Chapter 9 2. Lessons from Japan and the Asian Financial Crisis

On September 22, 1985, the finance ministers and central bank governors of the United States, Japan, Britain, Germany, and France held a meeting at the Plaza Hotel in New York, USA.After the meeting, the five countries issued a joint statement, the so-called "Plaza Accord".In accordance with the relevant terms of the "Plaza Agreement", the five countries will jointly realize the orderly appreciation of major currencies against the US dollar.To correct the overvaluation of the US dollar.According to the general understanding at that time, the "Plaza Accord" was issued mainly to slow down the sharp rise of Japan's external balance of payments surplus. In 1982, 1983, and 1984, Japan's trade surplus had soared from $6.9 billion to $20.53 billion, and then to $33.61 billion, most of which came from the United States.A few hours after the "Plaza Agreement" was published, the dollar began a frenzied depreciation process, and then saw signs of stopping its decline for two years, among which the dollar depreciated by 50% against the yen.Since then, the Japanese economy has been in a slump, and the "Plaza Accord" has become a turning point for the Japanese economy from prosperity to decline.So, is the "Plaza Accord" a shocking conspiracy against Japan?

●One agreement crushes a country's economy. ● Joint attack on Japan.Do you know how many years of depression Japan went through after that blow? - Today, 20 years later, Japan has not yet emerged from the depression. In the 1980s, the Asian economic powerhouse was Japan.Japan was very arrogant at the time. Not only did it export cars and home appliances to the United States, but it also created a large trade deficit for the United States. The economic pressure is unbearable for the United States.And the most unbearable thing for Americans is that Japan's Mitsubishi Corporation actually acquired Rockefeller Center.Rockefeller Center is not something ordinary people can buy.It represents the American spirit, like McDonald's and Coca-Cola.

At this time, a well-planned financial unrestricted war took place, that is, international financial speculators and the US government conspired to attack Japan.Do you know how many years of depression Japan went through after that blow? The 20-year depression has not recovered yet. What the hell happened?Let me briefly tell you that at that time the US government asked Japan, the UK, Germany, and France to jointly sign a Plaza Accord.A very important clause in this agreement is that due to the trade deficit of various countries with Japan, the yen is required to appreciate.The agreement itself is a conspiracy.why?That's because the agreement at that time required the appreciation of the yen, and once the Japanese government signed it and confirmed it.It is equivalent to sending a very clear signal to international financial speculators.That means the yen will appreciate.It's that simple.Therefore, a large amount of international hot money poured into Japan to fry the yen, and the more the yen is fried, the more it will appreciate.

At this moment, I discovered an important news.We usually hardly notice it.That is, the U.S. Treasury Department is putting pressure on the Bank of Japan to lower interest rates and ease credit. This is very important news.What does that mean?That is, international financial speculators speculate on the exchange rate, and then the US government exerts policy pressure through the Ministry of Finance to force Japan to lower interest rates and loosen credit. The consequences of this are dire.Due to the reduction of interest rates and the relaxation of credit, Japan's credit is flooding, and major Japanese trading companies have borrowed money to grow bigger and stronger; Japanese people have borrowed money to speculate in real estate, stocks, and products.So you can see that the result of so much money flowing into the market is that whatever is speculated becomes a bubble, real estate speculation, a property market bubble; stock speculation, a stock market bubble; buying products, inflation.So in the end, under the collusion of international financial speculators and the US government, I discovered what happened in Japan?First, the exchange rate rises; second, the stock market bubble; third, the property market bubble; fourth, inflation.This is exactly what happened to us in 2007.But I tell readers that the reasons for the formation of the two are different.

There is only one reason why Japan has these four phenomena, and that is the excess liquidity formed under the manipulation of the US government and international financial speculators.The flood of credit is called excess liquidity, that is to say, there is too much money in this society. I don’t want to talk about some proper terms in this book, but the so-called excess liquidity that our scholars talk about all day has its essential meaning It's just that there is too much money in this society.Therefore, a bubble phenomenon has been created, and whatever is speculated will rise. Thus, the crisis came: property market bubble, stock market bubble and inflation, and Japanese trading companies borrowed so much money that their capital-liability ratio was out of balance. The debt ratio of enterprises was sometimes as high as four to five hundred times, which was unacceptable. imagination.The result of high debt is that the financial risk of this enterprise is too large, and it can be broken with a light needle.As a result, it was stabbed by the United States with a needle.These false prosperity exploded, making it difficult for the Japanese economy to recover, and it will always become a vassal state of the United States.

Readers, please note that after Japan, before 1997, there were "Four Little Dragons" and "Four Little Tigers" in Asia.They also put great pressure on the United States through exports, just like Japan.As a result, Soros sniped the Thai baht in 1997, resulting in a terrible Asian financial crisis.After the Asian financial crisis, the "four little tigers" died, and two and a half of the "four little dragons" died. The consequences were disastrous.Let me take Hong Kong as an example. After this blow, the stock index in Hong Kong fell from 18,000 points to more than 6,000 points.Then house prices fell by an average of 60%, all of which were swept away by international financial speculators.It was not until after 2004 that Hong Kong slowly recovered through the central government's free travel policy.

After that, there was another emerging socialist country called Vietnam. Due to the large inflow of foreign capital, stocks and real estate were bought to buy products, which formed a stock market bubble and a property market bubble, which led to inflation and a continuous rise in the exchange rate. Phenomenon.As a result, in April 2008, foreign capital withdrew in a very orderly and disciplined manner.As a result, the property market fell, the stock market plummeted, and the bubble burst, but inflation did not go away, causing Vietnam's financial crisis to destroy the Vietnamese economy.

By analogy, China has also exerted great pressure on the United States through exports in recent years. Then, what pressure did the financial crisis in 2008 bring to China?