Chapter 925 Who rises and who falls?!

Author: Khurav

The reason why the Louvre Agreement will become meaningless after Carter hears this information is that the logic behind it is actually not complicated.

First of all, the G5 finance ministers and central bank governors meeting held in Paris is an enlarged meeting. There are actually seven participating countries. In addition to the old faces from the London meeting, Canada and Italy are also included this time.

And these two countries obviously came here to accompany them and join in the fun.

In this meeting, to put it simply, the American boss bullied the Japanese brother too much, and then Japan called some people, strengthened its momentum, and came to beg the boss: "Please, don't let the dollar depreciate anymore."

In order to achieve this goal, the Japanese guy shook up five people. Except for the stupid "Italy" and the drug-addled "Jiama Da", who are completely bastards, the remaining three people

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You are a trouble maker, you are not just a fun person?! You just think the excitement is not big enough, how can you help Japan to stabilize?!

Let’s talk about France again. This is a little bit of knowledge. Generally speaking, France is the most uncapitalist country among capitalism. It was even called a pseudo-capitalist country at one time.

France has state-owned enterprises! Although French state-owned enterprises account for only 4% of the country's enterprises, the assets of state-owned enterprises account for more than 70% of the country's total assets.

The French state-owned railway company, EDF, etc., by the 1980s, no matter how they changed, the annual GDP contribution of these state-owned enterprises in France could reach more than 40% of France's annual GDP.

From a certain point of view, with a country like France, it has a relatively strong ability to withstand risks. It also has high execution efficiency. When people focus on their own development and have energy, wouldn't it be nice to go to the colonies again?

Are you so full that you can get involved in these bad things in Japan?

Seriously, the Federal Republic of Germany is probably the only one left that has the same goal as Japan and desperately does not want the dollar to continue to depreciate. And this is currently a semi-disabled country.

Introducing the characters who completed this meeting, let’s look at the background

With the signing of the Plaza Accord, the U.S. trade deficit has further increased under the influence of the clichéd "J effect". Three-quarters of the U.S. trade deficit is jointly accounted for by Japan and Germany. The United States is having a hard time.

Japan and Germany are not happy either.

Gein, their actual export volume is decreasing. The domestic gross domestic product measured in domestic currency is actually declining, which is reflected in the economic growth rate. In 1985, Japan's annual economic growth rate was still 4.2%.

In 1986, it had dropped to 3.1%. At the same time, Germany's economic growth rate was also directly hit to fluctuate around 2%.

At the same time, due to the rapid and substantial depreciation of the U.S. dollar, the entire foreign exchange market has been in chaos for a period of time. The violent fluctuations have not only caused the market's confidence in the U.S. dollar to begin to decline, but also in import and export trade, due to the exchange rate

The instability has a huge impact. No one can stand it. One price in the morning and one price in the afternoon, right?!

Originally, based on the price in the morning, I could still make a profit of 100, but when the exchange rate changed in the afternoon, I lost 100.

In this situation, preventing the dollar from continuing to depreciate has become something that everyone thinks about. It just depends on whether it is strong or not. The United States, including the United States, actually does not want the dollar to continue to depreciate! But the premise is that the United States’ goal is achieved.

What is the purpose of the United States?

Similar to other countries, economic growth! Economic growth is the core goal of governments of all countries!

The current lack of motivation for economic growth in the United States is due to the large outflow of U.S. dollars every year, resulting in insufficient funds for domestic production. To solve this problem, it is analogous to the gameplay in the previous era of high interest rates.

Just raise the interest rate and that's it! If you raise the interest rate on U.S. Treasury bonds, won't the money come in?

But here’s the problem. The United States, which has just experienced the era of high interest rates and economic depression, has just seen a little respite. Another high interest rate attack?!

There is no need to put yourself in someone else’s shoes, no need to say what ordinary people think! It’s you. If any idiot tries to raise interest rates at this time, Carter will be the first to oppose him! Not only does he oppose it, but he also has to drag a group of people to resist that bitch.

Raised!

The sequelae of three years of austerity have not been overcome yet. If it happened again, Carter could be sure that 70% of his bank would be beaten to death. Even if he did this, no other big bank would dare to do it.

What a hassle!

Under such a situation, it will definitely not work for the United States to raise the interest rate on national debt to attract the return of funds. Treasury Secretary Baker is not stupid. He understands that if he dares to propose this plan, he does not have to wait for others to take action.

He will be dismissed from his post in no time!

Isn’t this just because you think Brother Genzi has not had enough troubles recently? Or do you think Brother Genzi’s current public support rate of only about 40% is too high?!

Since raising domestic interest rates is not an option, there is another way, which is to lower interest rates in other countries!

Lower interest rates mean lower financing costs. When domestic investment becomes saturated, excess funds will flow out, and the United States is obviously very tempting!

Therefore, why the Bank of Japan lowered the overnight lending rate is for the good of Japan. It is to allow Japan to stimulate the growth of domestic demand.

It's all nonsense!

Japan's domestic demand has long been saturated. The land area is so large and there are only so many people.

This is not a problem of insufficient money at all, otherwise Japan would not be a country dependent on external demand. The most essential purpose is to attract Japanese funds to the United States and use these Japanese money to invest in American industries.

, let the American economy recover!

In other words, both sides are betting now!

Japan and Germany are betting on whether the United States is willing to resist such strong international pressure: Your problems are caused by yourself. The Plaza Accord has agreed that the United States will cut fiscal expenditures. What is the result? You are still issuing bonds like crazy.

The financial expenditures are getting bigger and bigger, and we can’t be blamed for this!

But now, we are all very dissatisfied with the United States for not abiding by its agreement. Please think about it carefully.

For the United States, yes, I really don’t want the dollar to depreciate any further. International pressure is part of it, and the strong dollar is also part of it, but comparing these two points, Treasury Secretary Baker’s thinking

Based on Carter's understanding, these guys with "rogue lawyer" backgrounds are often a bunch of realists. They are the type who treat a headache and treat a sore foot.

We will wait until the pressure is over, and whether the strong dollar can recover will be released later. The core problem now is that the U.S. economic growth rate has always been insufficient. Let’s solve this problem first!

You Japan and Germany, let’s talk about whether your interest rates will be lowered or not?!

If you don't lower the value, I will continue to devalue the US dollar and see how long you can carry it.

Now that the United States has a leading edge in science and technology, it is relatively easier for the U.S. dollar to return to a strong position.

Following this logic, Carter understood that no matter how the Louvre Agreement agreed, several countries would jointly buy dollars to maintain the value of the dollar. But as long as the United States itself, or in other words, Treasury Secretary Baker, the current spokesperson of the United States, he did not want the dollar to
Chapter completed!