My Realistic Simulation Game

Chapter 230 Capital and Power: Making the Pie Bigger

15 billion rubles.

When this astronomical figure was finally settled and transferred to the designated escrow account, even Qin Yuan's heart couldn't help but beat a little faster.

For any ordinary Soviet citizen, this was undoubtedly a dream of wealth that they could never achieve in several lifetimes.

However, to the well-dressed financiers on the streets of the Ten Nations Bank, this seemed to be nothing more than a string of numbers that could be moved and allocated at will.

How many days has it been?

Qin Yuan stood on the street of Financial Street, looking at the signs of foreign banks all around him, his heart filled with turbulent emotions.

In Moscow alone, these Western banks were able to raise 15 billion rubles so quickly!

So, how many ruble savings did their extensive branch network, spread across major Soviet cities, quietly absorb over the years?

Tens of billions?
Hundreds of billions, or trillions?
This was a chilling truth that shocked and maddened Qin Yuan.

Damn, running a bank is really profitable!

Currently, there is a floating profit margin of 20% to 30% just by taking advantage of the exchange rate difference between the black market and the official bank.

Not to mention the precipitous devaluation of the ruble after the collapse of the Soviet Union and the implementation of shock therapy!

He is now increasingly convinced.

The establishment of Far Eastern International Bank was an absolutely correct move.

Moreover, not only should it open in Moscow as soon as possible, but it should also open branches in all major key cities of the Soviet Union as quickly as possible!
In order to expand, they may even cooperate with local oligarchs in certain member states or regions, and use their local power to achieve the goal of rapidly accumulating reserves.

Especially in the Far East, where the land is vast and sparsely populated, even Western banks rarely set foot there.

But this gave Qin Yuan the best opportunity to perform.

Thinking of this, Qin Yuan's heart pounded even harder.

Elena, who accompanied Qin Yuan throughout the negotiations with the Western banks, was equally unable to calm down.

She roughly knew what Qin Yuan was going to do.

The development of new vehicles in cooperation with the Volga Automobile Plant requires a large amount of financial investment.

Cooperating with Catherine's camp to plunder Soviet assets, acting as a front man, also required a large investment of funds.

But
What about these Western bankers?

As an actuary, she has a keen sense of numbers.

She hadn't paid much attention to these foreign banks before, but this personal experience gave her a glimpse into their true nature.

Using high interest rates to attract such a huge amount of ruble savings...

What exactly do these Westerners want to do with these rubles?
A chill ran down her spine, filling her with inexplicable terror.

"Elena, don't think too much about it."

Qin Yuan grasped her cold hand, as if he could see right through her: "We can't stop anyone. All we can do is to gain more resources in this chaos and protect ourselves."

"Capital?" Elena looked at Qin Yuan, her eyes filled with doubt, but even more so with bewilderment.

"Qin, the capital you're referring to is the ruble, the US dollar, and the yuan."

"Or is it the capitalist system promoted by the West?"

Qin Yuan nodded, then shook his head.

What is capital?
In the context of capitalism, it is a unit of measurement for social power.

The more capital one has, the greater the social resources and power one can control and mobilize.

Capital is inherently ferocious.

That's like cancer cells, constantly multiplying.

It accumulates in the hands of a few by exploiting surplus labor.

Capitalists, in turn, use this capital to vie for and control social power in production and distribution.

Purchasing goods is never the ultimate goal of capital appreciation.

Capital is never associated with any specific object.

Rather, it is intangible power.

Social, economic, and even political power.

It was precisely because Qin Yuan grasped this point so deeply that he was able to not only avoid difficulties due to his foreign status in Moscow, but also to make his position more and more stable.

It is precisely because of this that he was able to forge a path completely different from other players in just six months.

Against this backdrop, Qin Yuan wielded absolute power.

They completely controlled the private trade market between China and the Soviet Union.

Of course, he knew that this model depended heavily on the particular period of turmoil that was currently taking place in the Soviet Union.

Now, this huge amount of capital has been "borrowed" from Western banks.

It's time to use it to exchange for and expand more tangible social power.

“Elena,” Qin Yuan said, pulling himself out of his thoughts, “Help me make an appointment with someone.”

"Who?"

"Moscow's Deputy Mayor, Luzhkov."

At this time, Luzhkov ranked only third or fourth in Moscow's power structure, not the most prominent one.

However, Qin Yuan knew that this July, the deputy mayor would take another step forward and form a political alliance with the Ye family.

And after 1992, he succeeded Popov as mayor of Moscow.

Under his administration, Moscow was the only city among many that did not experience an economic downturn throughout the 1990s.

Because of this achievement, Luzhkov served as mayor of Moscow for eighteen consecutive years. So, if you want to discuss superficial politics, you can go to Popov.

But if we're talking about getting things done and having real power over the city's operations, we have to find this future "King of Moscow."

This shrewd and capable deputy mayor had obviously heard of Qin Yuan before.

When Luzhkov heard from the intermediary that Qin Yuan had invited him to meet, he did not hesitate for long before agreeing to the meeting.

Inside a stylish and well-secret club, Luzhkov and Qin Yuan shook hands and exchanged pleasantries.

“Mr. Qin, I’ve heard about what happened on Financial Street. It’s quite impressive. Fifteen billion US dollars, and it’s been settled so quickly.”

Qin Yuan humbly replied, "Mr. Vice Mayor, you flatter me. This is mainly due to the unwavering reform policies and support of your government, which allowed the Western banking syndicate to see the enormous potential of our joint venture project and the bright future of the Far East Group in the Soviet Union."

Qin Yuan spoke to the other party in an official tone.

This time, the goal is to raise that $15 billion, or 150 billion rubles.

In addition to mortgage loans, financing and equity subscriptions were also conducted.

This involved transferring some of the Far East Group's shares to the three core banking syndicates for subscription.

These three are Citibank, Morgan Stanley, and Deutsche Bank.

The first two need no further explanation.

The purpose of selling a portion of the equity to Deutsche Bank was to obtain some automotive technology and key component imports from Germany.

No bank can compare to Deutsche Bank in this regard.

The goal of these three companies is to acquire a stake in the Far East Group and gain access to its board of directors.

They then exerted influence over Far East Trade, Chery, Volga, and the soon-to-be-established Far East International Bank to obtain key information.

Qin Yuan had a clear understanding of what these Westerners were thinking.

But he agreed.

There's no other reason than that it was simply a case of getting something for nothing.

Let's put aside this board of directors, which is all in name only.

Let's talk about this game.

In Qin Yuan's mind, it was nearing its end.

As the deputy mayor of Moscow, Luzhkov was not a human seal like Tatav.

He had a full understanding of this matter.

Therefore, he was even more curious about Qin Yuan's purpose in inviting him to meet.

After exchanging a few tentative words, Qin Yuan stopped beating around the bush and got straight to the point:
“Mayor Luzhkov, I don’t know if you’ve noticed, but there are more and more foreigners coming to Moscow.”

Luzhkov's gaze sharpened slightly, and he nodded: "Indeed, this has put some pressure on city management and public security."

Qin Yuandao said, "My idea is, could we designate a special area in Moscow to establish a standardized, large-scale trade market primarily targeting foreign merchants?"

"This new market brings together goods from all over the world."

"Moscow residents can buy any goods they want through this market."

"Moreover, the small traders and merchants scattered throughout Moscow can also be managed in a centralized manner."

"This will not only boost the market and make things more convenient for citizens, but also greatly reduce the administrative burden on the municipal government and enhance the city's image."

As he spoke, he gestured to Elena.

Elena immediately handed a beautifully bound "New Trade Market Planning Scheme" to Luzhkov's desk.

Luzhkov was startled and stared straight at Qin Yuan.

This suggestion isn't bad, it's fantastic!
It was practically a solution tailor-made for the thorny problem he was currently facing.

Currently, there is only one Cheka market in the entire city of Moscow, which is considered a relatively large comprehensive market.

However, the number of stalls and shops here is limited.

Moreover, most of them are occupied by locals.

It's incredibly difficult for out-of-town merchants to get a stall here.

Unlike when Qin Yuan first came here, he couldn't just pay some money to get a temporary position now.

Now, there's a shortage of qualified candidates, and the market is saturated.

If we could build a large-scale, specialized market to centrally manage these people...

Wouldn't that solve the problem facing the Moscow city government all at once?
Of course, he could also guess Qin Yuan's intentions.

We need to gain control of the market.

They gained control over these foreign traders and businessmen.

Moreover, the construction and operation rights of the new market will certainly be handed over to the Far East Group.

This also means that Far East Group will become a pivotal player in Moscow's commercial real estate sector, generating stable and substantial revenue solely from renting out shops.

Furthermore, this would allow them to control a large number of foreign businessmen's channels, becoming true "local tyrants," and their social influence would expand dramatically.

But why not?

Luzhkov opened the planning document and looked at the zeros on the checks.

He felt that Moscow needed more people like Qin Yuan, who were both financially capable and competent.

Moreover, he is an "outstanding entrepreneur" who can propose such a win-win solution!
Luzhkov closed the planning document and smiled:

“Mr. Qin, this is a very forward-thinking and constructive proposal. I think we can start studying and promoting its establishment now.”

"What do you think of that abandoned factory building located in the city center, near your warehouse?"

(besides)
(End of this chapter)