King Of War: Starting with Arms Dealer Chapter 1073: 951: Deal!

Chapter 1073: Chapter 951: Deal!

Is it really possible to buy and sell a country’s basic industries?

In fact, it is indeed possible!

The economic order established after World War II is essentially a US Dollar economy.

If you want to develop, you need external input of funds and technology, which are ultimately converted into US Dollars and transford into debt.

There is no real ‘aid’ or ‘assistance in construction’ unless it is prefixed with ‘non-repayable’; otherwise, it is all low-interest or interest-free loans that need to be repaid!

No country in the world can be completely self-sufficient; they need to purchase goods, which requires using US Dollars or Euros for transactions.

But if you don’t have sufficient industrial products or natural resources to export, you can’t earn enough foreign exchange to buy goods from other countries.

To et dostic developnt needs, borrowing US Dollars becos necessary.

When debt keeps growing larger without healthy assets to support it, the national finances will eventually beco overburdened.

And when a governnt is insolvent, the result is bankruptcy liquidation, and all governnt-owned assets and public facilities will beco bad assets.

At this point, asset managent companies will step in to take over at a low price, ostensibly injecting their own funds to revitalize these assets. In reality, the holders of these assets change from the state to corporations or even individuals.

Of course, this is just on a larger scale; governnt bankruptcy is relatively rare, so sotis people find it hard to understand how a company can swallow so many things?

To give a simple example, if a small town wants to develop, it would consider loans or issuing bonds to raise funds and then invest in fundantal projects such as energy, electricity, roads, schools, hospitals, and public transportation, all essential for economic developnt…

But if the economic developnt of this town does not et expectations, debt defaults will occur.

This situation does not exist during good economic tis, as banks are willing to provide new loans to repay old debts, and the town can also issue new bonds to pay off previous ones.

However, when the economy is bad, banks will demand early repaynt of loans, and bonds will beco unpopular.

This is understandable as a comrcial action, because bad loans are a significant loss for banks.

When banks find out that this loan cannot be recovered, in order to alleviate their own responsibility, they will dispose of the bad loan to asset managent companies.

These companies take over this debt at about 30% of the value and then negotiate with the town governnt.

The town certainly doesn’t want to go bankrupt, so it is willing to negotiate and formulate a so-called repaynt thod.

The gentlest way is to give you ti, allowing you to propose a repaynt plan I can accept and gradually repay the loan, avoiding bankruptcy.

For example, I require you to mark out parking spaces on all public roads; if the town residents don’t want to see the town bankrupt, they have to pay a high parking fee when driving out.

The harshest approach is bankruptcy liquidation, taking away the town residents’ pension fund, public maintenance fund, and even selling off your governnt buildings and all governnt-owned assets.

This practice is quite common not only in Africa but also in Arica; so towns have been devoured by capital in this manner.

Another seemingly fair way is for you to package and hand over your public assets to , such as water plants, power systems, sewage treatnt systems, and other such entities…

I can provide funds to ensure these projects operate, but ownership needs to change, and price increases are inevitable, and the town’s future developnt needs to heed opinions.

Why do Hollywood movies often portray certain super-capitalist corporate giants as villains?

In almost all cyberpunk thed movies or gas, governnts succumb to corporations.

This is because Europeans and Aricans are more familiar with the operation of the mainstream rules of this world; they know that in certain corners of this world, there exist such super giants.

This is not simply a fantasy, but like the Terminator, it is a concern about the future.

Because this possibility absolutely exists, the key to determining whether it happens is the people controlling these corporations rather than the law.

Of course, if a country’s main political entity, you can choose to default, and the result is obvious.

The country’s credit rating declines, unable to get loans from international banks.

No loans, no externally sourced equipnt or technology; even if you have mines, you can’t exploit them, and oil can’t be extracted.

If you are a country mainly reliant on manufacturing, unable to obtain loans ans you can’t purchase raw materials, so export becos out of question.

When those controlling the country are not smart enough and still succumb to such rules, then your country is effectively taken over.

Sotis these changes are not even noticeable!

Ultimately, when people are pushed to the brink, ‘revolution’ erges.

The most successful half-ti revolution in modern history occurred in Venezuela when Comrade Chavez severely crippled the oil groups, believing he could rely on oil revenues to lead Venezuelans in controlling their own destiny…

However, he overlooked the multinational agricultural groups controlling most of the arable land within Venezuela, resulting in a situation where Venezuela can only hobble along.

Thus, when Venezuela was blockaded and sanctioned, it led to the bizarre situation where local people couldn’t find enough food, yet Venezuela was still a food-exporting nation.