Chapter 271 The Opportunity for the Merger of Germany and Germany

Although the Federal Republic of Germany and the Democratic Republic of Germany have not yet legally become a unified country, the Federal Republic of Germany has already impatiently extended its hand to the other side of the Berlin Wall. Not long after Honecker stepped down, the Berlin Wall is still in place, and there are still troops guarding the border checkpoints. But East Germans no longer had to risk their lives running to the other side of the wall. Now the troops guarding the Berlin Wall don't even bother to check the exit and entry documents.

Countless East Germans rushed to West Germany in their satellite cars emitting black smoke. Many people came to West Germany for the first time and were not familiar with the local traffic rules, so they would inevitably be punished by the West German police. However, once they encountered such a situation, the generous West Germans would always say righteously: "Don't bully our East Germans. brother."

Although the people of the two Germans seem to be living in peace and have begun to prepare for becoming a family, the capitalists in West Germany are not so kind. They have already prepared funds and are waiting to start with the enterprises of the people in East Germany up.

As a showcase of socialism, East Germany's industrial level and people's living standards have always been among the best in the socialist camp. The East Germans have created a large number of East German brands with world reputation under this socialist system for decades. For example, East Germany's famous satellite car, Seagull camera, Carl Zeiss Jena's optical instrument, DKK refrigerator, East Germany's national shipyard, internationally renowned boiler and heating equipment manufacturer WWB Berlin, and East Germany's famous copier manufacturer . There are hundreds of such state-owned enterprises with excellent technology and good reputation in East Germany. However, after the East German government and the West German government reached a currency swap agreement, these companies fell into serious losses overnight.

The West German government began to issue West Deutsche Marks to East Germany on July 1, with an exchange ratio as high as 1:1. The Colombian Bank’s early exchange of U.S. dollars for East German marks from the black market made the Gorky Group make a lot of money in this currency exchange process. Earlier invested 20 billion West Deutsche marks, its rate of return was as high as 120 billion West Deutsche marks. It has doubled by as much as six times. Thanks to the generosity of the Kohl government, the people of East Germany multiplied their assets sixfold. The entire East German society was full of confidence in the future after the merger.

But are things really so good? Those state-owned companies in East Germany don't think so. The currency has doubled six times at once, which means that the original loan of 1 million East German marks has to be repaid by 1 million West German marks, which means that the production costs of enterprises in East Germany have doubled by a full six times. You must know that even the best For industrial enterprises, it is very difficult to keep the asset-liability ratio at 60%, but the issuance of West Deutschmark has also greatly increased the debt ratio. Under these circumstances, most of the East German state-owned enterprises became insolvent almost overnight.

Now most East German companies have begun to suffer serious losses under the impact of the West German mark. One of the core competitiveness of East German enterprises - price advantage no longer exists. And those capitalists in West Germany began to take this opportunity to plunder the state-owned assets of East Germany. Among them, the most ugly one is Columbia Bank. They bought up the East German mark long before the release of the West German mark, and after making six times the profit, they in turn embezzled those famous companies in East Germany, such as the East German National Shipyard, Satellite Automobile, Carl Zeiss Jena and other famous companies. The state-owned enterprise, and subsequently the GDR National Shipyard, was sold to the Swiss-based MSC. Satellite cars were owned by Volkswagen, and Carl Zeiss Jena was sold to the Carl Zeiss factory in West Germany by the Blackstone Group. The Blackstone Group took this opportunity to obtain about 40% of the shares of the newly merged Carl Zeiss Optical Instruments. Takes control of this historic optics company.

In fact, in Seryozha’s view, West Germany issued the West German mark to East Germany at a ratio of 1:1.

It seems generous, but it is actually a complete fraud. In the past, East German people had the best welfare in the socialist camp. Although consumer goods such as coffee may face a single variety and insufficient supply, East German people do not have to worry about unemployment, housing and other issues. Probably the single biggest expense of any East German family was the purchase of a Satellite car. Because the production capacity of satellite brand cars is limited, they can only be supplied by ticket. The average savings of each family in East Germany was around 7,000 marks, and the price of a satellite car was around 3,000 marks. Almost every family can afford it.

However, after the merger of Germany and Germany, East Germans will gradually find that although their money has increased nominally, prices have increased by far more than six times. Money has less real purchasing power. 7,000 marks is a lot of money for East and West Germans, but if it is used for shopping, it may not even be able to afford a Golf. In West Germany, although people seem to be rich, in fact, most of them have negative assets. They consume through overdraft credit, and then use the money they earn to pay back to the bank. Glamorous, but economically far less independent than the East Germans.

Sergey still understands this simple truth. At the same time, he is also brewing a bigger plan, which is to repeat the old tricks that were used to pierce the bubble economy in Japan after the merger of Germany and Germany, and ruthlessly remove the most Wealthy Germany beat him on the head. Seryozha would not have had such an opportunity, but Cole's currency exchange plan gave Seryozha a chance. The 1:1 exchange between the East German mark and the West German mark blew up the size of East Germany's assets by six times overnight. This is not serious currency oversupply, what is inflation? Does the West Deutsche Mark issued to East Germany have foreign exchange support? Of course not. The wealth created by printing money without foreign exchange support will be suppressed by the market to its true value sooner or later.

Sergey is very sure of this plan, but he can't be too scheming, because the Central Committee of the Communist Party of the Soviet Union has entrusted him with the work of negotiating the merger of Germany and Germany. He wants to let the Soviet Union withdraw from East Germany first, and at the same time Knocking the last protection fee from the West German government will at least cancel the foreign debts that the Soviet Union has borrowed from the West German government for so many years. Although this condition is harsh, the West German government has no way not to agree. Because the division of Germany was a joint decision of the United States, Britain, France, and the Soviet Union in accordance with the agreement. Without the approval of the Soviet Union, the merger of the two Germanys was tantamount to denying the results of World War II. Regardless of whether the West German government wants it or not, the Soviet Union's bamboo stick is finalized, and of course there is the bigger bamboo stick of Seryozha. Seryozha feels that if the plan to loot Germany goes well, the Gorky Group will have nothing to do Controversially became the world's number one consortium. Because the Gorky Brotherhood is the only consortium in the world that has continuously robbed Japan, which ranks second in the world in economic aggregate, and Germany, which ranks third.