Chapter 7, The Ramblings of a Fool in Drunkenness

The elder brother is right, before Shoucheng could finish speaking, Dong Ting's eyes suddenly lit up. She clapped her hands and interjected, "These foreign banks are indeed up to no good; they are plotting schemes."

Indeed, Dong Ting took out two savings books from her pocket, casually tossed them on the table, and said with a pout, "Look, my second brother and I each opened an account there, depositing two thousand rubles each. Sigh, I was thinking, if only one day the banks in our country could have such a service attitude. Not to mention that their deposit interest rates are high, just the service attitude alone makes us feel at ease."

Oh, by the way, brother, if you hadn't mentioned it, I almost forgot," Guo Shoucheng said, patting his forehead after hearing his brother talk about this morning's events. "After you left this morning, Xiaoting and I stayed here for most of the afternoon. We noticed that there was a constant stream of people coming and going in front of that Frenchman's bank, but in front of that old Russian's bank, it was completely deserted, not a single person in sight. It looked as if it wasn't open for business at all.

It seems that the elder brother is quite drunk. The siblings exchanged a glance, and each could see this information reflected in the other's eyes

Of course, "Shoucheng obviously has not yet realized anything," he nodded in agreement.

"I know this," Shoucheng frowned and said, "but what does this have to do with that French bank? From what Xiaoting and I learned today at noon, these foreign banks seem to have a terribly limited scope of activity. They can't even influence the normal operations of the Russian central bank; in fact, they are restricted in their ability to lend to foreign entities. Currently, it seems they can only issue loans to foreign-funded enterprises. Aside from that, it appears they can only..."

"That must be ... ... " As Shou Cheng just uttered these four words, he suddenly realized the problem at hand. He widened his eyes, looked at Dong Ting, and then at the smiling Guo Shouyun, completely stunned.

"Hmm, big brother, I understand," Shoucheng said, giving a sharp glance at Dong Ting, who was making faces at him. "However, what exactly is the conspiracy of these Westerners?"

"Well, what next?" Guo Shouyun asked with a smile.

"There is no need to say more; banks are naturally places for saving and lending money," Dong Ting wrinkled her nose and said, "They absorb the deposits of ordinary people and then lend that money to businesspeople. Generally speaking, the interest on deposits from ordinary people is much lower than the interest on loans for businesspeople, and the bank's profit comes from the difference between the two."

It was around five o'clock, and I even went down with Xiaoting to take a look. Guo Shoucheng continued, "By that time, the bank's business hours were basically coming to an end, but guess what? The service attitude of the French was simply outstanding. As soon as we walked in, a dedicated staff member came over to assist us, nodding and bowing, even offering us coffee. They answered all our questions without exception, and their patience was remarkable. Xiaoting and I wandered around for more than half an hour, and the bank clerk followed us with a constant smile on their face, making us feel embarrassed not to deposit any money in the end."

"Then who do they lend the money to? Where do they invest it?" Dong Ting said with a smile.

"You make a good point," Guo Shouyun smiled and said, "However, your perspective is not comprehensive. As a state-owned bank of a country, their functions, or in other words, what they are supposed to do, are far more complex than merely savings and loans. Especially for a country's central bank, such as the People's Bank of China or the central bank here in Russia, their nature is not simply that of a small bank. In many respects, they also bear the important responsibility of maintaining the stability of a nation's financial market. All currency issuance, monetary policy, and exchange rate policy of a country are formulated by these banks. Furthermore, they are also responsible for macroeconomic regulation of the financial market, preventing and resolving financial risks, and maintaining the stability of the national financial market, among other duties."

"Hehe, big brother, I can't figure out what they are up to, but I do find it a bit unusual," Dong Ting said with a chuckle. "As I mentioned earlier, the existence of banks is indispensable for a country. In our country, banks are state-owned, and their profits and losses are borne by the state. However, these foreigners are different. According to what that waiter said today, the Industrial Bank across from us is privately owned. This means that they are actually quite similar to us ordinary business people. Every profit and loss from business transactions must be borne by themselves. Therefore, making a profit should be their ultimate goal. Don't you think?"

On this matter, the astute Westerners cannot possibly be unaware. In such circumstances, their engagement in what superficially appears to be a business of giving money to the Soviet populace for free raises the question: what is their true intention? Given the decades of confrontation between the East and the West, it is clear that the Westerners are not acting out of goodwill; undoubtedly, there must be some underlying conspiracy at play

Then isn't this problem arising?" Dong Ting shot a glance at her second brother and continued, "Think about it, take the bank of the French people across the street for example, they are vigorously attracting deposits here, what is their purpose?

"Very good, Shoucheng, look here, my younger sister is indeed smarter than you," Guo Shouyun said with a smile, observing his thoughtful brother. "You should consider issues more comprehensively and meticulously in the future; this is very important for a businessman."

So? What else is there to say?" the siblings said in unison

"What else is there to say? Naturally, it is to accumulate ruble funds, and then to lend and invest. " Shoucheng said without a moment's hesitation, "Otherwise, what else could it be for? To pay interest to the old Russians for nothing?"

Regarding this matter, it is still too early to comment, but it is foreseeable that the so-called "humane and democratic socialism" reforms of the Soviets are brewing an unprecedented disaster for themselves, " Guo Shouyun said with a smile, "Lenin once stated that the sum of Soviet power + Prussian railway management system + American technology and trust organizations + American national education, and so on, equals socialism. Great figures are indeed great; the conclusions drawn by Lenin nearly a century ago are precisely the issues faced today by a series of countries, including China. Our reform and opening-up in China has actually benefited from Lenin's words: emphasizing national education, absorbing Western technology and investment, while continuously improving various management systems. The most important, core, and primary aspect is to maintain the stability of the socialist regime's core. However, the Russians are different; they have made mistakes in the order of their reforms, first abandoning the most core issues, and then discarding the crucial management issues. Undoubtedly, the final result of their reform will be turmoil, endless turmoil.

"What are you talking about?" Guo Shouyun shook his head and said dismissively, "Haven't you all noticed that there are risks involved in this?"

Guo Shouyun's words left the two siblings in stunned silence. It is important to note that the Hongxing No. 1 and No. 2 Steel Plants are the largest state-owned steel groups in the Soviet Far East. Each of these plants, when considered individually, is not inferior to the domestic Shougang. More importantly, both steel plants are owned by the Soviet military, and the high-quality steel they produce is primarily used for military purposes. As for the Communist Youth League Shipyard, it is even more noteworthy; the gunboats currently patrolling the Heilong River are all produced there.

So what? Guo Shouyun smiled and said

Indeed, the current Soviet Union and its literature have not embarked on a genuine path of reform and opening up like China, where attracting foreign investment and opening the market to foreign businesses remain uncertain policies. Within the Soviet Union, there are virtually no opportunities created for foreign investment. In this context, the foreign banks that quietly enter the Soviet Union find themselves without lending targets or investment opportunities; their only activity consists of accumulating deposits in large quantities. Consequently, a critical issue arises: regardless of the type of bank, any deposits accepted from savers must yield interest. If a bank accumulates a substantial amount of deposits but fails to utilize these funds flexibly, it is not far from failure. Moreover, correspondingly, the more savings a bank accumulates, the faster it approaches its demise.

So I say you must go and study, Guo Shouyun shrugged, and then said earnestly, Let's put it simply, what is a bank? What does it do? What does it rely on to make a living?

Oh, it seems that the younger sister has thought of something. Let's hear it, what are these foreigners up to?

They exchanged a glance, and the two siblings simultaneously shook their heads in confusion

However, this is also good; for us, the turmoil in the old Russian country presents a once-in-a-lifetime opportunity. After a pause, Guo Shouyun continued, "Do you know what I am considering right now? What I am about to say will shock you. I plan to fully acquire the Red Star No. 1 and No. 2 Steel Plants in Blagoveshchensk, as well as the Far East Komsomol Shipyard within the next two years. Hahaha... So, what do you think? Isn't my ambition grand?"