5 trillion into the company over the next decade in order to 'maintain space dominance.' It's a license to 'ask for money from the government.'"

Yingdie was completely confused.

But then I felt that what Meng Chuan said made a lot of sense.

"What about the third dose of poison?"

Yingdie pressed for an answer.

Meng Chuan walked to the world map and pointed heavily at the locations of the Middle East and Europe with his fingertip:

"International credit has collapsed. The US can fleece the world because of its dollar hegemony and the credit of its national debt. But this time, for a trillion dollars, it's even willing to sell 'national security assets' and arbitrarily change tax exemption clauses. Who would still trust the dollar? Who would still dare to buy US Treasury bonds?"

"Last week, Saudi Arabia started settling oil transactions in RMB, the French central bank announced an increase in its gold reserves, and even India is now secretly selling off US Treasury bonds."

“These countries are not fools. What they see is not that the United States has become rich, but that the United States has become desperate, desperate enough to break the rules it set itself.”

“When the dollar loses its ‘anchor,’ the United States’ global influence will collapse like an avalanche.”

Yingdie fell silent.

She recalled the financial giants who acquired Rothschild's assets at a premium, which further confirmed Meng Chuan's point of view.

These new oligarchs paid a high price to obtain their "tickets to the game".

They certainly wouldn't do anything to benefit society out of kindness.

They will inevitably earn back the money they spent, with interest.

In the end, it will be the American people who will be exploited.

This nationwide frenzy originating from the United States is nothing more than a case of drinking poison to quench thirst.

"Are all those people in their parliament incompetent? They didn't even see what the young master could see?"

Yingdie asked, puzzled.

"It's not that they can't see it, it's that they don't want to see it."

Meng Chuan shook his head and said:

"Because in the short term, it is advantageous to them. As for the long term... their term may not last until then."

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