Chapter 1623 The Square Deal

A stern attitude is certainly warranted towards the US blood packets, and the fact is that Japan, which the US has full control over, has never been a weapon against Britain and France.

This is also the reason that Alan Wilson has been yelling about unfair trade, exchange rate manipulation and the like for who knows how many years, and the US still turns a blind eye.

The United States is the use of countries that can be completely controlled, on the British and French such a previous version of the hegemony of the eye on the drug, this fact whether it is the United Kingdom or France know only too well, and now the United States is going to give the blood packs to bleed the two countries, why should they be against it? It should have been done a long time ago.

Mitterrand of course does not oppose and the United Kingdom embrace, of course, he also loathes the United Kingdom in his heart, that the United Kingdom is a traitor among the European Community, but at this time, of course, the two countries are to be united. The reason for the previous lack of interest was simply to allow the UK to take the initiative to show goodwill to reflect sincerity.

A different Margaret Thatcher would certainly not have let the French have their way, but Alan Wilson has never been shy about making two more trips, and it’s not like he doesn’t have a place to stay in France.

In fact, the U.S. record deficit, mainly or their own problems, the original deficit problem, but far from the past year so outrageous, it is not still the interest rate hike caused, the root cause is because of inflation, due to the war in Vietnam and President Johnson’s “Great Society Program” policy, the United States of America’s debt pressures continue to increase, inflation Inflation was on the rise.

Then Paul Volcker became chairman of the Federal Reserve and raised interest rates in the U.S. At the highest point, U.S. interest rates exceeded 20 percent, making it “the highest interest rate since the birth of Jesus”.

Tight monetary policy soon controlled inflation in the United States, and the dollar also strengthened. At first, the U.S. was happy with this. President Reagan’s favorite slogan was “Strong America, Strong Dollar.” Paul Volcker was labeled the “anti-inflation fighter”.

However, the dollar is too high, so that the United States exports, especially manufacturing exports have been hit hard. And after more than two decades of rapid development of Japan, become the most important source of U.S. trade deficit.

Obviously the United States is through the strong dollar eliminated inflation, but the negative impact is incidentally hit their own exports, and now the United States of America’s thinking is that the elimination of inflation is good, but the deficit problem should also be solved, can not be solved by themselves, then look for a scapegoat to solve.

Basically, Britain and France have reached a consensus on this point, which is fine, waiting for the meeting to be held in favor of the United States of America to punish unfair trade countries that should pay the price.

Family ties are valuable, and even if the movie queens are indeed now out of style, Alan Wilson still likes to stay at Woodpecker Pictures, even if it’s just to sit down and have a chat.

He certainly doesn’t have much say in the marriage of the next generation, he can’t even control his own daughter Pamela, except that Arnold says he has the company of a man of equal status to her husband, and just doesn’t mean to get married for a while.

Ingrid Bergman’s two daughters do not have to worry so much, it is known to have a sweetheart, as if what orthodox faction of the aristocratic offspring, France these aristocratic gold content is quite low, stealing air he will certainly ask around himself to prevent their own daughters to be deceived.

The United States is now responsible for letting Germany and Japan take care of the big picture, is the White House Chief of Staff Baker, Baker, on the other hand, is a lawyer born, there is no gateway to the various schools of economics. He was a pragmatist who was concerned with dealing with problems in the most direct and effective way possible.

After getting the support of Britain and France, and without delay, the White House put out the wind to address the balance of international trade in the meeting of finance ministers of industrialized countries. This meeting was held in Japan, in the process of negotiation, Baker adopted a “divide and conquer” strategy, first and Japan to reach agreement in principle, and then to Europe, tell the European countries, Japan has agreed to us.

When the European countries also agreed, the United States returned to Japan and used the cooperation of Europe to hammer Japan and demanded that Japan accept harsher conditions.

The Chancellor of the Exchequer, Lawson, also received a vague announcement from the U.S., and in discussing it with Margaret Thatcher, said, “It seems that the Americans have convinced Japan as well as Germany.”

“That means the mighty dollar is over. The Americans may play a little word game and instead of saying that the dollar is going to be devalued to promote the balance of imports and exports, they will say that the currencies of other countries are appreciating.”

Alan Wilson walked in and said, “This is just a face saving argument, inflation has come down and the time for interest rate hikes has passed. We have to adjust accordingly, if the dollar depreciates, the corresponding pound will appreciate, and that’s not good for Britain either.”

Margaret Thatcher and Reagan were a set up to absorb inflation with interest rate hikes, and even the UK did it earlier, because Margaret Thatcher came to power earlier, and now that the UK’s inflation problem has been solved, it’s clear that interest rates this high aren’t appropriate anymore.

Lawson traveled to New York in fact just to confirm the signing of the Plaza agreement, the talk has long been talked about, and even the documents have been prepared, just waiting for the finance ministers of the countries concerned to sign. Even the documents of the Plaza Agreement, Allen Wilson has read, by the way, to learn a little wordplay.

For example, the expression of “dollar depreciation”, the whole text does not have this reference, but from the other direction as “non-dollar currency appreciation”. Substantially no difference, so that this is just to give the United States has been shouting “strong dollar” to save face, at least in the literal sense does not make people feel that U.S. monetary policy one hundred and eighty degrees of the big turnaround.

“I heard that the German side is quite critical of Japan, seriously the root cause of this time, is the Japanese too much greed.” Margaret Thatcher was all smiles, seeing the Germans suffer was certainly something to be happy about. The fact that a defeated country had become the leading manufacturing nation in Europe was uncomfortable.

“That’s what happened.” Alan Wilson nodded, “Or maybe it is uncomfortable with Germany and Japan as scapegoats, who still can’t have the right to complain?”

Among the five countries in the Plaza Conference, Germany had originally grumbled about Japan. Because the U.S. named, Germany and Japan are the only two named “trade surplus countries”. To put it bluntly, these two countries are earning the world’s money.

Earn more money naturally in this joint intervention to contribute more money and effort, by the Plaza Agreement will also be more negative impact.

Japan is the top exporter and trade surplus country, the tree is big, nothing to say. Surplus figures much smaller Germany is very reluctant to accompany the tie. In fact, the statement in the Plaza Accord that Japan, and to a lesser extent Germany, had a current balance surplus was written by the U.S. to appease Japan and not make it appear isolated.

Not as much as the Japanese earn, especially did not earn a lot of dollars, but also by the United States to carry out as a typical, the Germans are certainly not happy, the Germans think they are implicated by Japan.

The last round of finance ministers meeting, the German representative had objected to this: “How can small animals and elephants ride in the same boat?” The U.S. representative immediately responded, “Of course small elephants and elephants should ride in the same boat.”

When it comes to the U.S. hunger, is all to bleed, but rely on Mrs. Thatcher’s current and Reagan’s good relations, coupled with the strength of the United Kingdom itself, so naturally the amount of natural bleeding is naturally different, this time the treatment of the currency appreciation belongs to the mark and the yen, and the pound franc has nothing to do with as for the joint intervention in the financial markets to promote the U.S. depreciation, each country also has its own share.

Japan is a country with the United States has the same status, the United States and Japan’s respective share is thirty percent, as for the Axis another unlucky Germany is twenty-five percent, the remaining fifteen percent, France has ten percent, the United Kingdom’s share is five percent.

This was all set in stone, so the task of Lawson, the Chancellor of the Exchequer, was to arrive in New York to sign it. Britain had been pushing for the signing of the Plaza Accord, and was also looking out for the early calming of its own strikes.

Although Alan Wilson had made up his mind that the British strike would not end until the Plaza agreement was signed, wouldn’t it be less costly for Britain to sign earlier?

For international capital to make how to choose? Of course is to sell the dollar to buy the yen, this matter Alan Wilson a civil servant certainly can not directly operate, fortunately, Britain is not a lack of professional financial talents.

Than the original history, the signing of the plaza agreement three months earlier, in June 22, the United States, Britain, Germany, France, Japan, five countries of the minister of finance, in the United States of America, New York Plaza Hotel signed such an agreement, opened the prelude to the appreciation of the yen and the mark.

This also caused the movement of international capital, Pamela Mountbatten of course has long completed the operation of buying and selling, just waiting to see the rising figure, “Maybe there can be a fifteen percent gain, which has been very exciting.”

“According to public information, this is indeed the original intention of the United States, but the dream can be a little bigger.” Alan Wilson had the look of a regular male possessed, at first the United States did think that a fifteen percent devaluation of the yen would solve the problem.

But it must be said that Japan’s industry in this era is quite powerful, the result is that although the yen has appreciated by fifteen percent, the result is that U.S. product exports still can’t beat Japan.

The first year of the deficit not only did not narrow, but also led to the appreciation of the yen so that Japan seems to be getting better and better, so the cycle began, the United States continued to add strength to the yen continued to appreciate, only to have the yen appreciated one hundred percent of the results.

Plaza agreement just started, Japan looks not only unaffected, but more and more dragons and tigers, only to let the United States to see clearly, Japan is really being raised by their own, should be hit hard.

Pamela Mountbatten of course happy, only after a day, he gained five percent, which is five billion pounds scale of five percent, and the time is only after just one day, just a beginning to have such a heartwarming harvest, even the richest woman can not help but move.