Chapter 908: The Plaza Accord II
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"If we want the United States to get rid of the current economic situation and depreciate the dollar, it is not possible to rely on a few of our countries, but mainly on the support and cooperation of the world's second largest country in terms of GDP and the largest country in foreign exchange reserves. Pen "Fun" Pavilion www.biquge.info{{}}," Jahart continued.
As soon as he said this, all the eyes of everyone were looking at Noboru Takeshita and the others in golf suits.
If the United States wants to get rid of its financial problems, it naturally needs the help of another financial giant, and this financial giant can only be helped by the second largest economically developed country in the world, that is, the island countries.
The current island country has already surpassed the Soviet Union and has become a developed country second only to the United States, so as long as the RI yuan can be devalued, it can help the United States withstand the huge economic pressure.
It's just that it doesn't matter what kind of economic impact this has on the island countries.
Although Noboru Takeshita already had a premonition on the plane that came, but now, hearing the news, he was still a little surprised, and this meeting was clearly that these countries were jointly exerting pressure on the island countries to make the island countries agree to appreciate their currencies to help the United States eliminate the fiscal deficit and improve their economic problems. {{}}
This is a feast! If the island countries do not agree, then this meeting will at any time turn into a meeting on the island countries violating the Batumi regulations by exporting advanced processing equipment to the Soviet Union, which has caused great harm to NATO, and at any time it will turn into a question of whether or not they should continue to impose high punitive tariffs on the enterprises of the island countries.
Damn Toshiba! Of course, Noboru Takeshita knew in his heart that if he agreed to the American plan. The most direct impact of the appreciation of the RI yuan means that the huge amount of foreign exchange that the island countries now have has depreciated in disguise, and those are all earned by the enterprises of the island countries through exports, which is equivalent to shrinking the capital of the island countries.
But could he refuse? Noboru Takeshita knows. He simply had no room for rebuttal. [.]
Due to the continuous development of the island country's economy, the GDP has exceeded half of that of the United States, making it the world's largest creditor. The trade surplus with the United States is as high as more than $40 billion, so the currency of the island countries has appreciated appropriately. It is also beneficial for island countries to occupy the global market. {{}}
The island country has always thought that it is the third largest country in the world, but at present, it is impossible to become a military power, so it is necessary to be an economic power, especially after Nakasone became prime minister, it is determined that after the island country is economically developed, it will strengthen its economic position in the world. We will play a greater role in safeguarding the development of the world economy and expanding world trade. After expanding to the world through economic means, they will enhance their international status by participating in international political events. Improve the international image of the island country and become an economic and political power.
After becoming a world power both economically and politically, at the appropriate time, change the constitution of the island nation, improve the capabilities of the Self-Defense Forces, and become a military power.
Right now. It's also time for island nations to show that they can exert a strong presence in the international economy. Moreover, if we can gain the unanimous favor of these countries, those sanctions that punish tariffs can be eliminated, providing better space for the continued development of enterprises in island countries.
After thinking about it in his mind, Noboru Takeshita finally said: "Now, the value of the US dollar is a little too high, in order to help the United States stabilize the economic situation and let the US dollar, the world currency, play the maximum effect, we are willing to let the RI dollar appreciate to support the depreciation of the US dollar, and we can let the RI yuan appreciate by 10%." {{}}”
Appreciation by 10%! The president of the Bank of the Island Country, who was sitting next to him, couldn't help but stab him with his hand, now, how to explain to the prime minister when he goes back!
Noboru Takeshita's words made everyone happy, especially James, originally, he was still thinking about how to put pressure on the island people if they didn't agree, but now the other party actually agreed so easily? It seems that the people of the island country are very knowledgeable!
The finance ministers of Germany, Britain and France glanced at each other, and they all saw the satisfaction in each other's eyes, so it is the best, let the island countries bear the task of adjusting the value of the dollar this time!
"The fact that the island countries have been able to contribute so generously to the maintenance of the world economic order this time fully demonstrates the example of maintaining world peace and security, and our tariff sanctions on the island countries will be lifted after this incident is over." James said.
If you donate blood, you have to give it a compensatory!
The biggest obstacle of the meeting was overcome, and the natural atmosphere became very harmonious again, and several other countries have said that in order to support the plan of the depreciation of the dollar, countries need to come up with a certain amount of dollars to sell the dollar and increase their holdings of the RI yuan in the international capital market, which will lead to the depreciation of the US dollar and the appreciation of the RI yuan. {{}}
After consultations, various countries have come up with a total of nearly $20 billion, and in this way, together with the $20 billion prepared by the United States itself, it is a huge amount of $40 billion.
At the same time, banks in the island nation of Zhèngfu will also disclose new exchange rates to support appreciation.
The five parties have decided on a plan of action to curb inflation, expand domestic demand, and coordinate intervention in the foreign exchange market to bring about a steady decline in the dollar.
The choice of this time is also very particular, because it is Saturday, the foreign exchange market is not open, giving the public two days of psychological adjustment time, and then, on Monday, under the cāo of the United States, the market will open to carry out the plan of dollar depreciation. {{}}
After the meeting, the president of Zhongyāng Bank, the last island country to come out, looked at the smiling Noboru Takeshita and said, "Takeshita-kun, you made a stupid choice today, do you know what impact this will have on our domestic economy?" ”
Noboru Takeshita looked back, and there was already a hint of cunning in his eyes, "Yes, of course I know, this will have a big impact on our economy, but, do you think, we have a better choice?" ”
"At most, we promise to depreciate only 2 to 5 percent, and 10 percent, which at least means that our foreign exchange reserves will shrink by 10 percent." The governor said.
"Of course I know, but can we not make such conditions? In terms of economy, machinery, electronics, chemicals, automobiles and other industries, we are engaged in a trade war with the United States, we occupy their market, our trade surplus this year is more than 40 billion US dollars, do you think, if I don't make such concessions, the Americans will let us go? Takeshita's eyes flashed, this time, in fact, is also an adjustment to the economy of the island country, as long as we can adapt to it, our economy will still make great strides!
The United States just wants to improve the competitiveness of its products through the depreciation of the dollar, but they do not expect that science and technology are the most important, and on the other hand, military spending is too high, which restricts the development of their economy, so the US economy has congenital defects. This is a great opportunity for island businesses to expand globally!
It is a very refreshing thing to occupy the United States peacefully, buy all the land in the United States, and rent it to the Americans. Noboru Takeshita didn't take this matter that seriously.
……
When the agreement was completed, the United States held a press conference announcing that the five countries had decided that in order to help the growth of the world economy, the exchange rate must better reflect the development of the economy, and now, the value of the US dollar is somewhat overvalued, and the exchange rate of non-US dollar currencies against the US dollar of various countries should reflect this change and help the stable development of the world economy.
This news was received by the whole world, and Radvi, who had been waiting for him in Tokyo, was immediately keenly aware that the horn of the charge was about to sound!
If you want the dollar to depreciate, then you need to sell a lot of dollars in the international market, and if you want to make the RI yuan appreciate, you need to increase your RI yuan.
And by now, Far Eastern Trade and Investment Company is ready.
The United States wants to devalue the dollar and increase their export competitiveness, and Qusay will never agree to it, so the dollar must not depreciate steadily, and the dollar must depreciate rapidly!
Therefore, up to now, Far East Trade and Investment Corporation has invested all its funds in the financial market of the island countries, in addition to currency, there are also stocks, futures, debts and other financial products.
Their first step is to absorb all the dollars when countries join forces to throw away the dollars.
In this way, the dollar will not be able to depreciate, but, on the contrary, will continue to rise.
In this case, the United States will find that the value of the dollar is so strong because investors blindly trust the dollar, and the dollar will face a greater crisis.
And in order to depreciate the dollar, they have no other way but to increase the intensity of selling dollars, so that in the world, there will be a large number of dollars, and at this time, it is time for them to let go.
If the United States wants to make the dollar depreciate slowly, it will have to go bankrupt, and when the United States continues to sell dollars to the market, when there are excessive dollars circulating in the market, the Far East Trade and Investment Corporation will throw away all the dollars they have absorbed!
The Americans want to take the benefits of the depreciation of the dollar, but Qusay does not agree, and when the time comes, the Far East Trade and Investment Corporation will short the large amount of dollars it holds, and other investors will follow suit, thus causing a rapid depreciation of the dollar.
In a month, a depreciation of 50 percent is not much?