Reborn Tokyo Golden Age.

Chapter 416 The Gathering of the Storm

Neon and the United States jointly signed the currency report, aiming to further accelerate the opening of the Neon financial market.

what does that mean?This means that Neon will be fully in line with international standards in the financial industry, such as banking, stock market, securities market, insurance, trust, futures, funds, etc.

In layman's terms, it means that there will be fewer and fewer restrictions on overseas capital entering Neon in the future.

Perhaps in the future, the number of purely foreign-funded banks in Tokyo will usher in an explosion in a short period of time.

And this kind of financial liberalization was reached under the promotion of many parties.

Internally speaking, before the 80s, Neon's financial system mainly implemented policies such as strong financial administration, indirect finance, and the main banking system.

On the eve of Bai Chuanfeng's acquisition of Beidu Bank, Professor Yamada also explained and analyzed this point for him.

This kind of financial system has a joking name in the industry, called the "escort fleet" model.

It has provided a guarantee for the economic recovery and development of Neon in the past few decades, and also shaped the myth of "the bank will not fail" of Neon after the war.

But since the late 70s, especially since the 80s, the international environment has undergone significant changes.

The United States promulgated the "Financial System Reform Act" to accelerate the opening up of local finance.

At the same time, it also requires other countries to open their capital markets, and Neon, which has always been in a vassal relationship, is naturally within the scope of the target.

In addition, with the large-scale export of electronic products such as automobiles and home appliances, the strength of Neon's domestic enterprises is also increasing.

The club's own funds continue to increase, and financial institutions are actually facing a situation of excess funds and narrowing of the market.

To put it bluntly, the bank has too much money and cannot even make a loan.

As for why this phenomenon occurs, it is because everyone is not short of money.

The income from the Beimi market has brought a large amount of money to the company. Even if various project funds such as research and development and investment are included, the money in one's own pocket cannot be spent.

For example, the club under Baichuan Holdings, if it wasn't for buying land in batches recently, why would they think of going to the bank for a loan.

So, what should financial companies represented by Mitsui, Mitsubishi, and Sumitomo do?Too much money must be spent, otherwise how will the bank make a profit?

Since domestic enterprises do not take loans, they should invest overseas.In the vast overseas market, there are always companies that need loans, no matter how bad they are, they can participate in investment.

In short, only when the money in the bank flows can it bring profits to the bank.

But at this time, Neon's various conservative financial policies have become obstacles.If the chaebol's funds want to go overseas, they also face various audits.

Therefore, financial institutions represented by chaebols joined forces to demand that the government lend financial supervision and accelerate financial liberalization.

This is the internal reason why the neon government signed a financial liberalization agreement in May.

Plutocrats, perhaps they can also be called capital.

When it comes to their own interests, they will become pervasive and force the government to issue relevant policies and laws.

However, financial liberalization has internal causes, and there will be external causes.

As for where the external cause comes from, of course it is the American father.

From the 70s to the 80s, there were two oil crises, and the United States fell into severe inflation.

Although Volcker continued to raise the official interest rate after he took office as the chairman of the Federal Reserve in 79, the United States completely got rid of the influence of inflation last year.

But a series of measures also brought another impact, that is, the appreciation of the dollar.

From 79 to this year, that is, in 84, the appreciation rate of the dollar was as high as 70%.

The soaring dollar is not conducive to the export of American products, especially the export of manufacturing industry has suffered a serious blow.

According to the international news that Bai Chuanfeng has learned, the fiscal deficit of the United States this year may be as high as 1000 billion US dollars.

The main reason for this is the trade deficit of the United States with countries such as Neon, Britain, Germany, and Gaul.

There is no doubt that among these countries, Neon is the country with the largest trade deficit in the United States.

According to statistics, this year Neon expects to have a surplus with rice of more than 400 billion US dollars, which accounts for almost 35% of the total deficit of the United States.

The long-term trade surplus also caused Neon's GDP to soar from US$60 billion in 443 to US$84 trillion in 1.123.

With an increase of nearly 25 times, there is no doubt that in the past 20 years, the development speed of neon has far exceeded that of the United States.

Of course, Neon's export trade is also heavily dependent on the United States, which can also be seen from the fact that Shirakawa Electric's annual overseas revenue is more than three times that of its home country.

Because the trade surplus has brought a lot of tax revenue, the foreign exchange reserves in the hands of the Neon government have increased significantly.

And most of this money was used to buy the national debt of the United States, so this created an interesting situation.

The United States has sold a large amount of national debt due to its fiscal deficit and has become the world's largest indebted country.

Because of the increase in foreign exchange reserves due to the trade surplus, Nihong also bought most of the US treasury bonds, so Nihong became the largest creditor country in the world.

Nihong, who has been following my Miguo for a while as a younger brother, is now holding the money he earned from me.

Then turn around and lend it to me, and then become my biggest creditor.

How can this be tolerated?
It's okay if the development speed is fast, after all, the starting point is low.

But now that my own financial deficit is almost gone, you still keep sucking blood from me all the time.

If my American father doesn’t teach you a lesson, you will almost forget who is the dog and who is the master.

Therefore, under the wave of trade protectionism in the United States, the US government requires Neon to open the capital market and realize financial freedom.

This is the external cause of Nihong’s financial liberalization. Under the joint efforts of internal and external forces, the Nihong government compromised.

Of course, the report signed now is only a prelude, and the real storm will come next year.

Opening up the financial market is only one of the means. In the final analysis, what needs to be solved is the problem of trade deficit.

How to improve the export competitiveness of American products?Of course the depreciation of the dollar.

At the same time, it would be even better if the export of products from several countries such as Neon and Germany were restricted.

With a two-pronged approach, the US government's fiscal deficit problem will soon be resolved.

Of course, this is something.

However, at this time in the United States, the manufacturing industry has collectively lobbied the government to investigate or restrict neon-related products.

To put it bluntly, it is sanctions.

So at this moment, even the former Minister of International Trade and Industry Sosuke Uno is trying his best to persuade Congress to independently restrict the export of semiconductors of Neon.

But it was too late, the storm did not come overnight.

Its condensation had already begun a long time ago.

The general trend of the times, the wheel of history, sometimes the country can only go with the flow.

"Arai-san, starting today Hoktor Bank will also speed up the layout of international business.

In addition, in terms of overseas accounts, we also need to make more preparations. "Bai Chuanfeng handed the newspaper in his hand to Arai Yu.

After reading the above content, a flash of clarity flashed in the latter's eyes.

"In this regard, I will personally watch."

From Bai Chuanfeng's sometimes shining, sometimes cautious eyes, Arai Yu saw something unusual in it.

"By the way, regarding the foreign exchange market, Beidu Bank will also open relevant accounts in New York, London, Frankfurt, Xiangjiang, Lijiapo and other cities as soon as possible."

The modern foreign exchange market has been fully developed since the 70s.

At that time, the Bretton Woods system gradually disintegrated, and the exchange rate systems of various countries gradually changed from fixed exchange rates to floating exchange rates.

Because changes in the exchange rate also bring financial spreads, there is also a foreign exchange market.

Today's huge trading volume in the foreign exchange market has made it the most asset class in the world and the most liquid market in the world.

And because of the geographical dispersion of foreign exchange trading cities, coupled with 24-hour uninterrupted operation.

Today's foreign exchange market is recognized as the closest to a perfectly competitive market.

Even if the central banks of various countries sometimes intervene in foreign exchange, it still cannot change this fact.

Only this kind of market with sufficient freedom of operation can facilitate the subsequent troubles of Beidu Bank.

After Arai Yu heard Bai Chuanfeng's explanation, he became more and more sure that there was something going on.

"President Bai Chuan."

Bai Chuanfeng interrupted his question with a wave of his hand, "Arai-san, I know what you want to ask. But the time has not come, we just need to be prepared."

It seems that it involves core secrets. No wonder the royal family and the Ministry of International Trade and Industry have visited successively recently.

It turned out that the government was personally involved, but since it involved insider information, Yu Arai didn't ask any more questions.

I believe that there will be more specific news to convey to myself at that time, and that will be the time for Yu Arai to end.

Yu Arai, who thought he knew the inside information, suddenly became secretive and stopped mentioning what happened just now.

While Bai Chuanfeng was worrying about his own bank, Bai Chuan Electric's new generation of handheld ODS was also released as scheduled.

This kind of handheld game console, which is called the third generation, has attracted widespread attention from the society once it is launched.

After all, with the outstanding performance of FES, ODS naturally has high hopes.

Facts have proved that "Shirakawa's product must be a high-quality product", this sentence is absolutely true.

It's a vast improvement over the original disposable handhelds.

Especially the release of Tetris, that is, the game "Tetris", even made ODS an entertainment device suitable for all ages.

"Yabai, I misplaced a cube just now~"

A social animal in the subway was secretly lamenting the missed opportunity, but the score still did not break through the previous record.

"Hey, are you playing cube games too?" A girl next to the social animals asked in a playful voice.

"Hey, Hay!" The animal looked back, and it turned out to be a girl.

Nervous and shy, he had never seen a girl initiate a conversation.

Under the red face, even speaking was a little awkward.

At this time, the girl noticed the DOS score in his hand and exclaimed, "Si Guoyi is really amazing, he can accumulate to 2000 points~"

Poor her who is just casual, her score has never exceeded 500, and she couldn't help being a little surprised when she saw a master.

"Ah, this." The animal scratched its head embarrassingly, "it's not very powerful."

"Can you teach me?"

Facing the big eyes of Sakura Girl Kawaii, how could the social animal have the heart to refuse.

"Of course, do you have a paging number? I'll contact you later." Fuzhi felt like she was thinking of paging number.

"Okay~" Sakura girl skillfully reported a series of numbers.

"By the way, do you have "Kirby the Star"?"

"Just cleared the level" chatted about the game, and the social animals quickly entered the state.

"It's amazing, can you lend me the game cassette for a while?"

"No problem, I've already cleared the level. If you don't mind, I'll send it to you directly." The social animal waved his hand with pride.

"Siguoyi~"

In the sound of "Si Guoyi", the social animals lost themselves in an instant, and they didn't even know that they had passed the subway station.

(End of this chapter)