Chapter 863: Shocking Reversal, Change the Day!
Soon, after Su Yang's second wave of suppression of Yueyuan, the magnesium reserve officially passed the Senate's bill and officially launched the interest rate cut.
In this case, the world's hedging funds have invariably begun to hedge in the Yuan. Yue Yuan kept buying, and the price kept climbing, gradually exceeding the 75 mark.
Everything is like the repeated routine of countless magnesium dollar interest rate cuts and capital refuge, as if there is no difference. After all, the country's policy will not be changed easily, and there will be no problems in a short period of time.
However, no one has found that in the three major financial markets, some financial accounts are still selling yuan.
It's just that the scale of this sell-off has gradually decreased from tens of billions of yuan to hundreds of millions of "small-scale" sell-offs, which have become less and less noticeable, and have almost no impact on the exchange rate...
Time passed in a flash, and soon, another half a month passed. Just when everyone thought the dust was settled. Suddenly, there were a lot of posts and reports on the Japanese Internet opposing the appreciation of the yuan.
These posts and reports look like they're written by professionals. They pointed out that the appreciation of the yuan actually hides huge risks, and it is not a good thing for island countries.
Because... The appreciation of the yuan will have a huge negative impact on import and export trade: now... Internationally speaking, Japanese goods are already being sold at too high prices...
At first, the voice just spread on the internet. Soon, major media and newspapers in Japan began to retweet or write such news.
Some well-known economists have also begun to explain in newspapers and in the media whether a higher exchange rate is a plus or a bad one.
In general, there are pros and cons to the increase in the exchange rate, but the disadvantages outweigh the advantages.
The good thing is the life of the people in their own country, not only the assets of all people have increased invisibly, but also the ability to buy foreign products at lower prices.
After all, people who live in the country only use their own currency. Imported goods that were originally 1 magnesium yuan cost 80 yuan to buy in China; Now it's only 75 yuan.
Of course, life is much easier.
The disadvantage is that the import and export trade of the whole country will be greatly affected. Products of the same price, because of the increase in the exchange rate, sell abroad, which will lead to an increase in price.
For example, an item that originally cost 80 yuan is sold to magnesium country, and only 1 magnesium yuan plus profit is required. Now you need $1.07 plus profit.
Invisibly, the offer will increase.
Maybe a product is increased by 0.07 magnesium dollars, and it may feel nothing. But what if it expands to millions, tens of millions, or even billions of items?
That's a staggering number.
Suppliers in various countries will soon consider abandoning the purchase of goods exported from Japan because of price issues.
Japan's exports to various industries, such as technology products, automobiles, and chemicals, will invisibly reduce competitiveness if they are exported to various countries.
And if you don't increase the price, you will compress the profit and maintain the original price. Then the profits of Japanese importers and exporters will be much lower.
And not only that, because most of the international trade is settled in magnesium dollars, and these magnesium dollars are to be exchanged for yuan. Now that the yuan has appreciated, the money earned will actually shrink a lot again.
After two shrinks, all Japanese companies involved in imports and exports will have a hard time.
Therefore, many economists speculate that if this continues, the global influence and sales of major Japanese companies will soon decline sharply.
In addition to having an impact on companies involved in imports and exports.
Because foreign products are cheaper to come to the island country, in terms of price, some domestic products are likely to be unable to compete with imported things. People in island countries will also be more inclined to buy products from abroad.
In the long run, domestic small and medium-sized enterprises will also be squeezed to survive. Japan is likely to face the dilemma of withering manufacturing, factories closing, and workers being laid off.
In fact, as early as the previous appreciation of the yuan, major companies had a certain awareness of this.
However, because they have not experienced the export pressure brought about by the appreciation of the yuan for many years, and all import and export trade will carry out foreign currency hedging in advance (after confirming the order, the foreign exchange futures with the payment date are sold in the market in advance, and the position will be closed after receiving the money, so that the exchange rate of this transaction will not affect the final profit), so they are not too vigilant.
But now with media coverage and reminders from economists, they've finally found a problem. Surveys have begun.
Soon, they came to the conclusion that the impact on short-term transactions was not significant, because the partners had already hedged against exchange rate fluctuations, but the impact on business in the medium and long term was indeed very large.
So, a month ago, everyone was happy that the country had protected the exchange rate, but I didn't expect that a month later, everything was reversed!
Because of the sudden interest rate cut in magnesium country, causing the country to maintain the exchange rate, it is actually the worst move?
It will actually make import and export problems!?
How else can things be reversed?
Everyone was dumbfounded.
And just when the island countries were in a uproar because of foreign exchange problems, the voices in Japan suddenly sounded for the dissolution of the Cabinet.
They believe that the reason for the current situation has a lot to do with the foolishness of this cabinet!
And, soon, under the organization of people with hearts, this voice became louder and louder.
Japan is a magical country. Although the president of the country is a three-year term. But most of the country's presidents are not satisfied with the job for a year.
Because as long as there is a problem in the country, the other opposition factions can impeach the president of the country and the cabinet and resign.
Therefore, at this time, the current cabinet of Japan is all panicked.
They had no idea that it would have such a big impact!
And... In fact, the appreciation of the yuan is not done by them. They just did the most normal thing and kept the exchange rate of the yuan. It is the foreign capital and capital themselves who think that the Yuan has the potential to resist depreciation, and Japan's determination to protect the exchange rate has nothing to do with them, and they have nothing to do with it, and they have not said so to the outside world.
And later, magnesium country suddenly lowered QE and quantitative easing. Who would have expected this?
In order to preserve its value, capital poured into Japan with hot money, making the exchange rate of the yuan higher and higher.
It has nothing to do with them!
Just when the cabinet was crying out for injustice, the accountability of the opposition faction appeared.
The opposition faction found out that a month ago, the cabinet spent billions of magnesium dollars to protect the exchange rate of the yuan. It is believed that now that the trade deficit is about to form, and the foreign exchange is becoming less and less. This kind of behavior is completely disregarding the interests of the country!
They asked the big guys in the cabinet to come out and pay for the appreciation of the yuan! Pay for these billions of magnesium dollars!
A flurry of accountability pushed the incident to a climax.
And the opposition faction finally revealed its true colors: they demanded the resignation of the country's president, the dissolution of the cabinet, and the reopening of elections.
In just a few days, the whole of Japan suddenly became shaky and crumbling. It doesn't live up to the scenery of a month ago.
...
It's still the familiar courtyard, it's still the familiar cherry blossom tree.
At this time, Yanagawa Hiko was in no mood to drink tea, he stood under the cherry blossom tree, kept making phone calls, and the expression on his face was as serious as he could.
This series of reversals was also completely unexpected. And as one of the funders of this cabinet, he also panicked at this time.
In fact, the matter of foreign exchange is not so important, but the whole public opinion is so big, it is a big problem!
Someone must be contributing to this!
Thinking of this, Liu Chuanyan's figure suddenly appeared in front of his eyes.
"Is that you? Su Jun? ”
As soon as this idea was born, it was dispelled by Yanagawa Hiko. He didn't feel like it would be Su Yang. Because this plan is simply too scary, it is meddling in the change of the helm of a world-class power!
Su Yang, a foreigner, for what benefit did he do such a thing?! He's crazy!
So who is that?
Soon, one message after another came. It didn't take long for Yanagawa to lock on to his target. All this seems to be the hand of the former president of the country, who implemented an accommodative monetary policy three years ago.
Nakaju Yugui is one of the national presidents with the highest support rate in the history of the island country, he was born in a family of bigwigs, and three generations of his family have been national presidents, and he has sufficient contacts and resources in the bigwig world.
Three years ago, he became the country's president for the first time, and he originally wanted to implement an accommodative monetary policy, expand the scale of imports and exports, and boost the economy. However, he was soon impeached and resigned.
Unexpectedly, this time he saw the opportunity to make trouble!
But even if he found someone, Yanagawa found that he couldn't deal with him.
Because of Zhongju, you must have a family background, have connections, and have a support rate. Now I have just found the handle of this cabinet, and it is not something I can fight back at all.
It is up to the president of the country to figure it out on his own.
At that moment, Yanagawa felt as if he was a lot older...
Because he knows that even the current president of the country can't really solve this problem. At this point, there is no possibility of reversing it...
...
Really.
Two days later, after two rounds of intra-faction voting, Hiroki Nakai successfully defeated his rival Shigeru Ishimura and was elected the 25th president of the LDP, becoming the first former LDP president to return to office.
Three days later, the current president of the country, Osamu Ohno, publicly apologized for his failure on Toto TV.
Half a month later, the Liberal Democratic faction led by Hiroki Nakai who controlled the Senate rejected the policy speech of the president of the country, Osamu Ohno, and personally united seven opposition factions, including the Liberal Democratic faction and the Komeito faction, to force Osamu Ohno to resign and dissolve the Senate as soon as possible;
A month later, Nakai reached an agreement with then-president Osamu Ohno to adopt part of the policies of the current president, Osamu Ohno, in exchange for the current president's admission of defeat.
Night.
The current president of the country, Osamu Ohno, announced the dissolution of the House of Representatives and the re-election of the House of Councillors...
This also announced the complete failure of the current management of the island nation.
And at this time, international funds finally found out that something was wrong.
You know, Hiroki Nakai is not the same as Osamu Ohno, he is a radical. It pursues a strategy of upgrading the economy at all costs.
He was impeached and resigned in his last term because his policies were too radical.
Once he takes office, it is likely that Japan will no longer pursue its current economic strategy. It is likely that the exchange rate will be sacrificed to stimulate the economy.
In this case, Yuan... It's going to collapse!
Under this risk warning, even if Zhongju Yugui has not yet run for national president, international funds with a keen sense of smell have begun to flee gradually. In this case, Yuan also ushered in an inflection point, and began to depreciate and fall little by little.
At this time, Wei Lin, under Su Yang's command in advance, had already exchanged all the 1.6 trillion yuan in his hand for magnesium yuan and gold at a high point, and then waited for an opportunity to ambush.
In the previous month, Su Yang did not act rashly except for buying all the shares of four automobile companies with all the money in his hands. All of his layouts are over, and he doesn't need to meddle anymore. As long as things continue step by step, a good harvest will soon be ushered in.
In the past month, three of the four car companies have all gone from preliminary agreements to completed negotiations and ready to formally cooperate.
Even Nissan Motor, after repeatedly hitting a wall, opened its mind, and finally entrusted someone to contact Su Yang and officially start negotiations with Su Yang.
And Su Yang also used this reason to delay the time to sign contracts with three other companies.
According to him, he came to Japan to help Japanese car companies grow better. He used to be contacted by four families, but now he leaves one and three others first, which will make him look like a small family.
So he plans to wait until the negotiations with Nissan are completed, sign the agreement together, and then hold a press conference to create a sensational effect.
Although Su Yang is Party B, after all, Su Yang has the core technology in his hands. So several car companies can't refute it. Can only be accepted.
It's not that they didn't suspect that Su Yang was deliberately delaying time, but after carefully studying it, they felt that Su Yang would not have any benefit in delaying time.
So it's more inclined: Su Yang is giving the two domestic car companies a first time. Or maybe Nissan has relatively favorable driving conditions, and the requirement is that the other three car companies cannot sign contracts first.
Anyway, it's all a trivial matter, and the executives of the three car companies don't care about it after learning about it.
But they didn't know that the reason why Su Yang dragged out and didn't sign the contract was really not in any interest. But his purpose is... Not to breach the contract, that is, not to harm one's own interests...
...
Time flies, and soon another 10 days have passed, and the Japanese general election has officially begun, and Hiroki Nakai officially announced that he will participate in the national presidential election as the president of the Liberal Democratic faction.
His rival is Osamu Ohno, the current president of Japan and a representative of the pro-democracy faction.
In the campaign debate, he not only publicly criticized Osamu Ohno's series of conservative policies in the previous year, but also officially stated his economic policy for the next few years: he will follow the magnesium country and implement a loose monetary policy together. Cut interest rates in Japan to zero. Unleash all monetary liquidity and stimulate the economy.
In addition, he will lower the exchange rate of the Japanese yuan, expand the scale of imports and exports, so that Japanese companies can regain their competitiveness internationally, and carry out fiscal stimulus policies to promote the recovery of the Japanese economy.
This speech boosted the morale of the entire island nation and won him a lot of support.
But... But it also scared international capital into dissipation.
That's right! Sure enough, I guessed it right! This guy really plans to cut interest rates, ease money, and depreciate the yuan. This shows that the yuan is about to fall!
For a time, international funds fled to Japan one after another, and the yuan fell in response. Even though the yuan is a world-class currency to avoid suspicion, it can't stop so many funds from fleeing, plummeting from 78 to 85.
And it's still falling...