Rebirth 79: I opened a bank in the United States

Chapter 858 This is not a good thing

"Don't mention the Ministry of International Trade and Industry to me. That's a matter for the Minister of International Trade and Industry. It's not something Mr. Takeshita, the minister of Tibet, should consider! Let's talk about the matter between the Ministry of Finance and Industry of the United States! "Foreign Exchange Control Act ", why didn't I see the adjustment?"

As the saying goes, a dream for a thousand years!
A vast number of thoughts ran through my mind, but in reality it was only for a moment.

Just when Carter regained his senses, there was another crisp, loud, and familiar "pop" sound, which suddenly came from the front row!

Through the gap between the back of the head of the person in front, Carter saw a high raised slap
"Snapped!"

"20 days! During the entire 20 days, none of you have adjusted the foreign investment management method and considered whether the foreign investment management system is reasonable! Layers of approval are required, and the reported foreign exchange import and export is the root cause of all these unfavorable situations! "

"I have reason to suspect that you don't want to solve the problem at all, and you are just wasting the precious time of me and my colleagues! Your Excellency, I hope you can discuss this issue. The reporting and approval system of the transaction made a targeted revision plan, and got an explanation and answer!"

"Mr. Reagan, this management of foreign exchange and foreign capital, this... This is not managed by our Ministry of Finance! This is a system jointly designated by the Bank of Japan and the Ministry of International Trade and Industry"

"You're talking nonsense!"

This time, Li Gen did not pat the table with a Chinese character face, but directly threw the pen in his hand on the conference table:
"As far as I know, the Bank of Japan should be under the leadership of the Banking Bureau of the Ministry of Finance, right? And the Ministry of Finance has set up the post of advisor to the Ministry of Finance in the Bank of Japan all year round. Now there is a problem. Your Excellency, the Minister of Finance, is not the Ministry of Finance. Don't you think it's a little ridiculous to use the province's scope of authority to prevaricate me?"

Secretary of the Treasury Reagan, who has always maintained a high-handed and strong attitude, suddenly became uncharacteristically mild after he finished speaking.

Carter, who was sitting in the back row, saw Secretary Reagan leaning forward suddenly, and said with a bit of earnestness:
"Mr. Takeshita, there are no outsiders who can participate in this meeting. I might as well put it bluntly. Opening up foreign exchange controls may indeed lead to an uncontrollable appreciation of the yen. The unexpected appreciation of the yen will have a negative impact on your country's production. As far as the manufacturing industry is concerned, it is not a small blow. It is also difficult for the Keidanren to support this decision of your Ministry of Finance.”

As soon as these words came out, the ugly expressions on the faces of the Japanese representatives headed by Takeshita Tide eased a little.

After all, without mentioning Takeshita Noboru, the Minister of Finance of Japan, the rest are more or less personal, right? !On one's own territory, being continuously scolded by Secretary Reagan before the treasury will not feel good.

But just when Takeshita Teng's face showed signs of improvement, Secretary Reagan's next words almost broke people's defenses.
"Everything has two sides. With the release of foreign exchange control, while the manufacturing industry is facing difficulties, capital from all over the world will also come to Japan! With the injection of these funds, the Japanese economy may not be in decline! In the early stage of the appreciation of the yen, It can even generate more US dollar surplus. At that time, you can use this money to invest in some American companies that are about to recover in the era of competitive balance brought about by the appreciation of the yen, and then use international capital to enrich Japan. domestic economy."

"In the long run, we in the United States have Japanese assets and equity in Japanese companies. Similarly, you Japanese will also own American assets and equity in American companies! Both of us have reached an agreement with common interests, and we have truly become a line People above, advance together and retreat together!"

As a prime minister who was not born as a financial official, Noboru Takeshita didn't realize the pitfalls in Secretary Reagan's words at first.Even, at first glance, it seems not bad?
According to the "J-curve effect" theory, in the early stage of the appreciation of the yen, Japan's trade surplus will not only not shrink, but will even increase, and the scale of exports will also increase.Because, the same amount of yen can be exchanged for more dollars!

The total value of exported goods is calculated in yen, which has not changed.Assuming that the total profit of Japan’s export trade to the United States is 1000 billion yen per year, in the era of an exchange rate of 250:1, if denominated in US dollars, Japan can earn 4 million US dollars from the United States every year.Of course, the actual situation must be far more than this number
But in the model, assume that the exchange rate is now 200 to 1.Where would that lead?
Under the condition that the total volume of trade remains completely unchanged, exporting to the United States can earn 5 million U.S. dollars every year!
If the extra US$200 million out of thin air is converted into Japanese yen at the same ratio of 1 to 200, it is equivalent to an increase of [-] billion yen in trade surplus out of thin air.Whether it is denominated in Japanese yen or in US dollars, this is a sure-fire deal!

Of course, Toshi Takeshita still has basic knowledge and basic concepts.

In this world, there is never a free lunch, and there is no free harvest.

While obtaining this extra surplus, what Japan needs to pay is the gradual shrinking of the scale of production and trade.Because, after the appreciation of the yen, if the profit rate of Japanese products is to remain unchanged, the selling price in the US market will inevitably increase.

And the selling price is often negatively correlated with the sales volume!
At the beginning, it may be possible to use the exchange rate difference to keep the overall income unchanged, or even make a small profit.But as time goes by, the export scale will definitely become smaller and smaller. Even if the unit profit is high, it may not be able to make up for the loss caused by the reduction in scale.

But Treasury Secretary Reagan mentioned the injection of international capital into Japan and the possibility of Japanese capital investing in the United States.
This made Takeshita Deng's mind moved.
The appreciation of the yen means that Japanese goods have to increase in price, or reduce profits and reduce the scale of production.Whether it is the price increase of Japanese goods, or the reduction of production scale of Japanese manufacturing enterprises to save costs.In the American market, there is room for American goods!

The price gap is no longer obvious, or Japanese products are out of stock, so American consumers must choose American products.All will bring more room for development to American manufacturing companies.

At that time, use the US dollar surplus to invest in these US companies, and the profits will be used to offset the losses caused by the reduction in production and trade scale.Then the injection of international capital can also, to a certain extent, lead to the consumption boom in Japan, or directly inject it into Japanese companies to maintain the existing production scale.
It seems that it is a cooperation plan that is somewhat similar to exchanging equity with each other.

At that time, Japanese manufacturing companies and American manufacturing companies will be each other's bosses, and everyone will earn money together!There is no unfair competition, it seems... pretty good?

Anyway, even the "U.S.-Japan Security Treaty" has been signed, militarily, the Self-Defense Forces are almost moving into the U.S. military barracks, and economically, a "U.S.-Japan Enterprise Mutual Protection Treaty" seems to be nothing?
But just when Takeshita Deng was a little moved, the faces of the staff around him that were about to turn black into carbon
Let Takeshita realize that this may not be a good thing!
(End of this chapter)