Courtyard House: From Deputy Division Commander to Civilian, Progressing All the Way

The atmosphere in the meeting room immediately became heavy.

The dual-track system was a transitional policy personally decided by Lin Yang.

In an era of scarcity, this was the only way to break the stagnation of the planned economy, but it was inevitably accompanied by severe growing pains and corruption.

"There's also the problem of overheated investment," another deputy director in charge of macroeconomic control continued in his report.

"Local governments blindly follow trends and engage in redundant construction projects."

"In several southern provinces, more than 30 color TV assembly lines and refrigerator production lines were set up in one go."

"Many of these are outdated and obsolete equipment purchased from abroad at high prices, which not only wastes precious foreign exchange reserves but also leads to serious overcapacity."

"Local banks' lending is now on the verge of spiraling out of control, and inflationary pressures are being transmitted to prices."

The deputy director wiped the cold sweat from his forehead.

"Last month, pork and vegetable prices in Beiping City generally rose by 15 percent."

"The public is very resentful, and there are already signs of panic buying of daily necessities in society."

After the report was finished, the conference room fell silent.

Everyone held their breath, waiting for Lin Yang's decision.

Lin Yang leaned back in the wide leather chair, his fingers tapping lightly on the table, making a clicking sound.

The sound seemed to strike everyone's heart, sending chills down their spines.

"Overheated investment, out-of-control credit, and rising prices," Lin Yang sneered.

"You're scared by this?"

Lin Yang suddenly sat up straight, placing his hands on the table like a tiger surveying its territory.

"A dual-track system inevitably breeds parasites, but this is precisely the reform cost we must pay!"

"Without releasing the invisible hand of price, we'll never know what the market truly lacks!"

Lin Yang's gaze swept over everyone present like a knife.

"Those corrupt officials who resell permits, now that they've come forward, should be arrested or executed!"

"Notify Chen Feng to have the Political and Legal Affairs Commissions of the Donghai and Handong regions take joint action."

"Keep a close eye on several of the largest logistics centers, arrest a few typical cases, and directly classify them as crimes of sabotaging national economic development, and punish them severely and swiftly!"

Lin Yang slammed his hand heavily on the table.

"As for the redundant construction in local areas, this precisely demonstrates the shortsightedness and incompetence of local officials."

"Notify the People's Bank of China headquarters that, starting next month, the credit quotas for local commercial banks will be tightened across the board."

"In addition to the 156 key industrial upgrading projects listed by the National Development and Reform Commission, as well as agricultural water conservancy facilities."

"Loans must be stopped for all other government buildings and facilities, as well as outdated production lines that have been blindly imported!"

Lin Yang's tone left no room for doubt, carrying an iron will that cut off all escape routes.

"Anyone who dares to defy the rules and issue unauthorized loans will be stripped naked and sent to the far northwest to plant trees!"

"Yes!" Shen Yan and the others immediately sat up straight and quickly took notes in their notebooks.

They knew that if Lin Yang made that decisive move, countless local lords would weep bitterly.

Only such swift and decisive measures can put the brakes on the frenzied economic overheating and preserve the foundation of the national economy.

"The core of the domestic problem is to rectify discipline and upgrade technology." Lin Yang picked up his teacup and moistened his somewhat dry throat.

"But the battlefield that will determine our nation's fate in the coming decades will not be at home, but abroad."

Lin Yang put down his teacup, his eyes becoming deep and cold.

"Shen Yan, distribute the internal report on the international macroeconomic situation."

Today, we'll focus on analyzing the outside world.

Shen Yan immediately took out several documents with top-secret watermarks from his briefcase and distributed them to the core members present.

The cover of the document prominently displays the title "Analysis of Global Macroeconomic Trends and Great Power Game in 1985".

Lin Yang stood up and walked to a huge world map on the side of the conference room.

He picked up a long, slender wooden baton and pointed it at the location of the North American continent.

"Let's look at the US first."

"Ever since that Hollywood actor-turned-president took office, the United States has implemented a so-called 'Reaganomics'."

Lin Yang's voice echoed in the quiet conference room, carrying a calmness that seemed to have seen through the fog of history.

"Tax cuts, deregulation, and a significant increase in military spending."

"He attempted to use this method to completely cripple the Soviet Union during the Cold War."

"From a military and political perspective, he did put enormous pressure on the Soviet Union."

Lin Yang drew a circle on the map with his baton.

"But economically, the United States is now reaping the bitter fruits of its own actions."

"In order to control the high inflation of the late 1970s, the Federal Reserve raised the benchmark interest rate to a terrifying level of 20% in the preceding years!"

The economic experts present couldn't help but gasp in surprise.

A benchmark interest rate of 20 percent means that the financing costs for the entire society are ridiculously high.

"High interest rates have indeed driven up inflation, but they have also destroyed traditional manufacturing in the United States."

Lin Yang coldly analyzed the weaknesses of the superpower.

"All the funds flowed into the financial markets and military-industrial complexes, and a large number of steel mills and automobile factories in the Great Lakes region went bankrupt, forming a rust belt."

"Even more fatal is that high interest rates have led to a massive influx of international capital into the United States, causing the dollar exchange rate to skyrocket."

"A strong dollar makes the United States' exports uncompetitive in the international market."

Lin Yang turned around and looked at the people in front of the conference table.

"Look at the data in the report."

"Last year, in 1984, the US trade deficit reached a record high of over $110 billion!"

"They have not only become the world's largest debtor nation, but their fiscal deficit is also skyrocketing."

"The pressure of twin deficits has already made it difficult for the US government to breathe."

Shen Yan adjusted his glasses, keenly grasping the key point.

"Sir, do you mean that in order to save itself, Country M will definitely try to devalue the dollar and increase its export competitiveness?"

"It's not about finding a solution, it's that they've already taken action." A cold smile curled at the corner of Lin Yang's lips.

He walked back to his seat, opened the document to a page, and tapped the large characters on it heavily with his finger.

"Just last month, on September 22, 1985."

"The finance minister of country M convened a closed-door meeting with the finance ministers of Japan, West Germany, France, and the United Kingdom at the Plaza Hotel in New York."

"They forced these four countries to sign the so-called Plaza Accord."

Lin Yang's gaze was as sharp as a hawk's.

"The core of the agreement is singular: major Western currencies must appreciate significantly against the US dollar!"

"In other words, the United States is using its political and military hegemony to forcibly shift the economic crisis onto its allies."

A murmur rippled through the conference room.

Those present were all top economic officials in the country, and they certainly understood what this meant.

A global financial and monetary war without gunfire has begun.