Chapter 672
At 10:30 a.m. EST on January 16, 1991, US President George W. Bush signed a national security directive document to Schwarzkopf, commander of the US Central Headquarters, officially authorizing the 540,000 US troops assembled in the Middle East to wage war against Iraq, and the Gulf War broke out!
It took only 40 days for the US-led multinational force to make Saddam, who had 77 divisions and 1.2 million troops, quickly bow his head and admit defeat. The U.S. military in this war, such as Tomahawk cruise missiles, F-117 stealth fighter-bombers and a large number of cutting-edge weapons, shocked the world!
Although on the surface, the US military won a great military victory at the cost of less than 4,000 minor casualties, sweeping away the gloom left by the previous Korean and Vietnam wars. But in fact, the price paid by the United States is not small, for example, the entire war cost as much as 70 billion US dollars.
While allies, including the Middle East, Europe, and Japan, have paid $54 billion of that amount, the United States itself will also have to bear $16 billion in additional military spending. You must know that when Bush Sr. came to power, he inherited a debt-ridden mess from Reagan. Such a large amount of military spending is tantamount to adding insult to injury to the US federal finances.
In fact, as early as when Bush entered the White House, Li Xuan gave the other party a kind reminder. It is a pity that the most important force supporting Bush's rise to power is the US military-industrial and oil consortiums. Therefore, no matter whether Bush is really willing to declare war on Iraq or not, he has no choice! Even the Congress, which is controlled by the Democratic Party, rarely does not contradict the president on this issue, which shows the powerful power of capital!
However, the biggest damage to the United States in this war is not actually the huge amount of military spending, but the fact that it has involved too much attention from the White House. Ever since Iraq invaded Kuwait in August last year, Bush and his White House team have shifted their main focus from US internal affairs to preparing for war against Iraq!
Bush and his team spent almost all of their time thinking about how to win over allies, coordinate relations with China, the Soviet Union, and other major powers, and how to project hundreds of thousands of US troops from the North American continent to the Middle East, thousands of kilometers away.
Of course, the reason why the elder Bush temporarily ignored the US economy was also related to the satisfactory performance of various domestic data in the first half of last year. For example, after the 1987 stock market crash, the U.S. stock market began to rise from a low of 1,616 points to 2,935 points in October 1990.
With such a three-year-long bull market in front of us, who can say that the US economy is in serious trouble! But in fact, the US federal government's deficit was only $40 billion in 1979 and had increased to $267 billion by the end of 1990.
This is not the most terrifying, because the growth of corporate debt in the United States is even more exaggerated, increasing by 160% in just 10 years, from $000 million to $000 million.
While much of the blame lies with former President Ronald Reagan, who came to power with a rhetorical slogan of "balancing the budget," he actually engaged in fiscal expansion. But the American people will only remember that he brought ten years of economic prosperity to the United States, and will not analyze that these prosperity was obtained by means of eating more than enough food.
If Bush Sr. had gone all out to solve the problem of excessive debt that the United States was currently facing from the moment he took office, he might have been able to achieve a soft landing for the economy. But although he managed to enter the White House, the Senate and House of Representatives were controlled by the Democrats at the same time. So much so that George H.W. Bush became a lame president and had to spend most of his time and energy arguing with Congress.
The Republican-dominated White House has always had one of the biggest magic weapons - tax cuts, which boost support by giving red envelopes to voters and stimulate the economy by giving red envelopes to corporations. But the Republican Party's tax cut law has long been used by his predecessor, President Ronald Reagan, which is one of the root causes of America's high debt over the past decade.
After the Republican Party's defeat in the 1990 midterm elections, even the prestige of the party was shaken. Fortunately, the Gulf War, which came in time, saved him a lot of impression points!
However, victory in overseas wars will not change the downward trend of the US economy at home. After entering 1991, even the U.S. stock market, which had risen for three years, began to fall.
Originally, Li Xuan was still thinking about whether it would be possible to save Bush Sr.'s presidential career by making efforts in the United States in advance of the new economy represented by computers and the Internet. But it now seems that the new economy, such as computers and the Internet, is still not large enough to reverse the structural defects accumulated over the past decade.
Li Xuan seems to have seen the repetition of the tragedy in another time and space, and the elder Bush is likely to be kicked out of the White House by Clinton, a hairy guy from Tennessee, which is also not good news for him.
Although Li Xuan has been betting on both the Democratic Party and the Republican Party at the same time over the years, his most important political ally in the United States is undoubtedly the Bush family. As long as Bush Sr. cannot be re-elected, Li Xuan and the Eastern Bloc will have to face a situation in which their influence in US political circles is declining.
And for the top-level business competition, politics and business are never separated. The decline in support for the Eastern Bloc in Washington will directly lead to a deterioration in the business environment of the Eastern Bloc in the United States, the world's largest market.
And the exaggerated earning power of the Eastern Bloc over the past few years has been secretly looked at by many people. And if he wants to avoid the bad situation of being surrounded by wolves, Li Xuan needs to start thinking about how to divide the cake and give away some of the benefits in exchange for peace!
The most coveted high-quality assets in the Oriental Group are the unlisted Oriental Game Company and the Oriental Research Institute. In the 1990 fiscal year of fiscal year, for example, Oriental Games had global sales of $5.7 billion and pre-tax profits of an exaggerated $1.865 billion.
What level is this?
If Oriental Games were a Japanese company, it would be the second most profitable company in Japan after Toyota. Toyota's total profit in 1990 was $2.99 billion, compared to $1.48 billion for Hitachi Electric, which came in second.
If Oriental Games were an American company, it would become the seventh-most profitable company in the United States, leaving behind all the well-known international giants such as Ford, Boeing, and Coca-Cola. The most profitable company in the United States is IBM, which generated a total profit of $6 billion in 1990. And that's actually with $69 billion in global sales and 374,000 employees worldwide.
In contrast, the total number of employees of Oriental Games is less than 6,000, and it can be said to be the best in the world in terms of per capita profit level, invincible in the world!
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