Chapter 87: Managing Money (8)

(8) You are your own gravedigger

YEAR X MONTH X DAY STORM

To be honest, you make money in the stock market, and you make money in the property market. Please don't be happy just yet, you're just digging a hole for yourself. To put it bluntly, you are your own gravedigger.

There is money, who does not look forward to it, but money is relative and the most unreliable. During the Southeast Asian financial crisis, how many people cried and shouted to sell their local currency for the huàn dollar.

So you're making money today, you're just enjoying the pleasure of ecstasy. Let's think about how to do something to keep the fruits of victory!

The real intention of the United States to force the renminbi to appreciate is clear to everyone.

Like the "Japanese recession" in the 80s and the "Asian financial crisis" and the "Hong Kong financial defense war" in the 90s, behind the Soros consortium is the strong support of the US government.

From 1980 to 1990 and 1995, the GDP gap between the United States, which ranked first, and Japan, which ranked second, was halved, and this was the only time so far that the economic gap between other countries and the United States had been reduced by half. The Japanese are cheering, and the countries around the world are excitedly looking forward to the "historic moment" when Japan's GDP will surpass that of the United States!

Japanese enterprises have become even more frenzied, and Rockefeller Plaza, the symbol of the US economy, has been bought by the Japanese! Hollywood, the spiritual symbol of the United States, has been bought by the Japanese! The mood of the American people has suddenly fallen to the bottom. The American people's sense of pride is declining sharply, and hatred of Japan has begun to spread among the people.

In 1985, the United States co-opted five other countries (the G7) to force Japan to sign the Plaza Accord, and the central idea was that the Bank of Japan should not intervene "excessively" in the foreign exchange market. "Administrative" to force the yen to appreciate.

In September 1985, the yen was pushed up in accordance with the agreement, and the exchange rate of the yen against the US dollar rose from 240 yen per dollar before the agreement to 160 yen per dollar in May 1986. As the Reagan administration insisted that the yen's appreciation was still not in place, the U.S. continued to push the yen up in the form of verbal intervention. Thus, by the beginning of 1988, the yen had risen further to 120 yen per dollar, doubling the exchange rate before the Plaza Accord.

The Americans were not satisfied. From February 1993 to April 1995, Secretary of the Treasury of the Clinton administration at the time, Bates, made it clear that in order to correct the imbalance in trade between Japan and the United States, it was necessary to appreciate the yen by about 20%, and the yen exchange rate at that time was roughly around 120 yen per dollar, so according to the U.S. government's inducement target, the yen market quickly rose to 100 yen per dollar. Since then, the Clinton administration has adopted a rather strict attitude toward Japan-US economic relations, which are centered on automobile frictions. By April 1995, the yen had risen sharply to 79 yen per dollar, a record high.

What are the consequences of the yen's appreciation? Rockefeller Square is back in the hands of the Americans, and General Motors has made a net profit of $400 million from selling and buying in this square! Japanese capital has withdrawn from the United States at a large loss amid the hardships of life. The American people have won! They have successfully repelled Japan's economic offensive! After 1995, the GDP ratio between Japan and the United States has reopened, and it has become larger and larger!

The appreciation of the yen is an economic war waged by the United States against Japan! It has successfully transferred Japan's development wealth over the past 20 years to the United States. The same is true of the appreciation of the renminbi! Even the process and time period will be exactly the same, so I want to write it out.

No matter how much money you make in the stock market, when Obama steps down eight years later, you will still be poor, and the Americans will still transfer all the fruits of China's reform and opening up to a continent with only 200 years of civilization!