Chapter 271 Opportunities for the merger of the two Germans
Although Federal Germany and Democratic Germany have not become a unified country legally, Federal Germany can't wait to reach out to the other side of the Berlin Wall. Not long after Hornak stepped down, although the Berlin Wall still exists, and there are still troops guarding the border inspection passage. However, the East Germans no longer have to risk their lives to run to the other side of the wall. Now the troops guarding the Berlin Wall are too lazy to check their exit and entry documents.
Countless East Germans drove their satellite-branded cars with black smoke to West Germany. Many people were unfamiliar with local traffic rules and were inevitably punished by West German police. However, once they encountered this situation, the generous West Germans would always say righteously: "Don't bully our East German brothers."
Although the people of Germany seemed to be in peace and had begun to prepare for becoming a family, the capitalists in West Germany were not so kind. They had already prepared funds to wait to start with the enterprises of the people in East Germany.
As a socialist window, East Germany's industrial level and people's living standards have always been among the top 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 cars, Seagull license plate cameras, Carl Zeiss Jena's optical instruments, DKK refrigerators, East Germany's national shipyard, WWB Berlin, an internationally renowned boiler and heating equipment manufacturer, and Planeta, a famous copier manufacturer in East Germany. There are as many as hundreds of state-owned enterprises with excellent technology and good reputation in East Germany. However, after the East German government and West German government completed the currency swap agreement, these enterprises fell into serious losses overnight.
The West German government began issuing West German marks to the East German region on July 1, with a conversion ratio of up to 1:1. The early move of Colombian Bank to exchange East German marks with a large amount of US dollars from the black market led to a big profit in the process of this currency exchange. It invested 20 billion West German marks and its return rate was as high as 120 billion West German marks. It increased by six times. The people of East German thanked the Kohl government for their generous actions, which increased their assets by a full six times. The entire society in East German is full of confidence in the future after the merger.
But is it really that good? Those state-owned enterprises in East Germany do not think so. The currency has increased six times at once, which means that the original loan of 1 million East Germany Mark would have to be repaid 1 million West Germany marks, which means that the production costs of East Germany's enterprises have increased six times. You should know that even the best industrial enterprises have a debt-to-asset ratio that can be maintained at 60, but the issuance of West Germany marks has also greatly increased the debt-to-asset ratio. In this case, most East Germany's enterprises have become insolvent almost overnight.
Now most East German companies have begun to suffer serious losses under the impact of West German Mark. One of the core competitiveness of East German companies, the price advantage, no longer exists. And those West German capitalists have begun to take this opportunity to embezzle East German state-owned assets. Among them, the ugly one is the Colombian Bank. They acquired East German Mark long before the issuance of West German Mark. After making a big profit of six times, they embezzled the famous East Germans.
Companies, such as the East German National Shipyard, Satellite Automobile, Carl Zeiss Jena and other famous state-owned enterprises, were subsequently sold to the Mediterranean Shipping Group in Switzerland. Satellite Automobile was acquired by Volkswagen, while Carl Zeiss Jena was sold to the Carl Zeiss factory in West Germany by Blackstone. Blackstone took this opportunity to obtain about 40 shares of the newly merged Carl Zeiss Optical Instruments and completely controlled the long-standing optical company.
In fact, in Seriosha's view, West Germany's move to issue West Germany at a ratio of 1:1 seems generous, but it is actually a complete scam. In the past, the owners of East Germany's people's owned people in the socialist camp. Although consumer goods like coffee may face a single variety and insufficient supply, the East Germany people do not have to worry about unemployment, housing and other issues. The biggest expense of each East German family is probably to buy satellite-branded cars. Because the production capacity of satellite-branded cars is limited, they can only be supplied by tickets. The average savings of each family in East Germany are around 7,000 marks, while the price of a satellite-branded car is about 3,000 marks. Almost every family can afford this fee.
However, after the merger of the two Germans, the East Germans gradually discovered that although the money they had in their hands became nominally more, the price increase was much more than six times. The actual purchasing power of the currency became less. The 7,000 mark was a lot of money for East Germans and West Germans, but if used for shopping, they might not even be able to afford a golf. In West Germans, although people seem to be rich, most of the West Germans are negative assets. They spend money by overdrawing credit and then use the money they earned to return to the bank. Although the West Germans look glamorous, they are actually far less independent than the East Germans in terms of economy.
Selyossa still understood this simple truth, and at the same time he was also planning a larger plan, which was to use the same trick to pierce the bubble economy in Japan after the merger of the two Germans, and knocked him hard on the richest Germany in Europe. Selyossa originally had no such opportunity, but Kohl's currency exchange plan gave Selyossa a chance. East Demark and West Demark exchanged 1:1, blowing up the scale of East DeGer's assets six times overnight. Isn't this a serious currency over-issuance, what is inflation? Does West DeGermany issued to East Germany have foreign exchange as support? Of course, there is no wealth created by starting the printing press without foreign exchange as support. Sooner or later, it will be suppressed by the market to its real value one day.
Selyosha was very sure of this plan, but he could not be too scheming, because the Central Committee of the Soviet Union had handed over the work of the merger negotiation between Germany to him. He wanted to let the Soviet Union escape from East Germany and at the same time he had to knock on the last protection fee from the West German government. At least he had to forgive the foreign debt borrowed by the Soviet Union from the West German government over the years. Although this condition was harsh, the West German government could not agree. Because it was the United States, Britain, France and the Soviet Union that split Germany in accordance with the agreement.
Chapter completed!