.Chapter 63: Three Eagles with One Shot

"What does this mean?" Lindberg broke his silence and asked the first question.

Chandler avoided the president's gaze. Although he was a four-star general and the director of intelligence, he had no say in economic issues.

"We have always believed that China's political corporations are very rich." Strauss glanced at Chandler before saying to the president. "For more than 20 years, the tax growth of China's political corporations has been above double digits. In recent years, it has increased by more than 30% per year, far beyond the economic growth and social wealth is highly concentrated. In the context of the financial crisis, it is probably only China's political corporations are not short of money."

"This does not mean that China's political affairs are very rich." Chandler Bsp; he must explain, because before CIA provided information on China's financial situation, clearly mentioning that China's political affairs are very rich.

"The problem is here." Strauss smiled and said, "In addition to taxation, China's government also has many means to control social wealth, such as banking currencies through central banks, almost unrestricted treasury bonds, local debts and corporate bonds, making huge profits through state-owned monopoly enterprises, etc., various administrative charges, etc. So, why should China's government open deposit and loan banks to private capital?"

Chandler didn't speak anymore. When it comes to economic issues, he was definitely not a match for Strauss.

Lindberg frowned and asked Strauss to continue talking.

"As we all know, banks are the core of finance, and finance is the core of the economy. Although China's government has opened lending banks before this, private banks cannot absorb deposits and cannot grow stronger." Strauss paused for a moment and said, "The key is that after private banks grow stronger, they will definitely pose a threat to state-owned banks, thus having an impact on China's basic economic system. State-owned banks are the main means for China's government to control social wealth, and it is also the public economy.

An important foundation of the system. It can be imagined that private banks will inevitably promote the development of the private economy, and the wave of "national advancement and private retreat" that has lasted for more than 20 years will definitely reverse. As private enterprises grow, state-owned enterprises will face an unprecedented survival crisis. After the economic foundation changes, the social system and political system will also change accordingly. This move by China's political economy seems to be raising funds for war and reducing the burden on the country. In fact, it is laying the foundation for future economic reforms and even political reforms, and planning the country's strategic development direction."

"What impact will it have on the war?" Lindberg pulled the topic back.

“It depends on the actual situation.”

"What's the actual situation?" Lindberg asked.

“To what extent will this war be exhibited and how much China is participating.”

Lindberg frowned and waited for Strauss to continue.

"More than 60 years ago, the team defeated United** with its strong fighting will and rich practical experience. Now, the team has neither strong fighting will nor rich practical experience. What can we rely on to win?" Strauss glanced at Chandler and said, "Although I am not a soldier, I think the team can only fight in the way we are best at. Director, what do you think?"

Chandler hesitated for a moment and said, "It seems that's true at the moment."

"General, can you explain it clearly?" Lindberg did not let go of this topic.

"After the Gulf War, China began to vigorously promote military reforms. Subsequently, the Soviet Union collapsed, and China took this opportunity to introduce a large number of advanced weapons and equipment from Russia, including the Su-27sk and Su-3omkk fighters, the 877 and 636 submarines, the ‘Hyundai’ class destroyer, and the S-3oo air defense system. In addition, a large number of weapons and equipment were purchased from other CIS countries, such as the ‘Varyag’ aircraft carrier purchased from Ukraine. These weapons and equipment accelerated the pace of modernization. Take the Air Force for example, with the introduction of the Su-27 series of fighters, the overall level has increased by 20% by 20% with the introduction of the Su-27 series of fighters.

In 2019, the standards were basically reached at the end of the 20th century. There is enough intelligence to prove that our amazing performance in the Gulf War left a deep impression on the Chinese leaders and made the top Chinese leaders attach great importance to military modernization. For the current team, it is no longer possible to defeat the enemy by relying on will and experience as they did more than 60 years ago. Some factors that cannot be ignored or changed, such as the single-child policy of social structure, the materialism brought about by economic development, etc., have to seek new combat capabilities and achieve military modernization, becoming the only choice."

"In other words, the team will fight a high-tech war with us?" Lindberg summarized it in one sentence.

Chandler nodded, saying that's what it means.

Straus smiled and said, "The problem is obvious. Since it is a high-tech war, it is an amazing war."

"So, China is preparing to expand the scale of the war?"

"It can be said that no one knows how much money this war will cost." Strauss put away his smile and said with a serious expression. "Not to mention whether the Chinese government has money for the time being, what China government first considers is not whether it can win, but how to reduce the impact of the war on the national economy."

Lindberg nodded thoughtfully, as if he understood what Strauss meant.

"In fact, the economic problems faced by China's politics and the social problems caused by the economy are much more serious than the current war. As early as before the financial crisis, China had symptoms of economic overheating, and the volume of broad money was far greater than the total national economic volume. However, the huge overseas market supported thousands of outward-oriented enterprises, created hundreds of millions of jobs, and did not cause bad inflation. The problems were covered up by prosperity. After the financial crisis, overseas markets shrank rapidly, and the volume of currency led to bad inflation, which pushed up labor costs, causing outward-oriented enterprises to have serious lack of competitiveness when facing other countries, especially enterprises in low-labor areas."

Lindberg smiled, the topic had been discussed very clearly before.

According to the view of most people, if China intervenes in this war and invests huge amounts of war funds, this war will become the last straw to crush China.

"It is obvious that raising war funds by banking currencies will only make China's economy worse and ultimately trigger social conflicts." Strauss sighed and said, "At present, the top Chinese leaders have recognized this problem and found an effective solution."

"Yeah?"

"Although many people believe that China's fundamental problem is the political system, many people ignore one problem, that is, without an economic and social foundation, political reform is tantamount to self-destruction. Fundamentally, China's problem is economic, that is, lack of economic entities, or social entities that promote political reform. This is a very complex issue that takes time, and requires more skill and courage. When economic reform has been implemented for more than 30 years and vested interest groups have been formed, no wise leader will take action blindly, and will not carry out drastic reforms. He will only promote reforms in appropriate ways at the right time."

"As you mean, now is the right time?"

Straus nodded with a smile and said, "From the economic perspective, there are two problems in China: one is the serious imbalance in the distribution of social wealth, and the other is that circulation is far beyond the needs of the market. To put it simply, the vested interest class uses highly concentrated power to accumulate capital in a way that is most difficult for ordinary people to detect. To implement it on the current issue, if Chinese government bears war expenses, the only way is to increase the volume of money and continue to dilute the wealth of ordinary people, which will inevitably lead to more concentrated wealth, more poor people, and more serious inflation. The result is obvious that even if China wins the war, it will lose completely economically.

"In fact, even without this war, social injustice will sooner or later push China to the edge of the cliff. In addition to considering the affordability of ordinary people, Chinese politics also have to consider the flow of social wealth. There are information that 70% of China's rich people have immigrated or are undergoing immigration procedures, and these people have more than half of the social wealth. Perhaps ordinary people are not able to defend their own interests, but for rich people who are able to make their first pot of gold from the original accumulation of capital, they will definitely try every means to protect their vested interests.

"Capital is profit-seeking and always finds a way out. At present, due to the high concentration of power, private capital will still have some concerns when looking for a way out. For example, when hyping up various investment products or even daily necessities, no one dares to speculate on food and other essential materials. Research shows that in the short term, it only takes 500 billion yuan to increase the price of rice and flour in China in the short term, while China's private capital is more than 500 billion yuan? However, as the economic environment continues to deteriorate, more and more capitals are beginning to find a way out. Sooner or later, they will focus on these essential materials that are enough to cause serious social turmoil. The best choice for Chinese politics is not to block, but to loosen.

"The problem is, how to evade? If you only lose money but not make money, even if the government has a great power, even forcibly expropriated, it will not be able to fundamentally solve the problem. Instead, it will force more private capital to flow out, eventually emptying social wealth, making it more difficult for ordinary people to make a living.

"To solve this problem, the Chinese government must cut a large piece of the social wealth cake and guide private capital to a favorable direction. If the Chinese government guarantees the war, then the investment in North Korea will not be unprofitable, but a huge profit. After opening up deposit and lending banks to private capital, the next step is to let these private banks provide war financing for North Korea.

"This move can be said to be a killing of three birds with one stone. First, it solved the problem of war funding and gave China's political affairs enough confidence to fight a high-consuming modern war with us. Second, it solved the problem of private capital flow, finding a way out for trillions or even hundreds of trillions of private capital. Third, it digested the currency of quantity, laid the foundation for stabilizing prices, controlling inflation, and even redistribution of social wealth." Strauss exclaimed and finally said, "It is undeniable that after the war, with the gradual return of private capital, China's social problems will resurface, but China's political affairs have taken a big step on the road of economic reform. As long as private capital takes the opportunity to grow and gain a place on the stage of power, China will take the opportunity to promote political reform."

"In other words, in the future we will have to face a more difficult China to defeat?"

Straus nodded and answered the president's question.

"We must not let China take this step, at least we must not let China's political efforts be effective."

Chandler hesitated for a moment and said, "The only way is to defeat China on the battlefield and let all Chinese investments in North Korea be wiped out."
Chapter completed!