The rise of a great power: starting with military industry

Chapter 527 A bad start
But as soon as the G5 finance ministers' meeting began, James Baker frowned because things were not going well from the start.

"I'm afraid that's not possible, Mr. Baker. The continuous depreciation of the US dollar in recent years has had a very adverse impact on the international economic environment. Now the world is on the brink of an economic crisis. Especially for our island country, the Japanese yen exchange rate has appreciated by 33% in one year. The substantial appreciation of the yen has put our island economy at great risk. If it continues like this, it may lead to abnormal economic development. We no longer have the ability to appreciate!" Japanese Finance Minister Noboru Takeshita was very determined.

The Plaza Accord had just been signed and the Japanese yen appreciated wildly. The magnitude of the appreciation scared the whole of Japan. As the finance minister who signed the Plaza Accord, Takeshita Noboru was the target of public criticism.

At that time, Takeshita Noboru had to either perform disembowelment himself in a dignified manner or have someone else do it for him in a dignified manner.

The strong desire to survive gave Takeshita Noboru an idea, which was to relax economic policies and let the stock market and the property market become reservoirs.

The result was that Japan's stock and property markets both soared, and the appreciation of the yen made it cheaper to buy oil, allowing Japanese industrial products to remain competitive, which is why Takeshita Noboru is still alive today.

But almost all economists know that there is already a huge bubble in the Japanese economy. Once problems arise at some point in time, the bursting of this bubble will severely damage the Japanese economy.

In the past year or so, in addition to flowing into the real estate and stock markets, Japan's money has also increased its overseas investment, investing in the acquisition of high-quality assets and land in the United States, and then investing in factories in China, thereby reducing production costs and ensuring the competitiveness of Japanese industrial products.

As Japan's Finance Minister, Noboru Takeshita is well aware that Japan's economy now has great hidden dangers. What Japan needs to do is to delay the bursting of the bubble as much as possible so that Japan can find an opportunity to defuse the bubble in the economy.

In the face of James Baker's proposals and requests, Takeshita Noboru was very firm this time. He refused to make any more concessions and no longer make any sacrifices for the United States. Japan wanted to stay out of it.

If Japan continues to allow the United States to suck its blood, it is unclear whether the United States is good or not, and Japan's economy may be doomed.

"The development of the U.S. economy is related to the economic situation of the entire world. If there are major problems in our economy, the world will fall into recession. If you cannot cooperate to face this crisis, we will adopt severe economic and financial policies alone, which will be very disadvantageous to you!" James Baker's persuasion was ineffective, so he had to pick up the stick of threat and said to the finance ministers of several countries.

The United States has always acted with both a carrot and a stick.

Each of these four countries, except France, has U.S. troops stationed in it.

They really thought that they could be the masters of their own house.

Noboru Takeshita and West German Finance Minister Stodenberg frowned at the same time. They were very dissatisfied with the attitude of the United States.

For the economic development of the United States, Japan and West Germany have made great sacrifices. The appreciation of the yen and the German mark will have a great impact on their export trade.

Originally, the economies of Japan and West Germany were developing very well, and there was no bubble in their economies.

Excluding the Soviet Union, Japan's GDP is second only to the United States, while West Germany's GDP ranks third after the United States and Japan.

However, due to the economic development of the United States, Japan and West Germany made sacrifices, which caused the two countries to face more or less economic problems in the past year.

They also believe that the crux of the US economic problems lies in the huge domestic fiscal deficit, and not in the issue of the dollar being too high or too low in value.

At that time, the US dollar was pegged to gold, and 1 ounce of gold = 35 US dollars.

But look at it now, the international price of 1 ounce of gold has reached 500 US dollars.

This means that the US dollar has depreciated 14.3 times!

More and more US dollars are being printed, but it is the world that pays for the United States.

The United States’ current attitude is clearly to shift the blame of its own economic crisis onto them. How can this be done?
Now James Baker's words are even more threatening, like he is waving a threatening stick.

Stodenberg frowned and said, "James, the value of the German mark against the dollar has already risen. We can say that we have faithfully implemented the Plaza Accord. But for this agreement, the German economy, especially the export industry, has also paid a huge price. Now that we have just adapted to the new attitude, if you ask for a change in the exchange rate, our German economy will fall into a new round of shocks, which is very disadvantageous to us."

"We, West Germany, are on the front line facing the Soviet camp. If our economic turmoil is too severe, there will be no need to talk about anything else. Our people will demand to merge with East Germany and change color!" At this time, Stoddenburg was a little desperate, and there was a threat in his words.

James Baker's eyelids jumped.

If West Germany threw itself into the arms of East Germany, the situation would be dangerous.

The chain reaction caused will be extremely terrible.

Over the past year, the appreciation of the West German Mark was not as large as that of the Japanese Yen, but the United States did not force it too much, because West Germany was very important, and it was the first line facing the Soviet camp. "You Americans can't do this anymore. The rapid depreciation of your dollar has had a great impact on the world economy. Look at you, you have been in deep crisis for more than a decade. In 1972, your GDP was 1.28 trillion US dollars, and last year's GDP was 4.34 trillion US dollars. Is it because your economy is developing well?" French Finance Minister Bergber said unceremoniously: "But look at your national debt. In 1973, your national debt was 4580 billion. In just ten years, your national debt has reached 3.4 trillion US dollars."

“An increase of nearly $3 trillion!”

Britain, Japan and West Germany will still be concerned about the United States, but France will not.

Although France performed poorly during World War II and was looked down upon by the whole world, even today, there are still people who praise France from time to time!
However, after Charles de Gaulle was elected as the President of the Fifth Republic, he ruled France for eleven years. During this period, he led France in its fight for national independence and freedom, actively promoted Gaullistism, and sought great power status and influence for France in the international arena.

Although France is an ally of the United States, it is also a member of NATO, and one of the most important members. When NATO was first established, the United States actually had military bases in France, and the number of military bases was the largest among Western European countries, especially air force bases. Although West Germany was the front line of defense against the Soviet Union, in order to gain reaction time, a large number of military bases were established in France, including NATO's headquarters.

However, conflicts soon arose between the two countries. When France was waging a colonial war, the United States rejected France's request for help, which directly led to France's defeat in Vietnam. However, after France's defeat, the United States took the opportunity to occupy South Vietnam's colonies.

This was just the beginning of the conflict between the two countries, and the intensification of the conflict was due to the Suez Canal in Egypt. Everyone in the world knew that the Suez Canal was actually opened by Britain and France, so the main shares were in the hands of Britain and France. However, with the help of the United States and the Soviet Union, Britain and France lost the Suez Canal.

After Charles de Gaulle came to power, he began to unite some European countries to promote European integration to counter the United States. After the successful explosion of France's first mushroom bomb, France began to withdraw from NATO. It was also at that time that France required all foreign troops to withdraw from France, so that the United States no longer had a military base in France.

Moreover, France has an independent national defense system, its own army with independent command, a complete national defense industrial system, and its own industrial system.

Until now, France has not forgotten that the United States has been stabbing France in the back over the past few decades.

The words spoken at this time were extremely impolite, directly tearing open the scars of the United States.

Everyone knows that the U.S. economy has been in stagflation for more than a decade, and the economy is not actually good. However, the U.S. GDP has continued to rise, and has grown a lot in the past decade, from 1972 trillion U.S. dollars in 1.28 to the current astonishing 4.34 trillion U.S. dollars.

Who would believe that there is no trick here?
Anyway, the French are not afraid of the Americans. At worst, they can just join the Soviet camp!

Now life in the Soviet Union is better than in the United States.

France, that is the holy land of revolution!
It is impossible to ask France to sacrifice its own interests and let the United States suck its blood!
James Baker glared at them. He was very unhappy with the French. These French people were obviously maids but they had princess syndrome.

This world is no longer the era of Britain and France, but the era of the United States and the Soviet Union!

But the French don't want to be content to be the Americans' younger brother. They always want to be the big brother. Every now and then they make trouble and go against the Americans.

Don’t you think about it? During World War II, the whole of Europe was reduced to ruins. Who provided the economic support to help them stand up from the ruins of war?
Thinking back to the days when French girls were so passionate and romantic, many American soldiers still recall them with gusto. Perhaps a large proportion of French people now have American blood flowing in their veins.

But look at France now. It has withdrawn from NATO and has been constantly promoting European integration. It always wants to integrate Europe. Now France has a very large say in the European Community, and the European Community also excludes the United States.

Now he doesn't even give him any face at all, this is simply bastard!

Outrageous!

"Mr. James, it is indeed not appropriate to have any more fluctuations now. I also believe that the value of the US dollar should be stable for a period of time on the current basis. The US government should no longer force other currencies to appreciate, but should instead use domestic economic policies such as reducing the government budget to save the economy." British Finance Minister Nigel Lawson said leisurely.

After Nigel Lawson finished speaking, he looked at Begber and the two reached some kind of tacit understanding.

Britain and France have loved and hated each other for hundreds of years, and they have already formed an unspeakable tacit understanding.

How did the "Iron Curtain" come into being? Wasn't it the pit dug by British Prime Minister Churchill?

Letting Americans jump into the pit changed the original U.S. strategy, thus giving them opportunities and space for development.

The French also contributed to this.

If we were to say who Britain and France hated the most, it would probably be the United States besides Germany. They might even hate the United States more than the Soviet Union.

There is only fear towards the Soviet Union, but hatred towards the United States!
(End of this chapter)