Author: quiet thoughts

As early as a year before the Plaza Accord was signed, Neon gradually realized financial liberalization with the promotion of the United States and local conglomerates.

The stock market, banking, securities, foreign exchange and other fields have basically achieved full integration with international standards.

Shirakawa Kaede also took advantage of this when making quick money through the Plaza Agreement to disperse and transfer huge amounts of funds to foreign accounts.

Now, although the Neon government has bought U.S. dollars and sold Japanese yen, the Japanese yen it sold has returned to Neon's homeland after circulating around Wall Street.

Because of the complete liberalization of finance, overseas investors digested the Japanese yen and invested it in the neon stock market.

As we all know, Neon's bull market has lasted for nearly two years. The first investment target for overseas capital in Neon is the stock market.

So the neon government tried its best and spent nearly 2 trillion yen to cool down the yen.

As a result, not only the U.S. dollars that the money was exchanged for continued to depreciate, but the Japanese yen that went out came back again.

Moreover, the money returned was not invested in the real industry, but instead further pushed Neon's stock market to a higher peak.

The bull market is like a guiding light, attracting people with big wallets to speculate in stocks and foreign exchange.

As a loser, Neon is much more obedient than Germany. It cut interest rates twice in a row in just six months, by a full 100 basis points.

"Because of the process issues involved, we built the factory building of Shirakawa Electric ourselves.

The United States requires the other four countries to cut taxes and interest rates to expand domestic demand.

No, this can't be called an industrial park yet. It would be more appropriate to call it a construction site.

As long as Neon's domestic market is strong, it may not be able to fill the gap in previous export trade.

After all, although the export share has been maintained, profits have fallen.

In fact, the original purpose of the Neon government in doing this was to expand domestic demand, which was also part of the agreement in the Plaza Accord.

For this reason, the Ministry of Finance, Labor and Employment has also issued relevant orders to domestic companies, requiring a planned increase in employee benefits in the next year.

If you keep it in your hands, it will continue to depreciate, so investing abroad is the best way.

Not to mention that it can increase the attractiveness of subsequent investment promotion, but it itself is of great symbolic significance.

This is to exchange for the market by compressing one's own profit margins. In the worst case, it will be small profits but quick turnover, but the market must not lose anything.

But an industrial park here in Pengcheng has already been in full swing.

However, due to interest rate issues, there is no interest for money deposited in the bank, so just invest in the stock market.

How to make up for it? Stimulate domestic demand.

As mentioned before, the reason why neon and European products are so popular in the United States is that in addition to being cheap, quality is also one of the hard conditions.

But instead of narrowing, the U.S. trade deficit has further expanded.

First, the Ministry of Finance, Labor and Welfare announced the launch of the "National Income Doubling Plan" in 1986, aiming to significantly increase the income level of the working population.

Looking further ahead, most of the surrounding buildings are relatively old. Even the buildings are only three or four floors, and there are basically no landmark high-rise buildings.

The current exchange rate of the Japanese yen is still around 1:190, and there is still some room for price reduction, so Neon Enterprises is still persisting.

But too much yen will cause inflation. People are not stupid either. Since the money will become worthless, spend it quickly.

But it backfired. Only a small part of the money released by banks was used for consumption, and most of the rest flowed into the stock market.

But the effect is as mentioned before, not much domestic demand was boosted, and most of it went into the stock market.

It's just that the Ministry of Labor and Social Security has made relatively big steps, and welfare benefits have been significantly improved.

Why expand domestic demand? Of course, it is to buy more American products.

It is impossible to increase profits by raising prices, so we can only think of ways from the cost perspective.

Especially in April, the Bank of Japan lowered interest rates again. After lowering the interest rate from 4.5% to 4%, the number of companies and individuals willing to lend money increased significantly.

So the Neon government began to take a two-pronged approach and tried every means to get people to spend more.

The Ministry of International Trade and Industry once again surveyed industry and commerce across the country and found that the temporarily affected export trade volume is still controllable, and the gap is not very big compared with before.

The famous Nanshan Science and Technology Industrial Park in later generations, known as China's Silicon Valley, is still a construction site waiting to be reclaimed.

However, before he could ask the question, Bai Chuanfeng had already expressed his opinion first.

But Xiang Liang is not discouraged. Look at this lively scene. Pengcheng will definitely shine in the future?

After hearing Liang Xiang's promise, Bai Chuanfeng smiled and nodded.

If an internationally renowned brand like Shirakawa Electric can settle there, it will greatly increase the popularity of the industrial park.

The scene in Pengcheng at this time gave Baichuan Feng a great shock, but he was also deeply impressed by the unique spirit of people in this era.

Because we purchased too many U.S. dollars before, we had too many foreign exchange reserves.

If he hadn't been given the job of being in charge of the industrial park, he probably wouldn't even have the chance to speak.

Before you, business leaders from Lijiapo, the United States, Australia, and, yes, your hometown, Neon, have inspected here."

Whether it is transportation or labor, we can provide related supporting services."

However, compared with the old ones, there are also many new buildings rising from the ground, such as the land under my feet.

"Mr. Liang, although this place is not developed, the people here are very energetic."

In the construction site surrounded by the sound of ping-ping-pong banging, the leader of the industrial park in Pengcheng, Liang Xiangzheng, led a group of special visitors to inspect the construction overview here.

However, the manufacturing industry, which was the first to feel the coolness, is already making other plans.

Since the method of buying U.S. dollars and selling Japanese yen does not work, the Neon government can only think of other methods.

A young man wearing a safety helmet, surrounded by everyone, was looking at the dusty construction site with an emotional expression.

It's early spring in April, although the weather is still slightly cool.

In addition, according to the original survey conducted by the Ministry of International Trade and Industry, as long as the yen did not fall to 1:180, 1:170.

Because of this series of stimulus policies, people have indeed had more money in their hands.

In addition, government agencies have also purchased large amounts of various bonds on the market in an effort to spend the money they have.

At the same time, Liang Xiang secretly sighed in his heart, Pengcheng is already one of the most developed areas in the country.

After hearing Bai Chuanfeng's praise, Liang Xiang immediately patted his chest.

The land is bare, overgrown with weeds, and there are puddles of various sizes on the uneven ground.

The design drawings and construction requirements will all be in accordance with our standards, but the workers and materials will need your assistance.

But in the eyes of the other party, it actually falls into the category of "not very developed".

This is related to the previous reputation of their respective products, and also related to the original investigation conducted by the Ministry of Industry, Trade and Industry of Neon.

Then more and more people are blindly speculating in stocks, and more and more people are joining the financial industry.

At this time, most people's consumption outlook is still relatively conservative. If you have money in hand, you can spend a little, but you will not overdraw your money.

Everyone’s salary has doubled and they have money, so naturally they are willing to spend.

Since the lost export transactions are limited, we must find ways to make up for this loss domestically.

Since the Plaza Accord, the Japanese yen and the currencies of the other four countries have appreciated significantly, while the US dollar has also depreciated.

In addition, the government will also provide various subsidies to the people to invisiblely increase everyone's income.

Although construction is already underway in many areas at this time, most areas are still a wilderness.

Everything is a start-up. As for the existing enterprises, except for a materials company and a computer floppy drive R&D company, there is nothing else.

And because the stock market and foreign exchange market were all rising all the way, people who invested money found that they actually made money.

Therefore, in order to retain the market, neon companies invariably cut prices.

As loan interest rates decrease, more people are willing to borrow money from banks.

Therefore, although the price has increased a bit, there are still many people willing to buy.

"Mr. Shirakawa, please rest assured that as long as Shirakawa Electric needs it. When the first workshop here is completed, it will be used by Shirakawa Electric."

Regarding this neon visitor whose Mandarin was better than his own, Liang Xiang was curious but extremely cautious.

"Mr. Shirakawa, please see that a total of 3.32 square kilometers from this area to the north is planned to be Nanshan Science and Technology Park.

This way of making quick money greatly stimulates them. It is much easier than making money at work.

So they, having tasted the sweetness, continued to invest the money they earned in the stock market, and used the remaining part for consumption.

There are different ways to spend money. Consumption is only a choice of some people, while more people invest their money in the stock market.

The purpose of lowering interest rates is to stimulate domestic demand.

There is a way to do this. Will the industrial park welcome the first foreign-funded enterprise to settle in it?

You must know that the industrial park was just planned and established last year. At this moment, let alone construction, there is not even a decent infrastructure.

And those who had no money also began to borrow money from banks to speculate in stocks and foreign exchange.

Hearing this, not only Prime Minister Liang, but also the leaders from the provincial and higher levels around Bai Chuanfeng all looked happy.
To be continued...