American Infrastructure Scam vs Tom's Infrastructure Scam
In the decades before the Civil War, the Yankee region of the United States carried out the largest infrastructure construction activity in the world at that time - the construction of railroads.
(The scale of this large-scale infrastructure construction activity is unprecedented, and was not surpassed until the era of the Red Bear and the Red Dragon.)
In less than two decades, the United States built more than 9,000 miles of railways, becoming the country with the longest railways in the world.
The question is, where does the United States have such strong national strength to build railways?
Loans are mainly from Great Britain, that is, loans from the United Kingdom.
As the most powerful empire at the time, Britain's domestic financial industry was also very prosperous.
Britain saw a large number of railroad builders in the United States. Britain issued bonds domestically and raised funds to lend loans to these builders.
American builders used these loans to purchase large quantities of materials needed for the railway and pay workers' wages to complete the preliminary construction.
At the beginning of the period, after the construction of a small number of American railways was completed, these railway companies quickly earned a large amount of US dollars by relying on the rich materials of the United States and the lack of good transportation industry in the vast land of the United States.
Relying on these profits, the Yankees have been repaying the loan to Great Britain as scheduled.
After the high-interest bonds were repaid as scheduled, it gave British investors greater confidence. More and more loan sharks entered the pockets of American railway builders, and the United States ushered in the first wave of infrastructure construction.
The problem is, after the railway is fully constructed, the British will need to be given high loan interest rates every year, and Mr. Yang does not want to give it.
So what to do?
Mr. Yang falsified the accounts of all railroad companies and declared bankruptcy on a large scale.
After the bankruptcy, the assets were publicly auctioned, and Mr. Yang became a "loan-free" railway in his own hands.
What about the British? What does it have to do with me as an American?
All the bonds and other bonds issued by the United Kingdom became waste paper.
The British were dumbfounded. The United States was not a soft persimmon like Mexico with no industry. Before the Civil War, the United States had millions of workers and an annual output value of more than 1.5 billion US dollars. It also had a complete industrial chain in terms of arms, so it could only suffer from dumb losses.
This is also the first time in human history that a country has given a large-scale loan to another country's infrastructure company and the other country has defaulted on the loan.
This is gay Yang fooling the British, and later there are examples of gay Yang fooling the government into paying the bill.
In the 1960s and 1970s, the United States had a powerful railroad company.
This powerful railway company wanted to monopolize American railways, so it began to raise large amounts of money to expand its industry.
But I took too long a step and it hurt my balls.
The capital chain began to break.
The problem was that at that time, all the large consortiums in the United States had financed the railway company, and they did not want the railway company to become a money-losing business.
At the same time, a large amount of financing allowed American consortiums to become shareholders of the railway company. Together, they controlled almost all the equity of the railway company.
The cake was too big, and all major consortiums were involved. Finally, these consortiums united to lobby the Federal Reserve, and obtained a large amount of loans on the grounds that the U.S. economy might collapse as a result.
These loans were not given directly to railway companies, but to banks, and banks thus obtained large amounts of low-interest loans.
The bank lends money to the railway company again, this time it is a high-interest loan!
A consortium of banks was established to hold the largest loan to the creditor.
After the loan was obtained, dividends were directly distributed to all shareholders. You heard me right, the loan was directly distributed to shareholders in the form of dividends.
Isn’t the largest shareholder a consortium?
After these consortiums received dividends, they quickly sold off their stocks.
Not one consortium, but all consortiums
At the same time, all banks refused to continue financing the railway company.
All consortiums define this company's bonds and stocks as junk among junk.
As the consortium expected, the capital chain was broken. The railway company, which had no financing channels, saw its stock price plummet and all its bonds depreciate.
The consortium's frivolous operation is not over yet
The consortium repurchased these bonds and equity when prices were lowest
Because the consortium is not afraid, the consortium believes that the government will definitely take over, and its previous loans will still be recovered by then.
Even if the railway company goes bankrupt, after bankruptcy, the consortium is the largest creditor of the railway company and has the first right to collect debts. It will take several years and high litigation costs to obtain the assets of the railway company, even if it takes away the tracks of the largest railway company in the United States.
Even if you pull it out and sell it, you won't be compensated.
Ordinary people couldn't afford to wait, so these bonds and stocks were sold high and bought low by these large consortiums, completing a wave of cutting leeks.
Finally, because the company's railway network is so huge, the American government cannot paralyze it.
The U.S. government can only issue an emergency bill to use government funds to maintain the normal operation of the largest railroad company in the United States.
The financial groups are making a lot of money, all the investors are bankrupt, what about the common people?
Don't forget where the government's money comes from.
Even among the powerful capitalists, you can’t drive a single screw.
——————
Tom's construction funds are the printed dollars and his own million dollars that I mentioned before. Now add, there are also loans and funds.
When I wrote, I also knew that even one million dollars was not enough to build the infrastructure of the entire Texas region and a factory area with tens of millions of people.
But at that time, I remembered that I wrote about Tom cheating investors, but when I looked back today, I realized that I didn’t write it down.
I found that my previous description of this paragraph was not detailed enough, and there may be plot holes and bugs.
Please forgive me. When I was writing, the lockdown was postponed every day, and my overall mental state was not good. Recently, the lockdown was lifted, and everyone should be able to clearly feel that the writing seems to be a different person.
In fact, this is somewhat similar to a state-led disguised Ponzi scheme.
Tom used the money printed by the Texas State Bank and his own funds as "profits" from Texas infrastructure and factory construction, and distributed them to the previous batches of engineering teams and fund companies.
This will attract more people to invest.
Even if these companies know that Tom is cheating, they also think that they are not the last ones. The previous batches of people are indeed making money from Tom's millions of wealth and the new dollars printed by the Texas State Bank.
, and money from new investors.
Only the last group of unlucky ones will become day laborers.
No one feels that he is not the last unlucky person.
This is why there has been investment in the infrastructure of Tom's Smith factory area.
However, it would not be good to discuss these in a long feature film, or to significantly modify the previous plot, so I will just open a single chapter to explain why this scam is successful.
In fact, I can't figure out why there is such an example in history of a country and a government being defrauded of hundreds of millions.
If you feel that the construction of such a large-scale factory area in half a year in the plot is purely fictional and has no logic, then go and argue with real history.
I'm just copying history books.
It may be a slight exaggeration, but this method is really feasible.