I’ll Add Points To All Things

Chapter 863 Shocking reversal, another day!

Latest URL: Soon, after Su Yang suppressed the Japanese Yen for the second time, the Magnesium Reserve officially passed the resolution of the Senate and officially launched the rate cut.

In this case, the hedge funds all over the world began to hedge against the yen. The Japanese yen is constantly being bought, and the price is constantly rising, gradually surpassing the 75 mark.

Everything is like the repetition of countless magnesium dollar interest rate cuts and capital refuge routines, as if there is no difference. After all, the country's policies will not be changed easily, and there will be no problems in a short time.

But no one has discovered that in the three major financial markets, some financial accounts are still selling Japanese yen non-stop.

It's just that the scale of this sell-off has gradually decreased from tens of billions of yen to hundreds of millions of "small-scale" sell-offs, which has attracted less and less attention and has almost no impact on the exchange rate...

Time flies, and soon, another half a month has passed. Just when everyone thought it was all over. Suddenly, many posts and reports against the appreciation of the yen appeared on the Japanese Internet.

These posts and reports look like they were written by professionals. They pointed out that the appreciation of the yen actually has huge risks hidden, and it is not a good thing for the island countries.

Because...the appreciation of the yen will have a huge negative impact on import and export trade: now...Japan's things are already sold internationally because the price is too high...

In the beginning, this voice just spread on the Internet. Soon, major Japanese media and newspapers began to forward or write such news.

Some well-known economists have also begun to explain in newspapers or media whether an increase in the exchange rate is beneficial or harmful.

Generally speaking, the increase of the exchange rate has both advantages and disadvantages, but the disadvantages outweigh the advantages.

What is good is the life of the people in the country. Not only the assets of all people have increased invisibly, but also foreign products can be purchased at a cheaper price.

After all, people living in China only use their own currency. Originally, it cost 80 yen to buy an imported commodity worth 1 mg in China; now it only costs 75 yen.

Of course life is much easier.

The disadvantage is that the import and export trade of the entire country will be greatly affected. Products with the same price, because of the exchange rate increase, will lead to a price increase when sold abroad.

For example, an item whose original cost is 80 yen,

Selling to Magnesium Country only requires 1 Magnesium Yuan plus profit. Now it takes 1.07 mg plus profit.

Invisibly, the quotation will increase.

It may be that a product increases by 0.07 mg, but it may feel nothing. But what if it is expanded to millions, tens of millions, or even billions of items?

That number is very frightening.

Suppliers in various countries will soon consider giving up purchasing Japanese exports because of price issues.

Japan's technological products, automobiles, chemicals and other items in various industries, no matter what they are, as long as they are exported to various countries, they will virtually reduce their competitiveness.

And if the quotation is not increased, the profit will be compressed and the original price will be maintained. Then the profits of Japanese import and export enterprises will be much lower.

And not only that, because most of the international trade is settled in magnesium dollars, and these magnesium dollars are to be exchanged for Japanese yen. Now that the yen appreciates, the money earned will actually shrink a lot again.

Shrinking down twice, all Japanese companies involved in import and export will struggle.

Therefore, many economists infer that if this continues, the global influence and sales of major Japanese companies will soon drop sharply.

In addition to the impact on companies involved in import and export.

Because it is cheaper for foreign products to come to the island country, some domestic products may not be able to compete with imported products in terms of price. People in island countries will also be more inclined to purchase foreign products.

If things go on like this, domestic small and medium-sized enterprises will also be squeezed out of their living space. Japan is likely to face the plight of manufacturing withering, factories closing down, and workers being laid off.

In fact, as early as when the Japanese yen appreciated, all major companies had a certain awareness of this.

However, because it has not experienced the export pressure brought about by the appreciation of the yen for many years, and all import and export trades, foreign currency hedging will be carried out in advance (after the order is confirmed, the foreign exchange futures with the date of payment will be sold in the market in advance, Waiting to close the position after receiving the money, so that the exchange rate of this transaction will not affect the final profit), so they are not too vigilant.

But now with media reports and reminders from economists, they have finally discovered the problem. They started researching.

Soon, they came to a conclusion: the impact on short-term transactions is not great, because the partners have already hedged exchange rate fluctuations, but the impact on medium and long-term business is indeed very large.

So, a month ago, everyone was happy that the country protected the exchange rate, but unexpectedly, a month later, everything was reversed!

Because of the country's sudden interest rate cut, the country's maintenance of the exchange rate is actually the worst move?

It will cause big problems for import and export! ?

How can things be reversed like this?

Everyone was dumbfounded.

And just when the island country was making a fuss because of foreign exchange issues, there was a sudden voice in Japan to disband the cabinet.

They think that the reason for the current situation has a lot to do with the mess of this cabinet!

And, soon, under the organization of caring people, this voice became louder and louder.

Japan is a magical country. Although the national president is a three-year term. But the presidents of most countries are not satisfied with even one year.

Because as long as there is a problem in the country, other opposition parties can impeach the president of the country and the cabinet to resign.

Therefore, at this time, the current Japanese cabinet all panicked.

They never expected that the impact of things would be so great!

And... In fact, the appreciation of the yen was not done by them. They just did the most normal thing, keeping the exchange rate of the yen. It is foreign hot money and capital who think that the yen has the potential to resist depreciation, and Japan has the determination to maintain the exchange rate. It has nothing to do with them, and they have not said so to the outside world.

And later, Magnesium suddenly lowered QE and quantitative easing. Who expected this?

In order to preserve the value, capital poured into Japan with hot money, making the exchange rate of the yen higher and higher.

This has nothing to do with them!

Just when the current cabinet called for injustice, accountability from the opposition appeared.

The opposition faction found out that the cabinet spent billions of dollars to protect the exchange rate of the yen a month ago. It is believed that the current trade deficit is about to form and foreign exchange is getting less and less. This kind of behavior is completely disregarding the interests of the country!

They asked this cabinet to come out and pay for the appreciation of the yen! Pay for these billions of magnesium dollars!

A series of accountability directly pushed the incident to a climax.

And the opposition faction finally revealed its true colors: they demanded the resignation of the president of the country, the dissolution of the cabinet, and the reopening of elections.

In just a few days, the whole of Japan was suddenly precarious and precarious. Never lose the scenery of a month ago.

...

It is still the familiar courtyard, still under the familiar cherry tree.

At this time, Yanagawa Yanagi was not in the mood to drink tea. He stood under the cherry blossom tree and kept making phone calls with as serious a face as he wanted.

This series of reversals also completely exceeded his expectations. As one of the funders of this cabinet, he also panicked at this time.

In fact, the matter of foreign exchange is not that important, but the whole public opinion is so big, it is a big problem!

Someone must be contributing to this!

Thinking of this, Su Yang's figure appeared in front of Liu Chuanyan's eyes.

"Is that you? Su Jun?"

As soon as this idea was born, it was dismissed by Liu Chuanyan. He didn't think it would be Su Yang. Because this plan is simply too scary. This is the change of the helm of a world-class power!

Su Yang, a foreigner, for what benefit did he do such a thing? ! He is crazy!

Who is that?

Soon, messages came one after another. It didn't take long for Yanagawa Yanagi to lock on the target. All of this seems to be the hand of the former president of the country, Yuki Nakai, who implemented a loose monetary policy three years ago.

Nakai Yuki is one of the country presidents with the highest approval rate in the history of the island country. He comes from a family of bigwigs. Three generations of his family have been presidents of the country, and he has sufficient connections and resources in the bigwig world.

Three years ago, he became the president of the country for the first time. He originally wanted to implement a loose monetary policy, expand the scale of imports and exports, and boost the economy. But he was quickly impeached and resigned.

Unexpectedly, this time he saw the opportunity to attack!

But even if he found someone, Yanagawa found that he couldn't deal with him.

Because of Zhongju, you need a family background, a network of contacts, and a support rate. Now that he just found the handle of this cabinet, it is not something he can fight back at all.

We can only let the president of the country figure out his own way.

At that moment, Liu Chuanyan felt that he seemed to be much older...

Because he knows that even the current president of the country has no way to solve this matter. Things have come to this point, there is no possibility of any reversal...

...

really.

Two days later, Nakai Hiroki successfully defeated his rival Shigeru Ishimura after two rounds of voting within the faction, and was elected the 25th president of the Liberal Democratic Party, becoming the first former president of the Liberal Democratic Party to return.

Three days later, the current national president Osamu Ohno publicly apologized for his failure on Toto TV.

Half a month later, Yuki Nakai led the Liberal Democrats, who controlled the Senate, in the House of Representatives, and rejected the policy speech of President Osamu Ohno, and personally united with seven opposition factions, including the Liberal Democrats and the Gongmei faction, to force Ono to resign. and dissolve the Senate as soon as possible;

A month later, Nakai Hiroki reached an agreement with the then President of the country, Osamu Ohno, to pass some of the policies of the current President of the country, Osamu Ohno, in exchange for the surrender of the current President of the country.

that night.

The current president of the country, Osamu Ohno, announced the dissolution of the House of Representatives and re-election for the Senate...

This also declared the complete failure of the current management of the island country.

At this time, the international funds finally discovered that something was wrong.

You know, Nakai Hiroki is different from Onoji, he is a radical. What is pursued is the strategy of improving the economy at all costs.

The reason why he was impeached and resigned in the last term was because his policies were too radical.

Once he takes office, Japan is likely to no longer pursue the current economic strategy. It is likely to choose to sacrifice the exchange rate to stimulate the economy.

In this case, the Yen...will collapse!

Under this kind of risk warning, even though Zhongju Yugui has not yet run for the country's president, international funds with a keen sense of smell have gradually begun to flee. Under such circumstances, the yen also ushered in an inflection point and began to depreciate and fall a little bit.

At this time, Wei Lin, under Su Yang's advance command, had already exchanged all the 1.6 trillion yen in his hands for magnesium and gold at high points, and then waited for the opportunity to ambush.

In the previous month, Su Yang did not act rashly except for buying the shares of the four automobile companies with all his money. All his plans are over, and he no longer needs to intervene. As long as things are pushed forward step by step, a good harvest will soon be ushered in.

In the past month, three of the four auto companies have all reached a preliminary agreement to complete negotiations and prepare for formal cooperation.

Even Nissan Motor, after repeatedly bumping into a wall, opened up, and finally asked someone to contact Su Yang, and formally started negotiations with Su Yang.

Su Yang also used this reason to delay signing contracts with the other three companies.

According to him: he came to Japan to help Japanese auto companies develop better. He was contacted by four families before, but now he left one and contacted the other three first, it would make him seem petty.

So he planned to sign an agreement together after the negotiation with Nissan Motor, and then hold a press conference to cause a sensation.

Although Su Yang is Party B, after all, Su Yang has the core technology in his hands. So several car companies have no way to refute. Can only accept.

It's not like they didn't suspect that Su Yang was procrastinating on purpose, but after careful research, they felt that Su Yang's procrastination would not be of any benefit.

So it is more inclined: Su Yang is giving the two domestic car companies a head start. Or maybe Nissan's conditions are relatively favorable, but the requirement is that the other three car companies cannot sign contracts first.

Anyway, they are all trivial things, after the executives of the three car companies got to know them, they didn't care about them.

But they didn't know that Su Yang's delay in not signing the contract was really of no benefit. But his purpose is... not to breach the contract, that is, not to harm his own interests...

...

Time flies, and soon another 10 days passed, and the Japanese general election officially began. Hiroki Nakai officially announced that he will participate in the national presidential election as the president of the Liberal Democratic Party.

His competitor is Osamu Ohno, the current president of Japan and representative of the democrats.

In the election debate, he not only publicly criticized Ohno Osamu's series of conservative policies in the previous year, but also officially stated his economic policy for the next few years: he will follow the magnesium country and implement a loose monetary policy together. Cut Japan's interest rates directly to zero. Unleash all monetary liquidity and stimulate the economy.

Moreover, he will lower the exchange rate of the yen, expand the scale of imports and exports, allow Japanese companies to regain their international competitiveness, and implement fiscal stimulus policies to promote the recovery of the Japanese economy.

This speech boosted the morale of the entire island nation and won him a lot of support.

But... it also scared the international capital out of their wits.

You guessed it right! Sure enough, I guessed right! This guy really plans to cut interest rates, loosen money, and let the yen depreciate. This shows that the yen is about to plummet!

For a while, international funds fled Japan one after another, and the yen fell in response. Even though the yen is a world-class currency to avoid suspicion, it couldn't stop the flight of so many funds, and it plummeted from 78 to 85.

And it keeps falling...

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