kingnovel Chapter 809 Yen Economy
Chapter 809 Yen Economy
The next day, Xia Ran took a stroll around and found that it would be fine with or without her, so she took a few people and went directly to the port city.
Xia Ran set up a company as quickly as possible and established many short positions in the name of the new company.
Waiting for the opportunity to exit.
He also transferred a large sum of US dollars, intending to operate it in the name of the new company.
As soon as Xia Ran finished this matter, he turned around and went back to his daily life, leaving the others to continue guarding the position.
"By the way, you should pay more attention to the fluctuations in housing prices here. We can buy some houses later."
In fact, she can also hoard gold. Let's wait a little longer. After the battle in Hong Kong City is over, she will start hoarding gold.
The price of gold has fallen a lot since the financial crisis last year, but Xia Ran estimates that it has not yet hit bottom, so let's wait and see, there is no need to rush.
"Okay, boss."
Now let's talk about the market situation of Xiao Rizi.
If we look into the Asian financial crisis in detail, we will find that it has a lot to do with our daily lives.
This brings us to the Plaza Accord signed between China and the United Kingdom and other countries in 1985.
Since the signing of that agreement, their Japanese yen has been appreciating continuously.
Their governments have implemented loose monetary policies to ease export pressure.
The interest rate was cut five times in two years to 2.5%, which is a historical low.
This creates excess circulating funds.
Once you have more money, it is most likely to flow into real estate and the stock market, because these two have the shortest collection period and the highest rate of return.
As a result, bank funds flowed into real estate and stock markets in large quantities through land pledge financing, forming a speculative boom of the "real estate myth" and the "stock market myth".
Their stock market average, the Nikkei Stock Average, rose from 0.05 points in 1985 to a historical peak of 0.87 points in 1989.
The land price index of the six major cities tripled in three years, leading to the formation of a bubble.
In 1990, the government adopted austerity measures, raising the discount rate to 6% and restricting real estate financing.
This directly led to the breaking of the capital chain and the complete bursting of the real estate bubble.
Real estate and the stock market often complement each other and grow and decline together.
The Nikkei index plummeted to points in August 1992.
At this time, residential land prices in the six major cities fell by 83.8%.
The banking industry's non-performing loans exceed 50 trillion yen.
A large amount of book funds disappeared within one or two years.
The rapid decline in land prices has led to a further increase in bad debts of banks using land as collateral, directly impacting the financial industry.
This led to the collapse of a large number of banks, real estate companies and large enterprises, and a large number of unfinished buildings.
In 1993 alone, 1.4 companies went bankrupt in Japan.
As unemployment spread, Japan's lifetime employment system and seniority-based system collapsed after the bursting of its bubble economy.
Now let’s talk about the appreciation of the Japanese yen.
从1985年的1美元兑250日元，一直干到了1995年6月1美元兑80日元。
It has appreciated by more than 3 times.
At that time, the foreign exchange reserves were still quite good.
By the end of 1990, it had become the world's second largest foreign exchange reserve country after old M.
By the end of 1993, it had surpassed the United States to become the world's largest foreign exchange reserve country.
It has a lot of money in its pocket.
At that time, Old M's housing financial crisis and social credit crisis were becoming increasingly serious.
Not only is the economy in a downturn and unemployment remains high, but the fiscal deficit has once again hit a new record.
So, at this time, life is unique.
In order to solve the various sequelae caused by the appreciation of the Japanese yen.
In order to prevent the money in their hands from depreciating and to generate more money, they also increase their country's international influence.
And realize his ambition to become the world's number one superpower.
He began to plan and invest in his younger brothers, the Four Asian Tigers and the Four Asian Dragons.
It itself is the head of the goose, the four little dragons are the middle of the goose, and the four little tigers are the tail of the goose.
It provides technology, equipment, funds, etc. to the Four Little Dragons and the Four Little Tigers.
The Four Little Tigers and Four Little Dragons provide it with cheap resources and labor.
Of course, the core technology has always been in the hands of others.
What we give to others are just scraps with little technical content.
But even if they are just scraps, they have driven the rapid development of these places.
That is why these places and regions have developed rapidly.
It can be said that success and failure are both due to Xiao He.
Take country T for example. Since 1990, its GDP has been growing at an 8% rate almost every year.
And 56% of the short-term loans in Country T come from daily life.
As a result, by the early 90s, the real estate bubble of the Easy Life family burst.
This has led to a lot of bad debts and overdue debts, market shrinkage and economic tension.
In early 1995, another major earthquake with a magnitude of 7.2 occurred.
Direct losses amounted to $1000 billion, and total losses reached trillions of yen.
Its occurrence, in a way, once again led to the collapse of a large number of banks and financial institutions.
At this time, Old M, who had recovered from his injuries, stood up again and started to show off again.
On Day M, the economic situation took a major turn, the US dollar began to strengthen, causing the Japanese yen to begin to depreciate.
It has changed from more than 80 yen to 1 dollar to 115 yen to 1 dollar.
As a result, Xiao Ri's original cash reserves are not as sufficient as before.
It either slowly withdraws its capital or reduces its willingness to continue lending, which is equivalent to tightening the currency.
This led to a direct break in the funding chain of the four little tiger countries, which were highly dependent on the economy.
Because they are developing by relying on short-term loans.
Once lending stops, a crisis is bound to break out, which is inevitable.
When the financial crisis hit the four little tiger countries, China, as the largest creditor of these countries, was naturally also affected.
This is one of the reasons why many banks and financial institutions that were doing well went bankrupt, as mentioned earlier.
After all, they are tied together too tightly. When a crisis suddenly comes, it is impossible to get out of it in one or two steps, and it will naturally be affected.
By the end of June 1997, the Southeast Asian and Northeast Asian economies except China and China.
A total of US$3700 billion was borrowed from international banks.
The foreign debts of India, Country T, Banana Country and Malaysia are between US$300 billion and US$1300 billion respectively, with short-term foreign debt accounting for 19% to 41%.
Moreover, the foreign exchange reserves of Country T, India and South Korea are all lower than their short-term foreign debt.
At that time, Thailand's foreign exchange reserves were less than one-third of its total foreign debt.
This is why these three countries lost the most miserably.
Judging from the current thinking, Old M's capital intends to kill the tiger first, then the dragon, and finally the chicken (daily life), preparing to cause a disaster.