Great Power Technology.

Chapter 344 The Whole Picture of the Conspiracy

Half an hour later, Chen Hao came to Ye Zhou's residence as scheduled. After sitting down, he first went to the kitchen to boil water and make tea. After everything was ready, he sat back opposite Ye Zhou with a teacup.

"How long has your tea been brought to you, and I haven't seen you drink it... What's the matter, don't you drink tea?"

Ye Zhou glanced at the tea in his hand, shook his head and replied:

"No, it turns out that the bag has not been finished, so it cannot be wasted."

"...Well, I really can't refute what you said. I won't gossip with you. This time, do you want to hear the abbreviated version of the report, or the full version?"

Ye Zhou hesitated for a moment, then replied:

"Let's talk about the short version first."

Chen Hao picked up the teacup and took a sip, moistened his lips with the tea, and said:
"The abbreviated version is just one sentence: the story of Qi Qi Lu Jin in modern society."

Hearing Chen Hao's words, Ye Zhou immediately understood what he was referring to.

The so-called Qi Wan Lu Jin actually refers to the story of Guan Zhong destroying Lu during the Warring States Period.

At that time, Qi State and Lu State both produced silk, but in order to weaken the strength of Lu State, Guan Zhong ordered Qi State to put away all the clothes made of Qi Wan before, and only use clothes made of Lu State cloth.

Such a decree made the unknown state of Lu see a huge business opportunity. Merchants in the state of Lu began to buy a large number of Lu xuan, and many people in the state of Lu gave up growing grain and actively joined the textile industry.

This year, the grain output of Lu State dropped sharply, and instead it imported grain from Qi State through the border between the two countries. As a result, Qi State raised the price of grain a year later to control grain export, and Lu State had to pay a lot of money for the purchase. Food, the domestic economy has almost collapsed, and it is no longer Qi's opponent.

However, the core of this strategy is "production reduction", and Ye Zhou has not seen the shadow of the so-called "production reduction" from the current confrontation on grain.

After thinking for a moment, he asked:
"What about the full version?"

"The full version is: this is an upgraded version of the Qiqilujin strategy."

Chen Hao pushed away the teacup, put a briefing in front of Ye Zhou, flipped it over and said:
"Actually, just like I told you at the beginning, this food price spike was an illusion from the very beginning, or in other words, it was a false move."

"They don't expect to knock us down with just one price shock, because this is a country-to-country confrontation. Under our huge food reserves, even in a short period of time, they can cause a certain increase in food and create a certain amount of chaos. , and we can recover quickly.”

"There is only so much they can gain from this brief period of chaos -- tactical victories, not strategic ones."

"It's like two knights confronting each other. Before entering the life-and-death fight, the two always have to check each other's bottom. Such a bottom-up may or may not result in victory, but this is not important."

"What's really important is the real trick after the trial is over."

Chen Hao opened a page of the briefing, pointed to the above content and said:
"According to our current speculation, the opponent's strategy is divided into three parts."

"The first part is to push up food prices regardless of the cost through excessive currency issuance and water release, thereby forcing the officials of various countries to release grain reserves, and they then eat these grain reserves through the four major grain merchants and their agents."

"At this step, they will pay a huge amount of capital costs, but it doesn't matter, anyway, Dao Le's credit has almost collapsed, and their goal is to make one last big gamble before completely draining the old system."

"Through this method, they can hoard the largest grain inventory in history and hold the most bargaining chips."

After listening to Chen Hao's words, Ye Zhou nodded slightly.

Indeed, at this stage, although they have already felt the impact from the enemy, no matter from which point of view, it is not too difficult to deal with such an impact.

The pressure from public opinion has basically disintegrated. Malicious hoarding and small package sales are enough to solve the problem. Although the Srbija crisis has caused a certain threat, overall, it has been resolved very smoothly.

This is just a test, and neither side has done their best yet.
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However, there are many countries that have been almost killed in this test.

It is too common for the boss to fight with the second child and beat the third child to death.

"So they are still in the process of the first part of the strategy... Before the food crisis in Yindu is resolved, they should not enter the next step of the plan?"

Ye Zhou asked.

"No, the food crisis in Yindu will not be resolved."

"This is their second step: through food aid, to achieve control over other countries."

"Yindu is definitely not the only country in the world that has fallen into famine because of their first attempt. Even many established powers, especially those in Northern Europe, have begun to show signs of food shortage."

"For these food-deficient countries, they will give food aid without hesitation—remember? In the first stage, they just forced countries to stockpile by raising prices."

"And now, they want to feed the food back to these countries through 'aid'."

"Of course, aid cannot be free. What they want to reproduce is the experience of Syria, Mexico, and Argentina in the last century."

"At that time, they broke the pattern of food independence between the two through a large amount of food exports, dumping, and aid. For a long time after that, and even now, Mexico is still under the control of the ugly country."

"In fact, the role of food is more than that."

"Through such super-large-scale assistance, they will re-stabilize Dao Le's status as an international currency—all aid will be distributed in the form of Dao Le, and then they will use Dao Le to purchase grain from the four major grain merchants."

"At this point, the second step of their plan is basically completed."

"They will rely on this strategy to pull together a broad alliance of interests, forming what may be the largest alliance group after the Cold War."

"And the pressure from these alliance groups will all be on our side."

After finishing this paragraph, Chen Hao took a sip of the already slightly cold tea, and then asked:

"Can you understand this part? Any questions?"

Ye Zhou shook his head and replied:

"There is no problem. However, you haven't explained why there is such a big difference between the futures price and the spot price."

Chen Hao put down the cup, gently wiped off the water stains accidentally spilled on the table, and continued:
"This involves the third part of their plan, which is the core part, the reduction of food production."

"You have to understand that in the second part of the strategy, the control they have reached on the interest alliance is temporary, because judging from the current trend, the international food production is always increasing, and the patience of businessmen is also limited. , the food shortage crisis will always pass.”

"Therefore, they must find a way to maintain the status quo of the 'dangerous balance' of food from being broken."

"This method is to reduce food production."

"But how to achieve the reduction of grain production?"

"There are two paths: planned production reduction and physical production reduction. Let alone physical production reduction, it is nothing more than seeds, viruses, climate and other things. The former is relatively difficult to understand."

"The former creates long-term expectations through the futures market, anchors grain hedging prices, consumes forward grain demand in advance, and creates the illusion that major grain-producing countries are about to harvest grain, so that they can actively adjust grain production plans."

"A very simple example, if a customer needs 12 tons of grain in December, and he has locked in an order for 10 tons of grain through futures now, then, when December actually comes, he will obviously not spend any more If any funds are used to buy food, then, under the control of the market economy, such long-term demand will eventually be conveyed to the supply side."

"The supply side will adjust the production plan according to the forward price of grain. Considering that the current spot price is high, but the grain supply is gradually stabilizing under the policy of slowly releasing stored grain in the ugly country, they will definitely make a decision to reduce production."

"That's the nature of capital."

"Through such an operation, the overall grain market situation will become like this: in the spot market, grain prices soar, exchanges and officials tend to use aid to obtain grain to survive the short-term crisis, and invest funds in the long-term Cheaper food, but at the same time, the supply side will start to reduce production, so as to stabilize food prices that they think will plummet after the skyrocketing.”

"However, who is the biggest grain seller in this futures market? Is it the real grain producer? No."

"So the answer is obvious. Their production reduction actions will not stabilize food prices within a healthy range, but will trigger a new round of skyrocketing."

"At that time, the Ugly Country, which produces food industrially, and China, which has an unbreakable red line of arable land, will become the last isolated islands."

"And the ugly country has been distributing food, and the finger will be pointed at us immediately."

After saying this, Chen Hao let out a long sigh of relief, and finally concluded:
"So, the real encirclement and suppression of us in the grain market is far from beginning. These actions now are just foreshadowing."

"When one-tenth of the population in Africa starves to death, when Europe begins to be in chaos, when Yindu and the Pakistani Railway start a complete war, and when international seed companies start to control seed patents on a large scale, they will really take advantage of this chaos. When it comes to us."

Ye Zhou nodded heavily, then asked:
"So, do we have to play the whole game with them?"

A smile appeared on Chen Hao's face, seeing his expression, Ye Zhou suddenly came to his senses.

Yes, the core of this strategy is to reduce production in the final analysis.

But, what if there is no production cut?

What if, even when the major grain-producing countries lower their grain production plans, the international grain supply will increase instead of decrease?

Ye Zhou recalled what Chen Hao told him before.

If gene editing and production increase technology is successfully applied, it will not only be Huaxia that will be promoted.

But Huaxia, Maoxiong, and Srbija, the three major grain-producing countries in the world.

The food production of these three countries accounts for more than 30% of the entire world.

So, this is the key to breaking the game.

The improvement of productivity is the most essential strength.

If you reduce production by 20%, I will increase production by 40%.

No matter how fancy your methods are, as long as I grow food continuously, all designs and conspiracies will come to nothing.

(End of this chapter)