In the previous article, I discussed that China will not go the old way of foot basin. Some people say that the foot basin people are too stupid, obviously pits, and jump into it. Although I hate foot basin people, they do things with their own considerations. Those of us who are hereafter are standing and talking without waist pain.
Hello everyone, I'm the Angry Red Rabbit, an author who makes someone angry with a blood mouth spray, forehead, blood mouth spray person? Spray your face, so called red rabbit (vomiting blood)
Too many people stand in God's perspective to see the foot basin stock market crash and the real estate bubble of that year. It is rare to look at what happened at the end of the last century from the perspective of a foot basin person. Because we treat the foot basin as a bystander, how much can we solve the problem when we ourselves are in the game?
In the 1970s, the Vietnam War ended up Eagle Sauce, and when Eagle Sauce had no time to look west, the foot basin developed in great strides. At that time, foot basin manufacturing expanded all over the world, stealing the business of countless eagle sauce people. Eagle Sauce people's anti-Japanese sentiment is high. Especially in 1985, when eagle sauce inflation reached a level of 19.5%, which is extremely exaggerated data! The current eagle sauce CPI inflation is only 6.8%, which is already wailing all over the field. You can imagine what kind of data 19.5% is.
At that time, Eagle Sauce was still one of the two levels of the world, and if Eagle Sauce fell, would you be willing to let the evil SuWA rule the world of counter-attacking liberal democracy? So Eagle Sauce must not have an accident. Then the M Fed will reduce the level of inflation by raising interest rates and absorbing money from the market. M yuan quickly appreciated, but M yuan is worth money, and others buy eagle sauce products become more expensive, which directly leads to the rapid contraction of M country's exports. Then the market still has to buy products, buy foreign products, especially foot basin products, so that the import volume of M country surges and the trade deficit soars. Eagle sauce goods are too expensive, countries around the world do not buy eagle sauce goods, after a long time, eagle sauce manufacturing industry will collapse. Eagle Sauce is already on the brink of collapse, and there are even years when a single country in the foot basin accounts for more than 80% of Eagle Sauce's total trade deficit.
At this time, the anti-Japanese mood was surging. In 1985, economically, Eagle Sauce vigorously suppressed the foot basin, although the foot basin looked at the world, the economy was booming and strong. Eagle sauce, on the other hand, is thinning and lingering. However, the strong contrast is that the foot basin people are politically weak, after all, the foot basin is the defeated country in World War II, the M army is directly stationed in the foot basin, for the foot basin people, in addition to the economic pressure, the political pressure is also very heavy. There was a foot basin person who wrote a book "The foot basin can say no", which is a good reflection of the state of the foot basin after turning over.
After achieving brilliant economic results, the foot basin people want to further get rid of the grip of eagle sauce. True independence became a political power. Then in their view, it is necessary to give some "sweetness" to the developed countries now led by Eagle Sauce. Eagle sauce is a hidden evil and gives a lot of advice to make the foot basin more open. Foot basins have developed on the free world market over the years, and they are not wary of making finance freer and more open. These proposals later became "Status Quo and Prospects for the Internationalization of the Yen for Financial Liberalization." The foot basin of the financial market, which was like a fenced farm, is now beginning to remove the fence of the farm. Everything on the farm is exposed to world capital. Foot basin finance began a full liberalization,
And Eagle Sauce is deep in the quagmire, how can he save himself? The trade deficit is extremely large, the cost performance of eagle sauce products is far less than that of foot basin goods, eagle sauce must make its products have competitive value, otherwise no one buys, eagle sauce eats jujube pills. Methods such as improving product quality are too slow to work. Eagle sauce makes the yen appreciate. In this way, the M yuan is not worth much, and the eagle sauce goods settled with the M yuan naturally become cheaper. Eagle sauce goods are competitive, and the trade deficit can also come down.
But why are foot basins willing to appreciate? Because at this time, the foot pot is full of flowers in China, and the trend of development seems unstoppable. They feel like they're number one in the world. The yen is appreciating, the yen is more valuable, and they have to take the opportunity to harvest the high-quality assets of M yuan. Such a revenge for the defeat in World War II, the revenge of enslavement after World War II. So after the yen appreciated, the foot basin super enterprise entered the global buy and buy. Take countless high-quality assets under your hands. And such an expansion, naturally, is supported by the banks of the foot basin in the back of the credit. This money is called foot basin money.
M yuan is linked to oil, M yuan depreciation, oil prices are low, they use yen to buy and buy. All kinds of assets are very cheap,
In 1989, Mitsubishi purchased 14 skyscrapers in Rockefeller Center in New York for 200 billion yen, which became a classic of the bubble economy era's foot basin entering overseas real estate. Of course, the money was borrowed from the foot basin bank. When the bubble burst in 1996 and Mitsubishi was unable to pay the bankruptcy, the Eagle Sauce landmark was returned to the Rockefeller family in 2000.
At that time, in addition to the M Day side, Germany and Britain also appreciated their local currencies together, which is the famous Plaza Agreement. Eagle sauce to save their own economy, to depreciate, foot basin to harvest eagle sauce high-quality assets to appreciate. Each has its own plan, just signing the Plaza Agreement is really not a problem, so why will the foot basin collapse behind?
In my personal opinion, the elite of the foot basin is too self-righteous. They underestimated the domino effect. The foot basin has achieved high economic achievements in the past, and it was about to become the number one in the world at that time. They are too arrogant. Thought the world would work the way they thought it would. And the foot basin people, like the foot basin enterprises have also been loose lending conditions, a large number of funds flowed into the stock market and real estate, these industries after the rapid boom, stock prices and house prices rose again and again, and so simple can make money, then who is still with you bitter haha do business.
This became a common practice, through lending, you can get a lot of yen, ordinary people also joined the purchase abroad. They are quickly lost in the tide of luxury. They live in luxuries that could not have been imagined a few decades ago. In the manufacturing industry, because of the appreciation of the yen, the products of the foot basin have become more expensive, and people have begun to buy less foot basin products. The industrial part of the factory has lost money, or even closed down, and because finance and real estate are easy to make money, the company's factories have invested money there. Companies that still want to do business move their factories to China and other regions.
At that time, the foot basin elite saw the damage of the yen appreciation to the manufacturing industry, and they wanted to save these factories, and they had many means, but they were guided by the Eagle Sauce people and chose a very bad path, cutting interest rates to 2.5%. The yen appreciates, the foot basin central bank cuts interest rates, so that there is more money in the market, and the total amount of products remains unchanged, and prices will rise. The prices of their products have also risen. But the real situation is that more money is in the market, but they all go to speculate in houses and stocks. The beast of inflation is also brewing.
In 1987, the world economy had a boom, and West Germany, the United Kingdom and other economies raised interest rates. On October 19 of that year, there was a stock market crash in the Eagle Sauce stock market, and the M Fed began to raise interest rates urgently, strongly demanding that the foot basin suspend the interest rate hike. Because Eagle Sauce is worried that the foot basin and eagle sauce will rise together, the money may flow to the foot basin, because the foot basin has more opportunities and has vigorous vitality, which is not comparable to eagle sauce.
Why would you listen to eagle sauce on this side of the foot basin? They are afraid that more money will flow into the foot basin, which will accelerate the appreciation of the yen and cause a recession. The foot basin also wants to maintain a low interest rate environment, so that people can consume more, rather than deposit in the bank. In this way, their domestic demand can be expanded. Complete their economic plans, expand domestic demand, and reduce dependence on foreign trade.
Many people cite the Plaza accord as the culprit in the collapse of the foot basin. But not at all. What is really fatal is another agreement that they are reluctant to bring up. Because of the "M-Day Structural Trade Barrier Agreement", the clause in it is really too humiliating to the country, there are voluntary export restrictions, and even the sale of color TVs to Eagle Sauce has restrictions. A variety of terms, eagle sauce suppressed foot basin is very fierce. Even the agreement even requires that within 10 years, the foot basin will invest more than 430 trillion yen in public utilities in Eagle Sauce.
And these unequal plunders, the foot basin elite can only swallow bloody teeth. Unfortunately, the economic bubble has unknowingly grown into the largest in history. Nikkei went from 13,000 points to 39,000 points, and its total market capitalization accounted for 45% of the market capitalization of the world stock market. What's more exaggerated about real estate is that as long as you sell a Tokyo, you can buy a hawk sauce.
At that time, the foot basin elite found that they could not turn back, and once the bubble burst, the post-war achievements of the foot basin would disappear and the foot basin economy would collapse. It was a deadly innings. They were suicidal in their Bushido self-help, and Yasushi Mieno, as governor of the Foot Basin Central Bank, took the initiative to burst the Foot Basin bubble and raised interest rates five times in a year. The soaring asset price bubble began to collapse, and the practice of stopping all mortgages and recovering credit evaporated nearly 50% of the foot basin stock market. Multi-millionaires directly become multi-millionaires. Countless people committed suicide and ran away.
Although the process was tragic, it led to a hard landing for the foot basin economy, a sharp deterioration in corporate balance sheets, a rapid expansion of government debt, and a sharp increase in bad bank debts. But such a strong treatment successfully saved the last vitality of the foot basin. Although the foot basin is said to be a lost thirty years, the total economic volume has always remained in the top three positions in the world.
Against the backdrop of the sadness of the foot basin economic bubble, the miracles they created were covered up.
Foot basin enterprises go abroad and build another foot basin overseas. Especially in China, it is obvious to see that Japanese companies are blooming everywhere. The GDP of the foot basin in 2014 was 487 trillion yen, and the total net assets of the foot basin exceeded 75% of GDP.
Foot basin entrepreneurs have created a group of multinational manufacturing enterprises with global influence and competitiveness. Although these enterprises were later surpassed by ZhongM, only ZhongM surpassed them. They are still so powerful. And they're more secretive.
The foot basin has established a sound social security system in line with the aging society. They launched a program to protect the welfare of the elderly. Various social welfare, health care, so that the elderly in the foot basin have something to rely on.
No blowing, no black, the Japanese response at least preserved the last vitality. It also retains the position of the world's top three economies.