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

"How long has it been for you to deliver this tea to you? I haven't seen you drink it... What's wrong? I won'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 has not been finished yet, so you can't waste it."

"...Okay, I really can't argue with you. I won't gossip with you. Do you want to listen to the abbreviated version of the report or the full version of this matter?"

Ye Zhou hesitated for a moment and replied:

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

Chen Hao picked up the teacup and drank it lightly, moistened his lips with tea, and said:

"The brief version is just one sentence: the story of Qi, silk, and silk in modern society."

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

The so-called Qi silk and Lu silk actually refer to the story of Guan Zhong's destruction of Lu during the Warring States Period.

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

Such a decree made the unknown Lu State see huge business opportunities. Lu State merchants began to purchase Lu Cai in large quantities, and many people in Lu State gave up growing grain and actively joined the textile industry.

In this year, the grain output of Lu State dropped sharply, and he turned to import grain from Qi through the borders of the two countries. As a result, Qi State greatly increased the price of grain a year later and controlled grain exports. Lu State had to pay a lot of money to buy food. The domestic economy almost collapsed and he was no longer a rival to Qi State.

However, the core of this strategy is to "reduce production", and Ye Zhou has not seen the so-called "reduce production" from the current confrontation with food.

After thinking for a while, he asked:

“What about the full version?”

"The full version is: this is an upgraded version of Qi silk and Lu silk strategy."

Chen Hao pushed open the teacup, put a briefing in front of Ye Zhou, and said while flipping:

"In fact, as I told you at the beginning, the surge in food prices this time was an illusion from the beginning, or a false move to try it out."

"They don't expect to knock us down just by using one price shock, because this is a confrontation between the state and the country. Under our huge grain reserves, even if they can cause a certain amount of food rise and a certain amount of chaos in a short period of time, we can recover quickly."

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

"It's like two knights are fighting each other. Before entering a life-and-death battle, the two have to bottom out each other. Such a bottom out may achieve results, and may not, but this is not important."

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

Chen Hao turned the page of the briefing and pointed to the content above and said:

"Based on our current speculation, the other party's strategy is divided into three parts in total."

"The first part is to push up grain prices regardless of the cost by over-issuing currency and releasing money, thus forcing the officials of various countries to release reserved grain, and they then eat these reserved grain through the four major grain merchants and their agents."

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

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

After hearing 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 on public opinion has basically collapsed, and malicious hoarding and storage storage at one time plus small packaging sales are enough to solve it. Although the srbija crisis has posed a certain threat, overall, the solution has been extremely smooth.

This was a trial, and neither side had done their best.

----However, many countries have almost been beaten to death in this trial.

It is so 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.... Until the food crisis in Yindu is resolved, they should not enter the next plan?"

Ye Zhou asked.

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

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

"There are definitely more than one country in the world that has been famine because of their first step of trial. Even many old-fashioned powers, especially in Nordic areas, have begun to show signs of food shortage."

"For these food-deficient countries, they will give food assistance without hesitation---Remember? In the first stage, they just forced various countries to release their storage by raising prices."

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

"Of course, aid cannot be costly. What they want to replicate is the experience of Sulian and Mexico and Argentina in the last century."

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

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

"They will regain the status of Daole's international currency through such super-large aid--all aid will be distributed in the form of Daole, and then through Daole, they will 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 build a wide range of interest alliances and form the largest alliance group after the Cold War."

"And the pressure from these alliance groups will be given to us."

After saying this, Chen Hao picked up the slightly cool tea and took a sip, then asked:

"Can you understand this part? Is there any problem?"

Ye Zhou shook his head and replied:

"There is no problem. However, you haven't explained why futures prices are so different from spot prices."

Chen Hao put down the cup, gently wiped off the water stains that accidentally spilled on the table and continued:

"This involves the third part of their plan, which is the most core part of the grain production reduction."

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

"So, they have to think of a way to maintain the status quo of food that is not broken in the 'dangerous balance'."

"This method is to reduce grain production."

"But how to achieve specific reduction in grain production?"

"Two paths: planned production cuts, physical production cuts. I won't talk about physical production cuts, it's nothing more than seeds, viruses, climates, etc. 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 gives major grain-producing countries the illusion that grain is about to be harvested, so that they can actively make adjustments to their grain production plans."

"A very simple example is that if a customer needs 10 tons of grain in December and he has locked up an order of 10 tons of grain through futures now, then when December really comes, he will obviously not spend any funds to buy food. Then, under the control of the market economy, such forward demand will eventually reach the supply side."

"The supply side will adjust the production plan based on the forward price of grain, and combine the current high spot prices, but the supply of grain is gradually stable under the strategy of the country's slow release of grain storage, and they will definitely make a decision to reduce production."

"This is the essence of capital."

"Through such operations, the overall situation of the food market will become like this: in the spot market, grain prices soar, exchanges and officials tend to obtain food through aid to survive the short-term crisis, and invest funds in the cheaper food in the future, but in the same way, the supply side will initiate production cuts to stabilize the food prices they believe will plummet after the surge."

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

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

"At that time, the ugly country that industrially produces grain and China, which has an unbreakable red line of arable land, became the last isolated island."

"And the Chou Kingdom has been distributing food, and the finger will immediately point to us."

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

"So, the real encirclement and suppression of ours in the food market is far from beginning. These actions are just a prelude to it."

"When one-tenth of the population in Africa starves to death, when Europe begins to be in chaos, when Yin and Pakistan are completely warned, and when international seed companies start to control seed patents on a large scale, they are truly taking over this chaos and taking action against us."

Ye Zhou nodded heavily and then asked:

"So, do we have to play the game with them?"

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

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

But what if there is no production cut?

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

Ye Zhou recalled what Chen Hao told him before.

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

But China, Mao Bear, Srbija, the three major grain-producing countries in the world.

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

So, this is the key to breaking the deadlock.

The improvement of productivity is the most essential strength.

If you cut production by 20%, I will increase production by 40%.
Chapter completed!