The Kyoto Bubble Era: Starting from the Sale of Hundreds of Millions of Properties

Chapter 68 Under the background introduction, it is easy to understand.
1. How did the RB bubble economy form?
The signing of the Plaza Accord in 85 means that the American father forced the neon son to appreciate the currency. The so-called currency appreciation means that the yen is more valuable. In the past, 1 meter of gold = 240 yen, and now 1 meter of gold = 120 yen, so what are the consequences?

Advantages: The yen is valuable, you can exchange the same amount of Japanese yen for more rice gold, then you will tend to exchange rice gold, go to consumption, go shopping, go to buy, buy, buy, your money is more than other countries Money is valuable, and you go to that country and you can enjoy more.

Therefore, the appreciation of the yen, the most notable thing is that the people have become rich, and overseas consumption has been stimulated.

Disadvantage: Exports are restricted, and all goods exported to the outside world will be restricted, because their money is worthless to the importing country. Originally, 1 meter of gold bought you a bag of rice, but now they want 2 meters of gold. They are not willing bought.

As a result, for RBs that are big exporters and trade for a living, those manufacturing industries will be very difficult to mix, after all, their things can't be sold.

So for capitalists, I have more money, but my products can't go out, what should I do?Then put your money into investments, bonds, stocks, real estate, overseas investments, etc. The more money pours in, the bigger the bubble will be, and the bigger the false prosperity will be.

The conclusion reached: the yen appreciates - I am rich - I invest in stocks to buy houses - countless people invest in stocks to buy houses (especially big capitalists), stock prices and house prices rise - I am richer - I continue to consume and invest - foam formation

The resulting problem:
The stock market and housing prices are so high that ordinary people can't afford housing at all.

The manufacturing, physical, and export industries will go bankrupt without transformation. The market is full of real estate, loans, and securities companies.

People are extremely consuming, and the social atmosphere of worshiping money is serious. It seems that anyone can easily make money, and overseas consumption is huge.

Banks lend a lot of money to individuals and businesses, allowing them to put their money into the housing market and the stock market, and then mortgage their houses to form new loans.

2. How does the consortium make money through the bubble?

The way for overseas consortia to make money is to exchange a large amount of rice gold into Japanese yen before the Plaza Agreement (because the content of the agreement does not limit the amount of exchange), at that time, for example, 100 meters of gold can be exchanged for 2.4 yen, and then after the appreciation of the yen, change it again. Come out, at this time your 2.4 yen can be exchanged for 200 meters of gold!One by one, you just rolled your money in the RB stock market and doubled it!
The news of the RB consortium is slightly behind the overseas consortium, but it can still enter the market with a large amount of funds at its disposal, drive up the stock market and real estate market, and make money with the overseas consortium.

The difference between the two is that the overseas consortium knew everything before the bubble and was well prepared; the RB consortium entered the market after the bubble occurred, relying on me to have enough money to make money.

Here's an important question: we didn't do anything (no research and development of technology, no production of goods, just the price of land and stocks went up, and I made money by reselling it), so whose money did I make?
The answer is: after the bubble burst, all the money of leeks, their lives and futures that didn't have time to run away!They have to work part-time for the rest of their lives to pay you back the money you made during this period.

People in the whole country suffer, and a small number of people are rich, isn't that overdrafting the life of the country?
This is the strategy of American Dad.

Ideally, capitalists would do their best to make money, selling their assets for money before they actively burst the bubble.

People who sell more slowly will go from big profits to small profits to no profits to losses to small losses to big losses. Those at the bottom of the information chain are big losses (leeks).

Then because there are too many people who lose money, all the manufacturing industries you depend on for a living go bankrupt, and the country collapses.

3. What was the impact of the early bursting of the bubble?
The neon in history, Mie Yekang used the increase in interest rates to forcibly burst the bubble in advance, so that the entire RB was not spared, but only fattened overseas consortia such as the United States.

Because the increase in interest rates will make it more difficult to get loans (the interest rate is high, and it is difficult to make money with loans), and the government controls the price of land and the number of mortgages, lenders will start to repay the money one after another, which means that they have to leave themselves out. Money back (from the stock market and the housing market, etc., generally choose the stock market first).

At the same time, the increase in interest rates will lead to less hot money, curb consumption, etc., which will depreciate the yen.

And Mie Yeyasu's behavior led to the temporary depreciation of the yen, which would allow these overseas consortia to withdraw their capital first!
They have less money, and each one earns the difference just said.

When the stock market bubble burst, banks and companies suffered huge losses on their books, and many companies went out of the market and went bankrupt.

You lost all your stocks, your money is worthless, you can’t repay your loan, you’re heavily in debt, you can’t repay your house mortgage, you have no desire to invest, you have to sell your house, House prices will also fall.

Home prices are lagging the stock market's decline.

Conclusion:
Rising interest rates, controlling the number of mortgages - the yen will depreciate - overseas consortiums earn less and have to withdraw their capital and run away - loans are also difficult, I have to pay back the money, my money is worthless, and I also withdraw from the stock market- The stock market has plummeted, more people are losing money, and they can’t pay their loans—banks and companies have closed down with huge losses—the housing market is also going to plummet—the national economy will be doomed.

Problems that arise:
Forcibly bursting the bubble means instant death.

The ideal state of the RB consortium: slowly withdraw capital with overseas consortia, gradually reduce the stock market and housing market, and continue to harvest leeks, so that the RB economy will be greatly damaged, but it will not end.

The result is that the consortium and some high-ranking people have become rich, and the people and the country have suffered a lot, but the country is not dead. Anyway, migrant workers can continue to work and create value.

Boil the frog in warm water, let the foam keep expanding, and then slowly pierce it, it is best for the RB consortium.

Mie Yekang's forcible breach will lead to only overseas consortiums becoming rich. At this time, regardless of whether the RB consortium follows up with the withdrawal of capital, the RB will be finished.

And because of Mie Yekang's behavior, they couldn't react, and the losses were huge. Therefore, the consortium and the government will try their best to save the market and delay the collapsed node. Otherwise, the consortium will also withdraw at this time, and the RB will be gone.

After all, they can't retreat and leave as recklessly as overseas consortiums do. What kind of mess is left by the other party, the consortium and the government must follow and fill it up.

4. Is Mie Ye Kang's approach right or wrong?
On the surface, it seems that RB directly commits suicide and the economy collapses, but in the long run, it is indeed much better than letting the bubble expand and finally being boiled by warm water, but whether the reason he poked is related to the overseas consortium, the internal struggle of the RB consortium, the Ministry of Tibet and Japan. It is not known if it is related to the silver struggle.

Judging from his death, he should have received the support of the majority.

(End of this chapter)