Jeffrey Sachs spent a week in Poland, during which time Walesa and his cabinet engaged in discussion after discussion with the Bank of Colombia and Jeffrey Sachs himself.
With a huge debt coming due, the Polish government really has no way to repay its foreign debt, and it is also helpless in the face of hyperinflation at home.
At present, most of Glencore's products in Poland are still settled in US dollars, and only a small part is paid off with copper and other minerals produced in Poland.
For the Polish government, if they want to import much-needed food and agricultural products from abroad, they can only consume dollars and copper.
Although Poland is a country with abundant copper reserves, it does not have enough production capacity to meet Glencore's needs overnight.
After a period of unpleasantness on both sides, Glencore is now completely on business with the Polish government, and without dollars or copper, Poland does not even want to import a shipload of wheat.
Walesa now has only the only straw thrown at her by the Bank of Colombia.
So, despite its misgivings, the Polish government seized on this straw and agreed to allow the Bank of Colombia to take over Poland's central bank.
Having received official authorization from the Polish government, Sachs and Mikhail immediately began their operation.
On the second day of the signing of the cooperation agreement between the two sides, the Bank of Colombia, in the name of the Central Bank of Poland, announced the abolition of the old Polish currency, the zloty, and the issuance of a new version of the Polish zloty, with a ratio of 1:100 between the old and the new zlotys.
Many Poles learned early in the morning from newspapers, television and radio that the government had issued a demonetisation order, and all of a sudden, the doors of Poland's major banks were crowded with residents who came to exchange money.
They rushed to the banks with bundles of banknotes to exchange for the new Polish zloty.
The promulgation of demonetisation is just the beginning.
Although the 1:100 ratio is just a numbers game, thanks to the new monetary system, the prices of goods on the market are starting to be re-pegged to the new version of the zloty.
Almost overnight, the prices of most goods on the market fell a hundredfold.
The day after the Central Bank of Poland announced the demonetisation order, the Polish government again announced the increase in bank interest rates and the abolition of food and fuel subsidies.
From this point on, a large amount of the currency circulating in the market began to return to the hands of the Central Bank of Poland.
In just one week, Mikhail fulfilled his promise, and inflation in Poland was finally brought under control.
With the strength of the Gorky consortium, there is basically no pressure to control the prices of Poland at will, after all, Poland's population is one-tenth of that of the Soviet Union, and Glencore controls the largest grain buyers in the Canadian, American, and Australian markets.
Mikhail wanted to use the Polish market as a banner for Bank Colombia in Eastern Europe, and Seryosha supported his plans behind it.
Just after the hyperinflation in Poland was brought under control, Yuri also arrived in Warsaw and began lobbying the Polish government for privatization reforms.
Mikhail soon submitted a privatization reform package to the Polish government, and since Bank of Colombia took over almost all of Poland's debt, Bank of Colombia is now the largest creditor in Poland.
This privatization reform package is essentially a plan for Poland to repay the Bank of Colombia.
According to Mikhail's plan, the huge state-owned assets in the hands of the Polish government will become the pocket of the Bank of Colombia, but the Polish government does not know these things, they only know that the mines, steel and metallurgical enterprises that originally belonged to the state, as well as some banks and shipyards in Poland, almost all the assets have been marked with prices and put on the shelves for people to choose.
Bolonaise Motors has been taken over by Gorky Volkswagen, and some downstream companies that are supporting factories are now starting to sell off.
Poland's state-owned pastures were sold to the livestock branch of Occidental Petroleum Company, the shipyards in Gdansk, the Polish state-owned shipping companies, and even the port of Gdansk were bought by the Mediterranean Shipping Company as a whole.
This dazzling series of fire-sells and consolidations has allowed Poland's economy to begin to show signs of improvement, and the Polish government is naturally grateful to Bank of Colombia.
But what they don't know is that in fact, eating these state-owned assets in Poland did not cost the Gorky Group much money at all, because in today's Poland, even the banknotes are printed by the Bank of Colombia.
Glencore took advantage of this opportunity to clear a large number of materials that had been stored for many years.
Ostensibly, hundreds of companies from all over the world participated in the privatization of Poland, but in fact, the best assets have long fallen into the pockets of the Gorky Group.
In just a few months, the foreign debt and economic transformation package had turned Poland into a state controlled by the Gorky consortium, but the Polish government was unaware of this.
On the contrary, because prices began to fall and the economy began to recover, the Polish people regained their trust in the government.
At the very least, Walesa doesn't have to worry about herself.
The success of Poland's reforms made Bank of Colombia and Jeffrey Sachs famous, and the foreign debt and economic transformation package born out of Jeffrey Sachs's shock therapy became a lifesaver for emerging regimes in Eastern Europe.
As Poland's economy began to get on track, Mikhail and Geoffrey Sachs received invitations from the governments of Hungary and Czechoslovakia to continue the Polish-style reforms in Hungary and Czechoslovakia.
Mikhail naturally did not miss this opportunity, and at this moment a larger idea began to appear in his and Seryosha's minds: whether it was possible to establish a multinational central bank that would encompass the entire Eastern European country to help the entire Eastern European region carry out integrated reforms.
Seryosha knew very well that if this idea could be realized, Eastern Europe would establish a eurozone more than a decade ahead of schedule, and at that time, a unified and large market would greatly enhance the competitiveness of the region, and most importantly, Colombia would become the central bank of the entire Eastern Europe.
The idea is simply too tempting.
Seryosha knew in his heart that if Mikhail could succeed again in Czechoslovakia and Hungary, then the theory of a unified market in Eastern Europe would come naturally. t1706231537: