Chapter 636: What Happened to the Former Soviet Union?

The "Plaza Accord" of 85 years increased the money in the pockets of the Japanese by at least 20%, prompting the Japanese government to begin to accelerate the full implementation of housing commercialization, and commercial banks began to issue a large number of loans for residents to buy houses, and the loan interest rate was sharply reduced. As a result, housing prices in Japan have begun to rise rapidly.

In the 90s, when Japan's economy was booming and housing prices were rising, Japan's major banks not only suddenly stopped housing loans, but also sharply increased the original home loan interest rates. The land value tax was levied in 92 years, and the amount of the tax levied was 0 of the assessed value of the property inheritance tax, why did the Japanese government introduce such an economic policy? Why did Japan's automobile, home appliance and other industries suddenly disappear? Does this mean that the Japanese economy is starting to enter a "quagmire"? How do you view the decade of "blank" in the Japanese economy?

On March 27, 90, when the Japanese economy was booming, the Bank of Japan issued the "Notice on Controlling the Total Amount of Real Estate Financing", which was later called the "ignition point" of the collapse of Japan's bubble economy, and housing prices and stock prices turned around. In August of that year, the Bank of Japan raised the short-term lending rate again. What's more, in 92 years, the Ministry of Finance introduced a land price tax, which made the immovable industry that had been slump even worse, and the high-end department store industry because its store location is located in the most prosperous part of the city, the annual land price tax of 0 actually exceeded 20% of the profit of goods, and the suppression of the land price tax on housing prices can be seen.

The reason why the Japanese government introduced such financial policies is that they did not expect that these policies would lead to a sharp drop in the property market and stock market. So, in the 92 years when the property market and stock market have begun to plummet, why did the Ministry of Finance still introduce a land price tax, so that the real estate industry has no respite?

Many people believe that in the years after the 90 years, the Japanese government's successive economic policies pushed the Japanese economy into a "quagmire" from which it could not extricate itself, causing the entire Japanese economy to appear "blank" in the middle of the 10 years and 90 years

To be precise, it is not the policy of '90 that is problematic, but the policy of '85 when Japan fully opened up the real estate market in the hope that the Japanese economy will continue to develop at a high rate through real estate. In '89, when the real estate market was fully opened, the changes in Japan and the world made it clear to the Japanese government the seriousness of this policy mistake made in the past 85 years. The post-'90 policy is nothing more than an urgent correction of the mistakes made in '85.

Whether there is a bubble in real estate is based on the real economy, and the value of real estate is considered a bubble if it is separated from the support of the real economy.

However, the housing bubble must collapse, or the housing bubble must end with a collapse in housing prices, which has no basis in economics.

Does the real estate bubble that is detached from the support of the real economy have to be punctured? The answer is not necessarily.

In Japan, which experienced the collapse of the real estate bubble, the mainstream view is that whether the real estate bubble needs to be punctured or not is mainly determined by social factors. So why did Japan burst the bubble?

In the 80s of the last century, with the opening of the door to China, the Japanese economy, which had been continuously prosperous, also entered its heyday.

However, the commissioning of the color televisions, refrigerators, and other production lines of Huaxia and other development Huaxia homes has made it clear to the Japanese government that the low prices of Huaxia homes will soon pose a fatal blow to Japan's manufacturing industry. In the face of pure price competition, Japan has only one dead end. Japan's road to economic prosperity through advanced industrial manufacturing technology, processing with supplied materials, and exporting industrial products has seen the end.

At a time when the Japanese government was aware of Japan's predicament, but had not yet found a way to deal with it, the Plaza Accord gave Japan a slap in the face. As a result, the manufacturing industry, which has brought prosperity to the Japanese economy, has been caught in a dilemma of confronting the low prices of the developing Chinese family and bearing the weight of the yen's appreciation. In order to maintain the rapid growth of the Japanese economy, it is necessary to find new economic growth points.

Real estate! Allowing the Japanese to invest in real estate with their already bulging pockets is undoubtedly an effective way for the Japanese economy to solve its "urgent needs". The opening of the commercial real estate market was a major benefit to landlords in rural Japan, and the largest supporter of the ruling Liberal Democratic Party at the time was the agricultural cooperatives, which were centered on landlords.

After the signing of the Plaza Accord in September '85, the Japanese people, who were already worried about the depreciation of the yen, were already worried about the depreciation of the yen, and the government's many preferential real estate policies were like finding a safe haven where paper money could preserve its value, and they invested a large amount of money in the real estate market.

When a large amount of money poured into the real estate market and the real estate began to appreciate, a Pandora's box - the demand for tenure was opened. Japan's real estate properties have begun to quietly change, and the consequences of shifting from use demand to retention demand can be imagined. Add to that the amount of currency issued in '86, and by '87, in the eyes of most of Japan, land had become the most desirable asset to keep.

Faced with such a large market demand, Japan's major banks are fiercely competing for land. Normally, banks lend 70% of the appraised value of the land to mortgage the land, but the Hokkaido Extension Bank provides financing at the % rate, which shows that the land has become a gold mine in the eyes of the bank.

With the rapid rise in real estate prices in Japan, more and more money has been invested in real estate, and real estate development projects across the country have become bigger and bigger, and even Ginza, Japan's most exclusive red light district, has become a place for ordinary people to visit.

But on the other hand, the 636th chapter scattered land under construction. However, considering the great difference between Japan and the Netherlands in terms of population and external environment, the idea of a trade center was completely rejected, and finally it was decided to take the road of rejuvenating the country through industry and technology.

Relying on real estate to promote the development of Japan's economy is obviously a departure from the unchanging national policy of rejuvenating the country through industry and technology.

Japan is a country that is heavily dependent on imports for its resources. In order to obtain resources, Japan had to exchange goods that other countries needed. If more and more money is invested in real estate, Japan's entire industrial structure and employment structure will be tilted towards real estate industries. The export-earning manufacturing sector will shrink, and the resources available from other countries will be less and less. 10 or 20 years later, with the rise of Huaxia Home, Japanese products that have no price advantage will lose even their technological advantages. There were no more goods to exchange with other countries, and the Japanese were fighting for real estate like poor villagers fighting for adobe huts without electricity, heat, gas, or oil.

So, even though both businesses and people are inseparable from land, how much of the value of land should account for the profits of the enterprise? How much of your personal income should you have? There is no standard for this in the world. However, there is a consensus in Japanese society that Japan's lack of resources requires the exchange of high-tech products. The market price of housing in Japan has been dominated by the government from the establishment of the Japan Housing Corporation in '55 to the establishment of the Japan Housing Corporation in '85. Therefore, the Japanese government has enough social basis to burst the bubble.

Why did the Japanese government end the bubble economy by plummeting the stock market and property market? In the face of the collapse in real estate values, why does the Japanese government insist on not issuing additional currency? How did Japan's industrial structure change after the collapse of the bubble economy? What kind of mentality of the Japanese people in the face of the collapse of the bubble will be discussed later.

The Minsk agreements were finally signed, and the other republics did not know in advance about the brewing and establishment of the "CIS".

At the end of December, the heads of state of Kazakhstan, Uzbekistan, Tajikistan, Turkmenistan, and Kyrgyzstan met in Ashgabat, the capital of Turkmenistan, and agreed to join the "CIS" as a founding member on an equal footing.

Then, the leaders of the 11 countries willing to join the CIS held talks in Almaty, the capital of Kazakhstan, and signed a series of documents officially declaring the cessation of the existence of the Soviet Union.

Gorbachev still wanted to maintain the existence of the Commonwealth of States, to maintain the alliance, but unfortunately, the Almaty conference put aside the nominal leader of the Soviet Union, and after the meeting, the leaders of the countries wrote a letter informing him that "the Soviet Union has ceased to exist, and the position of the president of the USSR has been abolished at the same time." ”