Rebirth of Hong Kong 1981

  Chapter 937 Knock down the pride of the British

   The strength of the island country consortium should not be underestimated. It is difficult for him to resist the siege of a powerful consortium like Sumitomo. Now he can only use foreign aid to introduce European and American capital into the island country market as soon as possible.

  Only in this way can those people be thrown into the trap.

  Although European and American capital is just around the corner, it is still some time before the real large-scale entry into the island country market, so much international capital inflow can not be completed in a short time.

   The highest level of yen appreciation in later generations was in 1987. The financial crisis prompted a large influx of international capital into the island market to avoid safety.

   There is still more than a year before Black Monday. Without the impetus of the financial crisis, it would be difficult for the island country market to gather so much international capital. The appreciation of the yen is a key part of the influx of international capital into the island country market.

   Now that the island nation consortium has taken action, a year is too long, he can't wait that long, and he himself is not a person who can only be passively beaten.

   Taking advantage of this plan to build a high-tech industry chain in Hong Kong, Yang Chen is going to pull Wall Street capital into the game ahead of schedule, and he does not believe that American capital will not be tempted.

   As for the European consortium, for now, most European banks have not yet recovered from the Latin American debt crisis.

  The oil crisis has greatly affected the European economy, and the most terrible thing is that they have to face a global financial crisis a year later.

   A big shuffle is inevitable.

  In the future, after the end of the Cold War, American hegemonism will flood the world. At that time, it will be an era of unscrupulous and unscrupulous Wall Street capital.

   In order to prevent the European capital from being too weak and unable to resist the suppression of American capital, Yang Chen felt that it would be better to let them recover a little in the island country market.

  Especially the British capital, before the rise of the inland, he needs to continue to rely on the power of the British. Before that, only the stronger the British power, the safer he will be.

   The so-called 'back against a big tree to enjoy the shade' is this truth.

   Although the privatization reform in the UK has been successful, the results are not very satisfactory. Looking at the privatization reform in the UK, the timing of the privatization reform is very bad, and it can even be described as bad luck.

  In the 1980s, European banks experienced the oil crisis, the Latin American debt crisis, the global financial crisis, and three major disasters. It can be said that since the end of World War II, European economic development has been affected by none of the main factors.

The privatization reform in the United Kingdom has enabled the British government to successfully get rid of the big burden of state-owned enterprises, but the British capital who took over the state-owned enterprises did not have a good economic environment, so the burden originally belonged to the government was all on them. .

  British capital was strong in the outside world, but in the middle, it was torn to shreds by the Americans in the sterling blocking war in the 1990s.

   In the 1990s, the Cold War ended.

  European countries want to break away from the control of the United States. In order to give Europe a profound warning, the Americans staged a play of killing chickens and warning monkeys for European countries.

  Unfortunately, the empire on which the sun never sets has become the chicken used by the Americans to kill the chickens and warn the monkeys.

  30 years Hedong, 30 years Hexi.

  I am afraid that the British did not think that they would be defeated by an American one day. The Americans only sent one Soros, and the pride of the British for hundreds of years was shattered to pieces.

  Compared to the Falklands War, the event that really made all countries in the world clearly realize that the decline of the British has become a fact was the thrilling sterling blocking war in the early 1990s.

  A financial speculator who defeated the once mighty empire on which the sun never sets, is there anything more surprising than this?

  Many people in later generations wondered why the British, as a European country and also the suzerain of the United States, turned their heads and hugged the American thighs after being taught by the Americans, and were at a distance from European countries.

   Are you really afraid of being beaten?

maybe

   But the most important point is the reason why the Germans stood by when Soros blocked the pound.

   In 1990, the United Kingdom joined the new currency system "European Exchange Rate System" created by Western European countries. This decision made a big loophole in the British currency.

   If the UK hadn't joined the European exchange rate system at that time, speculators like Soros would not have had the chance to attack the pound at all.

  The European exchange rate system is mainly based on the German mark as the core system. Since the end of World War II, the economies of European countries have been inclined to the financial services industry, while Germany, as always, takes industrial manufacturing as the core and vigorously develops its domestic manufacturing industry.

In the European exchange rate system, each currency is only allowed to float within a certain range of exchange rates. Once it exceeds the specified range of exchange rate fluctuations, the central bank of each member country needs to intervene in the market by buying and selling its own currency to make the currency of that country. The exchange rate is stabilized within the specified range.

  If the economic development of various countries is stable and the European exchange rate system with the mark as the core is adopted, there will naturally be no problem.

   But as we all know, the British economy has not been able to recover since the end of World War II, and even after the global financial crisis in 1987, there has been a trend of substantial decline.

  Because of the restrictions of the European exchange rate system, the United Kingdom needs to maintain a very high exchange rate as a condition. At the same time, the exchange rate is restricted by the Deutsche mark, and it dare not act boldly in solving its own economic problems.

   For example, when to raise or lower interest rates, to depreciate the national currency in order to protect the national economic interests.

   The British currency is seriously overvalued, which is not a big problem for professional economists.

   Whether the Central Bank of England is capable enough to maintain its high exchange rate is a very questionable matter in the eyes of many people.

  Maybe it was a habit of loners, the British did not seem to be able to deal with people as equals. In 1992, the United Kingdom signed the Maastricht Treaty with the eleven member states of the European Union.

The    treaty further overvalued the pound.

  The currency is overvalued. Once the economic market is turbulent and invaded by foreign capital, it is easy to be attacked.

  The European exchange rate system is centered on the Deutsche mark. If something happens to other countries, Germany, the core country, needs to sacrifice its own national interests to help those countries.

   Obviously, in the battle between the British government and Soros in the future, the Germans did not sacrifice themselves to help the UK tide over the difficulties.

   If it’s just like this, it’s fine. If you don’t help, you can’t help. After all, this kind of sacrifice of oneself and helping other countries, everyone is not a saint, it is understandable.

   But what makes people speechless, Germany rejected the British in front, but turned to help the French defend the franc.

What does    mean?

   The British couldn't understand it at the time.

  —

   (end of this chapter)