Chapter 354: Preparations!
The time has rushed into June, and since the meeting, Jason and others have been making plans to enter Japan.
Before September 1985, Japan was prosperous, after all, there were already Japanese people who announced that they wanted to buy the United States, and the United States also exclaimed that Japan might buy the entire United States, although this is a joke in the eyes of Lin Yu, but the Japanese are proud of this sentence, many companies in Japan are now working non-stop, working hard for Japan to buy the United States, but no one will pay attention to whether Japan will be bitten a piece of meat in the process of buying the United States.
"I'm going to talk about our tasks in the past few months, this time, according to the boss said, we have to do everything possible to quietly transfer as much money into Japan as possible, and at the same time, we can't let the Japanese government and other consortia and banks find out about our large amount of money entering Japan, so we have to get yen in Japan, and at the same time it is a matter of course, so I want to hear what you can do?" Jason said.
"It's not going to work, let's set up a company, and then use the import and export trade to let the money in, and then into the financial market, but if the money is too big, it will attract the attention of other people." Jason had just finished speaking when someone spoke.
"Then can we apply for more brothers? We can use these companies to bring in money and then re-enter some from the financial markets, which should avoid arousing suspicion from others. The other thought for a moment and said.
"I have a good idea." John said.
"What's the solution?" The crowd turned to John.
"I was watching TV that day, and it was said that many Japanese companies around the world were losing a lot of business because they didn't have enough dollars to buy raw materials, and they didn't have any money but because most of their funds were stored in Japan. We can provide them with funds through branches in major financial cities around the world, and let them settle with our funds in the form of Japanese yen. We can also use foreign exchange futures for physical delivery, and it is best to cause forced delivery due to our mistakes. In this way, we can bring all these funds into the country and turn them into yen. However, this operation must be good, otherwise it will also go wrong. John thought for a moment and said.
"What do you think of this?" After a moment, Jason asked.
"That's a good idea. You can give it a try. Everyone nodded.
"Then let's do it, on the one hand, set up a leather bag company to transfer the fund, and on the other hand, do what John said, so as to eliminate the suspicion of others as much as possible." Jason clapped his head and said, "I'll talk to the branches in other parts of the world, such as New York and London, and your task now is to find such a company in Japan as soon as possible." I would like to see your report. Okay, let's adjourn. ”
……
Standard Chartered Bank Headquarters, Hong Kong.
"Boss, how much do you think we can gain this time? You must know that the funds we have mobilized this time have paid a great price, and if we cannot obtain greater benefits, then this matter will be a big mistake for us. Sandywell asked.
"Sandy, don't worry, I expect that if we can get it done well this time, our profit will be about twenty times, and if we don't fix it, we will have ten times the profit. As long as we can succeed this time, we can save ten years of struggle, and of course being able to draw blood from the Japanese and cut off the flesh is also one of my goals this time. In fact, our goal this time is not only to make a profit from the appreciation of the yen, but also to acquire several banks and some companies in Japan after the appreciation of the yen, and form an industrial network in Japan. At that time, we will be able to form a large base in Japan, and the reason why we want to buy banks is because we want to turn Japan into a big ATM. So that we can use Japan to become bigger and stronger in Asia, and then we will be able to become a strong family-owned financial consortium. Of course, all of this requires your efforts. Lin Yu said with a smile.
Since 1980, there have been two changes in the US domestic economy, the first is that the foreign trade deficit has widened year by year, reaching $160 billion in 1984, accounting for 3.6% of GNP that year. The second is the emergence of government budget deficits. Under the shadow of the twin deficits, the US government raised the domestic base interest rate and introduced international capital to develop the economy, and the large inflow of foreign capital caused the US dollar to continue to appreciate, and the competitiveness of US exports declined, thus expanding to the crisis of foreign trade deficit. Under the pressure of this economic crisis, the United States hopes to strengthen the external competitiveness of American products through the depreciation of the dollar in order to reduce the trade deficit.
High interest rates attracted large amounts of foreign capital to the United States, causing the dollar to soar, rising by nearly 60 percent from late 1979 to late 1984, and surpassing the levels reached before the collapse of the Brettonson system against major industrial countries.
The sharp appreciation of the dollar led to a rapid widening of the U.S. trade deficit, and by 1984, the U.S. current-account deficit reached a record $100 billion.
In the early 80s of the 20th century, the US fiscal deficit increased sharply, and the foreign trade deficit increased significantly. The United States hopes to improve the imbalance of the United States balance of payments by increasing the export competitiveness of its products through the depreciation of the dollar.
On September 22, 1985, the finance ministers and central bank governors (G5) of the United States, Japan, the Federal Republic of Germany, France, and the United Kingdom held a meeting at the Plaza Hotel in New York, and reached an agreement on the joint intervention of the five governments in the foreign exchange market to induce the exchange rate of the US dollar to depreciate against major currencies in an orderly manner, so as to solve the problem of the huge trade deficit of the United States. Because the agreement was signed at the Plaza Hotel, the agreement is also known as the "Plaza Agreement".
After the signing of the "Plaza Accord," the above-mentioned five countries began to jointly intervene in the foreign exchange market and sold a large number of dollars in the international foreign exchange market, which then formed a selling frenzy among market investors, resulting in a sustained and substantial depreciation of the dollar. In September 1985, the U.S. dollar fluctuated around 250 yen per dollar, and in less than three months after the agreement was signed, the U.S. dollar quickly fell to around 200 yen per dollar, a 20% decline. [2] After this, the U.S. authorities, represented by U.S. Treasury Secretary Baker, and Everzhd? Financial experts represented by Bergsten (then director of the Institute of International Economics) constantly verbally intervened in the dollar, saying that the level of the dollar exchange rate at that time was still on the high side, and there was still room for it to fall. Hinted at the hawkish attitude of the US government, the dollar continued to fall sharply against the yen, falling as low as 120 yen per dollar. In less than three years, the dollar has lost 50% of its value against the yen, that is, the yen has doubled in value against the dollar.
If Lin Yu knew that history couldn't make money, then he could really be reborn again.