Agriculture Maniac

Chapter 574 The Three-American Financial War

Lehman Brothers was the main investment bank for federal capital.

Its bankruptcy was mainly due to its speculative activities, such as using mortgaged bonds with a leverage of 22 times to speculate on real estate, which led to a sharp drop in housing prices, resulting in total assets of nearly 7000 billion yuan but liabilities of 6100 billion yuan.

General Motors is the largest physical business of federal capital.

Its bankruptcy was mainly due to its high welfare, high benefits, and high procurement prices, and its business operations were heavily reliant on financial operations.

Discuss the negative impact of both bankruptcies on federal capital.

If the collapse of Lehman Brothers was an "acute myocardial infarction" in the North American financial economy, instantly destroying the functioning of the North American financial system and causing a global credit freeze.

General Motors' bankruptcy was a "single limb failure" in North America against the backdrop of deindustrialization, affecting only North American employment, some industrial chains, and a small amount of social stability.

Therefore, judging from the data, the negative impact of General Motors' bankruptcy on North America was far less than that of Lehman Brothers.

However, Lehman Brothers was a closed investment bank with only 2.5 employees, few publicly traded shares, a market capitalization of less than $300 billion, and a relatively low profile, with non-financial clients paying little attention to this one of the four major investment banks in North America.

General Motors is a household name. With the contract manufacturing of the 3 Series, its market value, which was originally less than 50 billion US dollars, was inflated to more than 300 billion US dollars by John Smith's embezzlement and Yu Sanyuan's secret exploitation. The number of employees also expanded from 210,000 to 350,000.

Now that General Motors has suddenly collapsed, employees are complaining, shareholders are furious, and even ordinary people are worried about not being able to find after-sales service for their cars.

In an instant, Detroit, where General Motors headquarters is located, was filled with protests, marches, unrest, and freebies…

As a result, this world-renowned "Motor City" is showing signs of bankruptcy.

Therefore, from the perspective of ordinary people, the negative impact of General Motors' bankruptcy far exceeded that of Lehman Brothers.

As a result, the vast majority of netizens on the internet have begun to doubt whether North America is really doomed.

After all, the collapse of the Soviet Union overnight serves as a cautionary tale.

This series of events forced the federal government to abandon the more important Lehman Brothers and prioritize rescuing the 'useless' General Motors.

It's like having a severed arm and simultaneously experiencing an acute myocardial infarction; in North America, the focus is on saving the arm first, ignoring the heart.

Therefore, the financial storm triggered by the subprime mortgage crisis swept across North America in less than half a month.

If you have a large amount of US dollars at this time, what should you do first?
It will definitely be converted into Euros, Hong Kong Dollars, or something else.

Otherwise, if the US dollar plummets, the money in your hands will become even less valuable.

If you hold a large amount of US Treasury bonds at this time, what should you do first?
They will definitely sell as soon as possible, convert the money into US dollars, and then exchange it into other currencies.

Otherwise, if North America goes bankrupt, US Treasury bonds will become worthless.

Of course, North America isn't that weak; it can definitely weather a financial crisis.

The problem is, it's being promoted all over the internet.

Like Yahoo! Forums.

Almost every second, dozens of posts from overseas students seeking help appear.

The content is nothing more than:
"Guys, what do I do? I can't withdraw the $20 I have in banks across America."

"Urgent! Does anyone know any executives at a Chicago bank? I have $30 in my account and urgently need to withdraw it, but I can't get an appointment. If anyone is willing to help, I'm willing to pay a $2 fee!"

"My parents went bankrupt, sold their house, and took out loans to finally scrape together $50 to send me to study in North America. Who would have thought we'd run into the financial crisis? I'm begging kind people to help me exchange it abroad. Whether it's Euros, Hong Kong dollars, banknotes, CFA francs, or Saudi riyals, I'm open to it and willing to pay a 5% transaction fee."

Like Facebook.

Almost every second, dozens of posts appear showing people queuing up at banks to withdraw money.

'Location: IndyMac Bank. I've been waiting in line for 5 hours, and there are still over 300 people ahead of me. I should be able to withdraw my money before midnight, after all, it's a big bank.'

'Location: In front of East West Bank. Damn it, this bank was taken over by North America from South Korea, and they're not managing it properly at all. I've been waiting in line for three hours and I'm still stuck in the same spot. I guess I won't be able to withdraw my money.'

"Beware! Columbia River Bank went bankrupt yesterday, and today the offices are deserted. Your deposits are gone!"

'My God, North American Bank in Florida has declared bankruptcy! My money!'

"Good news, good news! You can withdraw money from the Los Angeles Rural Credit Union, but it's not affiliated with the North American banking system; you can only withdraw from third-tier bank deposits."

Houston Rural Credit Union is offering high interest rates on large deposits, with a reliable credit rating. Deposit today and receive free oil, grains, and eggs! Limited deposits available, so hurry and grab yours!

Against this backdrop.

Numerous experts and professors have emerged on various forums and discussion boards of the Sanyuan Communication Network.

Some predict that North America will soon be torn apart, or else one will urinate upside down.

Some analysts predict that this financial crisis will devastate the North American banking system, with at least 300 banks expected to go bankrupt in the next two years.

As a result, bank runs in North America have become increasingly severe.

Bank failures triggered by subprime mortgage defaults are also on the rise.

All of this led to the direct collapse of the North American real estate system.

People with houses and loans are starting to default on their loans on a large scale due to unemployment.

People who own houses but have no mortgages have seen their total assets shrink by half due to the sharp drop in housing prices.

People who don't own a house but have a mortgage wake up to find that the house that should have been delivered has been abandoned.

People who have no house, no loan, and are renting are losing their homes and becoming homeless due to landlords going bankrupt and banks forcibly seizing their properties.

For a while.

North America is in complete chaos.

...

4 month 5 number.

The Dow Jones Industrial Average plunged more than 1500 points, a drop of over 12.4%.

Meanwhile, AIG, a world-class insurance service provider, has seen its credit rating plummet and faces bankruptcy.

This means that at least 70% of life insurance, property insurance, and accident insurance policies in North America will be temporarily suspended and will only become effective again once a similar company takes over.

This is not a financial event, nor an economic event, nor a political event.

This is a matter of people's livelihood, and it is fundamental to a country.

Therefore, the Trinity Think Tank downgraded the federal government's credit score from S to B, marked in red, meaning 'extremely high risk'.

Sanyuan Think Tank is one of the world's most impartial and authoritative credit rating agencies.

Giving North America a B rating at a time when the country is experiencing a financial crisis is already a great favor.

This credit rating is directly related to global creditworthiness.

For example, a country with an S-level credit rating can obtain a loan of 1 trillion from three different institutions without needing a reason.

For example, a country with a B-level credit rating can obtain a $2000 billion loan from three countries, but it requires guarantees from multiple countries.

The three major financial systems downgraded credit ratings for North America, and similar downgrades will follow suit in other major global financial systems, such as those in the East, Hong Kong, Southeast Asia, West Asia, West Africa, and Europe.

Otherwise, global credit ratings would be downgraded by the three systems.

The result would be similar to a depreciation of real estate, requiring additional collateral for mortgages or early repayment.

Countries around the world that hold Triple Series loans, such as participants in the Eurasian high-speed rail and parallel heavy-haul railway projects, including countries like the East, France, Germany, the Netherlands, Switzerland, Russia, Turkey, and others, all have to make early repayments to the Triple Series.

Therefore, financial systems around the world sent warnings to North America, similar to lawyer's letters.

In order to improve its creditworthiness, North America approved Morgan Stanley and Goldman Sachs to become banks through the Federal Reserve, thus spreading the risk of bank runs.

Meanwhile, the North American financial system is drafting a $7000 billion bailout plan.

But the run on the bank has not stopped.

Friday, July 4th.

Before the US stock market closed, Citigroup's stock price plummeted from $55 to $6.4.

In an effort to save Citibank, North America has once again drafted a $2000 billion aid plan.

The problem is that even financial giant Smith has to borrow money to make ends meet, and now North America is facing a crazy bank run. In addition, nearly $5000 billion was swindled out of the company through Agriculture 3.0. Where do they have so much available funds now?

Therefore, in order to save the market, the Federal Reserve's liabilities surged from $0.9 trillion to $4.5 trillion.

This directly led to Sanyuan Think Tank classifying it as a 'risk institution'.

If we add the federal government's 'extremely high risk' rating of B.

Faced with dual risks, the North American financial system has been blacklisted by three systems.

This means that North America will no longer be able to obtain any loans from the three financial systems.

Furthermore, all collateral used for previous loans will be seized and confiscated by the three companies.

For example, when Old Smith applied for a loan from the Third Series last year, although Yu Yang did not impose any conditions or add any interest, a 'deposit' was definitely required.

由于借款金额庞大，分别为5000亿美刀、5000亿欧元、3000亿港币，保证金也就包含了老史密斯持有的贝莱德8%股权、先锋领航12%股权、ADM公司70%股权、北美远洋集团35%股权、全美证券公司65%股权、纳斯达克证券公司60%股权、纽约证券公司40%股权…

If Old Smith is unable to repay the loan within the stipulated time, these shares will belong to the Third Group.

Coincidentally, Old Smith's loan period is six months. He took out the loan in mid-October last year, and now it's early April. There are less than seven days left until the billing date.

and so.

Amid the North American financial crisis, the first to come knocking was not Old Bush, who had recently left the East and returned to North America.

Instead, it was Old Smith who went to Europe to handle the equity of the three companies.

...

4 month 10 number.

Dongshan Prefecture, Shizhong District.

Gas pipeline construction site.

In the light drizzle, old Smith, carrying a black umbrella, trudged through the muddy clay to the pipeline pit, where he found the wicked Yu Sanyuan, dressed in a raincoat. The previous internal struggles within the federal capital were a conflict between the old and new classes.

Old Morgan, considering the bigger picture, wouldn't do anything to the Smith family.

The financial crisis that has now erupted in North America means that this financial hegemon has messed up.

If, at this critical juncture, Yu Sanyuan were to seek repayment from North America…

Considering the interests of federal capital, J.P. Morgan would most likely resort to a "debts settled upon death" approach.

That is, to kill old Smith, make the Smith family assume all the debts of the three families, and reduce the burden on federal capital.

"I know I lost because of greed."

Old Smith borrowed a cigarette from Chang Fu next to him, squatted down next to Yu Yang, took a deep drag, and slowly exhaled, "I should have held on to European Judean assets to the death, but you used oil countries to whet my appetite, and then amplified my desires with the three European industries, three bonds, and three equity, and then made me borrow money everywhere and get deeply involved."

"When I looked back, I was shocked to find that I had become a gambler who had given up everything and was now making a desperate gamble."

"If I lose this round, the Smith family will be doomed."

"If I win this round, I will become Heshen, waiting for the butcher's knife to come."

Yu Yang lit a cigarette as well, saying, "Don't insult Heshen; he was far more capable than you."

Old Smith's expression faltered. "Although I lost, I didn't lose my finances and assets. At least the total value of my three European industrial holdings, three equity holdings, and three bond holdings far exceeds the money I borrowed from you. If I can cash out, I can get a 3 to 5 times return."

"But you don't have time. The North American subprime crisis will only get worse and worse, and then it will affect the whole world. At that time, not to mention whether countries around the world will cut ties with North America, Bush and Morgan will also get restless and urge the three countries to unite."

The alliance of the three powers means that Europe must accept the Soviet Union; otherwise, it will be unable to counter the three powers. In that case, your assets and financial products in Europe will be directly confiscated by Walton Jr., the representative of European Judeism.

Don't worry, even if Walton doesn't confiscate it, I'll force him to.

Old Smith gritted his teeth in hatred. "My wife and I have treated you very well, especially recently. I even used Eastern Profits to help you invest in Dongshan Prefecture. Why are you always targeting the Smith family?"

"Standpoints, brother, capital and the collective are always opposites... Of course, I know you've been good to me, which is why I didn't kill you directly, but instead used financial means to defeat you in the financial field, which you're best at."

"I think you're a bully who picks on the weak and fears the strong!"

“I gave you a chance before. As long as the Smith family killed old Morgan and took his place, the three factions would definitely reach a series of cooperation agreements with you, but you were cowardly and gave up the decapitation operation.”

Yu Yang did give Old Smith a chance.

If the other side were ruthless enough to use the religious madman David Engsger, they could definitely take down old Morgan, or even eliminate him completely.

But old Smith worried that without his own loyal military force, he would have difficulty suppressing the increasingly powerful David Engsger after killing old Morgan, which would allow the latter to sideline him and transform North America into something like Persia.

So old Smith has been agonizing over this, and has never actually laid a hand on old Morgan.

As the saying goes, "If you don't take what Heaven gives you, you will suffer the consequences; if you don't act when the time is right, you will suffer the calamity."

Old Smith's indecisiveness has directly led the Smith family into their current predicament.

However, the opponent still has a chance.

Either get rid of old Morgan and take his place.

They could either eliminate Walton Jr., and then use their European assets and financial products to quickly transfer North American assets to Europe during the North American financial crisis.

Yu Yang watched the construction team busy at work. By the time he finished smoking a cigarette, Old Smith, who had been squatting next to him, had already left.

It was midday.

After a busy morning, the college students, upon hearing the whistle signaling the end of the workday, gathered together excitedly, ignoring the light drizzle, and began discussing something.

"The Dongyue-class Type II strategic cruiser has been launched!"

"Strategy? Holy crap, a new generation of Dongyue-class destroyers? The fourth one?"

"Yes, unlike the three missile cruisers of the previous generation, this generation uses nuclear-powered three-electric propulsion and three-system electromagnetic rail launch. It can carry 350 hypersonic unmanned aerial vehicle carriers with a speed of Mach 8. Each carrier can carry 200 anti-jamming supersonic jet mini-drones."

The ship has 130 vertical launch cells, 78 submarine-launched missile windows, and is equipped with 5 anti-jamming supersonic jet drones, over 1200 tri-series missiles, 50 nuclear warheads, a combat radius of 4500 kilometers, and a global warning range.

"Awesome~~~"

What is the current progress of North America's Zumwalt-class destroyers?

"Only one ship has been launched for sea trials, and it is expected to enter service in 12 years."

"With the first island chain secured, even if North America returns to the Asia-Pacific region, it will have to consider the price it will have to pay."

"Didn't you see the news? North America is experiencing a financial crisis. Right now, out of face-saving considerations, they're unwilling to ask the East and the Three Kingdoms for help. But one thing is certain: North America will compromise with the Three Kingdoms and achieve a three-way alliance!"

"Won't Europe panic if they do this?"

"It's more than just panic; the EU is even considering taking in the Arctic Bear!"

"Holy crap, so we're going to amass troops in Northeast China?"

"What do you mean?"

"We definitely need to be prepared for the possibility of the Ukrainian joining the EU."

"You're kidding me. Yu Sanyuan's desire for northern lands is obvious to everyone in the world. He has skipped the Far East several times and demanded Alaska from North America. If the Arctic bear dares to cross the Black Dragon River, Yu Sanyuan will probably wet his pants on the spot."

Yu Yang: "???"

"Foreman, what's wrong with your eyes? Did I say something wrong?"

"You're right, let's continue talking."

Before he could finish speaking, another college student jumped up excitedly, "Quick, look at the news on Shanghai TV!"

"What's wrong?"

"The first phase of the ultra-long-range laser cannon test project has been successfully completed. The East has realized its plan to attack low-Earth orbit satellites from 700 kilometers away from the Earth's surface... This means that our laser cannon can now hit satellites!"

"Fuck!"

Are they available in North America?

"No, not only is there no laser cannon, but it also lacks the electromagnetic rail propulsion technology of the new generation Dongyue-class aircraft carrier... No, it's called electromagnetic catapult, and it's also expected to enter service in 2012."

"Our family is awesome!"

"Yes, back in 02, many posts on the Tiexue forum said that we were 30 years behind North America, and they would always ask in return, if we catch up for 30 years, does North America not develop and just wait for us? Now I know that we used a three-system accelerator and caught up in just five years, while North America not only waited for us, but also ran backward."

Even a starved camel is bigger than a horse, don't get too cocky.

At this time.

Another college student excitedly showed off his phone screen.

"According to the latest news from the Oriental Academy of Sciences, after three years of testing, they have successfully replicated the 'rolling mine' that lasts for 12 seconds."

"What's the matter?"

"Rolling thunder, that's ball lightning, haven't you seen it? It's round, and it can run on the ground."

"I saw it when I was a child. It was like a ghost, floating around randomly. It scared me so much that I didn't dare to move."

"Stop joking, let's be scientific, does such a thing even exist?"

"Yes, and this thing can't be explained by any of the three technology systems."

"wipe!"

"By the way, what's the purpose of rolling mines?"

"I don't know, but North America can't make them."

"Makes sense!"

Yu Yang said, "Electrons need conductors to achieve transitions, or in other words, electricity needs conductive objects to generate current and voltage."

Ball lightning is a self-contained entity. If we can understand it, we can store electricity like water and create things like "energy bars," "electricity bars," or "energy tanks." This involves future new energy storage technologies and controlled nuclear fusion technology…

Imagine, while the West is still using lithium iron phosphate batteries or lithium-ion batteries, we simply take out a transparent glass object, shimmering with electricity, with an energy compression ratio hundreds of times higher than theirs, and plug it into an electric amphibious car, allowing it to run continuously for hundreds of hours. What kind of technological leap would that represent?

"It's too sci-fi, I can't even imagine it."

Yu Yang was exasperated, saying, "You're only destined to work on construction sites!"

"Yes, that's why I came to the construction site."

"."

Another college student chimed in: "And there's more, the three-series pulse detonation engine has entered the second phase of testing, and the second pulse detonation small demonstrator aircraft has been successfully test-flown."

It is 11.5 meters long, made of super-component composite metal, with a tailless layout and variable-sweep wings. It has a takeoff load of 9 tons and can carry 1.8 tons of munitions.

Using conventional power, the maximum speed is Mach 2.2 and the service ceiling is 2.6 meters.

Switch to pulse detonation mode; minimum speed Mach 6, maximum speed Mach 17.

It can make instantaneous and continuous turns at a 45-degree angle in any direction at an altitude of 1.6 meters or more.

Therefore, you can see the verification machine spitting out a series of circles, like an out-of-control skyrocket, moving in a crackling Z-shaped pattern.

Therefore, similar to the previous large demonstrator aircraft, this is a drone.

"Strange, how come so many new weapons have been revealed in the Three Systems and the capital?"

Yu Yang curled his lip, "Isn't it because Beijing is worried that North America will turn on its guard?"

"A financial crisis? Will North America panic?"

"Not only North America, but the whole world will be anxious because this is a global economic crisis that could lead to the bankruptcy of many countries."

"Will we be affected too?"

"Of course, at least your salary has increased, your living expenses have decreased, and your life is getting better and better."

"I love economic crises like this; I wish they happened more often!"

(End of this chapter)