Chapter 1303: Making Money on Both Sides

"No matter how high the price of food is, no matter how big the losses of ethanol producers are, the money is still in the United States, and they are just moving the money from one pocket to another," Guo said. If the ethanol producer and the food producer are the same company, then the company may still be profitable. Let's not be fooled by the appearance that ethanol producers are losing money, their whole country is not losing money!

As long as the U.S. increases subsidies to these bioenergy production and development companies.

Some people may say that if you pull high-priced grain to the international market, you can't make more profits? No, the more grain is put on the market, the price of grain will fall, and the profit will not necessarily be much. Because the United States occupies a monopoly position in the international grain market, it is only by maintaining a certain shortage of grain in the grain market that grain prices can we maintain high grain prices and earn more profits.

The United States is very smart and vicious. The US strategy is to strike at the group of Asian countries that are lacking in natural resources and are on the rise, and to seize the opportunity to crack down on the energy-poor countries in Asia to loot the foreign exchange reserves of various countries and strengthen the position of the United States as a world pole. Raising oil prices is suppressing oil-deficient countries; Rising food prices have weighed down food-deficit countries. Countries that have neither oil nor agricultural land resources suffer from both high crude oil and high food prices.

We in China have controlled a large oil field in Iran without producing it, and the United States has more oil fields in the world than we do, and they have more oil fields that are not in production. The reason why we are not in a hurry to develop the oil fields in Iran, our domestic oil fields, is because we don't need so much crude oil now, because our technology is not high, because we lack funds, we don't have the ability to develop them for the time being, and we don't want to waste too much.

However, the United States has so many oil fields that are not developed. It's not because their technical level is not enough, and it's not that they don't have enough money, but these oil fields are buffers in their hands. As long as the price of crude oil is within their identifiable range, they will not exploit the oil here on a large scale. When the price of oil reaches the warning level they have set, they will be able to mine on a large scale to cushion the crisis caused by high oil prices. The conditions for large-scale extraction of these crude oils in the United States are:

First, the price of crude oil is out of control or the price of oil is too high, dragging down the US economy and causing great social unrest in the United States. Second, other countries that are not allies of the United States have lost the opportunity to take off or they have lost the ability to compete with the United States. Third, China and other major energy consumers are oil-poor countries that have realized the industrialization of oil substitute energy, and oil has no longer become a strategic substance.

These three conditions are clearly far from being met, which means that the United States will have a long way to go to take advantage of the high and not too high oil prices to extract profits from other countries. The U.S. will continue to trumpet that oil is 'in excess of demand' to hide their true purpose.

If these untapped oil fields are a buffer for the US strategy. Then the ethanol conversion plant in the United States can be regarded as an infinitely powerful weapon in their hands. Now that the agriculture of various countries has been almost hijacked by the United States, the free flow of grain makes it impossible for other countries to adopt the method of producing more food to resist the attack of the United States. As long as there are big countries that are ready to produce grain on a large scale, the United States can shut down nearly 200 ethanol plants and dump grain all over that country, and even if that country's agriculture does not go bankrupt, it will stagnate because of huge losses. If there is a country that produces a lot of food. The U.S. will be able to take advantage of low food prices and buy large quantities to produce ethanol.

Nearly 200 ethanol production plants are like the sea to other countries, and they can swallow no matter how much food others produce; No matter how much other countries try to keep the price of food, they can spit out a huge amount of food to disrupt the price, so that those countries will lose even shorts.

While 200 factories can be up or down overnight, grain production is a long process, taking as little as three or four months from sowing to harvesting, and as long as six months or even a year. In other countries, the fields are still green crops. And the prices in the international grain market have changed a lot of times.

Imagine that in February and March, when many countries were still planting, the United States would reduce grain exports, and food prices would naturally rise. In order to survive, these countries have to spend a lot of money on grain imports, and the United States naturally makes a lot of money. When the grain harvest in various countries begins in July and August, and there is surplus grain that can be exported, and it wants to earn back the money spent some time ago, the United States will suddenly push a large amount of grain to the international market. Food prices have plummeted, and not even how much food is actually being introduced will cause food prices to plummet.

Food producers in these countries are either reluctant to cut their love or have no choice but to hoard. The result of their efforts is only losses or trapped funds. The result of many tosses is that these countries are slowly exporting their hard-earned money under the command of the United States.

Using these ethanol plants, the United States can manipulate the international grain market at will to make them earn a lot of profits, and control countless countries economically: the world grain harvest fails, the United States can make it worse, and the price of food soars; All countries have bumper yields, and the United States can cause grain prices to plummet, and the bumper harvest will not be bumper.

To force other countries to live or die, the United States simply orders those ethanol plants to shut down. Rich countries may also use huge foreign exchange reserves to hoard food to ease up, and even if they want to make money, they can only earn a fraction of the money in the United States. Countries with no money and no food are helpless or helpless. ”

Guo's remarks portrayed a terrifying picture for the central bosses, who never thought that the United States would have such a method. However, the central bigwigs are not afraid in their hearts, because China itself has vast land, and as long as the main line of developing agricultural production is not shaken, no matter how foreign grain prices change, China will concentrate on agricultural production, and will not sell grain because of high grain prices in the outside world, but can take advantage of the low grain prices in the outside world to buy grain, so that the Chinese will not starve.

At present, China's agriculture has not yet carried out commercial and corporatized large-scale production, and it is all individual production with single-household peasants as the main body, and the grain produced by the peasants does not have to be sold, they can keep it for their own consumption, they can sell it slowly, and some can even save it for the next year, which means that they are not sensitive to international grain prices. It will not be like other countries, it will be a corporatized mass production, and these large companies will have to sell all the grain they produce for the sake of profit and for the wages of their employees, and they will have to dance to the baton of the United States.

However, after listening to Guo Zhuocheng's words, the bigwigs began to think about whether to subsidize the soybean production in China's northeast region or not, so as not to reduce the production and planting area of soybeans in China, after all, soybeans are far more important than other grains, and farmers rarely keep their rations, and only by selling them can they maximize their profits. Moreover, the price of high-quality soybeans is not comparable to that of other food crops, and even if it does not earn much foreign exchange now, it is still much better than the United States squeezing out and importing soybeans from the United States.

Although they can't see much difference between importing soybeans and producing soybeans themselves, because China needs to import too many commodities and doesn't care about adding a little more soybeans; China also exports too many products, and does not care about exporting less soybeans, and it takes a lot of soybean exports to export foreign exchange for a computer, but since the United States subsidizes farmers to plant soybeans and suppresses Chinese soybeans, then China is certainly not wrong to subsidize its own soybean planting.

It is necessary to subsidize not only soybeans but also other agricultural products, and to increase the peasants' enthusiasm for production.

They are not afraid of American food weapons, and they are even less afraid of American crude oil weapons. Because China's crude oil consumption is not large, although there are now cars that have begun to enter the families that have become rich first, but the total amount is very small, and now the central government has been emphasizing honesty and emphasizing the reduction of unit expenses, and the increase in unit vehicles is not large, and the consumption of gasoline and diesel is naturally not high.

In the minds of the central bosses, China's own crude oil is enough for self-sufficiency, and the oil fields of Iraq and Iran can also be used by China for decades. Now that China's national strength is on the rise, there may not be less oil fields to be acquired overseas in the future, and some time ago, there were not many small countries willing to sell oil and gas exploitation rights to China? After China's economy has reached a new level, it will have abundant funds to buy some oil fields.

At this point in the meeting, the basic issues have been clearly discussed: The changes in the international situation caused by the United States are only a passive response by the United States, and there is nothing new, nothing major happens, and there will be no war.

Of course, after China has peeked into the inner secrets of the United States, it can still do a lot of things and make a lot of money from it. In particular, Guo Zhuocheng's controlling IIC company can speculate according to the US price control of grain and crude oil.

Moreover, it is easier for the IIC to make money and more secure than the U.S. government, because the IIC is backed by the Chinese government. For example, when the price of grain in the world market is at a low ebb, the IIC company can buy grain on a large scale without worrying about the backlog of grain in the future, because the Chinese government can absorb the amount of grain that the Chinese government can absorb. And when food prices are at their peak, the IIC can sell heavily depending on its own stocks and what the Chinese government can provide.

This is true for grain, and the same is true for crude oil, and the IIC company can use China as a rear warehouse to participate in the market fight, far more cattle than the big companies in the United States.

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