Chapter 438: Such Horror
As early as one year before the signing of the Plaza Accord, Japan had gradually achieved financial liberalization under the impetus of the United States and local financial tycoons.
The areas of stock market, banking, securities, foreign exchange, etc. have basically achieved full integration with the international standards.
When Shirakawa Kaede made quick money from the Plaza Accord, he also took advantage of this point to transfer huge amounts of funds to foreign accounts.
Although the Neon government has bought US dollars and sold Japanese yen, the Japanese yen sold has returned to Neon after going around Wall Street.
Because of complete financial liberalization, overseas investors digested the yen and then invested it in Japan's stock market.
As we all know, Japan's bull market has lasted for nearly two years, and the first investment target of overseas capital in Japan is the stock market.
As a result, the Japanese government spared no effort and spent nearly 2 trillion yen to cool down the yen.
As a result, the US dollars converted into this money not only continued to depreciate, but the Japanese yen that went out also went around and came back again.
And this time the money was not invested in the real economy, but instead pushed Japan's stock market to a higher peak.
Then more and more people began to blindly speculate in stocks, and more and more people entered the financial industry.
Since the method of buying US dollars and selling Japanese yen does not work, the Japanese government can only think of other ways.
After the Ministry of International Trade and Industry once again investigated industry and commerce across the country, it was found that the temporary impact on export trade volume was still controllable and the difference was not very large compared with before.
Since the loss of export trade is limited, we must find a way to make up for it within Japan.
How to make up for it? Stimulate domestic demand.
As long as Japan's domestic market is strong, it may be able to fill the gap in previous export trade.
So the Japanese government began to take a two-pronged approach, trying every possible way to get people to consume more.
First, the Ministry of Labor and Employment announced the launch of the "National Income Doubling Plan" in 1997, which was aimed at significantly increasing the income level of the working population.
Everyone's salary has doubled, and now they have money, so they are naturally willing to spend.
For this reason, the Ministry of Labor has also issued relevant orders to domestic companies, requiring a planned increase in employee welfare benefits in the coming year.
This is the same operation as what the Celestial Empire does in later generations, making various adjustments to the minimum wage every year.
It’s just that the Ministry of Labor has taken big steps and the improvement in welfare benefits is very obvious.
In addition, the government will also provide various subsidies to the people to implicitly increase everyone's income.
Second, starting from January, the Bank of Japan began to lower its loan interest rate from 5% to 4.5%.
The purpose of lowering interest rates is to stimulate domestic demand.
If the interest rate of loans is lowered, more people will be willing to borrow from banks.
In addition, government agencies have also purchased large quantities of various bonds on the market in an effort to spend the money in their hands.
Because too many US dollars were purchased before, there is too much foreign exchange reserves.
Just keep it in your hands, as it keeps depreciating, so investing overseas is the best approach.
Because of this series of stimulus policies, people do have more money in their hands.
But too much yen will cause inflation. People are not stupid. Since money will become worthless, they should spend it quickly.
There are different ways to spend money. Consumption is only the choice of some people, and more people invest their money in the stock market.
At this time, most people's consumption concepts are still relatively conservative. If they have money, they can spend a little, but they will not overdraw.
However, due to interest rates, there is not much interest if you keep your money in the bank, so you might as well invest it in the stock market.
The bull market is like a guiding light, attracting people with bulging wallets to invest in stocks and foreign exchange.
And because the stock market and foreign exchange market all went up, the people who invested money found that they actually made money.
So, having tasted the sweetness, they continued to invest the money they earned in the stock market and used the remaining money for consumption.
This way of making quick money has greatly stimulated them, it is much easier than earning money by working.
Those who have no money also started to borrow money from banks to invest in stocks and foreign exchange.
In particular, in April, the Bank of Japan lowered interest rates again. After the interest rate was lowered from 4.5% to 4%, the number of companies and individuals willing to take out loans increased significantly.
However, the reality turned out to be the opposite of what was expected. Only a small portion of the money released by banks was used for consumption, and most of the rest flowed into the stock market.
In fact, the original purpose of the Neon government doing this was to expand domestic demand, which was also part of the agreement in the Plaza Accord.
The United States asked the other four countries to cut taxes and interest rates to expand domestic demand.
What is the purpose of expanding domestic demand? Of course, it means buying more American products.
But just like the Japanese government's interest rate cut, many expectations often go against one's wishes.
Since the Plaza Accord, the Japanese yen and the currencies of the other four countries have appreciated significantly, while the US dollar has depreciated.
However, the US trade deficit not only did not shrink, but instead expanded further.
This is related to the previous reputation of each product, and also to the investigation conducted by Japan's Ministry of International Trade and Industry.
As mentioned before, the reason why Japanese and European products are so popular in the United States is not only because of their low prices, but also because of their quality.
Therefore, although the price has increased a bit, there are still many people willing to buy it.
In addition, according to the survey conducted by the Ministry of International Trade and Industry, as long as the yen did not fall to 1:180 or 1:170.
Then the two main pillars of Japan's exports, automobiles and electronic products, still maintain considerable competitiveness.
Although the appreciation of the yen has increased the cost and price of export products, there is still profit margin.
Therefore, in order to retain the market, Japanese companies have all reduced their prices.
This is to gain the market by compressing one's own profit margin. At worst, one can make small profits but quick turnover, but the market must not be lost.
Now the Japanese yen exchange rate is still around 1:190, so there is still some room for price reduction, so Japanese companies can still hold on.
So when the United States saw that there was no effect, it urged the other four countries to hand in their homework quickly. The U.S. fiscal deficit has been criticized by all sectors of society in the country.
As a lackey, Japan was much more obedient than Germany, cutting interest rates twice in just six months, by a full 100 basis points.
But the effect is just as I said before, domestic demand did not drive much, and most of the money went into the stock market.
However, the manufacturing industry, which was the first to feel the chill, is already making other plans.
After all, although the export share has been maintained, the profit has fallen.
It is impossible to increase profits by raising prices, so the only way is to find a way to reduce costs.
…
It is early spring in April, although the weather is still a little chilly.
However, an industrial park here in Pengcheng has already been in full swing.
No, this place cannot be called an industrial park yet. It would be more appropriate to call it a construction site.
"Mr. Shirakawa, please take a look. From this area to the north, a total of 3.32 square kilometers have been planned as Nanshan Science and Technology Park.
Before you, business leaders from Lijiapo, the United States, Australia, and even your hometown Neon have visited here.”
In a construction site surrounded by the sound of banging and knocking, Liang Xiangzheng, the leader of the industrial park in Pengcheng , brought a group of special visitors to inspect the construction situation here.
A young man wearing a safety helmet, surrounded by a crowd, was gazing into the distance at the dusty construction site with a deeply moved expression.
The Nanshan Science and Technology Industrial Park, which later became famous and was known as the Silicon Valley of China, was still a construction site waiting to be developed.
Although many areas are under construction at this time, most places are still wilderness.
There were puddles of varying sizes on the bare land, overgrown weeds, and uneven ground.
Looking further ahead, most of the surrounding buildings are relatively old. Even the buildings are only three or four stories high, and there are basically no landmark high-rise buildings.
However, compared with the old buildings, there are also many new buildings rising from the ground, such as the land under your feet.
"Mr. Liang, although this place is not very developed, the people here are very spirited."
The scene in Pengcheng at that time gave Baichuan Feng a great shock, but he was also impressed by the unique spirit of the people of this era.
After hearing Baichuan Feng's praise, Liang Xiang immediately patted his chest.
"Please rest assured, Mr. Shirakawa, as long as Shirakawa Electric needs it, once the first workshop here is completed, it will be used by Shirakawa Electric."
Liang Xiang was curious but also extremely cautious about this Japanese visitor who spoke more standard Mandarin than he did.
Not to mention that he is the leader of an industrial park, didn’t you see that there were special people from the provincial government or even higher levels to accompany him?
If he hadn't been assigned the job of being in charge of the industrial park, he probably wouldn't even have a say.
At the same time, Liang Xiang secretly sighed in his heart that Pengcheng is already one of the most developed regions in the country.
But in the eyes of others, it is considered “not very developed”.
It is true that you don’t know until you compare. Only then do you realize how far behind you are.
However, Liang Xiang was not discouraged. Looking at this bustling scene, Pengcheng will surely shine in the future.
After hearing Liang Xiang's promise, Baichuan Feng first smiled and nodded.
“The technology park is indeed a good place, adjacent to the port and backed by the mainland.
Whether it is transportation or labor, relevant supporting services can be provided.”
Upon hearing this, not only Liang Xiang, but also the leaders in the province and above beside Bai Chuanfeng showed joy on their faces.
This is possible. Will the industrial park welcome its first foreign-invested enterprise?
You have to know that the industrial park was just planned and established last year. At this moment, let alone construction, there is not even a decent infrastructure.
Everything was in its infancy. As for existing businesses, there was nothing except a materials company and a computer floppy drive R&D company.
If an internationally renowned brand like Shirakawa Electric can settle down, it will greatly increase the popularity of the industrial park.
Not to mention that it can increase the attractiveness of subsequent investment attraction, it itself is extremely symbolic.
But before they could be happy for too long, Baichuan Feng looked at the formatted factory and shook his head again.
Is Mr. Baichuan dissatisfied with something? Liang Xiang couldn't help but sweat a little from nervousness.
However, before he could ask, Baichuan Feng had already expressed his opinion.
“Because of the technical issues involved, we built the Shirakawa Electric factory ourselves.
The design drawings and construction requirements must all be in accordance with our standards, but we need your assistance in terms of workers and materials.
In addition, the land also needs your approval. Baichuan Electric needs at least one thousand acres of land to build a factory.
Our initial
"Hiss~" Liang Xiang and a group of leaders took a breath of cold air.
This kid is so scary!
