Rebirth 79: I opened a bank in the United States

The reason why the Louvre Agreement will become meaningless after Carter heard this information is that the logic behind it is actually not complicated
First of all, the meeting of G5 finance ministers and central bank governors held in Paris this time can be regarded as an enlarged meeting, and there are actually seven participating countries.In addition to the old faces at the London meeting, this time there is another Canadian and Italian
And these two countries are obviously here to accompany and join in the fun
And this meeting, in simple terms, the American boss bullied the Japanese brother too badly, and then Japan called some people, strengthened their momentum, and came to beg the boss: "Please, don't let the dollar depreciate any longer."

To achieve this, the Japanese little brother shakes five people.Except for the stupid and cute "Yidali" and the drug-addicted "Jiamada", who are completely bastards, there are three people left.
Stirring shit stick with Ying, isn't this just a fun guy? !It doesn't think it's lively enough, how can it help you stabilize Japan honestly? !
Another French, this is a little cold knowledge.Generally speaking, France is the least capitalist country in capitalism, and was even called a pseudo-capitalist country at one time
France has state-owned enterprises!Although state-owned enterprises in France account for only 4% of the country's enterprises, the assets of state-owned enterprises account for more than 70% of the country's total assets.

What is the French National Railway Company, what is the French Electricity Group, etc. By the 80s, no matter how they changed, the GDP contributed by these state-owned enterprises in France could reach more than 40% of France's annual GDP
From a certain point of view, in a country like France, he has a relatively strong ability to resist risks.The execution efficiency is also high. Wouldn't it be nice if people are busy with their own development and have the energy to go to the colony? !Are you full enough to get involved in these shitty things in Japan?
Seriously, if we can share the same goal with Japan and do not want the dollar to continue to depreciate, I am afraid that there is only one Federal Republic of Germany left.And this is now a semi-crippled
Introduced the characters who completed this meeting, and then looked at the background
After the signing of the Plaza Accord, under the effect of the well-known "J effect", the trade deficit of the United States further increased.Three-quarters of the US trade deficit is jointly completed by Japan and Germany.The United States is not having a good time, and Japan and Germany are not happy either.
Gein, their actual export volume is decreasing.Domestic GDP denominated in domestic currency is actually declining, which is reflected in the economic growth rate. In 85, Japan's annual economic growth rate was still 4.2%. By 86, it had dropped to 3.1%. At the same time, Germany China's economic growth rate has also been directly hit to around 2%.
At the same time, due to the rapid and substantial depreciation of the US dollar, the entire foreign exchange market has been in chaos for some time.The violent fluctuations not only caused the market's confidence in the US dollar to begin to decline, but also had a great impact on import and export trade due to the instability of the exchange rate.No one can bear it, one price in the morning and one price in the afternoon, right? !

Originally, based on the price in the morning, I could still make a hundred, but when the exchange rate changed in the afternoon, I lost a hundred.
In this situation, preventing the continued depreciation of the dollar has become what everyone thinks about.It’s just whether it’s strong or not, including the United States, the United States actually doesn’t want the dollar to depreciate!But the premise is that the goal of the United States is achieved.
What is the purpose of the United States?
Similar to countries, economic growth!Economic growth is the core goal of governments of all countries!

The current impetus for economic growth in the United States is insufficient. The reason is that there is a large outflow of dollars every year, resulting in insufficient funds to invest in domestic production.To solve this problem, it is analogous to the gameplay in the previous era of high interest rates
Raise interest rates and that's it!If the interest rate on the U.S. Treasury bond is raised, the money will come?

But here comes the problem. The United States, which has just experienced the era of high interest rates and economic depression, has just seen a little respite. Another high interest rate hit? !

There is no need to empathize with this, and it is needless to say what ordinary people think!It's me, which idiot will raise the interest rate at this time, Carter will be the first to oppose him!Not only did he object, but he had to drag a group of people to boycott that son of a bitch!

The sequelae of three years of austerity have not been overcome until now. If it happens again, Carter can be sure that [-]% of his bank will be killed.Even if I am like this, I wouldn't dare to make such a fuss in another big bank!
Under such a situation, it is definitely not feasible for the United States to use the method of raising the interest rate of national debt to attract capital to return.Finance Minister Baker is not stupid. He understands that if he dares to propose this plan, he doesn't have to wait for others to do it. Brother Genzi will dismiss him immediately!
Isn't this pure dislike of Genzi's recent troubles?Still think that Genzi’s current public support rate of only about 40% is too high? !

Since raising domestic interest rates is not enough, there is another way, which is to lower the interest rates of other countries!

Lower interest rates mean lower financing costs.When domestic investment tends to be saturated, excessive funds will flow out, and the United States is obviously very attractive!
So, what makes the Bank of Japan lower the overnight lending rate is for the good of Japan. It is for Japan to stimulate domestic demand growth
It's all bullshit!

Japan's domestic demand has been saturated for a long time, the land area is so large, and there are only so many people.
This is not a problem of insufficient money at all, otherwise Japan would not be an external demand-dependent country.The most essential purpose is to attract Japanese funds to the United States, use these Japanese money to invest in American industries, and restore the American economy!
In other words, both sides are now betting!
Japan and Germany are betting on whether the United States is willing to resist such great international pressure: your problems are caused by yourself. The Plaza Accord has agreed that you and the United States will cut fiscal expenditures. What will happen?You are still issuing bonds crazily, and your financial expenditure is getting bigger and bigger. You can't blame us for this!
But now we are all very dissatisfied with you and the United States for not keeping the agreement.you think about it
In the United States, yes, I really don’t want the dollar to depreciate any longer.International pressure is part of it, as is the strong dollar, but comparing these two points, Secretary Baker's thinking
According to Carter's understanding, these "rogue lawyers" are usually a bunch of realists.It belongs to the kind that cures head for headache and treats foot for foot pain
After the pressure is over, let’s wait and see whether the strong dollar can recover.The core problem now is that the economic growth rate of the United States has always been insufficient. Let's solve this problem first!
You Japan and Germany, just say whether your interest rate will drop or not? !

If you don't lower it, I will continue to devalue the dollar and see how long you can hold it.
With the United States now having a leading edge in technology, it is relatively easier for the dollar to return to its strong position.
Following this logic, Carter understood.Regardless of the Louvre agreement, how to agree that several countries will jointly take action to buy US dollars to maintain the value of the US dollar.But as long as the U.S. itself, or in other words, Secretary of the Treasury Baker, the spokesperson of the U.S., doesn’t want the dollar to appreciate, then no matter how these countries buy U.S. dollars, it’s useless!