ExtraOrdinary Genius
Chapter 13 – Increase manpower
After a while, the Feng family sits down amicably again. Of course, this is at expense of Feng Yu’s suffering. His body is covered with red bruises from the feather duster.
“I thought Xiao Li is not bad, but it seems that I am wrong!
He is a grown up and yet he followed along with Xiao Yu’s idea. What does Xiao
Yu know about Treasury bonds? Making money from Treasury bonds? Tell me who
else has ever made money with Treasury bonds? Even if one can make money from
these bonds, it is also speculation!” Zhang Muhua scolded. She still did not
get over it and continued to scold her son and Li Shiqiang.
“Mom, Shiqiang is also influenced by Xiao Yu and Xiao Yu
also said told him that this was dad’s idea. Shiqiang also had no choice but to
go along with this.” Feng Danying tried to explain.
“Go and call them now and get the money back!” Zhang Muhua
said.
“Mom, just trust me. We can really make a huge profit out of
this. Even Teacher Sun said so. Besides, this is not speculation. According to
the newspaper, we have to develop a planned commodity economy and this is
commodity economy.” Feng Yu said.
Feng Yu said some investment jargons which his mother could
not understand. His mother’s anger died down after Feng Yu promised to call Li
Shiqiang to keep at least 10,000 RMB immediately.
On the way to the village office phone, Feng Danying is
still scolding Feng Yu: “How can you push everything to Shiqiang?”
“You are my sister and you are not even his wife yet. Why
are you helping outsiders! As you can see, Mon and dad didn’t get too angry
because Brother Li is involved in this. Also, we can absolutely make money from
this. Dad also needs a sum of money to buy you a house in Bing city.” Feng Yu
retorted.
“To sum it up, you are the scheming one and Shiqiang is an
honest person who was con by you.”
“Fine, fine. I am the worst. Don’t forget it was because of
me, you and Brother Li are able to meet the parents.” Feng Yu muttered.
At village office, before the two pick up the phone, the
phone rang. Just happened Li Shiqiang called up.
“Hello. Brother Li? You had just met my sister a few days
ago and now you are missing her?” Feng Yu joked.
“Xiaoyu, actually I’m looking for you. I had just found out
that the Treasury bond is more profitable than we expected!” Li Shiqiang said
excitedly.
Eh? What does he mean? We can make money from Treasury bonds
now?
Feng Yu had only considered the issue of trading Treasury
bonds and forgot about the maturity value. There are many people holding on to
5 RMB and 10 RMB bonds. Some had already matured. Most of the bonds at that
time are 5 years maturity bonds and there is a 4% annual interest. This means
that when a 10 RMB Treasury bond matures, they would have 12 RMB.
Just like Li Shiqiang said before. When the Treasury bonds
were issued, they met with a lot of resistance. The government then forced the
workers in government agencies and businesses to buy these bonds.
Many people had even forgotten that they own Treasury bonds.
When they heard that Li Shiqiang is acquiring Treasury bonds, they went back
and look for their bonds. It is only then, some of them realized that their
Treasury bonds had matured.
For these people, going to the bank for a 2 RMB return is
troublesome. Over the years, wages had been raising. 2 RMB is not worth the
trip to the bank.
Li Shiqiang was not very successful when he went door to
door to buy Treasury bonds. He offered 9.5 RMB for 10 RMB Treasury bonds and
most people refuse to sell their bonds to Li Shiqiang.
Occasionally Li Shiqiang will meet someone whose bonds had
matured and can be redeemed for cash at the bank. Li Shiqiang would offer the
original value for these bonds. He would offer 10 RMB for a 10 RMB Treasury
bond. He is able to make a 2 RMB when he redeems at the bank.
But this way, these people can feel the pinch even more. The
offer for a 10 RMB bond should at least be 11 RMB. Li Shiqiang thinks to
himself, “Even if I use 11 RMB to buy a 10 RMB bond, I can still redeem it for
12 RMB when I go to the bank. If I use 110,000 RMB to acquire these bonds and
bring it to the bank, I can get 120,000 RMB back!”
As such, he called Feng Yu to ask if it was fine this way.
He feels that they don’t need to wait for the Treasury bonds to be traded
publicly. Feng Yu is shocked. He did not expect Li Shiqiang to be so smart and
flexible. Of course, they can do this business!
In his past life, he had also heard that some people also do
this. They went door-to-door to buy maturing Treasury bonds. For 10 RMB bonds,
they would offer 11 RMB. They would just profit from extra interest. But this
requires a lot of costs.
Feng Yu had not expected that there are people who did not
go to the bank to redeem the matured Treasury bonds. was due, and no one knew
to change it. There are some who knew that their bonds had matured but can’t be
bothered to go queue up at the bank. Their time is worth more than the measly 2
RMB returns.
“Brother Li, you are a genius! We can offer a higher price
for those bonds that are maturing in three months. But not for those that
mature more than three months! We will wait for the Treasury bonds to be traded
openly and I guarantee that we can make thousands of dollars every day!”
“What? Make thousands every day? Isn’t that at least 30,000
RMB a month and more than 300,000 RMB a year?” Li Shiqiang’s hands began to
tremble. To have 300,000 RM, he would have to save all his salary and not spend
a single cent for the rest of his life.
In fact, 300,000 RMB is just Li Shiqiang’s share. Feng Yu
can earn at least a few million! But he will have to wait for cities to open up
the trading of bonds. If it is only one city, there will not be a difference in
the price of the market.
“Brother Li, how much bonds have you acquire today?” Feng Yu
asked.
“Er ~ ~ Only around 1000RMB.”
Feng Yu is speechless. One day can only acquire around 1000
RMB Treasury bonds? How long will it take to acquire 100,000?
“How come it is so little?” Feng Yu asked.
“No choice. It is all 50 RMB bonds. There are very few big
denomination bonds. The weather is cold and I, alone have only a bicycle for
transportation.” Li Shiqiang replied.
Li Shiqiang had returned the Jeep and had been running
around by bicycle.
“Brother Li, this is not like exchanging foreign currencies.
You cannot do it alone. How much can you acquire if you are doing it alone? Do
you have any trustworthy friends, who have time and energy? Ask them to help
you acquire Treasury bonds. We pay them 100 RMB a month!” Feng Yu said.
Li Shiqiang felt the salary was too high: “100 RMB?” I am
only earning slightly more than 80 RMB a month!”
“Brother Li, you also mentioned that you still have to work.
Where can you find time do this? You can’t be skipping work every day. Hire
them to help you go door-to-door to acquire Treasury bonds. The rules are what
we had discussed earlier. Higher price for those bonds that are maturing in
three months’ time, same price for those bonds that are maturing in less than a
year and for bonds that are maturing more than a year later, we offer 95% of
the bond value.” Feng Yu said.
“Ok. There is a motor factory dormitory behind my house.
There are many seventeen to eighteen years old teenagers there. These kids are
jobless and all they did was to loiter around. I will let them collect these
bonds. If the salary is 100 RMB, they will certainly take up the job.” Li
Shiqiang replied excitedly.
Li Shiqiang had started working for less than a year and his
position is right at the bottom. He didn’t expect that he can lead a team of
people just by doing some small business.
“Ok, Brother Li. Ah, ah, ah ~ Sister, don’t snatch the
phone. I have not finished.”
*During that era, not many households have telephones. Most
villages will have only one phone in the village office. If someone calls up,
the office will announce using the village’s P.A system.