We are all reborn, who wants to be the richest man?

The wheel of history will eventually come.

While people all over the world were watching Mexico and praying for the Mexican people, on September 9, five countries led by the United States signed the Plaza Accord in New York.

The core content is very simple, that is, the currencies of the familiar island countries plus Britain, France and Germany have appreciated against the US dollar.

In 1980, inflation in the United States reached 12.2%. The United States had only one way to deal with inflation, which was to raise deposit rates.

This led to a large amount of global funds flowing into the United States, resulting in a sharp appreciation of the US dollar.

However, the appreciation of the US dollar will cause the trade deficit to expand. The other four signatories of the Plaza Accord all have huge trade surpluses with the United States.

The consequence is that while the United States has a trade deficit, it also has a fiscal deficit.

Therefore, the United States urgently needs to balance its international spending with several major economies to solve its domestic deficit. However, the large trade surpluses of several major economies with the United States also affect their healthy domestic development.

Another point is that the United States is currently the country with the strongest consumption power in the world, and all countries are also afraid that the United States will impose retaliatory tariffs on products exported from their countries.

Don't think that the Plaza Accord was forced upon the four countries by the United States. The situation is quite the opposite. Some of these countries were even more active than the United States.

This is not a trap, but an absolutely fair and just agreement.

Don’t think that the island country was later harvested. The mark appreciated even more than the yen. Why didn’t Germany lose thirty years?

Taking the island countries alone, their average economic growth rate was 1989% from 1984 to 3.6.

But what happened after the agreement was signed? Before the bubble crisis burst, the island nation's annual economic growth exceeded 4.8%, with the highest reaching 1988% in 6.5.

This agreement can be said to have brought unprecedented development to the island country. The appreciation of the yen has doubled the confidence of the entire society of the island country, and consumption has been stimulated and investment has also increased significantly.

Another thing is foreign investment. Things that used to cost me two dollars now only cost one dollar. This is like doubling my assets while I am just sitting at home.

Of course this is a benefit. Everything has its pros and cons. The biggest blow to the island countries from the appreciation of the yen is definitely their export commodities.

However, this is nothing to be afraid of, because oil prices are cheap now, and the appreciation of the yen will enable companies in the island country to obtain cheaper raw material imports. As long as the price of the appreciation of the yen can be controlled, the hedging can be completed.

In fact, the island country's companies later achieved this. They not only maintained the original costs, but also reduced the costs even further.

For example, in production, parts production workshops need to use cutting fluid. In the past, the cutting fluid was thrown away after use, but now they collect the cutting fluid for secondary use.

There is also the protective cover. In the past, the protective cover was fully opened when working, but now it can only be opened halfway.

For example, some low-end product production lines were directly transferred to other countries, and rabbits were one of the biggest beneficiaries.

The thinking of the island country’s government is very simple. It doesn’t matter if there is pressure on the manufacturing industry, so let’s find a way to solve the pressure.

The key is that the economy of the United States must be saved. It’s not about the godfather’s majesty, but that the economy of the United States has collapsed, so we can go there to find the big brother to support us. Don’t forget that the island country has territorial disputes with the polar bear.

As for why the island nation's economy collapsed, it is because it was tempted to change its mind.

“The island nation has reached the pinnacle of manufacturing and now wants to try its hand in the financial market.

Unfortunately, the financial market is not the manufacturing industry, and rookies with no experience will eventually have to pay the price."

Du Huilian’s idea should be the same as the views of 99% of financial professionals today. Even the big bosses of the island country say that a strong island country needs a strong yen to back it up.

How is the Japanese yen so strong? It must be because of its internationalization.

What is the premise of internationalization? Stability.

Some people say that the current Japanese yen is very stable, hovering around 240 yen to the dollar for a long time.

I can tell you that it is not stable, because the Japanese yen does not reflect its own value and is far undervalued.

When the Korean War broke out, the United States changed its view of the island country for the first time. It no longer viewed the island country as a defeated country, but regarded it as a bridgehead in the Far East.

Since it is a bridgehead, the industry cannot be too poor, so the United States began to support the island country's economy.

The most effective tactic here was to artificially lower the exchange rate of the Japanese yen. Initially, the exchange rate was set at 360 yen to one US dollar.

Currency depreciation is beneficial to both countries. Needless to say, for the island country, exports will be very beneficial. On the other hand, the beautiful country can buy island country products at a lower price to improve its material life.

After decades of development, at the end of the 70s, due to the poor economy of the United States, the yen appreciated by 40% to its current exchange rate. The island country finally accumulated technology and became a leader in the manufacturing industry.

No one thought that the Hiroshima Agreement was a trap, and the islanders would never have thought that in just a few years, their lifetime wealth would be reaped and they would be trapped in the disappearing three decades.

Is the currency appreciating? What's so scary about that? Didn't the island nation's currency appreciate by 70% at the end of the 40s?

But no one reacted to the fact that the appreciation of the yen at that time coincided with the island country's large-scale rural infrastructure and the upgrading of the semiconductor industry, and a large amount of funds flowed into the real economy.

But what about this time? The island countries that have received the hot money have few places to invest, so the stock market and the housing market will become the last choice, and the final outcome will be a game of passing the parcel.

This is the reason why the island nation's economy created a huge bubble. At the same time, Germany, where the mark appreciated significantly, spent the money on practical things. Later, East Germany was undergoing large-scale construction, and the money was still not enough to spend.

“Have all our funds been deposited?”

"Sixty percent is in the island country, and the rest is in Germany and France. We have mobilized more than $100 billion in total, including the funds of the Far East Department itself and the funds managed by the Far East Finance Department. The cash flow of the group is almost being drained.

In addition, a large amount of foreign debt has been borrowed, and President Welch is very worried."

All people saw in the Plaza Accord was the island country, but no one noticed that the German mark appreciated by 1.4 times and the French franc appreciated by twice after the Plaza Accord, which were even crazier than the island country.

The market logic of Japanese countries is to increase leverage, while that of Germany and France is simply to speculate in foreign exchange and make some normal investments at the same time.

It is said that the bubble of the island countries has enriched the United States, but why not Europe? Because Europe's money is in the accounts of Germany, France and the United Kingdom.

Luo Nianzhong has no obligation to let these Europeans digest the fruits of their own harvest. Barclays Bank has already started large-scale lending and borrowing since the beginning of this year.

"Didn't you write him an IOU?" Luo Nianzhong said jokingly.

Now Far East Bank is under family management, which means that all of Far East Bank’s shares are in various funds run by the family.

Strictly speaking, Robert can be said to be Du Huilian's boss, but the two of them have formed a very good tacit understanding, one is in charge of internal affairs and the other is in charge of external affairs.

Robert would not interfere unless it was a matter of life and death and the two of them disagreed.

So on the surface, the Far East Group and the Far East Financial Department have nothing to do with each other. It is just a normal business transaction. Du Huilian has to pay interest for the loan this time.

"That's not my business, so I came first."

Du Huilian smiled and looked very happy, perhaps because he didn't have to face Welch.

Well, Luo Nianzhong was originally feeling strange as to why Du Huilian came first among the three people who were called. It turned out that Welch and Robert were arguing.

"You can't do this, the 20 billion US dollars was what we agreed on before."

"Yes, I lent it to you, didn't I?" Welch said, as if he was keeping his promise.

"But this is not lower than the bank's lending rate, and you didn't say you needed such a high interest rate." Robert's tone was full of dissatisfaction.

"You didn't ask, this is not a day or a month, but five years.

Do you know how many industries and profits Far East can acquire with this money in five to ten years?"

Welch's tone was unusually calm and steady, without the slightest change, making Robert feel like he had punched cotton.

“Don’t give me that. I know Far East still has a lot of funds. If you need it, with Watsons, you can easily mobilize tens of billions of dollars in cash flow.

Are you going to acquire IBM? You need so much cash."

Welch made a "so what" expression and said, "Watsons is not under the control of Far East now, and I don't like owing favors to anyone."

After saying this, Welch stopped and looked at Robert who also stopped and said, "I remember that Far Eastern Asset Management Company has 30 billion US dollars in funds, right? Add to that the savings in other banks, even if we can't sell stocks, it should be enough to raise 30 billion US dollars, right? It seems like you are going to make a big move."

Is thirty billion dollars a lot? It is certainly not comparable to the nearly ten trillion dollars of the three major giants in the future, such as BlackRock, and even the two trillion of Morgan, the second army, cannot be compared with it.

But in this era, an asset management company with 30 billion US dollars is not only one of the top ten management companies in the world, but is definitely among the top 20.

Relying on the endorsement of Far Eastern Bank and its performance over the years, the Far Eastern Asset Management Group, which was founded by Luo Nianzhong and Du Huilian to launch two private equity funds, has now become a behemoth and is trusted by many wealthy people in Asia.

The money did have its use, Robert didn't say, and Welch didn't ask any further.

Some things are not good to be said or heard too much, and both of them understand that.

Even though the families have a good relationship normally, work is work and personal relationships are personal relationships. The two of them understand that Jason and others also understand.

Seeing the two people coming together, Luo Nianzhong never stopped talking along the way. He didn't ask about the specific details of their discussion. Anyway, for him, the difference between meat being rotten in the pot and the left hand being rotten in the right hand was just like that.

"I've been waiting for you for a long time, and the coffee and tea are cold."

"I can't help it. There's a miser who keeps talking about borrowing money and thinking he's a big shot. Otherwise, I would have come here a long time ago."

Robert knew that Welch was making fun of him, so he didn't say anything. He just curled his lips, sat down, and drank the tea in the cup on the table in front of him.

"Okay, now that everyone is here, let's get down to business.

You already know about the Plaza Accord. It is inevitable that the currencies of island countries and other participating countries will appreciate significantly.

I mean Du Huilian is responsible for the European financial market, and Robert is responsible for the island countries. Do you two have any objections?"

Seeing that both of them nodded to indicate that they had no objection, Welch looked at them meaningfully.

It goes without saying that Robert's position in Luo Nianzhong is greater than Du Huilian's, but Luo Nianzhong gave what everyone thought was the main battlefield to Du Huilian, and let Robert be responsible for the island country.

That means that in Luo Nianzhong's heart, the island country is of vital importance and the benefits it has gained are greater than those gained by Europe.

Something had happened in the island country. This was the first thought that came to Welch's mind.

Robert used the $20 billion cash flow from the Far East for the island country market. When he mentioned the $30 billion in management funds just now, it was obvious that they did not flow to the island country but to Europe.

30 billion US dollars of managed funds flow to the island country, not counting the Far East system’s own funds. Normally, Europe should have the largest share, but now it has to invest heavily in the island country.

Welch was guessing what was going on, but Luo Nianzhong had no intention of hiding it from him because this plan required his participation.

"Jerry, it is very likely, or should I say extremely likely, that the island country will blow up a super capital bubble, and we may not be able to keep our industries in the island country at that time."

Facing Luo Nianzhong's smiling words, Welch's eyes widened, and the first thought that came to his mind was "Are you planning to take over the Fuji Group?"

No wonder Robert was in charge of the island country, the super capital bubble, the large amount of hot money flowing into the island country, and the sale of industries in the Far East island country. All these things have one core, which is to consume the bank's funds.

A large amount of hot money flowing into the island country will lead to a crazy growth in the real estate and stock markets. People's money will follow suit, and the bank's cash flow will decline.

The island companies with inflated market value and rich capital will surely start a global shopping spree. Where does the money come from? Banks definitely account for the majority.

The island countries' financial groups are all centered around banks. Once the bubble bursts and the financial industry collapses, the consequences for those heavily indebted companies can be imagined.

There are two possible outcomes: either accept external funding or wait for death.

However, all of this is based on a premise, which is that this appreciation will really blow up an unimaginable and unsolvable bubble for the island country.

"So sure?"

It was certain that the island nation would experience an economic crisis, but Welch did not expect it to be so serious.

Welch knew before that Luo Nianzhong wanted to take advantage of the financial crisis to completely control the Far East-related Fuji companies. Now it seems that he still underestimated Luo Nianzhong's appetite.

“Not sure, but we can help them.

What will be the consequences of this $600 billion entering the island market? Do you think those guys on Wall Street will not add fuel to the fire when they see all this money flowing into the stock market and the property market? "

The missing thirty years? Perhaps this time the disappearance may be even longer.

Luo Nianzhong believed that with his own push, the island country in this life would be even crazier than before. He wanted to make the island country, this sports car that was about to lose control, step on the accelerator into the fuel tank from the first second.

"Just watch, this time we are going to take down an island country consortium without spending a penny, and you will all share in the gains."

Luo Nianzhong's words made the three people's eyes light up. If their family could occupy even 1% of the share in these companies, it would be enough to make their family become a prominent family.