Chapter 908 Plaza Accord (2)
"If we want to get rid of the current economic situation and depreciate the US dollar, it is not possible to rely on our countries. It is mainly based on the support and cooperation of the second largest GDP country in the world and the largest foreign exchange reserves in the world." Jahart continued.
As he said this, everyone's eyes were staring at Takeshita Toshita and others wearing golf jerseys.
If you want to get rid of the financial problems of the United States, you naturally need another financial giant to help. This financial giant can only be helped by the second largest economically developed country in the world, that is, the island country.
The island countries now have long surpassed the Soviet Union and become a developed country second only to the United States. Therefore, as long as the yen can depreciate, it can help the United States withstand huge economic pressure.
However, the economic impact this has on island countries has nothing to do with other countries.
Although Takeshita had a premonition on the plane that came, now, I was still a little surprised when I heard this news. This meeting clearly means that these countries are putting pressure on the island countries to agree to appreciate their own currencies to help the United States eliminate the fiscal deficit and improve their economic problems.
This is a Hongmen banquet! If the island country does not agree, then this meeting will be converted at any time to the meeting on whether the island country violates the Batumi regulations and exports advanced processing equipment to the Soviet Union, causing huge harm to NATO, and will become a question of whether it should continue to impose high punitive tariffs on island countries' enterprises.
Damn Toshiba Company! Takeshita certainly knew from the heart that if he agreed to the US plan and yen appreciation, the most direct impact would mean that the huge amount of foreign exchange that the island countries now has depreciated in disguise. Those are all island companies that earn foreign exchange through exports, which is equivalent to shrinking the capital of the island countries.
But, can he refuse? Takeshita Teng knew. He had no room for refutation.
Due to the continuous development of the island countries' economy, GDP has exceeded half of the United States and is the largest creditor country in the world. The trade surplus with the United States is as high as more than US$40 billion, so the appropriate appreciation of the island countries' currencies is also beneficial for island countries to occupy the global market.
Island countries have always believed that they are the third largest country in the world. However, now, it is impossible for a military power to become an economic power. Especially after Nakasone became Prime Minister, he also determined that after the island countries' economy developed, they would strengthen their economic status in the world, maintain the development of the world economy and expand world trade, and play a greater role. After expanding to the world through economic means, they can enhance their international status by participating in international political events. Improve the international image of the island countries and become an economic and political power.
After becoming a great power in the world both economic and political, at the right time, change the constitution of the island country, improve the capabilities of the Self-Defense Forces, and become a great power in the military.
Now, this is also the time for island countries to show that they can exert strong power in the international economic field. Moreover, if they can gain the unanimous favor of these countries, the sanctions of punitive tariffs can be eliminated, providing better space for the continued development of island countries' enterprises.
After thinking in his mind, Takeshita finally said: "Now, the dollar's currency is a bit too high. In order to help the United States stabilize the economic situation and allow the world currency, the US dollar, to play the greatest effect, we are willing to let the yen appreciate to support the depreciation of the US dollar. We can make the yen appreciate by 10%."
The appreciation was 10%! The president of the island bank sitting next to him couldn't help but poke him with his hand. Now, how can he explain to the Prime Minister when he goes back!
Takeshita's words made everyone happy, especially James. Originally, he thought about how to put pressure on the island people if they disagreed, but now the other party agreed so easily? It seems that the island people are very sensible!
The finance ministers of Germany, Britain and France looked at each other and saw the satisfaction in each other's eyes. This is the best. Let the island country bear the task of adjusting the currency value for the US dollar this time!
"The island country can contribute so generously to the maintenance of the world economic order this time, which fully demonstrates the example of maintaining world peace and security. Our tariff sanctions on island countries will be lifted after the end of this incident." James said.
After giving blood, you have to give me compensation!
The biggest obstacle of the meeting was overcome, and the natural atmosphere became very harmonious again. Several other countries expressed that in order to support the plan of depreciation of the US dollar, countries need to take out a certain amount of US dollars to sell the US dollar and increase their holdings of the yen in the international capital market, which will lead to the depreciation of the US dollar and the appreciation of the yen.
After negotiations, countries have taken out nearly 20 billion US dollars in total. In this way, the US has prepared itself as a huge amount of $40 billion. If all of these funds are used to transfer to the Japanese yen, the appreciation of the Japanese yen will be inevitable.
At the same time, banks of island governments will also disclose new exchange ratios to support appreciation.
The five parties have set up an action plan to curb inflation, expand domestic demand, collaboratively intervene in the foreign exchange market, and make the US dollar fall steadily. After the agreement is completed, the United States will announce it to the world.
The choice of this time is also very particular, because it is Saturday and the foreign exchange market will not open, giving the public two days of psychological adjustment time. Then, on Monday, under the manipulation of the United States, the market will open and depreciate the US dollar.
After the meeting, the last president of the central bank of the island country, who came out, looked at Takeshita Dora, who was smiling and said, "Takeshita, you made a stupid choice today. Do you know what impact will do to our domestic economy?"
Takeshita turned around and had a hint of cunning in his eyes, "Yes, of course I know that this will have a great impact on our economy, but do you think we have a better choice?"
"At most we promise to depreciate by only 2% to 5%. Ten percent, which at least means that our foreign exchange reserves will shrink by 10%. " said the president.
"Of course I know, but is it okay if we don't offer such conditions? We are engaged in a trade war with the United States in terms of economy, machinery, electronics, chemicals, automobiles and other industries. We have occupied their markets. Our trade surplus this year is more than 40 billion US dollars. Do you think that if I don't make such concessions, the Americans will let us go?" Takeshita's eyes shining. This time, it is actually an adjustment to the island economy. As long as we can adapt, our economy will still make great strides!
The United States just wants to improve the competitiveness of its products through the depreciation of the US dollar. They did not expect that technology is the most important thing. On the other hand, their military expenditure is too high, which restricts their economic development. Therefore, the United States' economy has congenital defects. This is a good opportunity for the global expansion of island companies!
It is a very refreshing thing to peacefully occupy the United States, buy all the American land, and rent it to Americans! Takeshita didn't take this matter so seriously.
...
This time, the finance ministers and central bank presidents of the five countries gathered at the Plaza Hotel for consultation, but were discovered by journalists with a keen sense of smell and waited outside the hall together. After the agreement was completed, the United States held a press conference and announced that the five countries have decided that in order to help the growth of the world economy, the exchange rate must better reflect the economic development. Now, the currency value of the US dollar is somewhat overvalued, and the exchange rates of non-US dollars against the US dollar in various countries should reflect this change and help the world economy develop stably.
This news was received by the whole world. Radvi, who had been waiting in Tokyo, immediately realized that the horn of the charge was about to sound!
If you want to depreciate the US dollar, you need to sell a large amount of US dollars in the international market. If you want to make the yen appreciate, you need to increase your holdings of the yen.
And so far, Far East Trade and Investment Company has been ready.
The United States would never agree to the US dollar if it wanted to depreciate the value of the US dollar and increase its export competitiveness. Therefore, the US dollar would never depreciate steadily, and the US dollar would need to depreciate quickly!
Therefore, so far, Far East Trade and Investment Company has invested all its funds into the island country's financial markets. In addition to currency, there are also various financial products such as stocks, futures, and debt.
Their first step is to absorb them all when countries join forces to throw away the US dollar.
In this way, the US dollar will not depreciate, but will continue to appreciate.
In this case, the United States will find that the dollar's currency value is so strong because investors blindly trust the dollar and the crisis faced by the dollar will be even greater.
In order to depreciate the US dollar, they have no other way, they can only increase the efforts to sell the US dollar. In this way, a large amount of US dollars will be filled with international volumes. At this time, it is time for them to let go.
If the United States wants to slowly depreciate the US dollar, it will have to go bankrupt. When the United States continues to sell US dollars to the market, when there is excessive US dollars in the market, the Far East Trade and Investment Company will sell out all the US dollars they absorbed!
Americans want to take over the benefits of the depreciation of the US dollar, but Kusai disagrees. At that time, the Far East Trade and Investment Company will shorten the large amount of US dollars it holds, which will trigger a trend of followers from other investors in the international arena, which will cause a rapid depreciation of the US dollar.
In one month, depreciation of 50% is considered a lot?...)
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Chapter completed!