Rebirth of Hong Kong 1981

   Chapter 908 Ambition

  As the domestic market economy of the island country is saturated, the island country's enterprises have been expanding externally in recent years, and the appreciation of the yen can save a large part of the funds for those enterprises that expand abroad to a large extent.

   Being able to spend less money and buy things of the same value before, the islanders are not stupid, they are naturally very willing.

   Actually, the idea of ​​the island country government is very simple.

  The island country government believes that as long as they control the appreciation of the Japanese yen within a range of 20 to 30 percent, they will not have much impact on their existing market economy.

  The limited appreciation of the Japanese yen has a great effect on promoting the economy of the current island countries, and can even continue to promote economic growth.

  The island country is a country with extremely limited resources. For any of their industries, whether it is light industry or heavy industry, raw materials need to be imported from abroad.

  The appreciation of the yen can allow the island countries to spend less money every year and buy more resources. A moderate appreciation of the yen is definitely beneficial to the economy of the island countries, which is why the island country government did not object to the signing of the Plaza Agreement.

   However, reality is often very different from expectations.

  The international currency market is not under the control of the island country alone, and it is not up to the island country government to decide how much the yen appreciates.

  In the international currency market, the power of a country is limited after all, and even an island country, as the world's second largest economy, cannot do whatever it wants.

  Look at the previous financial crises in the United States. If the national government could control the market economy, then there would be no so-called Great Depression, such as Black Monday.

   There is no U.S. president who wants to see economic problems during his term of office. The economy affects employment, and employment is related to votes. If there is a way, successive U.S. presidents will not be helpless in the face of economic crises.

The U.S. government does not have the ability to intervene in the international currency market. Even if it did, the effect of intervention would be very limited, because the U.S. government has too few resources to use, and even the Federal Reserve cannot fully control it. What does the broken-headed US government use to intervene in the market?

   A paper agreement can only adjust the currency exchange rate temporarily, and cannot really control the trend of the international currency market at will.

Of course, the United States, Japan, Britain, France and Germany are now the five largest economies in the world. If they really make concerted efforts to intervene in the currency market, and the government can substantively implement the treaties signed in the Plaza Accord, then there is still a possibility to control the international currency market. , so as not to let it slip.

   However, in the eyes of Westerners, agreements between countries can always be torn up at any time, and some can even use public opinion to take time-consuming and labor-intensive means of delay.

   In later generations, Americans are capricious, talk without words, and change their fortunes repeatedly. It is already a common method. At the beginning, they tried to fool you.

  When the goal is achieved, whether to do it or not is another matter.

This time the Plaza Accord, not only the United States, other countries, including the islanders, the five countries after signing the "Plaza Accord", the various policies promised in the agreement, especially those measures linked to domestic financial and fiscal policies, Basically there is no real go-to implementation.

   In addition to selling the US dollar, everyone is more united. After the Plaza Accord, the governments and central banks of several countries immediately sold a large amount of US dollars to the foreign exchange market, causing the US dollar to depreciate significantly.

   In this regard, all countries are doing their best.

   However, this move of the five countries.

The impact of    will greatly exceed everyone's expectations. The follow-up effect is not uncommon in the financial investment market. Several major economies simultaneously sell the dollar. What does it mean for ordinary investors? Needless to say.

   The devaluation of the dollar means a shrinking wealth for financial investors, that is, their money will be inexplicably less.

   There is no financial investor who wants to see his wealth shrink suddenly. It is not the character of a good financial investor to sit still. Since the devaluation of the dollar can no longer be stopped, the big guy will think of other ways to reduce his losses.

   At this time, the appreciation of the yen is undoubtedly the best investment direction.

   As for the U.S. government’s call to save the manufacturing industry and use the money to invest in low-profit manufacturing, don’t be kidding, the big guy is not the savior, why should one’s wealth shrink, and they still need to give money to help the country revitalize the manufacturing industry.

   There is no reason, financial investors will not obediently obey the government.

After the    Plaza Accord, a large amount of capital hot money flowed into the island country market, pushing up the appreciation of the yen, in order to offset the shrinking wealth caused by the depreciation of the dollar.

The final result of the    Plaza Accord, whether the United States or the island countries, ultimately failed to achieve what it wanted.

   The depreciation of the US dollar did not bring blood back to the US manufacturing industry. Even if the bubble economy of the island country finally collapsed and the world capital returned to the US market, the money still did not return to the manufacturing industry in the end, but was used by the Bush father and son to fight the war.

  The inland will become the world's factory in later generations. Several US presidents want to restore the status of the world's factory and regain their own manufacturing industry, but they have not been able to do so.

   The next appreciation of the yen is just the beginning.

  Yang Chen knew that during the three years after the Plaza Accord was signed, the exchange rate between the US dollar and the Japanese yen had dropped to a minimum of 1 US dollar to 120 yen, and the yen had more than doubled in value.

  Twenty percent, this is where, the real good show is behind.

  This feast is a one-of-a-kind grand scene.

  The world capital has attacked the island country together, and even the island country's own financial investment institutions and consortiums are also involved.

   In the world's second largest economy, this is a big piece of cake, enough for everyone to share, anyone can eat a full stomach even if they pick up a little corner.

   And Yang Chen prepared so much before, because he wanted to take this opportunity to speed up the development of his industry by sucking blood from the island country, so that his business empire could really take shape and become as unshakable as those old consortiums.

Several major consortiums in the island country, they control hundreds of listed companies, and the resources at their disposal are stronger than some countries. Such consortiums are truly powerful, so powerful that even countries dare not easily suppress them, even if necessary. When they do, they will protect them.

Why?

   The reason is very simple, because once they fall, in addition to economic losses, it will also affect a country's competitiveness in certain industries.

Toyota, a subsidiary of the Mitsui Consortium in later generations, has always been the signboard of the auto manufacturing industry in the island country. Once the Mitsui Consortium collapses, Toyota will also be affected to a certain extent. Once Toyota loses its competitiveness, then other countries will solve a strong competition. opponent.

  In the peaceful era of later generations, commercial competition is the main battlefield of various countries. Winning or losing will not lead to the collapse of a country, but it can make a country's economy continue to weaken, thus causing the national strength to go backwards.

   Since ancient times, war is all about money

   Modern Warfare even more so

  The economy is not good, and there is no money to fight.

   Later Russia is the best example. What if the weapon is powerful, it is not suppressed everywhere.

  What Yang Chen wants to do is to make his business empire bigger and stronger, strong enough to control the direction of the Asian economy...

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   (end of this chapter)