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James was wrong, again ignoring the influence of international investors.
The depreciation of the dollar and the appreciation of the rì yuan have entered an irreversible process.
Hot money from all over the world is frantically flocking to the island country's investment market.
Within a few days, the rì yuan continued to appreciate, and the exchange rate of rì yuan to the dollar had dropped to 160 rì yuan to one dollar.
In order to resist the support of Western countries for Israel, the Arab world launched an oil crisis, which failed to shake the U.S. economy, but now, the crazy depreciation of the dollar has caused serious problems in the U.S. economy.
The depreciation of the U.S. dollar is to increase the competitiveness of the products produced by American companies in the world, and to hit countries with large foreign exchange reserves, so that the U.S. dollars in their hands will depreciate. This process must be slow.
However, the depreciation of the U.S. dollar is so sharp now that when their companies are still enjoying the benefits of the depreciation of the U.S. dollar, they have swallowed the consequences. The prices of the raw materials they produce and the various commodities they need to import have all begun to rise. Grow like crazy.
These skyrocketing prices have triggered a new round of inflation in the United States. After ordinary people in the United States wake up, they find that the price of food has risen again, and they are reluctant to buy even a new piece of clothing.
Ordinary Americans have become direct victims of this economic struggle.Due to the depreciation of the US dollar, even most of the funds in the United States have begun to flee. Capital has always gone to the place with the greatest benefits, and they have also invested in the huge profits from the appreciation of the rì yuan.
The U.S.-led attempt to depreciate the rì yuan to stimulate its own economy has been satirized by reality. What they are now facing is how to stabilize their own currency.
On the other hand, the current island country is already a thriving scene.
Although the appreciation of the rì yuan will damage the large number of dollars held by the island country due to the depreciation, but even ordinary people will find that they are rich.
Noboru Takeshita has become the most popular person in the cabinet. This time, he accepted the proposal from the United States to let the rì yuan appreciate under pressure. Now, the economy of the island country has begun to develop in great strides.
The appreciation of the rì yuan has inflated the self-esteem of the islanders again, and they realize that this is an excellent opportunity for them to expand overseas.
Takeshita once again proposed that in order to encourage the flow of funds, they should lower the bank interest rate so that this part of the funds can fully enter the market circulation.
Although the exchange rate has not yet fallen to the lowest point in history, Zhang Manyu has already noticed certain risks. After making a fortune from the foreign exchange market, their funds began to gradually withdraw from the foreign exchange market and transferred to the stock and real estate markets.
This is exactly what Qusay meant.
This punch hit the weakness of the United States hard. When the United States was caught off guard and had no backup force, it caused a sudden and rapid depreciation of the dollar, which caused a huge blow to the domestic manufacturing industry in the United States.
However, the United States is still an economic giant. As long as they react and take active actions to rescue the market, it is no longer worthwhile to continue the currency battle. The U.S. government will definitely introduce a series of policies. Although the process of stabilizing the value of the U.S. dollar is difficult and has greatly affected the low- and middle-income people in the United States, as long as the United States is willing, it can still be slowed down.During this process, Americans will suffer a huge impact from the rapid depreciation of the dollar, their cost of living will rise sharply, and severe inflation will occur in the country. This process may last for a year or two, and this blow will be profound. Affecting the U.S. economy, however, will not completely destroy the U.S. economy.
The action of hyping Rì Yuan at this stage needs to come to an end, and they will proceed to the next stage of action.
Now, with a large amount of funds flowing into the island country, it is a good thing and a crisis for the island country.
Because, not all of these funds are invested in actual production and construction, that is to say, they are not used for added value, but for speculation, that is, in the financial market.
The prosperity of the stock market is all false and cannot truly reflect the country's economy. Especially, these stock markets are mainly foreign funds.
Everyone drives up each other, stirs up stock prices and real estate prices, and then, these prices have deviated from the real value, getting higher and higher, these batons are passed to each other, and when it is passed to whose hands, the bubble is stabbed If it breaks, it will all go bankrupt.
At this point, the Far East Trade and Investment Corporation faces the least risk. Their current funds, after hyping the rì yuan, already have capital means of nearly 5000 billion U.S. dollars. Will definitely continue.
"Now the key target is the stocks of the big consortiums and big companies in the island country." Zhang Manyu said: "Toshiba, Sony, Fujitsu, Mitsubishi, Toyota, the stocks of these big companies, how many stocks are there in the market, and how much we absorb."
Zhang Manyu still doesn't like those small companies. What she needs is to acquire these large companies with global influence before the stock price has risen. These stocks are rising the fastest, and when she sells Time can cause the biggest impact on these companies.
At that time, due to the economic depression, those companies that no longer have enough ability to maintain the business will have to sell some departments.
For example, the current Toshiba Corporation has sold several important product items to Ousheng Corporation.
In addition to stocks, another aspect is real estate.
In later generations, after the Plaza Accord, the stock price of the island country rose sharply at a rate of 30.00% per year, and the land price rose at a rate of 15.00% per year. Although the land price did not rise as fast as the stock price, the land price is a wealth management product that can be invested in large quantities.
Now, the wealthy Kingdom Construction Company has initially completed the inspection of the Ginza area, and is planning to purchase a piece of land on an open lot at a high price, which is a landmark building in Ginza.
At the same time, according to Prince Waleed's vision, the secret account of the Far East Trade and Investment Company began to purchase some real estate projects with relatively high appreciation potential.
It is definitely not locals who can stir up housing prices. Locals do not like high housing prices. Only foreigners with money in their pockets who buy real estate in large quantities and raise housing prices. They are the main force in real estate speculation.
In later generations, the real estate in the island country was hyped by a large number of international financial capital. If you sell the real estate in Tokyo, you can buy the entire United States.However, high housing prices still make it impossible for ordinary people to own their own houses.
Zhang Manyu opened the curtains of the room and looked at the night lights blooming outside. At this time, it was already dark. They had been here for a month, and finally it was time for them to harvest.
In half a year, is it safe to speculate the stock market and real estate of the island country to a high price of [-]%?
Chapter 9 Responding to the Crisis and Cutting Military Expenditures
In the blue sky, there are white clouds floating. Under the sky, in the city center of a modern building, opposite a towering monument, is a small white three-story building.
The autumn is crisp and clear. It was supposed to be a good weather, but the people in a conference room on the second floor all had gloomy faces.
There is an old saying called lifting a rock to shoot one's own feet. Although they have never heard this sentence, they feel a similar result. This incident was initiated by them, but now, let them try it. It has had bad consequences.
"At the beginning, I proposed that our devaluation plan must be steadily lowered, but now, our devaluation has not brought us any gains in the country, but the economy has suffered heavy losses!" Bush changed from his usual composure and composure, The first to express dissatisfaction.
James blushed, and said to Bush: "Yes, we have been planning a steady downward adjustment, so that the dollar will depreciate by about 20.00% within two years. We have formulated a careful plan and prepared more than 500 billion US dollars. It is sufficient, but we did not expect that we have been hyped by hundreds of billions of dollars of international hot money, and our funds have added tens of billions of dollars, all of which have been invested in the depreciation plan. When the value is about to depreciate, we don't have enough funds to fight against it."
Hundreds of billions of dollars of international hot money, don't you know that when the rì yuan appreciates, it will definitely attract a large number of investors?Bush didn't ask about these mistakes again. Originally, he believed in James very much, but now, things have proved that James' consideration of issues is too simple.
"Moreover, we will add funds later, the appropriation approved by the Congress, but the trend of the appreciation of the rì yuan at that time has been unstoppable, and we have tried our best." James said.
"We have invested a large amount of money, and the final result is that our domestic inflation and currency depreciation are too fast. Are ordinary people unable to afford food now?" Bush said.
"Forget it, what we are discussing now is not who to hold accountable, but how to get through this crisis." President Reagan said.
This is a real economic crisis. If this crisis is not handled properly, the US economy will be affected the most. I am afraid that the leaders of the government will be overthrown by the furious people, and they will end up in the same fate as Carter back then. .
Reagan knew that the depreciation of the dollar was actually the idea of those domestic business consortiums. They kept lobbying the government that exports were not competitive, and the value of the dollar was overvalued, so these bubbles had to be squeezed out.But now, the depreciation is unfavorable and the domestic economy has problems. They will even question the government's decision-making. Therefore, although James is responsible for the specific actions, James should not be fully responsible.
The investigation of this incident is also continuing, but it is very difficult to find out where the funds are maliciously hyping.
Hearing President Reagan's words, Bush did not speak. The current situation is nothing to the United States. What method can zhèngfǔ have?It must be to reduce expenditures and reduce military expenditures.
Sure enough, the Secretary of State said: "Now, if we want to survive this crisis, we must cut various expenditures. The huge deficit of our fiscal expenditures has a lot to do with excessive military expenditures. We need to reduce some weapons research and development. Funding, reducing spending on the military. For example, our Star Wars program, we invested too much money, and the results were not significant.”
"You are killing our military!" Weinberg immediately retorted: "Now, we are at the critical moment of the Cold War with the Soviet Union. Our underwater superiority has disappeared, and we have not invested enough in space. If we If we reduce the investment, we will have no advantage in front of the Soviet Union. The Soviet Union now has thousands of nuclear warheads, which are targeting us. If we show a decline in any aspect, the Soviet Union’s self-confidence will inflate, and we may be at a disadvantage. Status, the Soviet Union's current aircraft carrier has already started construction on the second one, and they are catching up with us in all aspects."
Weinberg is alarmist, now, no matter how much spending is cut, military spending cannot be cut!This is about the national security of the United States!
But is it okay to cut spending elsewhere?Now that the domestic economy has deteriorated, if the investment in medical care, insurance, sanitation, sports and other public services is further reduced, it may intensify the dissatisfaction of the American people against the government!
Reagan was well aware of the stakes.
"Now, it's not so tense." Secretary of State George continued: "The last time our nuclear submarines collided was just an accident. Since Gorbachev came to power, the Soviet Union has no Brerì Nev. Aggressive, Gorbachev is like a harmless little white rabbit who just wants to eat grass."
George's words brought smiles to everyone's faces.In recent years, the leaders of the Soviet Union have changed too quickly. They don't know how the "young" Gorbachev came to power. However, this person, unlike the previous leaders, is not enthusiastic Because of force, he is passionate about agriculture. His greatest wish is probably to feed the Soviets without spending huge amounts of foreign exchange to import food.
Such a moderate leader of the Red Empire is of great benefit to the United States.
As the two most influential countries in the world, although the two sides have been confronting each other, the dialogue between the two sides is inevitable. After negotiations, they will hold a bilateral meeting at the end of this month. meeting of top leaders.
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