Chapter 527: Bad Start
But as soon as the G5 finance ministers meeting started, James Baker frowned because it was not a good start.
"I'm afraid this won't work, Mr. Baker. The continuous depreciation of the US dollar over the years has had a very bad impact on the international economic environment. Now the world is on the brink of economic crisis. Especially in our island country, the Japanese yen exchange rate has appreciated by 33% in one year. The sharp appreciation of the yen has put our island nation's economy at great risk. If this continues, it may lead to abnormal economic development, and we will no longer have the ability to appreciate again!" Japan's Finance Minister Noboru Takeshita is very determined.
The 'Plaza Accord' had just been signed, and the yen appreciated crazily. The magnitude of the appreciation frightened the whole of Japan. As the finance minister who signed the 'Plaza Accord', Noboru Takeshita was the target of a lot of criticism.
Takeshita Noboru had to either have his own caesarean section in a dignified manner, or have others help him to have his caesarean section done.
The strong desire to survive gave Noboru Takeshita an idea, which was to relax economic policies and let the stock and property markets become reservoirs.
As a result, Japan's stock market and real estate market have surged, and the appreciation of the yen has made it cheaper to purchase oil, making Japanese industrial products still competitive. Nobu Takeshita has been able to survive until now.
However, almost all economists know that there is already a huge bubble in the Japanese economy. Once a problem occurs at a certain 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 been increasing foreign investment, investing in high-quality assets and acquiring land in the United States. Then invest and build factories in China to reduce production costs and ensure the competitiveness of Japanese industrial products.
As Japan's Finance Minister, Noboru Takeshita is very clear that Japan's economy already has great hidden dangers. What Japan has to do is to delay the bursting of the bubble as much as possible, so that Japan can find opportunities to resolve the bubble in the economy.
Faced with James Baker's proposals and demands, Noboru Takeshita's attitude was very firm this time. He refused to make any more concessions and would no longer make any sacrifices for the United States. Japan wanted to stay out of the matter.
If the United States continues to suck blood, it is unclear whether the United States is good or not, and the Japanese economy may die.
"The development of the U.S. economy is related to the economic situation of the entire world. If there is a big problem in our economy, the world will fall into recession. If we cannot cooperate to face this crisis, we will adopt severe economic and financial policies alone, which is bad for you. Very disadvantageous!" James Baker's persuasion was ineffective, so he had to take up the threat and said to the finance ministers of several countries.
The United States has always acted with a carrot in one hand and a stick in the other.
Each of these four countries, except France, has American troops stationed there.
I really thought that they could take charge of the matter.
Noboru Takeshita and West German Finance Minister Stoltenberg 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 Japanese yen and the West 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 were no bubbles in their economies.
Not counting 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, because of the economic development of the United States, Japan and West Germany have made sacrifices, which has caused both countries to face more or less economic problems in the past year.
Moreover, they believe that the crux of the U.S. economic problems lies in the huge domestic fiscal deficit, not the issue of the dollar value being too high or too low.
At that time, the US dollar was pegged to gold, with 1 ounce of gold = US$35.
But look now, the international price of 1 ounce of gold has reached US$500.
This means that the US dollar has depreciated 14.3 times!
The more dollars are printed, the more the U.S. is printed, but the world pays for the United States.
The current attitude of the United States is clearly to pass its own economic crisis onto them. How is this possible?
Now James Baker's words are even more threatening. He is wielding a threatening stick.
Stodenberg frowned and said: "James, the value of the German mark against the U.S. dollar has risen. It can be said that we have faithfully implemented the Plaza Agreement. But for this agreement, the German economy, especially the export industry, has also paid a huge amount. "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 shock, which will be very detrimental to us."
"We in West Germany are on the front line facing the Soviet camp. If our economic turmoil is too severe, there is no need to talk about it. Our people will demand to merge with the GDR and change the color!" At this time, Stoden Bo Ye was a bit broken, and his words were already threatening.
James Baker's eyelids twitched.
If West Germany fell into the arms of East Germany, the situation would be dangerous.
The chain reaction caused will be extremely terrifying.
Over the past year or so, the West German mark has not appreciated as much as the Japanese yen, but the United States has not forced it too much because West Germany is very important. It is the front 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. Last year, your GDP was 4.34 trillion US dollars. Is it because your economy is developing well?" French Finance Minister Begber said unceremoniously: "But look at your national debt. In 1973, your national debt was 458 billion. It has only been more than ten years, and your national debt has reached 3.4 trillion US dollars."
"It has increased by nearly 3 trillion US dollars!"
Britain, Japan, and West Germany will still be wary of the United States, but France will not.
Although France performed poorly during World War II and was despised by the whole world, even today, there are people who will occasionally criticize France!
But when Charles de Gaulle was elected as the President of the Fifth Republic, he led France to fight for national independence and freedom during his eleven-year rule in France. He actively promoted de Gaulleism 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 guarding against the Soviet Union, in order to gain reaction time, a large number of military bases were set up in France, including NATO's general headquarters.
However, the two countries soon had conflicts. When France was engaged in 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.
And this was just the beginning of the conflict between the two countries, and the intensification of the conflict was in Egypt's Suez Canal. Everyone in the world knows that the Suez Canal was actually opened by Britain and France, so the main shares are in the hands of Britain and France. But under the control 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 confront the United States. After the first mushroom bomb exploded successfully in France, France began to withdraw from NATO. It was also at that time that France asked all foreign troops to withdraw from France, so that the United States no longer had military bases in France.
Moreover, France has an independent national defense system, an army with its own 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 for decades.
At this time, it was very impolite to speak, directly tearing open the scars of the United States.
Everyone knows that the US economy has been in stagflation for more than ten years, and the economy is not good, but the US GDP has been rising, and it has grown a lot in more than ten years, from 1.28 trillion US dollars in 1972 to the current astonishing 4.34 trillion US dollars.
There is no trick in this, who believes it! ?
Anyway, the French are not afraid of the Americans. At worst, they will join the Soviet camp!
Now the Soviet Union is living better than the United States.
France, that is the holy land of revolution!
It is impossible to let France sacrifice its own interests and let the United States suck blood!
James Baker glared at the French. He was very upset with them. These French were obviously maids but they had princess syndrome.
This world is no longer the British and French era, but the American and Soviet era!
But the French just don't want to be the younger brother of the Americans. They always want to be the big brother. They make trouble every now and then and go against the Americans.
Don't think about it. During the Second World War, the whole of Europe was in ruins. Who provided economic support to help them stand up from the ruins of the war?
Back then, the French girls were so passionate and romantic. How many American soldiers still relished it when they recalled it now. Maybe a large proportion of French people now have American blood flowing in their bodies.
But look at France now. It has withdrawn from NATO and has been promoting European integration. It always wants European integration. Now France has a very large voice in the European Community, and the European Community also excludes the United States.
Now they don't give him any face at all. This is simply a bastard!
It's unreasonable!
"Mr. James, it is indeed not appropriate to have more fluctuations now. I also think 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 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 a tacit understanding.
Britain and France have been in love and hatred for hundreds of years, and they have long had an unspeakable tacit understanding.
How did the "Iron Curtain" come about? Wasn't it the pit dug by British Prime Minister Churchill?
Let the Americans jump into the pit, changing the original strategy of the United States, so that they can get opportunities and space for development.
And the French also contributed to this.
If you want to say who Britain and France hate, I am afraid that in addition to Germany, there is also the United States, and they may even hate the United States more than the Soviet Union.
There is only fear of the Soviet Union, but hatred for the United States!