Rebirth of Hong Kong 1981

   Chapter 874 Divide

   When Yang Chen said this, he really didn't blushed or was out of breath.

  In the 1980s, the United States forced the yen to appreciate in order to solve its own export deficit problem, and the drastic changes in the exchange rate behind it caused book losses in assets composed of US treasuries.

   In this case, Americans immediately poured a large amount of funds into the island market to avoid the risk loss caused by the exchange rate.

   As soon as the US capital moves, other international capitals follow suit, and a large amount of international hot money pours in. The direct consequence is that the stock market and real estate industry of the island country skyrocketed.

   As we all know, the two industries of stock market and real estate are second only to the profits generated by selling & arms.

  The stock market and real estate of the island countries received a large influx of international hot money, and the stock prices and house prices continued to rise day by day. Naturally, the islanders could not watch others come to their homes to make their own money.

   As a result, the island nation's own money did not pour into the shrinking manufacturing industry, but all poured into real estate and the stock market, raising the book value of the two industries together with international capital.

  The increase in book property has stimulated the desire for consumption, which has led to the continuous growth of consumer demand in island countries and further stimulated economic development.

   However, this kind of departure from the normal development of the economy, the result is that the bubble is blowing bigger and bigger.

   There is no physical manufacturing industry, and the exports of island countries are on a downward trend. This is undoubtedly a devastating blow to the resource-poor island country's manufacturing industry.

  In the late 1980s, after the export of low-end and middle-end manufacturing industries declined, the island country had to turn to the strategy of "building a country with technology" and began to vigorously encourage scientific research and development, in order to maintain its competitive advantage in the field of high-end manufacturing.

   The strength of the island countries in later generations in the field of high-end manufacturing is indeed lacking, but if a country only relies on high-end manufacturing, it cannot become a strong country, and it is not conducive to its own economic development.

   If the middle and low-end basic industries are lost, then it is like a building. Although it looks towering, there is always a certain risk due to the unstable foundation.

   In the 21st century, why is the inland increasingly prominent in international status?

   It's not that the high-end manufacturing industry in the inland is too powerful, but mainly the low-end and mid-end industries, and the influence brought by making Chinese manufacturing go global.

Once the inland market is closed in later generations, most countries in the whole world will be affected. This impact is from top to bottom, involving all aspects, not the single economic impact of the lack of that component in the car and the lack of the chip in the mobile phone. .

   The mid-to-low-end industrial chain is the closest and most closely related to the lives of ordinary people, and the high-end industrial chain, to be honest, even if it has a certain impact, it will not affect the normal life of the people at the bottom.

If    cannot affect the normal life of the people at the bottom, it will be difficult to form a large influence and make it difficult for other countries to make compromises.

   Take South Korea as an example. South Korea likes to use historical issues to trouble the island countries when they have nothing to do. In order to beat South Korea, the island countries often restrict South Korea on the export of high-tech products.

   And this kind of restriction has never really made South Korea succumb. Because of high-tech products, it cannot really affect the normal life of the Korean people.

  Without the autonomy of the army and the basic manufacturing industry, the island country will lose two arms and two legs, and in the end, there is only a body that supports life and brain operation.

  Why later generations always say that an island country is a piece of meat, a piece of fat in the mouth of the United States, when people in the United States are greedy, they will take a bite when they need it.

   is because the influence of the island economy on the world is not as big as imagined, and high-tech products are sometimes less important than food.

  After the de-industrialization of the United States in later generations, it heavily subsidized its own agriculture and animal husbandry every year to maintain the interests of farmers and herdsmen.

   The reason is very simple, because as long as people live, they must eat, and they cannot live without food.

  People cannot do without food, just as industry cannot do without oil.

   Therefore, every time the United States sanctioned other countries in later generations, it first restricted the petrodollars, and then blocked the import of food.

  The rise in food prices has the impact that prices will follow suit, people will not have enough to eat, and social unrest will occur.

   This is why, as a country that lacks resources and needs to import everything, most of their land is not used for other more profitable things, but vigorously supports agriculture and encourages people to grow food.

   However, it is a pity that the island country is too small in size and has a large population. No matter how hard you try, it is impossible to be truly self-sufficient in food.

  Under various conditions, the island country has no advantage in all aspects, especially now that even the supreme emperor, the United States, is fighting it, the island country has absolutely no capital to confront other military and economic powers.

   In the next five-nation plaza agreement, it is not only the United States that will divide up the cake of the island country, but several other European countries, as well as the world capital forces that follow the wind, will all participate.

   It can be said that throughout the 1980s, the wealth brought by the economic miracle of the island country was almost divided up by the capital forces of the entire world.

   There is not much time left, and there is not much time left for Yang Chen to prepare.

  The reason why he wanted to contact the major chaebol forces in the island country was to occupy the most favorable position with the fastest speed.

   After sending Li Guowei away, Yang Chen found Yuan Tianfan again.

  Li Guowei is responsible for the real estate of the island country, and someone is also responsible for the stock market.

   According to the statistics of later generations, the island country was in the Plaza Accord and after the appreciation of the Japanese currency.

   Its stock market has risen by 30% every year, while the real estate industry averages only 15%.

   Of course, this is an average, not all stocks and real estate are only up 30% or 15%.

  Some industries whose stock prices have risen sharply, such as retail stocks, auto stocks, entertainment and media stocks, etc., will inevitably have a wave of upsurges as the people of the island country spend more.

   In order to further make money from the island country, Yang Chen has already prepared to list his orange technology on the island country Tokyo Stock Exchange at the end of the year.

  In this way, once the stock price of the island country goes up, the U.S. side will follow suit. If he wants to get rid of it, he will be able to gain greater benefits.

   At the same time, you can also earn a wave of exchange rates.

   There is one more thing that Yang Chen has never dared to forget, that is the global stock market crash in 1987, that historical moment called "Black Monday" in the world.

   The most serious economic crisis since World War II broke out in the United States, the stock market crashed, and the entire US stock market plummeted.

   All his investments in the United States had to be withdrawn before 1987. By being optimistic about the economy of the island country, he pulled the funds from the United States and invested in the stock market and real estate industry of the island country.

  The global stock market crash in 1987, the island country was affected in the early stage. After the stock market fell, it immediately resumed its rise. This wave of sharp rises did not really fall from the top until the end of 1989, when the bubble economy was burst.

The    period lasted for two years. When the U.S. stock market has almost fallen, it is possible to withdraw from the island country and buy the bottom of the U.S. stock market.

   Once and twice, it's not too sour.

  ——

   (end of this chapter)