As the domestic market economy of island countries is saturated, island countries' companies have been expanding externally in recent years, and the appreciation of the yen can, to a large extent, save a large amount of funds for those companies that expand externally.

Being able to spend less money to buy things of the same value as before, the islanders are not stupid, and they are naturally very willing.

In fact, the idea of ​​the island government is very simple.

The governments of the island countries believe that as long as they control the appreciation of the yen within 20 to 30 percent, it will not have a great impact on the country's existing market economy.

The limited appreciation of the yen will have a great promotion effect on the current island economy and can even continue to promote economic growth.

The island country is a country extremely short of resources. In any of their industries, whether it is light industry or heavy industry, raw materials need to be imported from abroad.

The appreciation of the yen allows the island country to spend less money and buy more resources every year. A moderate appreciation of the yen is definitely beneficial to the economy of the island country. This is why the island country government has no objection to signing the Plaza Accord.

However, reality often differs greatly from expectations.

The international currency market is not controllable by the island country alone, nor does the island country's government have the final say on how much the yen appreciates.

In the international currency market, a country's power is ultimately limited. Even the island country, as the world's second largest economy, cannot do whatever it wants.

Looking at the previous financial crises in the United States, if the national government could control the market economy, there would be no such things as the Great Depression and Black Monday.

No American president wants to see problems with the economy during his term. The economy affects employment, and employment is related to votes. If there is a way, successive American presidents will not be helpless in the face of economic crises.

The U.S. government does not have the ability to intervene in the international currency market. Even if it did, the effect of intervention would be very limited, because the resources available to the U.S. government are too few and even the Federal Reserve cannot fully control it. Now it owes a lot of debt and cannot think about the fiscal deficit.

What is the stupid US government doing to interfere in the market?

An agreement can only adjust the temporary currency exchange rate and cannot truly control the direction of the international currency market as desired.

Of course, the United States, Japan, Britain, France, and Germany are currently the five largest economies in the world. If they really work together to intervene in the currency market and the government can substantively implement the treaties signed in the Plaza Accord, then they can still control the international currency market.

, so as not to let it run away.

However, in the eyes of Westerners, agreements between countries can always be torn up at any time, and some can even take advantage of public opinion and adopt time-consuming and labor-intensive delaying measures.

In later generations, Americans are capricious, keep their promises, and change their minds frequently. This has become a common tactic. At the beginning, they try hard to deceive you, making various promises clearly written to make you feel at ease.

When the goal is achieved, whether or not to do it is another matter.

After the Plaza Accord was signed by the five countries, not only the United States, but also other countries, including the islanders, the various policies promised in the agreement, especially those measures linked to domestic financial and fiscal policies,

Basically, there is no real implementation.

In addition to selling U.S. dollars, everyone was relatively united. After the Plaza Accord, governments and central banks of several countries immediately sold large amounts of U.S. dollars into the foreign exchange market, causing the U.S. dollar to depreciate significantly.

On this point, all countries are working harder.

However, this move by the five countries.

The impact that will follow will far exceed everyone's expectations. The bandwagon effect is not uncommon in the financial investment market. Several major economies are selling the U.S. dollar at the same time. What does it mean for ordinary investors? Needless to say.

The depreciation of the U.S. dollar means a decrease in wealth for financial investors, that is, their money will be reduced inexplicably.

No financial investor wants to see his wealth suddenly shrink. It is not the character of a good financial investor to sit back and wait for death. Since the depreciation of the US dollar cannot be stopped, everyone will think of other ways to reduce their losses.

At this time, the appreciation of the yen is undoubtedly the best investment direction.

As for the U.S. government's call to save the manufacturing industry and invest money in low-profit manufacturing, don't be kidding. You guys are not saviors. Why do you have to give money to help the country revitalize the manufacturing industry when your own wealth has shrunk?

There is no reason why financial investors will not obey the government.

After the Plaza Accord, a large amount of capital hot money flowed into the island country's market, continuously pushing up the appreciation of the yen to offset the shrinkage in wealth caused by the depreciation of the US dollar.

The final result of the Plaza Accord was that neither the United States nor the island countries achieved what they wanted.

The depreciation of the U.S. dollar did not revive the U.S. manufacturing industry. Even if the bubble economy of the island country finally collapsed and world capital returned to the U.S. market, the money still did not return to the manufacturing industry in the end. Instead, it was used by the Bushes to fight the war.

In later generations, the inland became the world's factory. Several presidents of the United States wanted to restore its status as the world's factory and regain its own manufacturing industry, but they have never been able to do so.

The subsequent appreciation of the yen is just the beginning.

Yang Chen knew that in the three years since the Plaza Accord was signed, the exchange rate of the U.S. dollar against the Japanese yen had dropped to as low as 1 U.S. dollar to 120 Japanese yen, and the Japanese yen had more than doubled in value.

Twenty percent, where is this? The real show is behind.

This feast is a unique grand occasion.

World capital is attacking island countries together, and even the island countries' own financial investment institutions and consortiums are involved.

The world's second largest economy, this is such a big piece of cake, enough for everyone to share, and anyone can be full even if they pick up some scraps.

Yang Chen had prepared so much before because he wanted to take this opportunity to accelerate the development of his industry by sucking blood from the island country, so that his business empire could truly take shape and become as unshakable as those old consortiums.

The several major consortiums in the island country control hundreds of listed companies, and the resources they can use are more powerful than some countries. Such consortiums are truly powerful. They are so powerful that even the country does not dare to suppress them easily, and even if it is necessary

When the time comes, they will also take action to protect them.

Why?

The reason is simple, because once they fail, in addition to economic losses, it will also affect a country's competitiveness in certain industries.

Toyota Motor, a subsidiary of the Mitsui Consortium in later generations, has always been the flagship of the island country's automobile manufacturing industry. Once the Mitsui Consortium collapses, Toyota Motor will also be affected to a certain extent. Once Toyota loses its competitiveness, other national automobile companies will solve a strong competition.

opponent.

In the peaceful times of later generations, commercial competition was the main battlefield for all countries. Although winning or losing would not lead to the destruction of a country, it would continue to weaken a country's economy, thus promoting the decline of national strength.

Since ancient times, wars have been fought for money

Modern warfare is even more so

The economy is not doing well and there is no money to fight the war.

Russia in later generations is the best example. It doesn't matter if the weapons are powerful, it is not suppressed everywhere.

What Yang Chen wants to do is to make his business empire bigger and stronger, strong enough to influence the economic direction of Asia...
Chapter completed!