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Text Chapter 107: Super stock market crash

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    In 1928, the Republic of China held another presidential election. In this year's election, Song Jiaoren finally resigned. Song Jiaoren served as president for twelve years.  Mango Live Network This year¡¯s election, a huge color TV was hung in squares in cities across the country. This TV was very expensive to sell, but the government had money, so the actual cost was not high, but the consortium had to sell it.  It has to be more expensive, which is equivalent to a way for the government to recycle banknotes and curb inflation.  The election was obviously rigged, but the people didn¡¯t know it.  This year¡¯s unofficial president is Li Yuanhong. After waiting for so many years, he finally became president again.  The person running against him was Zhao Haizhou, who came from the Jianghuai Administration Bureau and was Jiang Yu's confidant.  However, the script does not have Zhao Haizhou on stage, but Li Yuanhong.  This president will take the blame.  After a televised debate and secret manipulation by a consortium, Li Yuanhong was elected as the fifth president of the Republic of China by a narrow margin.  As soon as Li Yuanhong came to power, he received a bankbook worth 5 million yuan.  Li Yuanhong, who became the president with the highest gray income and came to power again, has obviously become more at ease. He knows that the Republic of China controlled by Jiang Yu is not something he can compete with, and that the president is just a superficial show.  The reason why Li Yuanhong has such a high income is naturally because this term of president is also the worst.  He is like Herbert, the president of the United States in history?  Clark?  Same as Hoover.  However, the economy will continue to prosper for more than a year after Li Yuanhong came to power.  The Republic of China continued to move forward in accordance with the route approved by Jiang Yu. In 1929, the construction of the Republic of China reached its peak.  This year, the Republic of China achieved a record of steel production exceeding 700 million tons. Under the prosperous market economy, cars have become very common things for the people of the Republic of China.  At the same time, this year, all low-income groups were able to move into affordable housing.  At the same time, electrical appliances have been widely popularized within two years. Large appliances such as refrigerators, air conditioners, televisions, and washing machines have entered the daily lives of ordinary income classes, greatly improving people's quality of life.  In the subject countries, due to the large amount of investment, the people of the subject countries also drive a large number of cars, but most of these cars are economical cars.  According to market statistics, an average of 53 households in various dependent countries and puppet countries drive family cars. Even Ethiopia on the African continent has a large number of cars. Among them, the countries with the best car popularity are Vietnam, Siam, North Korea,  Japan is a dependent country.  Because the massive consumption of the Republic of China has greatly promoted their economic development.  At the same time, in various dependent countries, the stock market is even crazier than that of the Republic of China, and a large number of people are buying stocks.  In the Republic of China, at the beginning of 1929, the Central Bank of China once again announced that it would lower interest rates to a historical low of 1.  A large number of people can no longer maintain the value of their money in banks, so a large amount of investment is generated again, and funds pour into the stock market crazily.  The Central Bank of China printed money like crazy in 1929, and the Yanhuang currency depreciated by more than 40, while stock returns naturally seemed to have increased.  As long as you throw money into the stock market, you can make money, and the stocks will rise strongly every day.  Beginning in mid-December 1929, the final madness took place. A large number of listed company stocks in the stock market continued to rise at a daily limit of more than 10%. Other stocks, at worst, could rise by 2 or 3 percentage points in a day.  It has been rising for half a month.  December 29, 1928, Monday.  This is a day that will forever be remembered by history as Black Monday.  The six major stock exchanges of Shenyang, Shanghai, Wuhan, Chengdu, Guangzhou and Suiye will reopen on the 29th after being closed on Sunday.  When the market first opened, everything was normal.  Stock prices continue to move higher, futures are similarly bullish, and bond prices are firm.  At 10 a.m., stock prices suddenly began to fall.  A large amount of funds have fled from the stock market, and funds have also begun to flee from the bond market. The futures market is full of bets that predict the price of various products will fall.  This kind of fund withdrawal started at 8 o'clock, but not many people paid attention to it, because the funds of private capital were sufficient for a while, and the consortium began to flee the funds, all of which were absorbed by private capital.  By 10 o'clock, private capital could no longer hold on, and stocks fell rapidly.  The drop in stocks immediately caused a great panic. A large amount of private capital joined the selling. The public telephone booths in various stock exchanges were crowded, and news of the stock drop was passed on one after another.  "Hello, audience friends, it is now 10:28 on December 29th, Beijing time. This is the Shanghai Stock Exchange. As you can see from the camera, the entire exchange has fallen into panic and chaos. The stock market of the Republic of China  It has been going strong and higher for 9 years.After that, there was a sharp decline for the first time, and some stocks quickly fell to the limit, and the momentum was extremely rapid.  "Hello, viewers, this is the Wuhan Stock Exchange After the opening today, each stock fell by an average of 7" The TV station's live news broadcast recorded the entire start of the horrific stock market crash on each stock exchange on this day.  On this day, Jiang Yu came to the Huadong Building in Shanghai. He was silent and silent while watching the chaos in the stock exchange market on TV. He just smoked cigarettes one after another. The ashtray was full of cigarette butts and the entire conference room was filled with smoke.  At the same time, there was deathly silence. ¡°Commander, most of our funds have been withdrawn.  "Zhou Ziyue whispered to Jiang Yu. Jiang Yu nodded silently, then continued to watch TV. After a while, he said: "Proceed as planned.  "    "yes.  " In the VIP reception rooms of various banks, the private equity bosses who were supposed to repay their loans today and borrow another sum of money to invest in the stock market are going crazy. "No! No! No money! Still no money! Over and over again.  When asked, the answer was the same every time. The loan that was very easy to get approved in the past was suddenly tightened. The bank was no longer willing to lend them even a penny. Everyone felt that the world was spinning, and they might not be able to get the loan.  There will be nothing left. The Central Bank of the Republic of China announced on the same day that it will adopt monetary tightening policies. This news was like a bombshell. Some stocks that were relatively strong also began to fall. At the close of the day, various securities exchange markets.  Almost all stocks fell to the bottom. On a dark Monday, a day that made countless people feel extremely gloomy. On the prime time news that night, various TV stations reported: "Regarding the stock market decline, President Li Yuanhong of the Republic of China has announced.  A Xinhua Palace meeting was held to discuss bailout issues.  " Then the screen showed a meeting of Li Yuanhong and a group of politicians with solemn faces. Li Yuanhong loudly said at the meeting: "We want to save the market, we must save the market.  "This sentence seems to give people hope. On the second day, the securities trading market was silent, and everyone was looking at the numbers. Falling! It still continues to fall! But some people are performing even crazier  These people are still throwing money into stocks, hoping to buy the bottom. But after a day, they still put money into it, and it fell to the limit again on Wednesday.  The market continued to open, with no gains. On Thursday, the government¡¯s delay in bailing out the market made the public extremely dissatisfied. On Friday, President Li Yuanhong of the Republic of China finally announced that he would invest 10 billion to rescue the market.  . This news was like a shot in the arm. As soon as the major stock exchanges opened on Friday, the government¡¯s bailout funds arrived, and the government of the Republic of China began to buy stocks. But what the private sector didn¡¯t know was that the central government¡¯s bailout money.  All of them were used to buy the stocks in the hands of the consortium. The consortium successfully evacuated all the funds. The reason why the stocks continued to rise was that the private investors thought that the time for bargain hunting had come, so they continued to increase their firepower and kept throwing money away.  After entering the stock market, stocks continued to rise. However, many stocks just stopped their downward trend that day, with the highest increase not exceeding 5. On Saturday, after the market opened, stocks continued to fall and continued to fall.  The weak confidence that was just established was once again destroyed. It was stuck at 12,000 points, and it was stuck at 11,000 points. Companies went bankrupt every day.  , the market is in panic, a large number of loans are due every day, and a large number of assets are entering the liquidation stage. In the Shanghai Securities Exchange Market, the Shanghai Stock Exchange Index fell from its peak of 15,000 points to 8,000 points in just one week, with an average daily drop of 9.5.  Almost all private equity bosses and ordinary people who hold stocks have joined the stock selling process. Entering the second week, a lot of good news suddenly appeared in the market. First, Li Yuanhong started a dialogue with the Central Bank of China to discuss loosening monetary policy.  Private investors who wanted to buy the bottom invested their money in the stock market again, but they were still trapped! The bottom buying was done by consortiums.Naturally, we don¡¯t want those wealthy citizens to get a piece of the pie, so these messages are just a trick. ??????????????????? Then lock the funds of those well-funded private investors in the stock market, causing them to lose money.  It will take at least ten years to unravel this problem, and not everyone can persist for that long.  The consortium is standing still.  Due to the monetary tightening of the consortium, banks are 'raiding homes' every day, a large number of companies have gone bankrupt, and a large amount of currency in the market has been continuously withdrawn.  The currency on the market continues to decrease and decrease again.  Some private enterprise owners who can repay their debts are in tragedy.  Nowadays, no one has any money. When the bank is liquidated, assets that could be sold for 10 million in the prosperous period may not be sold for 1 million now, so they leave their homes and become bankrupt.  Every day, people jump from the stock exchange building, and each one falls to pieces.  But not everyone is so extreme. The Republic of China immediately launched life support assistance and police security protection.  Why did those people commit suicide?  Most of them are because they borrowed illegal loan sharks or other things, and may be violently liquidated.  After bankruptcy, you don¡¯t have to pay back the money.  Therefore, those private bosses who only owe money to the bank, even if they go bankrupt, can just buy a bottle of cheap liquor and get drunk, and when they wake up, they will apply for the state's bankruptcy living security. The state will never let them starve to death.  And the consequences of this stock market crash are still having a chain reaction.  A large number of bosses went bankrupt, and huge wealth seemed to evaporate overnight, causing the consumer market to immediately become deserted.  Factories go bankrupt, ordinary workers are unemployed, a large number of workers are unemployed, and the consumer market continues to be depressed, causing more people to become unemployed.  A large amount of grain and livestock cannot be sold, and a large amount of commodities cannot be consumed.  A large number of industrialists who did not invest in stocks also went bankrupt one after another.  Farmers who took out loans to carry out agricultural reform also went bankrupt one after another.  Even the government has begun to lay off civil servants.  ¡°As for other Third World Alliance member states, the stock market also experienced a horrific crash on December 29, and a large amount of wealth evaporated in just a few days.  The unemployment protection systems in these dependent countries are not so perfect.  ¡°However, in order to avoid causing trouble, the Republic of China still shipped a large amount of food that could not be consumed to various countries, allowing them to ensure social stability, while strengthening social security and increasing stability maintenance expenditures.  The member states of the Third World Alliance collectively suffered a stock market crash, which quickly spread to the world.  A large number of products could not be sold, and the Republic of China began to dump these products to European and American countries at extremely low prices.  Before the European and American countries could react, the Republic of China had already used its huge ocean transportation capacity to export a large number of products to European and American countries. It was obviously premeditated.  Mango Live Network No one wants the minerals mined in Europe and the United States. The Republic of China does not want those minerals. Coupled with the dumping of a large number of products, the world economy has also experienced a chain reaction of depression.  European and American countries have accused the Republic of China of dumping goods to them, while the Republic of China stated that this was a normal export of goods.  The American consortium is very helpless at this time. The Republic of China has suddenly plunged the economy into depression. It has not received any news before. It is obvious that the Chinese consortium is harvesting assets.  And the United States is far from completing asset harvesting.  This leaves the American consortium facing a huge problem. Once the American consortium fails to complete the harvest and enters a state of war, even if Europe and the United States win the war, the interests of the consortium will be greatly damaged.  So the American consortium reluctantly joined the battle and started harvesting.  You must know that this is a very difficult choice, because although the United States is also engaged in a bubble economy and is building frantically, people's livelihood has not developed as well as in the Republic of China.  The scale of infrastructure has been completely surpassed by the Republic of China, and the scale of industry has not met construction expectations.  Now the United States can only bite the bullet and harvest assets. The US Federal Reserve has also begun to implement monetary tightening policies. The US economy has taken advantage of the economic depression of the Republic of China, and the stock market has also started to plummet.  In its propaganda, the U.S. government attributed the U.S. economic depression to China's dumping of large amounts of goods into the United States, thereby diverting internal conflicts.  ??Here in the Republic of China, the economy suddenly fell into depression, and the government naturally had to give an explanation.  As a result, major TV stations and newspapers attributed the economic depression to vicious competition and uncontrolled production, which led to the large number of vicious assets.  At the same time, the cause of the economic depression is also attributed to the financial attacks from Europe and the United States. This is completely unfounded. European and American consortiums did make money in the Chinese stock market, but when the economic depression came, luckily they escaped quickly, but they escaped.Cheng Zhong cut the flesh to such an extent that it was like a fairy dying, and he even lost some of his capital.  The wave of bankruptcies in the Republic of China is still continuing, and many banks have even gone bankrupt. However, the Republic of China has a guarantee system and people can get their money back from the central bank.  However, the bank itself has shareholders and controls many assets at the same time. When a bank fails, part of the shares of thousands or tens of thousands of companies are liquidated by the central bank and become wholly-owned banks by consortiums such as Hua Xia Central Bank and East China Bank.  assets.  In fact, those listed banks are just a branch of the consortium, a shell that can be thrown away at any time.  The economy continued to be depressed. In 1930, as many as 230,000 companies went bankrupt in the Republic of China that year. A large number of factories closed down and companies went bankrupt.  As banks adopt monetary tightening policies, companies cannot get loans and people cannot get money, resulting in the money circulating in the market decreasing every day.  At this time, the Republic of China changed from inflation to deflation, and the value of Yanhuang coins increased significantly. However, for many private investors who were still holding on, the longer they repaid their loans, the less valuable their assets would be, because there would be no money left in the market by then.  When the bank liquidates its debts, the assets originally worth 10 million in monetary value can now be sold for 2 million, but next year they may not even be worth 1 million.  ¡° Nowadays, not only the bosses of private capital have no money, but also the people have no money. How can they get the money to buy the assets that have been liquidated by banks?  In the end, he became insolvent and could not get even a dime.  Even for those companies that had good finances before, even if they still have a loan that has not been repaid, and they don¡¯t have that much money on hand, if their assets can cover their debts, a large part of their assets will have to be taken away.  It¡¯s really hard work for more than ten years, and I returned to the pre-liberation period overnight.  And Jiang Yu's consortium has collected most of the assets of almost the entire country, and its wealth has become unprecedentedly concentrated.  In 1930, the national unemployment rate in the Republic of China soared to 35, and a large number of people were unemployed.  However, because the security system of the Republic of China is perfect, the basic life of the unemployed can still be guaranteed.  In addition, many people have savings, so they can survive this difficult period. It is obviously impossible for people to starve to death like the Great Depression in the United States in the 1930s.  But the people are extremely dissatisfied with President Li Yuanhong's inaction. They strongly demand that the central government of the Republic of China start restoring the economy so that they can have jobs.  President Li Yuanhong declared in a televised speech: "The current economy of the Republic of China is very healthy and there are no problems." This has further aroused public dissatisfaction. People have no jobs. Is this still healthy?  But looking at it from another perspective, the economy of the Republic of China is indeed healthy today.  Wherever there is prosperity, there must be depression. The economy cannot be prosperous forever, nor can it be depressed forever, but there must be a period of depression, just like the constant ups and downs of life.  After the depression, there will be bright sunshine.  However, for many ordinary people, they have experienced the period of economic backwardness in the late Qing Dynasty and are not too uncomfortable with the current economic depression. After all, the government has guaranteed their basic life, and nothing can be worse than the period in the late Qing Dynasty and the early Republic of China.  Are times worse?  Even at the beginning of the Republic of China, in order to build industry, there was not enough food to eat.  (To be continued!)
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