Republic of China: Ace Pilot

Chapter 200 199 Republic of China Karaoke: Gold Prices Soar 75% Overnight
The conversation continued inside the Royal Palace Bar.

No one responded to the gold company Fang Wen mentioned, as they were not familiar with each other and could not yet reach a cooperation agreement.

Another point is that although Taishan Airlines is the organizer of the flying club, in terms of strength, it is not on the same level as these people, and they have concerns.

Fang Wen had anticipated this and did not continue the topic of the gold company; this situation would be dealt with slowly.

He clapped his hands.

The palace lights softened, and Bai Zeshan, who had not yet returned to Europe to continue his studies, was operating the equipment.

This is a music system that Fang Wen specially prepared for the flying club.

Siemens tube amplifiers, record players, and some output devices added by Bai Zeshan.

A tube amplifier is an audio amplifier that uses vacuum tubes. It was a specialized audio system of that era, used by high-end audiophiles and as a dedicated device for use in dance halls and cinemas.

(A stereo system from the Republican era, featuring vacuum tube amplifiers.)
This type of speaker has unique sound effects, which is why songs from the Republican era have a special flavor.

But Fang Wen didn't intend for the singers to perform at the Palace Bar.

He made some changes based on his futuristic thinking.

Why do we need a singer to perform in this private setting? Can't we just sing ourselves?

For example, the future model of KTV.

This was not difficult to achieve. He had Bai Zeshan make some modifications and created the first set of Republic of China karaoke.

It's very expensive, which is perfect for the private entertainment activities of such high-end clubs.

A waiter approached with a booklet in his hand and waited.

What is this doing?
The members of the flying club were very curious.

Anyone want to sing?

Fang Wen smiled and stood up to demonstrate. "I specially commissioned someone to make this device and record it. If you want to sing, just choose a song you want to sing, and then you can start."

To better demonstrate, Fang Wen selected a very simple English song, and Bai Zeshan adjusted the stylus of the record player to play the corresponding accompaniment.

Accompanied by the song's accompaniment, Fang Wen held the microphone and sang the song.

This is so interesting.

Normally, these people behave very properly in their own territories to maintain their dignity, but here, with no one paying attention and no need to maintain a facade, their sense of fun is instantly unleashed.

The King of Sarawak was the first to try. He spent a long time choosing and finally picked an English folk song, which he then sang along to.

Listening to songs and singing them yourself are completely different experiences, especially when you're singing and there's an audience.

Not to mention, it's singing in a relaxed and unrestrained state.

The King of Sarawak finished singing happily, although he was a little off-key, but the applause made him feel very accomplished. He returned the applause with a big smile and then raised the microphone.

"This is the most fun game I've ever played. I recommend everyone give it a try. Don't be afraid of not doing well. Like me, I had a lot of fun and didn't need to worry about what others thought."

He certainly made a good start; even someone who is tone-deaf can go on stage, and with the accompanying sound effects, he actually looks somewhat decent.

Then another person went on stage and showed off their singing voice.

The atmosphere became lively, proving that karaoke is indeed the best way to create a lively atmosphere.

Seeing all this, Fang Wen became more and more confident that he could carry out this scheme.

The enjoyable first gathering of members of the flying club continues.

Stay in the royal palace, enjoy gourmet food, fine wine, and a wide variety of entertainment activities, including flight training.

To ensure the flying club lived up to its name, Fang Wen acquired two low-speed seaplanes.

This aircraft has a speed of 150 kilometers per hour and takes off and lands on water.

Driving it requires very little skill and is easy to learn.

Under his guidance, several club members who were willing to learn to fly tried to take to the skies in airplanes.

This series of preparations brought Fang Wen closer to the club members, and he was ready to lay his cards on the table.

On the night of January 18th, it was still at the Royal Palace Bar.

There were only six people this time: Fang Wen, the King of Sarawak, the King of Afghanistan, the Ye and Liu families from Southeast Asia, and the Indonesian chieftain Saiolad.

Fang Wen got straight to the point.

"Today I'd like to talk to you about the gold company. My information comes from Europe and the United States. The US Congress will pass the Gold Reserve Act, and the Federal Reserve's gold purchase price will increase from $20 per ounce to over $30. If we can acquire a large amount of gold before the end of the month, we can make at least a 30% profit by taking advantage of this time difference."

So that's what it is. Those who participated in the secret meeting couldn't help but be intrigued.

They are all richer and more powerful than Fang Wen, but they lack Fang Wen's information advantage. It can be said that combining them would be a win-win situation.

The head of the Ye family looked at Fang Wen and asked, "Aren't you afraid that we'll abandon you and go off on our own now that you're telling us?"

"If you do that, I'll only lose a partner, which won't matter to me. But if you're willing to form a gold company together, we'll be friends, and maybe we can play more games together in the future."

Fang Wen smiled, stood up, and raised his glass.

"Those who are willing to drink this cup together will be shareholders of the Gold Company; those who are not will remain members of the Flying Club, but they will no longer be able to participate in the following discussion. Please go to the karaoke bar next door for entertainment."

He was waiting for the moment when those willing to drink with him would be allies of Taishan Airlines, not just the Gold Company, and perhaps even more collaborations in the future.

After some hesitation, the head of the Liu family and the Indonesian chieftain Saiolade stood up and left.

The remaining three raised their glasses.

"Alright, now that we're all in, tell me your plan," the Ye family head asked. The King of Sarawak and the King of Afghanistan were also curious about Fang Wen's arrangements.

Fang Wen then revealed his long-prepared speech.

"Mr. Ye's words reminded me that the Federal Reserve's large-scale, high-priced gold purchases are certainly not solely for the sake of the US economic recovery. They want to control the global gold price."

Ye Honglin, the head of the Ye family, nodded, and the King of Sarawak and the King of Afghanistan also agreed with this assessment.

Their level of understanding allows them to see many problems clearly.

But they will never be as farsighted as those who came from the future.

Fang Wen continued, "If they're just controlling the price of gold, I don't think that's enough; the risks are still too great. Gold is linked not only to the US dollar, but also to something else: silver. I think it won't be long before the Americans target silver."

Ye Honglin looked surprised, and following Fang Wen's train of thought, he immediately made more connections.

"Yes. The United States is the world's largest producer and exporter of silver. If silver prices surge, they will definitely benefit."

“Not only that,” Fang Wen continued, “The amount of silver exported by the United States is far less than the amount of gold purchased by the Federal Reserve. Their target is much bigger: China.”

Ye Honglin, the head of a prominent Chinese business family in Southeast Asia, immediately understood.

She exclaimed in surprise:
"The Americans are targeting China!"

“Yes.” Fang Wen clapped his hands and said loudly, “General Manager Liu, you can come out now and tell our partners about the Americans’ shady dealings.”

Accountant Liu entered the room, bowed slightly, and said, “Our China has used silver as a means of payment since the Ming and Qing dynasties, and this remains true in the Republic of China. Currently, silver dollars, silver taels, Spanish silver coins, and Mexican silver coins are all available as means of payment. Therefore, our Republic of China uses silver, not banknotes. Last March, the Nationalist government promulgated the ‘Silver Standard Coinage Regulations’ in an attempt to unify the entire currency using silver dollars, but unfortunately, it has had little effect.”

As Liu the accountant spoke, Fang Wen translated for the two local kings.

During the Great Depression, deflation occurred, gold prices remained high, while silver prices were low. As a result, China's purchasing power remained consistently weak.

Meanwhile, China has always been a net importer of silver and has a large amount of silver reserves domestically.

The Americans have their eyes on China's silver reserves and want to make a big profit from them.

Before long, silver prices will rise sharply, just like gold.

This would allow silver to flow back to the United States.

After some conversation, the three new shareholders of the gold company finally understood Fang Wen's plan.

With gold prices rising, it's become difficult to position oneself for investment opportunities. The gold company he founded is specifically for silver.

He wanted to leverage the influence of the three companies to collect and hoard silver, and then sell it after the price of silver rose.

All three parties agreed to the cooperation without objection.

Furthermore, it was agreed that the share allocation would be determined by the amount of silver provided by each party.

With the discussion concluded, the cooperation plan was finalized. The King of Sarawak and the King of Afghanistan then went to the karaoke bar next door to continue their karaoke session.

After they left, Fang Wen spoke again: "Father-in-law, you can come out now."

Father-in-law Kuang Shanming came out of the dark room and sat down next to Ye Honglin with a smile. The two had known each other for a long time, and this scheme was only able to be completed thanks to Ye Honglin's cooperation.

The three raised their glasses to celebrate the agreement, but Ye Honglin was somewhat worried.

"The Americans have a big plan. If they buy silver at high prices, a large amount of our silver will flow out, and the silver standard system will collapse. Without enough silver, we will have to issue paper money, but paper money is not backed by silver, so the issued currency will continue to depreciate. After the domestic assets in China have depreciated significantly, the Americans will buy a large amount of assets from China at low prices. I saw everything they did in the Weimar Republic."

Kuang Shanming sighed: "Old Ye, although you and I have some private wealth, it's nothing compared to China. The nation's finances are naturally managed by capable people, so we don't need to worry about them."

As he spoke, he looked at Fang Wen and said, "Good son-in-law, you agree, right?"

Fang Wen looked bewildered. He knew that the Nationalist government would print large amounts of legal tender and gold yuan in the future, and that these currencies would be greatly devalued. Could it be that the country would really be exploited by the Americans in the future?

But those things are meaningless to him. He doesn't have the ability to do what he's not in a position of power. Just like the last time he published something in the newspaper, who would believe it if he told others?
"Yes, it's not something we can worry about."

He shook off his thoughts, downed the wine in his glass in one gulp, and went to the karaoke bar with his father-in-law, Kuang Shanming, and Ye Honglin.

The first Taishan Flying Club event was successfully held.

Members can stay in the club for 3 months with their membership.

Of course, it can't always be free. This place is essentially a high-end resort, and Taishan Airlines isn't a charity.

The membership fee is $5 per year, which includes owning a palace of your own name and being able to bring two companions.

All members paid for it, and the expense was nothing to them.

They had a great time and mentioned that they would recommend more friends to join the Taishan Flying Club.

Meanwhile, the three shareholders of the gold company also began a formal cooperation with Taishan Airlines.

The newly established gold company was set up in Switzerland, Europe. Silver was transported from Kabul and Sarawak to Europe via Taishan Airlines and stored in Swiss vaults.

The follow-up procedures have also been arranged.

Once the United States announces a high-price purchase of silver, Swiss silver reserves will be shipped to the United States by sea for physical delivery to the Federal Reserve, or directly to US banks for offshore delivery.

Time flies, and before we knew it, it was January 31st.

It was late at night, at 9 p.m.

Shanghai suddenly became bustling at night.

A message is spreading quietly.

It is said that the newly elected US President Roosevelt has just issued a proclamation announcing: "The value of the dollar has dropped to 59.6 cents, and the government's purchase price of gold has been set at $35 per ounce."

The announcement was released during the daytime in the United States, but Shanghai received the news at night.

The first to receive the telegram were the intelligence brokers.

Because of the time-sensitive nature of the information, he disseminated it for free, causing a huge uproar in Shanghai.

Upon learning this momentous news, the taipans, compradors, bank clerks, merchants, and speculators of Shanghai went into a frenzy.

Gold has actually risen to 35 ounces!

Keep in mind that on the Shanghai Gold Exchange, the price of gold is less than $21 per ounce.

This is equivalent to gold rising by 75% overnight, while the dollar depreciated by 40%.

Overnight, those who held gold became incredibly wealthy, while those who owned large amounts of US dollars saw their wealth shrink by 40%.

It was a mix of joy and sorrow.

Meanwhile, at Shanghai Airport outside the city, Fang Wen's inner circle was holding a celebration.

At Fang's residence, Pan Jiafeng, Shao Sishen, Howard, Manager Liu, and Sun Debiao from Shanghai all came.

The food they eat is quite unique.

Fang Wen explained, "This is something I brought from Chongqing. It's called hot pot, a local specialty. You just put the food in and cook it at a high temperature."

Hot pot hadn't yet left Sichuan these days, so everyone found it quite novel.

A specially made yin-yang copper pot, one side with milky white bone broth and the other with spicy red oil broth, with charcoal burning underneath.

The table was covered with various ingredients; you could pick whatever you wanted and put it into the boiling broth.

This stuff warms you up, which is quite suitable for Shanghai at the end of January.

While enjoying the celebratory banquet, Fang Wen also made arrangements for the follow-up.

"General Manager Liu, the company needs to liquidate the gold it purchased with its own funds. Go to the city tomorrow and try to convert it into silver dollars and US dollars as soon as possible. We are very short of funds for our daily operations."

"Yes, General Manager, I'll go tomorrow." Manager Liu's face was flushed, whether from the spicy soup base or from excitement, it was hard to tell.

The next day, Manager Liu led his men to the city.

The city was in chaos; some people were laughing loudly, while others were acting crazy with their hair all over the place.

Among them are some foreigners who are usually arrogant.

Today is a joyous occasion for Chinese people who love to hoard gold, but the foreigners in the concessions prefer banknotes. This sudden action by the United States has really hurt them.

Looking at the various aspects of finance along the way, Manager Liu was filled with emotion.

As the car passed the Shanghai Gold Exchange, the frenzy there opened Liu's eyes to even greater wonder.

Overnight, gold prices surged by 7%, and the gold exchange was nearly bursting at the seams.

Some people bring gold to trade, while others are buying up large quantities of gold.

But this wasn't Manager Liu's destination today. The car continued on its way and stopped outside HSBC.

There was a power outage at home today, so I'm typing outside. I can't concentrate, and I've only managed one chapter so far. Sorry, only one chapter today.

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(End of this chapter)