Chapter 79 shoot the asian tiger

The Japanese model is a successful model, and it is a challenge to the free market dogma of the United States. The second stage of destroying the Japanese model is to destroy the East Asian economic circle.The Japanese model, as Washington knows, is not unique to Japan.In the postwar period, it has nourished South Korea, Thailand, Malaysia, Indonesia and other East Asian economies. In the 1980s, these fast-growing economies were the Four Asian Tigers. East Asia's rise in the 1970s and 1980s was thanks to Japan's state development aid, massive private investment and support from the Ministry of International Trade and Industry.As exaggerated as it may sound, in fact, the region's booming economy in the 1980s created a regional labor market in which Japan was at the center and Japanese companies outsourced their manufacturing processes to other countries in East Asia.These East Asian countries are known in Asian business circles as the Yen Bloc countries because of their close ties to the Japanese economy.

The Tiger economy is an embarrassment to the IMF's free market model.They are a fine blend of private enterprise and strong state intervention, a threat to the IMF's free-market narrative.As long as the Four Tigers economic model, based on strong state intervention, succeeds, ex-communist countries and others will oppose the extreme approach taken by the IMF. In the 1980s, the growth rate of the East Asian economy was 7% to 8% per year. The improvement of social security, the popularization of education and the improvement of labor productivity of workers were all strongly supported by national guidelines and plans. In a market economy - this is a benevolently paternalistic model of an Asian market economy.Compared with the Soviet Union's centrally planned economic system, the self-sufficient Asian tiger economy is more likely to be an obstacle to the United States' promotion of the US dollar free market system around the world in the 1990s.

Beginning in 1993, at the Asia-Pacific Economic Cooperation (APEC) summit, as the Bank of Japan grapples with the stock and housing market crashes, officials in Washington began demanding that East Asian economies open up their financial markets on a "level playing field" that would allow free capital flows, whereas previously, financial markets were tightly controlled.The two sides have been arguing about this.Previously, debt-free East Asian economies avoided dependence on IMF loans or foreign capital, except to allow foreign capital to invest in productive manufacturing as part of the country's long-term development goals.Now they are being told to open their markets to foreign capital and short-term foreign borrowing.In the face of rhetoric about a "level playing field", many Asian government officials privately wonder whether Washington is talking about cricket or their economic future.They will soon know the answer.

Once the control on capital is loosened and foreign capital is allowed to flow in and out freely, South Korea and other four tiger economies will suffer a sudden foreign exchange shock.The period from 1994 until the attack on Taj Joo in May 1997 resulted in the formation of a speculative bubble in luxury real estate, stocks and other assets. Hedge funds will attack as soon as East Asian countries open up to foreign capital before they have sufficient control over speculation.These secret funds first targeted the weakest economy—Thailand.Armed with secret funds from international banking groups, including Citibank, American speculator George Soros went undercover.They are betting that Thailand will be forced to devalue the baht and de-peg it from the dollar.Soros, president of Quantum Fund, and Julian Robertson, president of Tiger Fund and reportedly also president of Long-Term Capital Management, a hedge fund whose management team includes former Federal Reserve Vice Chairman David Mullins, launched a campaign against A massive attack on Thai currencies and stocks. In June, Thailand gave up resistance, the baht faltered and it was forced to turn to the International Monetary Fund.These hedge funds and banks took advantage of the victory to attack the Philippines, Indonesia, and then South Korea.They make a lot of money, but leave the local people struggling in economic chaos and poverty.

Chalmers Johnson described the aftermath of the attack bluntly: "These funds easily raped Thailand, Indonesia and South Korea, and then they targeted those still quivering under the aegis of the IMF. Survivors, they are not here to help these victims, but to ensure that Western banks do not get entangled in bad loans in these hit countries." Christen Nordhaug, an expert on Asian studies in Europe, summarized the East Asia policy of the Clinton administration in 1997.Clinton worked on a new strategy through the new National Economic Council, previously headed by Wall Street banker Robert Rubin.Emerging markets in East Asia are targeted for attack. "The U.S. government actively supports multilateral institutions such as the International Monetary Fund ... to promote international financial liberalization," Nordhaug said. "As long as ... the strategy of targeting the East Asian market is properly implemented, the US government can use the powerful platform of the financial crisis to promote trade and financial liberalization and institutional reform through the International Monetary Fund."

The impact of the Asian crisis on the dollar is significant.Andrew Crockett, general manager of the Bank for International Settlements, pointed out that in 1996, the total circulation account deficit of East Asian countries was 33 billion U.S. dollars. With the inflow of speculative hot money, "from 1998 to 1999, the circulation account balance skyrocketed to 87 billion U.S. dollars."By 2002, it reached a peak value of 200 billion US dollars.Much of this surplus money has flowed back to the US in the form of Asian central banks buying US Treasuries, effectively funding US policy.In order to control the spread of the crisis, Japan's Ministry of Finance proposed to establish a US$30 billion Asian Monetary Fund, but such efforts were in vain.Washington made clear its displeasure.The idea was quickly abandoned.Asia, through the IMF, is about to become another dollar jurisdiction.U.S. Treasury Secretary Rubin euphemistically called it America's "strong dollar policy."Zbigniew Brzezinski, The Grand Chess Game: American Primacy and Its Geostrategy New York: Basic Books, 1997.Brzezinski is a long-established strategist in the Washington establishment with ties dating back to David Rockefeller's Trilateral Commission and who has served in both Democratic and Republican administrations, including as a clerk for Bush Sr.This book has very important reference value for understanding the strategic vision of the United States.He emphasized:

For Americans, the core region of geopolitics is Eurasia... To control Eurasia is to control two of the three most advanced and economically dynamic regions in the world.A glance at the map reveals that control of the Eurasian continent almost automatically controls peripheral areas such as Africa, and connects the geopolitical periphery such as the Western Hemisphere and Oceania with the central continent of the world.Greater Eurasia accounts for 75% of the world's population, and the vast majority of the world's material wealth is distributed here, either in the hands of companies or buried underground.Eurasia accounts for 60 percent of the world's GDP and three-quarters of its known energy reserves.

Mackinder's explanation can be found in Halford Mackinder's book The Ideal and Reality of Democracy.The book was published in New York in 1919.In World War II, Mackinder, in his essay "The Integrity of the World and the Victory of Peace," offered advice on postwar geopolitics.This article was published in Volume 21 of the July 1943 issue of "Diplomacy" magazine.In this essay, Mackinder articulated his strategy for dominating post-war Eurasia, which Brzezinski had clearly outlined.