Reborn Business Tycoon

Chapter 421: Unexpected Windfall (9) James said with a sad look on his face: "It's really hard to describe. This is the most difficult thing I have ever encountered. It's really unprecedented."

Yao Yi smiled and said: "What difficulties have you encountered?"

James sighed and said: "What I now encounter is not only a problem with the U.S. government, but also a problem with the Canadian government."

Yao Yi said: "What's the problem with the Canadian government? What problems do they have? Are they unwilling to sell the two northern regions?"

James said: "Yes, it turned out that they were preparing to sell under the instigation of several congressmen, but now they have no such intention, especially when they heard that the buyer was you, they firmly disagreed. I have tried my best to make this sale."

The matter has been in vain.”

After Yao Yi heard this, he sneered and said: "Secretary Zhi, it seems that our preparations are too much. Haha, forget it. In that case, forget it."

James lowered his head, a look of helplessness on his face.

Yao Yi then said: "Okay, Your Highness, since it doesn't work out, let's forget about it. It doesn't matter. Things in this world are constantly changing. I think you are tired too. Go back and have a good rest."

The wise mouse asked: "Isn't it also available in Greenland?"

James said: "Speaking of Greenland, what those congressmen want to do now is to help us buy Greenland, and at the same time ask us to take over their Juneng Company."

Yao Yi smiled and said: "Haha, what a big conspiracy. What do you think of me? You can do whatever you want with me. Damn it, these bastards are not only racists, but also...

Greedy guys, yes, they don't ask for my favors, but if they ask me to do things, look at how I deal with them, they are really a bastard."

The wise mouse said: "Master, there is no need to be angry about this. We can buy Greenland without them. According to the information I have, the original residents of Greenland have always wanted to be independent from Denmark. Therefore, with the strength of Denmark, they cannot defend it."

How long will it take? As long as we reach an agreement with the local government, the Danish royal family will be out. There is no need to pay attention to them at all. As for the Canadian parliamentarians, let the US government deal with them. Haha, let them fight on their own first and wait until both parties are exhausted.

When we are exhausted, we will take action again and win in one fell swoop.”

James said: "How can there be a fight between them? This time I guess they have reached some kind of agreement. Therefore, it is impossible for what you expected to happen between them. I think our work is in vain."

The wise mouse said with a smile: "Your Highness, you are wrong about this. What you saw was only the surface, and you did not analyze the current situation at all. Juneng Oil and Gas Company is just a small fuse.

And those dozen Canadian shareholders of Juneng are just victims. You have never thought about why the U.S. government wants to crack down on them. You know, these members of Congress are very influential in the Canadian Parliament. The U.S. government does this.

What is the purpose? Is it just for the little money? Not at all, the United States is going to play a big game."

James said: "Big chess? What big chess?"

The wise mouse said: "This big game also involves Japan's Plaza Accord. Let me first introduce the general situation."

Smart Mouse talked about the background, content and impact of the Plaza Accord.

Speaking of the background of the Plaza Accord, it is mainly related to the U.S. economy. Since 1980, the U.S. domestic economy has experienced two changes. First, the foreign trade deficit has expanded year by year, reaching as high as 160 billion U.S. dollars in 1984, accounting for 3.6% of GNP that year.

%. The second is the emergence of government budget deficits. Under the shadow of the twin deficits, the U.S. government has raised domestic basic interest rates to introduce international capital to develop the economy. The large inflow of foreign capital has caused the dollar to continue to appreciate, and U.S. export competitiveness has declined, thus expanding

to the crisis of foreign trade deficit. Under the pressure of this economic crisis, the United States hopes to use the depreciation of the dollar to strengthen the foreign competitiveness of American products and reduce the trade deficit.

This is the main background for the United States to carry out the Plaza Accord.

The specific content is: On September 22, 1985, the finance ministers and central bank governors of the United States, Japan, the Federal Republic of Germany, France and the United Kingdom (referred to as the G5) held a meeting at the Plaza Hotel in New York to reach a joint intervention by the five governments in the foreign exchange market.

An agreement to induce an orderly devaluation of the U.S. dollar against major currencies in order to solve the problem of the huge U.S. trade deficit. Because the agreement was signed at the Plaza Hotel, the agreement was also called the "Plaza Agreement."

After the signing of the "Plaza Accord", the above-mentioned five countries began to jointly intervene in the foreign exchange market and sell U.S. dollars in large quantities in the international foreign exchange market. This in turn formed a selling frenzy among market investors, leading to a sustained and substantial depreciation of the U.S. dollar. In September 1985, the U.S. dollar against the Japanese yen was at

The exchange rate of 1 U.S. dollar to 250 yen fluctuated up and down. In less than 3 months after the signing of the agreement, the U.S. dollar quickly fell to around 200 yen to 1 U.S. dollar, a drop of 20%.

After that, the U.S. authorities represented by U.S. Treasury Secretary Baker and financial experts represented by Fred Bergsten (then director of the American Institute of International Economics) continued to verbally intervene in the dollar, saying

At that time, the U.S. dollar exchange rate was still relatively high, and there was still room for decline. Under the hint of the U.S. government's tough attitude, the U.S. dollar continued to fall sharply against the Japanese yen, reaching as low as 120 yen per U.S. dollar. In less than three years,

Here, the U.S. dollar has depreciated by 50% against the Japanese yen, which means that the Japanese yen has doubled in value against the U.S. dollar.

As for the current results, you have also seen that since the Plaza Accord, the yen has appreciated significantly, which has had a considerable impact on Japan's export-led industries. In order to achieve the goal of economic growth, the Japanese government has lowered the value of the yen.

Loose monetary policies such as interest rates are used to maintain the prosperity of the domestic economy. Since 1986, Japan's benchmark interest rate has dropped significantly, which has caused a large amount of domestic surplus funds to be invested in non-production tools such as the stock market and real estate, thus forming a large number of bubble economies. And

This bubble will burst sooner or later, and it’s unclear what will happen when the time comes.

James asked: "You mean that there are a lot of bubbles in the Japanese economy now?"

The wise mouse said: "Yes, if you are more careful and look at the World Bank rankings, you will find such a strange phenomenon."

James asked: "What's the strange phenomenon?"

The wise mouse took out a newspaper and said: "Look at the rankings of these banks, I believe you will find the problem soon."

This newspaper lists the top ten banks in the world. They are 1. Sumitomo Bank (Japan), 2. Daiichi Banking (Japan), 3. Fuji Bank (Japan), 4. Agricultural Credit (France), 5.

Sanwa Bank (Japan), 6, Mitsubishi Bank (Japan), 7, Barclays (UK), 8, NatWest (UK), 9, Deutsche Bank (Germany), 10, Industrial Bank (Japan).