Great Power Technology

Half an hour later, Chen Hao came to Ye Zhou's residence as promised. 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 tea cup.

"How long has it been since I brought you this tea, and I haven't seen you drinking it... What's wrong, you don't drink tea anymore?"

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

"No, it turns out that the bag is not finished yet, so we can't waste it."

"...Well, I really can't refute what you say. I won't gossip with you anymore. Do you want to hear a brief version of the report or the full version of this matter?"

Ye Zhou hesitated for a moment and replied:

“Let’s talk about the short version first.”

Chen Hao picked up the tea cup and took a sip. After moistening his lips with the tea, he said:

"The abbreviated version is just one sentence: the story of Qi Wan and Lu Jin in modern society."

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

The so-called Qi Wan and Lu Can actually refers to the story of Guan Zhong's subjugation of Lu during the Warring States Period.

At that time, Qi and Lu each produced silk, but in order to weaken Lu's strength, Guan Zhong ordered Qi to put away all the clothes made with Qi Wan fabrics and only use Lu's clothes.

Such a decree made the uninformed State of Lu see huge business opportunities. Merchants of the State of Lu began to purchase Lu silk in large quantities. Many people of the State of Lu also gave up growing grain and actively joined the textile industry.

This year, the grain output of Lu State dropped sharply, and grain was imported from Qi State through the border between the two countries. As a result, Qi State aggressively raised grain prices and controlled grain exports a year later, and Lu State had to pay a large amount of money to 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 so-called "production reduction" in the current confrontation over food.

After thinking for a moment, he asked:

"Where's the full version?"

"The complete version is this: This is an upgraded version of Qi Wan and Lu Jin's strategy."

Chen Hao pushed away the teacup, placed a briefing sheet in front of Ye Zhou, flipped it over and said:

"Actually, as I told you at the beginning, this surge in food prices was an illusion from the 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 confrontation between countries. With our huge food reserves, they can cause a certain increase in food and cause a certain amount of chaos even in a short period of time. , and we can recover quickly.”

"The benefits they can gain from this short-term chaos are limited - it can only be a tactical victory, not a strategic victory."

"It's like two knights confronting each other. Before entering a life-and-death fight, the two always have to explore each other's bottom. Such exploration may result in victory, but it may not, but it doesn't matter."

"What really matters is the real move after the trial."

Chen Hao turned over a page of the briefing, pointed to the content on it and said:

"According to our current speculation, the opponent's strategy is divided into three parts."

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

"At this step, they will pay a huge capital cost, but it doesn't matter. Daole's credit has almost collapsed anyway. Their goal is to make one last big gamble before completely draining the old system."

"Through this method, they can accumulate the largest grain inventory in history and gain the most leverage."

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 any angle, it is not too difficult to deal with such an impact.

The pressure from public opinion has basically dissipated, and the malicious hoarding can be solved by stocking up and selling in small packages. Although the crisis in Srbija has posed a certain threat, overall, it has been resolved extremely smoothly.

This is just a trial, and neither side has tried their best.

——

However, many countries were almost killed in this trial.

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 move to the next step of the plan?"

Ye Zhou asked.

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

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

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

"For these food-deficient countries, they will not hesitate to provide food assistance - remember? In the first stage, they just forced various countries to release reserves by raising prices."

“And now, they want to feed this food back to these countries through ‘aid’.”

"Of course, aid cannot be without cost. What they want to replicate is the experience of the United States, Mexico and Argentina in the last century."

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

"But in fact, the role of food does not end there."

"They will re-stabilize the status of Dole as an international currency through such ultra-large-scale aid - all aid will be distributed in the form of Dole, and then they will purchase grain from the four major grain merchants through Dole."

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

"They will rely on this strategy to pull together a wide range of interest alliances and form what may be the largest alliance group since the Cold War."

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

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

"Do you understand this part? Any questions?"

Ye Zhou shook his head and replied:

"That's not a problem. However, you haven't explained why there is such a big difference between futures prices and spot prices."

Chen Hao put down the cup, gently wiped away 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 grain production."

"You have to understand that in the second part of the strategy, the control they achieved over 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 eventually pass."

"So, they must find a way to maintain the current situation of food being in a 'dangerous balance' without being broken."

"This method is to reduce grain production."

“But how exactly can we reduce grain production?”

"There are two paths: planned production reduction and physical production reduction. Not to mention physical production reduction, it is nothing more than seeds, viruses, climate and the like. The former is relatively difficult to understand."

"The former creates forward expectations through the futures market, anchors grain hedging prices, consumes forward grain demand in advance, and creates the illusion that a bumper harvest is about to happen for major grain-producing countries, allowing them to proactively make adjustments to their grain production plans."

"A very simple example, if a customer needs 10 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 purchase food, then, under the control of market economy, such forward demand will eventually be transmitted to the supply side."

"The supply side will adjust production plans based on the forward price of grain. Considering the current high spot price but the gradual stabilization of grain supply under the country's strategy of slowly releasing grain stocks, they will definitely make the decision to reduce production."

"That's the nature of capital."

“Through such operations, the overall grain market situation will become like this: in the spot market, grain prices soar, exchanges and officials tend to obtain grain through assistance to survive the short-term crisis, and invest funds in the long term. Cheaper food, but similarly, the supply side will start to reduce production, thereby stabilizing food prices that they believe will plummet after a sharp rise."

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

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

"At that time, Chou, which produces food through industrialization, and China, which has an unbreakable red line of cultivated land, will become the last isolated islands."

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

After saying this, Chen Hao breathed a long sigh of relief and finally concluded:

"So, the real encirclement and suppression of us in the grain market has not yet begun. These actions now are just the foreshadowing."

“When one-tenth of the population in Africa starves to death, when chaos begins in Europe, when Yindu and Pakistan go to war, and when international seed companies begin to control seed patents on a large scale, then they will really take over this chaotic trend. When they attack us."

Ye Zhou nodded heavily, and then asked:

"So, do we have to fight them to the end?"

A smile appeared on Chen Hao's face. Seeing his expression, Ye Zhou suddenly woke up.

Yes, the core of this strategy is still production reduction.

But what if there is no production reduction?

What if, even when the major grain-producing countries lower their grain production plans, the international grain supply does not decrease but increases?

Ye Zhou recalled what Chen Hao told him before.

If gene editing technology to increase production is successfully applied, it will not only be promoted in China.

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

The grain output of these three countries accounts for more than 30% of the world's total.

Therefore, this is the key to breaking the situation.

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 can continue to grow food, all designs and conspiracies will come to nothing.