Chapter 259: Bequest

At the end of the war, all countries around the world were China's creditor countries, holding government bonds, war bonds and financing bonds issued by China's government, or holding various bonds such as war bonds, war financing bonds, regular financing bonds issued by China's government through financial institutions.

According to the news disclosed after the war, when it was defeated, the US federal government and major financial institutions had at least 1400 billion yuan of Chinese bonds. In other words, the United States was paying for China's arms. Of course, the Chinese bonds held by the US federal government had long been invalidated.

Among these countries, the one with the least holdings of Chinese debt is hundreds of billions of yuan.

Of course, the main creditor countries are forty allies, which hold as much as 10 trillion yuan in debt, of which the poorest Nepal all hold more than 100 billion yuan, while the wealthier countries hold more than 100 trillion yuan, such as India holds 260 trillion yuan, Pakistan holds 200 trillion yuan, Saudi Arabia holds 180 trillion yuan, and North Korea holds 140 trillion yuan.

More importantly, among these creditor countries, the main ones holding Chinese debt are government funds or state-owned banks. The main financing method is to transfer the debt to the people, that is, these countries issue war bonds or treasury bonds in their own country, and then use the proceeds to purchase bonds issued by China, or provide financing guarantees for bonds issued by China, so that private banks and private capital can be purchased directly.

In other words, China's debt problem has actually penetrated into the grassroots of various countries' social strata. As long as there is a storm, it will lead to a global financial disaster.

As the world's largest debtor, whether China will pay back the money or not, and how to pay it back, is definitely the world's number one issue.

After stabilizing the situation, Huang Hanlin made it clear that China will definitely pay back the money.

It is natural to pay back debts and nothing to say.

The key is, why not?

You should know that the foreign debt owed by the Chinese government is as high as 16 trillion yuan. If the domestic debt is included, the total amount of debt owed to its own citizens is more than 20 trillion yuan. If the government pays it back in the year, then in the next twenty years, even if the tax growth rate remains above 10%, and the interest on the debt is not calculated, the Chinese government must not eat or drink to pay off the debt.

Obviously, this is impossible.

In other words, the Chinese government has no ability to repay debts at all.

Now, the problem is serious, and it is not just debt.

You should know that if China's political bankruptcy goes bankrupt, the devastating impact on the global economy will definitely be no less than that of World War III.

Having reached this point, the core issue is how to avoid bankruptcy of Chinese politics.

The problem is that you have to pay back the debt, and there is nothing to negotiate.

In fact, the biggest contradiction at that time was that if China was asked to pay back the money, then China's politics would go bankrupt, but if China did not repay its debts, other countries' politics would go bankrupt.

At this time, Huang Hanlin proposed a point, namely the repayment method.

It is not a problem to repay the money with real money. China's government can use gold, precious metals such as silver, as well as precious raw materials equivalent to it, such as helium 3 used in controlled fusion nuclear reactors to repay debts. However, according to Chinese laws, even if yellow metals are used to repay debts, they must be stored in the country and cannot be exported. Therefore, other countries can only use China's gold to obtain, that is, use this gold to purchase goods from China and consume them all in the Chinese market.

Obviously, smarter people know that if China really wants to repay the money in this way, other countries will not expect to get benefits.

The reason is very simple. The RMB has depreciated significantly during the war, and as China's debt problems worsen, it will continue to depreciate. Therefore, the value of gold will be greatly overvalued. If China uses gold to repay debts during this period, it will be equivalent to the significant shrinkage of the debts in other countries. The problem is that China's economic foundation is there, and its leadership position after the war is also there, so the RMB cannot always depreciate. When the post-war international order is rebuilt and China's economic situation improves, the RMB will definitely appreciate, which is equivalent to depreciating gold. More importantly, other countries cannot get the physical gold, and they only get a certificate stored in the bank of China, and these gold will eventually flow back to China in trade. That is to say, other countries are equivalent to buying gold at a high price and selling it at a low price. The result is that between this in and out, the Chinese debts held by other countries are digested.

To put it bluntly, China will definitely offset all debts without paying a penny in the end.

It is obvious that this is cheating, but no other country can change it.

It can be seen that traditional financial means cannot solve China's debt problem at all.

The question is, will cheating be beneficial to China?

The answer is obviously no, because this will lead to economic problems in other countries and even lead to a complete collapse of the world economic order.

For China, the main means to realize post-war interests, that is, to obtain war dividends, is to establish a world economic order with China as the core. If the economic crisis follows the arrival of the war, then the victory that China desperately achieved on the battlefield will be worthless.

It can be said that China must prevent the collapse of the world economy.

Even if we need to reshuffle the cards, we must proceed under stable conditions, rather than overturning and starting over.

You should know that rebuilding the economic order is much more difficult than rebuilding a country destroyed by war, and it is full of unpredictable dangers.

In fact, this is also the main reason why Huang Hanlin promised to pay back the debt.

To put it bluntly, only when China repays its debts can we ensure that other countries, especially the forty allies that hold the largest number of Chinese debts, can develop stably.

The key is that China cannot cause economic collapse by repaying its war debts.

This is definitely a difficult problem that tests the wisdom of politicians and financiers.

Fortunately, Huang Hanlin is one of the most intelligent politicians since the founding of China, and Sheng Shiping, who formulated financial strategies for China, is definitely a genius in the financial field.

At the summit, China proposed not to repay debts directly, but to repay debts indirectly.

Of course, this "indirectness" is very particular.

Huang Hanlin first proposed that China will allow other countries to use low-Earth orbit space through lease and provide safety guarantees for spacecraft operating in low-Earth orbit. However, China only leases the right to use to a state entity, that is, the government of other countries, and then transfers it to enterprises by other countries, and charges a handling fee, which will repay China's debts in a compensation manner.

Although many countries believe this is not fair, they all agree that it is one of the solutions to the debt problem.

Immediately afterwards, Huang Hanlin mentioned a repayment method that interested more countries, namely, transferring high-end technologies, including controlled fusion nuclear power plants to all allies after the war.

There is no doubt that this is what other countries want.

According to Huang Hanlin's proposal, China will provide other countries with the technology required to build controllable fusion nuclear power plants in an authorized manner, and help other countries build controllable fusion nuclear power plants. The required expenses will be reduced from China's debt through compensation.

One thing we have to mention here is the "beloved of the prosperous times".

Before the war broke out, Sheng Shiping died. He did not hand over astronomical wealth to his children, but only purchased a huge trust fund for each child to ensure that his descendants do not have to worry about food and clothing for the next three generations. Most of his property belongs to a custodial fund called "Kangping Shengshi". The manager of the fund is the Ministry of Finance of China, and the main mission of the fund is to balance China's fiscal revenue and expenditure.

At that time, Sheng Shiping's last words were very famous: Money can become a tool for benefiting the people in the hands of capable and ideal people, and in the hands of mediocre people, it will be the source of destruction.

To put it simply, Sheng Shiping donated all the wealth accumulated throughout his life to the country. Of course, it is not a direct donation, nor is it simply a matter of letting the country handle the wealth left behind, but the Fund Committee decides how to use it. The chairman of this committee is the Minister of Finance, and there are also members from the National Congress, as well as political representatives, military representatives, civil representatives, etc. In other words, political agents cannot use this wealth as they wish.

More importantly, Shengshiping left behind not only money and wealth, but also a lot of wealth that cannot be measured by money.

For example, the patent rights of a controlled fusion nuclear reactor.

Don’t forget that when we first developed a controllable fusion nuclear reactor, Mu Haoyang came forward to ask Shengshiping to invest, so the patent of this technology belongs to the enterprise under Shengshiping’s name.

How valuable is this patent?

Obviously, no one can make an accurate assessment. There is only one thing that is, before the end of the war, this patent offset most of China's debts. To be precise, it was the global technological revolution based on this patent that helped China solve the debt crisis.

Strictly speaking, it is not called a solution, but rather a means to transform the debt crisis into a means to control the global financial and economic order.

Here, it involves the last, most far-reaching and most significant part of the financial strategy formulated by Sheng Shiping.

To put it simply, it is to convert debt into circulating currency.

In essence, it is to use this to drive out the US dollar and the euro, make the RMB the only circulating currency in global finance, and make China the financial hegemony.

At the beginning, the United States relied on its creditorship to ascend to the throne of financial hegemony.

Now, China is doing the opposite and has become the global financial hegemony by relying on debt.

However, when it comes to specific operations, it must not be so explicit, because no country, even the allies with the best relationship, will support China.

After all, if we really want to convert debts into circulating currency, China will simply lose all its debts.

On the operational level, such as going around a big circle, avoiding the most sensitive issues and making other countries feel profitable to do so.

To this end, Huang Hanlin played the winning trump card.

In fact, this is also the last card in his hand.
Chapter completed!