Literary Master 1983

Chapter 245 The Impact of Yen Appreciation on Domestic Infrastructure Borrowing

Why is the Japanese yen appreciating?
This is a very complicated matter... As the country with the largest trade surplus at the time, its currency appreciation was almost inevitable. Japan's Ministry of Finance, responsible for formulating economic and industrial policies, even played a role in fueling this trend.

According to declassified documents released later, prior to the Plaza Accord, the Japanese leadership knew that the yen would appreciate. Naturally, they would borrow and repay in yen, making mainland China the unfortunate party in this situation.
The long-term, interest-free loan that was originally taken out eventually turned into a de facto usury due to the appreciation of the yen.

This is a terrible situation. Because they can't repay the yen, they have no choice but to sell resources, sell shares... they'll stop at nothing, and the cost will be paid by generations.

Yu Qie rode his bicycle to the largest department store in Beijing to look at Japanese home appliances and found that the Panasonic large-screen TV he bought last year had now increased in price to nearly 2,000 yuan. He had bought it for 1,400 yuan, about 242 US dollars.

Damn, prices really went up!

He then asked the Shanghai office of Iwanami Publishing about the international price of similar televisions, and was told it was still $242. This meant that this price increase was entirely due to the depreciation of the RMB, and he happened to be there on the eve of the yen's appreciation.

Then this article will be even more valuable to write. Publishing it a day earlier will prevent some losses.

Yu Qie stayed at home for two or three days and wrote a draft paper entitled "The Impact of Yen Appreciation on Domestic Infrastructure Loans," which he then submitted to the department head, Hu Daiguang.

Hu Daiguang squinted: "The yen is appreciating?"

"Um……"

Hu Daiguang continued, “Domestic infrastructure… it’s like this, there are preconditions for Japanese loans… for example, you have to use it in a certain industry, even the steel and cement you use, the sewage treatment equipment you use, all have designated manufacturers. Since 79, the vast majority of the loans we borrowed from Japan have been used in the infrastructure industry.”

“Yu Qie, you really do have some knowledge. I know you wrote a book called ‘Returning to One’s Roots,’ which involves dam construction. I didn’t expect you could apply it to your profession.”

At that time, projects such as the railway construction from Beijing to QHD, the port construction in QHD, and the Wuqiangxi Hydropower Station in Hunan Province all used Japanese loans.

However, after reviewing the paper, Hu Daiguang expressed his dissatisfaction:
"Your paper has a conclusion but no process. You see, you were bad at math back then and failed your exams. Now you finally know the pain. The process section of your paper is not convincing enough."

Yu Qie said helplessly, "My math skills are not good, and this is a bit beyond my level. I don't have professional data or enough foreign language materials. How am I supposed to come up with this in a few days? I'll apply for a foreign aid who is used to doing scientific research."

"If you can't master math, how can you write a thesis? You're going to pursue further studies anyway, how can you do that without mastering math?"

"—I haven't agreed to pursue further studies yet, Professor Hu." Yu Qie was dumbfounded.

My buddy hasn't agreed yet!
Hu Daiguang laughed and said, "What else can you do if you don't keep reading? Many countries have novelists' side jobs. For example, Latin America likes to appoint novelists as diplomats. They can speak multiple foreign languages ​​and represent the face of the country... We like to arrange for novelists to become officials or advisors. Your teacher, Ma Shitu, was once the director of the Housing and Construction Department! If he had some shrewdness, he might have become a real politician."

"Can you have a successful career in politics?" Hu Daiguang asked.

Maybe I could, but in online novels, I can't. There's some mysterious force that makes it unnecessary for me to even consider this path.

Yu Qie said, "I don't have that kind of mindset. All I want to do is live a normal life."

"You used to teach in the Faculty of Arts. Now, if you get a degree from the Department of Literature at Yenching University and switch to teaching in the Chinese Literature Department, would you be willing?"

“I don’t want to either,” Yu Qie said.

There's absolutely no need to teach how to write a novel.

Those whom he genuinely taught, such as Guan Moye, can be seen to have followed the same old path. This is an ability that he developed himself, and he doesn't need to interfere much.

Alright. Hu Daiguang had something to say: "Our Yenching University is not a literature department where great masters are dying out. Our economics department is full of talented people, almost overflowing... Even your senior, Lin Yifu, who swam all the way from Taiwan with a basketball in his arms and studied under a Nobel laureate, didn't get a teaching position immediately. He's still studying at a research institute in the United States."

"So, if you want to be a teacher, or Professor Yu, you should at least get a master's or doctoral degree."

Isn't this just like going back to my situation in my previous life?

I almost read it as "Fighting Buddha".

"But I need to publish this article as soon as possible. Mathematics is not something you can master overnight. You need to find me someone who is good at mathematics."

Hu Daiguang was delighted to see that Yu Qie had agreed to pursue further studies. "As long as you're willing to stay at Yenching University, there are many benefits to be had, and you certainly don't need to worry about your studies. Although Lin Yifu from Taiwan wasn't given a teaching position, he was able to get his master's degree in just one year. Some of your classmates graduated in two years and were then approved to study at Ivy League schools in the United States... You can also make special arrangements and get a degree in literature. Ji Xianlin will definitely be very happy about that."

“In recent years, Yenching University has not produced any particularly great literary figures. As long as your level is up to par, you will become a visiting professor in two colleges in the future.”

You're just making empty promises to me!
Yu Qie shook his head inwardly: Sigh, won't I become Dr. Yu from now on? Since this Dean of the School of Economics at Yanda University, Vice President of the National Association for the Study of Capital, Vice President of the National Economic Society, and so on... he's making such demands of me. Actually, Yanda University isn't bad either.

“Read it,” Yu Qie said. “I’ll finish writing this paper first.”

“That would be wonderful.” Hu Daiguang patiently explained, “You originally enrolled in 83, but you were delayed for two years because you repeated a year. You should have joined Yenching University in 81. Now you’ve just graduated on time. As for those two years of repeating a year, consider them as the foundation you laid.”

"So, who will be my mentor?" Yu Qie asked.

“I’ll reluctantly help you out. We’re like teacher and friend. As for my academic level, I’m not as good as many people, but you can ask my friend Li Yining… he’s really talented.”

Fortunately, Hu Daiguang didn't delay Yu Qie's important business!
The external help he arranged was Ping Xinqiao, Yu Qie's class monitor, who later became a renowned professor of economics. Ping Xinqiao was indeed a research prodigy, a true workhorse; he worked tirelessly for a week and created the process section of Yu Qie's paper from scratch.

The paper, titled "The Impact of Yen Appreciation on Domestic Infrastructure Borrowing," has become a proper academic paper, far exceeding the level of a graduation thesis.

Especially the empirical sections of the papers, with their various mathematical tools used in a very subtle way... Yu Qie suddenly remembered that Ping Xinqiao later became a well-known lecturer for postgraduate entrance exams at Yenching University and a textbook editor. Although his academic achievements were not enormous, his basic skills were top-notch.

Yu Qie was surprised: Teacher, you're quite the expert too!

I thought you only listened to "Tian Mi Mi" (Sweet Honey).

“Class monitor, let’s make it a joint authorship, so the credit is 50/50,” Yu Qie said.

Ping Xinqiao was an honest man, and he shook his head vigorously: "I only played a tool-like role. I only know how to do arithmetic and apply models. The ideas, data, and resources I needed for the paper were all provided by you... How can I be put on the same level as you?" Yu Qie touched his chin, feeling embarrassed: "That's not a good idea."

Ping Xinqiao said, "Our class organized another activity, going to Xiaoxitian to watch movies, namely 'Manhunt' and 'The Magnificent Family'. I invited you to the class reunion before, but you rarely came... Everyone felt that I had failed in my duty because everyone really wanted to see you... If you don't come this time, we won't be able to get together like this in the future."

"You don't need to tell me, I'll definitely come."

This time, Yu Qie didn't refuse.

------

Xiaoxitian is a well-known movie-watching spot, and students can make a good impression by dating or organizing parties there.

This place survived to this day and was still like a museum.

Upon learning that Yu Qie was attending the gathering, all the heroes of the Class of '83 from Yenching University came. Due to the severe shortage of economic talent in the country at that time, some of the classmates, like Yu Qie, had already applied for graduation, either to study abroad or to join ministries to start leveling up and grinding through dungeons.

Some children of government officials wrote in their memoirs, "When I was a sophomore in college, I was already researching studying in the United States..."

It's rare to find someone like Luo Yihe, who is so devoted to poetry and refuses to go into politics.

The first movie shown at Xiaoxitian Cinema was "Manhunt," starring Japanese actor Ken Takakura.

On the big screen, Ken Takakura, wearing a stand-up collar trench coat, is tall and strong with a rugged face... While evading the police, he investigates the truth, eventually revealing the truth, killing the bad guys, and winning the heart of the beautiful woman.

There was an accompaniment in the movie, which started with "la ya la..." and then, accompanied by an exciting musical melody, Takakura Ken rode a horse while escaping his pursuers! Many people in the class couldn't help but sing along, "la ya la...", "la ya la..."

It turns out that many people have already seen this movie.

How popular is this movie?
According to statistics from relevant departments, nearly 8% of the country's billion-strong population has seen this movie. Even in the least developed rural areas of the country, they can see the handsome Ken Takakura and the beautiful Japanese actress Ryoko Nakano.

This movie has handsome men and beautiful women, action scenes, business battles, and even Ryoko Nakano confessing "I love you!"

This was incredibly appealing to audiences in the 1980s.

Many prominent figures from later generations have expressed their fondness for this film in interviews. Yu Qie now believes it.

To Yu Qie's left was Ping Xinqiao, and to his right was Shen Ying, the female classmate who had won the last bridge game and was sitting on the back of Yu Qie's bicycle. Both of them couldn't help but shed tears when Nakano Ryoko said "I love you".

While wiping away tears, she kept her fingers wide open, unwilling to let any detail of the story slip by.

After the movie ended, there was a black-and-white screen showing the end credits song, with subtitles in a mix of Japanese and Chinese. The students watched with great interest until the lights came back on, and then they reluctantly left the screen.

Then, everyone started discussing the plot of the film. Shen Ying, a second-generation rich kid, said, "I watched this movie a few years ago, and watching it again now, I still think it's wonderful."

Yu Qie asked her, "What makes this film so great?"

Shen Ying was stunned for a while before saying, "I don't know either. I just think it looks beautiful from all angles, and it's so effortless."

Are there any similar films in China?

“No!” Ping Xinqiao couldn’t help but chime in, “Domestic movies are really not as good as this. I heard that ‘Manhunt’ is a movie from ten years ago. The gap between us and Japan is really too big!”

As soon as this was said, everyone agreed. One person said, "I wonder how Japanese movies are doing these days?" Another said, "I'd love to see some good domestic films, but they're never quite good enough. I can't quite put my finger on what's wrong with them..."

Suddenly, a female classmate said, "Yu Qie's novels are like 'Manhunt.' When I first read 'The Fiancée's Letter,' I was completely bewitched. I didn't even care about eating; I had to finish the novel! When the soldier cried, I cried too; when the soldier laughed, I laughed too!"

“That’s right!” Ping Xinqiao also said, “Yu Qie! Your novel is really just like ‘Manhunt’, no, I think it’s even better.”

Shen Ying also said excitedly, "I've had this feeling while watching 'Getting Home' recently. Once I start watching it, I can't put it down and I have to finish watching it!"

"Why are you so fascinated?" Yu Qie asked again.

The students still couldn't answer.

Yu Qie knew why: because the novel was commercially viable enough. This stuff was like chicken essence; as long as there was enough of it, even the emperor wouldn't forget it after reading it. Unless a hundred Yu Qies came along and made this chicken essence so salty that everyone got tired of it, it wouldn't be normal anymore.

There were two movies showing at Xiaoxitian Cinema; the other one was "Business Family." This was a film specifically for economics students. It depicted a capitalist society where relationships are based on money, and there is no brotherhood among people; it's all about life and death, and cannibalism.

The students said, "Yu Qie, you are a writer and you know a lot about Japan. Tell me what makes this movie so good."

Yu Qie said, "This movie has no basic social relationships. For money, fathers and sons, friends, lovers... can all betray each other. Everyone is a slave to money. We should take this as a warning."

The students responded with enthusiastic applause.

Amid the applause, Ping Xinqiao quietly told Yu Qie that what impressed him most about the movie was when the tycoon's secretary revealed a Mariana Trench, which shocked him immensely!

After watching the movie, Yu Qie met with Ping Xinqiao again, and together they submitted their thesis to Hu Daiguang. Hu Daiguang was satisfied this time; although it was a graduation thesis, it was actually quite forward-thinking. Yu Qie combined infrastructure development with the issue of Japan's currency appreciation, proposing that future long-term loan agreements should avoid being denominated in yen.

The best option is to not repay a single penny and repay the money twenty years later, but the Japanese are certainly not idiots. The next best option is to use resources as collateral... Repaying in US dollars is absolutely unacceptable domestically, and Yu Qie's paper indicates that Japanese yen is also unacceptable from now on.

With the yen appreciating significantly, the cost could be worse than paying back the dollar.

At that time, there were many economic journals in China. The journal "Economic Research" under the Chinese Academy of Social Sciences was a publication that researchers often submitted to. Hu Daiguang's friend, Li Yining, happened to be caught and became a reviewer. He read this manuscript.

(End of this chapter)