Chapter 129: The Sacking of Japan
On 1 August 1990, negotiations between Iraq and Kuwait on the oil issue broke down.
On 2 August 1990, Iraq invaded Kuwait and soon occupied the entire territory.
This news instantly detonated the whole world, especially the Western countries led by the United States.
You must know that the oil resources in the Middle East are the driving force for the development of the entire Western world, and Saddam Hussein is completely stabbing the hornet's nest -- looking for the rhythm of death.
Well, because of the Kuwaiti war, international crude oil prices are soaring like a doping.
The price of crude oil has skyrocketed, which has completely doubled the large amount of crude oil futures that Su Chenyu has hoarded, and he can easily count the money after throwing it away. However, compared to the things he had to plan for this time in Japan, Su Chenyu really didn't care much about the money - it was drizzle.
When Su Chenyu "dropped" Ye Jingxian directly from Italy to Japan to meet Jim Rogers with Jamie Dimon, the nightmare of the Japanese stock market had come.
Earlier, the United States demanded that Japan abandon the principle of cross-shareholding between companies, which put pressure on the Japanese stock market. Subsequently, the outbreak of the Kuwaiti War made Japan's situation even worse when it relied entirely on crude oil imports.
In their rooms at the Imperial Hotel, Su Chenyu, Jim Rogers, and Jamie Dimon began "pre-war talks."
"The financial predators in the United States should be doing it quickly, right?" asked Su Chenyu with some excitement.
Jim Rogers, who has officially taken over the X Fund, was also a little excited, so he said: "It is estimated that it will be soon, and the Quantum Fund will make a move." ”
"The Wall Street consortium is probably about to do it. Jamie Dimon added.
"As long as the consortia and funds in the U.S. sell Nikkei 225 index futures, we will follow them. "Su Chenyu doesn't plan to be a bird that gets beaten on the head.
The financial giants of the United States could not wait to bleed Japan, and the hedge funds that rushed to the forefront had already done so. Among them, the Tiger Fund has been selling Nikkei 225 index futures since the beginning of the year, and now with the addition of various hedge funds, the last straw that broke the camel's back has been put up.
The massive short selling of Nikkei 225 futures directly triggered a plunge in the Japanese stock market, and the rising price of crude oil also added to the deteriorating stock market - the Japanese stock market is completely finished.
However, the Japanese may not know that this is only the beginning of this catastrophe, and that Japan will enter a "decade of disappearance".
Beating the water dog is undoubtedly something that many people like to do, and Su Chenyu can't seize it in the face of such an opportunity.
Looking at the Japanese stock market, which is full of green, Su Chenyu has a feeling of coming to the vegetable market. Since this green color is so dazzling, it is Su Chenyu's responsibility to make it more vivid, so he began to continue to strengthen the plummeting Japanese stock market - Sumitomo Bank is undoubtedly a good target.
However, before Su Chenyu could make a move, various Japanese consortia had already begun to rescue the market.
With the help of the Ministry of Finance, Japan's six major conglomerates, including Mitsui, Mitsubishi, Sumitomo, Fuji, Miwa and Quanyin, have begun to increase the shares of their own companies, hoping to restore the confidence of all shareholders.
As a result, the Japanese stock market, which had been plummeting for a week, showed a large-scale upward trend as soon as the market opened on Monday, which made the desperate Japanese shout "Yaki Okami" for a while.
Seeing that the Japanese consortium began to bail out the market, Su Chenyu decisively suspended the operation, and he wanted to spend the foundation of these consortiums - you must know that many of these consortiums were accomplices of the invasion back then.
In the hearts of the Japanese, they still firmly believe in the strength of their country's economy, and this stock market crash is just a normal shock. They thought that this time it was still like the 1987 global stock market crash, and although Japan was also hit hard, it would soon recover.
But they were wrong, all the Japanese were wrong.
In four days, the six major conglomerates had lifted the Japanese stock market to a relatively high level, and by this time they had almost exhausted all their funds.
As a result, at this time, Fund X made a decisive move and constantly suppressed the shares of Sumitomo Bank.
Seeing that someone took the lead, those financial vampires who were waiting for the opportunity also took action, and for a while, the Nikkei index plummeted - it couldn't be stopped.
The situation that the Japanese consortium had worked so hard to create was ruined, and Sumitomo Bank led the decline of the entire Japanese banking industry, and the ensuing "domino effect" caused the entire Japanese stock market to be filled with a smell of ruin.
After the collapse of the housing market at the end of last year, the Japanese stock market once again gloriously collapsed, and the whole of Japan was in mourning.
Those Japanese who had lost their fortunes in the housing market and the stock market flocked to the unfinished buildings that had long since ceased work -- to complete the most tragic leap of their lives.
Faced with this situation, Japan's Ministry of Finance is powerless to return to heaven, or even to quell the rising anger of the people -- perhaps the best explanation for them is to commit suicide by caesarean section.
The catastrophic stock market crash nearly wiped out Japan's economic achievements over the years, and the consequences in Japan were comparable to those of the Great Depression of the '30s in the United States.
Later, the Japanese economist Yoshikawa Mototada, in his book "Financial Defeat", argued that in terms of the proportion of wealth lost, the consequences of Japan's financial defeat in 1990 were almost the same as the consequences of Japan's defeat in World War II.
The stock market crash basically "zeroed" the Japanese economy, and what is even more terrifying is that the Japanese stock market has not stopped the general trend of decline in the following decade.
By April 2003, the Japanese stock market fell to a minimum of 7,607 points, a cumulative decline of 63.24%, the largest decline in the history of the Japanese stock market. And Japan's real estate has followed the 14th consecutive year of decline in the Japanese stock market, and the wealth of the entire Japanese country has shrunk by nearly 50%.
Since then, Japan has entered a decade of disappearance.
No one pays attention to the pain of Japan, the defeated man, and countless international financial speculators and the consortium behind them are happily enjoying this feast of wealth at the moment.
Just when everyone thought that this "financial war" would continue without danger and there was nothing to look forward to, news shocked Japan and the international financial community.
In the British Isles, Standard Chartered's largest shareholder, SS Financial Holdings, Su Chenyu's unique asset management company, announced that it held more than 75% of the shares, forcefully forcing other shareholders to give up their shares, and then delisting Standard Chartered Bank from the stock market.
This completely stimulated the proud John Bull, and the British people, whose self-esteem were greatly stimulated, staged a large-scale protest, and Fleet Street was even more afraid that the world would not add fuel to the fire of the whole thing.
In the end, the British government even sent a commission of inquiry to investigate the whole thing, but apparently to no avail, and finally had no choice but to declare the transaction legal.
Turning his attention from Great Britain back to Japan - because of the participation of Su Chenyu and X Fund, the Japanese stock market fell faster and worse than in the previous life. By September 20, 1990, the Nikkei had fallen below 20,000 points. Entering mid-October, as the high pressure continued, the Nikkei index fell below 17,000 points amid the cheers of the crowd.
In other words, as of this time, Fund X has signed a put option VAM contract with the Japanese insurance and banking industries represented by Sumitomo Bank, and each share makes them have to pay Fund X 15,000 yen. Roughly calculated, Fund X, which invests $10 billion, will win more than $10 trillion from Japan's banking and insurance industries.
This number alone will scare the Japanese banking and insurance industries, and it can only be said that Su Chenyu is too ruthless this time.
However, Su Chenyu didn't dare to swallow such a large amount of benefits alone, and he didn't have such a big appetite to eat it in one bite - otherwise it would be easy to die. So, Su Chenyu naturally found the Morgan Consortium and the Rockefeller Consortium, and it would be safer to hold such a thigh.
After discussing with Jim Rogers and Jamie Dimon, Su Chenyu decided to sell part of the VAM agreement in the hands of Fund X to Morgan Stanley and Chase Manhattan Bank. In this way, Su Chenyu can be regarded as officially befriending the two giants of Morgan and Rockefeller, and this action will be more guaranteed.
As a result, a "debt collection syndicate" formed by X Fund, Morgan Stanley, and Chase Manhattan held talks with Japan's banking and insurance industries.
In addition to Japan's six major conglomerates, there were also more than 100 other banks and insurance companies involved in the VAM agreement. In the end, the outcome of the talks was simple and straightforward: Japan's banking and insurance industries decided to pay off their arrears over 20 years, with interest, of course.
As soon as the talks ended, Japan's Sumitomo Bank and Sumitomo Insurance, which had suffered the most losses, declared bankruptcy, followed by a number of Japanese banks, including Sanwa Bank, Industrial Bank, Daiichi Koyoye Bank, and Sakura Bank, which declared a state of emergency. Subsequently, many insurance companies with heavy losses also announced that they were in serious trouble and were on the verge of bankruptcy.
Shortly after Japan's Sumitomo Bank announced that it had entered a state of bankruptcy, Standard Chartered Bank, which had been boiling for some time, chose to take action.
Standard Chartered Bank announced the wholly acquired bankrupt Sumitomo Bank, which made the whole world lose its voice for a while. Just a week later, Standard Chartered Bank made another move, announcing a stake in Sakura Bank and a stake in the Industrial Bank of Japan, and people were so shocked that they almost stopped breathing - a super banking group appeared.
However, Standard Chartered's frenzied pace did not stop, and soon Jamie Dimon announced the company's restructuring plan.
First of all, Sumitomo Bank and Sakura Bank will be reorganized into Sumitomo Mitsui Banking Corporation, and the reorganized Sumitomo Mitsui Banking Corporation will be formally merged into the Standard Chartered Banking System, thus forming the Standard Chartered-Sumitomo Mitsui Banking Group. After that, it is natural that the entire banking group will start to reorganize and optimize its resources.
It was clear to everyone that once the restructuring and optimization between the three banks was complete, the world's largest banking group would be born.
Of course, what shocked everyone the most in the financial world was not the standard Standard Chartered Bank, but the X fund that rose in World War I.
After the shocking battle with Japan's banking and insurance industries, Jim Rogers and Fund X became the talk of financial people for a while, and took this opportunity to move the headquarters of Fund X to Wall Street.
This time, Su Chenyu got Mitsui Sumitomo Bank from the Japanese stock market crash, and there are countless funds. The Morgan consortium and the Rockefeller consortium have also managed to invade the Japanese banking and insurance sectors, and of course a large amount of money scraped from the Japanese. Other international speculators and hedge funds also enjoyed a feast of wealth.
More importantly, the U.S. government has solved a big time bomb and taught the "doglegs" how to be a slave.
In this way, Japan's stock market crash seems to be a fortune faction that everyone is happy about.
At this time, only the looted Japan was weeping, and the nightmare that hung over the hearts of all the Japanese had no end in sight - they did not know that it would continue for more than a decade.
However, who has the strength to care about the life and death of Japan and the Japanese people -- only an article in the Yomiuri Shimbun titled "Japan is Weeping" is singing the final elegy for the whole of Japan.