Chapter 1689 Parliamentary system is the future

Well, the answer is still satisfactory, before this technical adjustment, the two foundations in the United Kingdom have raised barrels to run away, and did not receive losses in this round of the stock market crash, this is no problem, the United Kingdom should earn has earned enough, if the other international capital suffered a loss, this is certainly not related to the United Kingdom.

Now it depends on the Japanese stock market crash can not rebound, or the general trend downward, concerned about purely to see the fun, their own money saved, the supreme authority is justified.

Just do not know Japan’s housing market, will not be affected by the stock market, after the Plaza Accord, Japan’s housing market is also very fierce, a Tokyo can buy down the United States of America’s remarks is this period, the grand narrative may not be able to summarize the Japanese housing market fire, so to speak, Japan has appeared in the currency of a major country, three million a square meter of the property.

A certain big country seems to be no such property, even if there is a batch of such as what quadrangle kind of with some monuments, it should not have this kind of price.

“It’s been too good for Japan these past few years, let’s see what happens next.” Alan Wilson remembered as if the stock market crash had come a year earlier, but it didn’t matter, it was in the range of being much worse.

To put it in perspective, Japan has had a great couple of years from top to bottom, with a dramatic expansion of investment in Japanese companies. Along with high stock prices, the rapid appreciation of new stock offerings made stock offerings an important source of corporate financing when banks were looking for funds to invest in real estate.

In turn, companies used their real estate holdings for indirect stock market speculation, creating a dual real estate and stock market bubble – a sustained surge in real estate prices and a sustained surge in the Nikkei stock price index.

Once the stock market tumbles, Japan’s housing market can not be alone, it is only the difference between six months or a year, held a Treasury meeting, Alan Wilson took Japan as an example, said that the United Kingdom’s economic development is still to consolidate the foundation, can not feel that the United Kingdom’s financial system is strong, so there is nothing to worry about.

He but also remembered that the Soviet Union just did not, Margaret Thatcher advocated the special relationship, hoofed over to snip the pound, he did not believe that the Soviet Union is still there, the United States will be so treated Britain.

“But let’s look at the German side, it seems to be a lot more robust, the Plaza agreement Germany is also a signatory country, seems to be affected by the impact is not big.” Terry Pence spoke up, “Is it safe to say that this is still Japan’s own problem and not universal.”

“Germany is still important, if it were me, I wouldn’t dare to harvest Germany.” Allen Wilson said with a twist of words, “And it’s not like Germany doesn’t have any problems at all. Germany before the Plaza Accord was seven hundred billion dollars of economic output, and now it is one point four trillion dollars, four years of expansion doubled. And look at the exchange rate of the mark, who doesn’t know that it’s blown up too, just not as dramatically as in Japan.”

This round of economic output explosion, isn’t that a blown up bubble? It was used to scare the Soviets, the UK had its own problems, and the US was in a similar situation, after all, Reagan and Margaret Thatcher didn’t play around with financial magic, except that Japan could only do so within its own borders, and the UK had a place to let the pressure out.

Germany’s policies were much more robust compared to Japan’s, which Allen Wilson of course recognized, but it was also true that Germany didn’t look like Japan was under tremendous pressure from the US.

Alan Wilson also played a small role in this, after the Toshiba incident, took the opportunity to unite France to drive away a lot of Japanese companies in the European market, there is no Japanese robbing food, the European side of the pressure on a lot of small, in fact, this kind of thing is very simple reason, Japan died first, the United Kingdom and the European side of the opportunity to have a respite.

Of course this financial conference is also effective, the conclusion of the discussion is that Japan’s problem is his own problem, not the problem of the free world. The Free World is still in a position where the advantage is mine.

After the conference, the British Embassy in Budapest sent the results of this congress of the Unified Socialist Party of Hungary, which was extraordinarily remarkable under the economic pressures, and Hungary, unlike the other Eastern European countries, had already accumulated a number of economic reforms during the Kadar period.

Hungary’s situation and the surrounding countries compared to, in fact, is quite good, and now the map head themselves are in the reform, but also want to raise their arms to call the Eastern European countries are hurrying to follow, this time the Unified Socialist Party Congress, not only Moscow in the attention of the free world this side is also concerned.

At the moment this time, Japan’s bubble began to blow up, Alan Wilson had to also advocate the Anglo-American special relationship with the old Bush, can not let the situation in Japan affect the wave of reform in Eastern Europe.

Britain and the United States must join hands to tell the world that Japan’s problem lies in its own greed and has nothing to do with the general environment of the free world, and that all other countries are doing well, so that the countries of Eastern Europe do not hesitate to move forward because of Japan’s situation hesitant.

The American side quickly responded, and in such a big matter, the old Bush is not a lake, because the situation in Poland led to the United States had to give up Solidarity, but if Hungary can come with good news, which is also a great victory, it may be even better.

After all, in the face of Poland, which has a foreign debt of more than 30 billion dollars, the United States will have to set a positive example, and may have to invest quite a bit more, Hungary’s situation is much better.

“We also agree that Hungary’s economic situation is somewhat better than other Eastern European countries, and especially better than Poland’s.” Alan Wilson agreed stating that he was on the American side and agreed with his close ally, putting the phone down was not so much the case. That’s true on this side of Eastern Europe; it may not be true around the world.

There are two main reasons why the current Eastern European countries, including the Soviet Union, are facing difficulties, the first trick is the Great Law of Heavenly Devil’s Disintegration, where Reagan caused the U.S. debt to skyrocket.

But this trick is actually not very useful, if the blockade is tight enough, the people of the Eastern European countries will not actually know, and the aftermath is also quite large.

So Alan Wilson looked at Margaret Thatcher and Reagan, both in their own countries can be tossed, the heart is also a figure of fun, and do not think that this trick has any use. Japan didn’t just blow up.

But the other trick is very deadly, the transfer of low-end industries to the third world, if you take out the world’s many hungry countries, just the United States and the Soviet Union, Western and Eastern Europe so competitive. The USSR and Eastern Europe are not exactly at a disadvantage.

Eastern European countries can cope with such competition through internal adjustments, take Hungary as an example, Kádár has reformed, changing the previous state-owned planned economy, the management of state-owned enterprises decentralized to the workers of enterprises, the government in the business affairs of as little intervention, basically realized the workers’ autonomy.

At the same time, the government also reduces its intervention and management in the market. It can be said that Kádár’s reforms have transformed Hungary from a state-owned economy with a predominantly planned economy into a collective economy and a market mechanism.

Hungary is no longer a planned economy, in other words, capitalism has long been restored, and Kádár was warmly praised by a big country during his trip to the East.

At the beginning of the success of the reform and later failed, but only because Eastern Europe in the position of not up and down, no matter from any aspect, Eastern European countries and Western Europe can not be compared to the gap between Eastern Europe and Western Europe, than the United States and the Soviet Union, the gap is also much more disparate.

Europe and the United States side of the manufacturing cost is too high, while the Eastern European countries have a certain degree of scientific and technological strength, the cost is also much lower than Europe and the United States.

Europe and the United States side of a month to open a thousand or two thousand wages, the same make their own hard, because the wages in Eastern Europe is only about half of the free world, and sometimes even lower. The competitiveness of the products manufactured is still good, which leads to the United States and the Soviet Union, Western Europe and Eastern Europe, so the confrontation continues, the free world itself is also difficult, but also can not find the opportunity to squeeze Eastern Europe.

After the implementation of neoliberal reform in Europe and the United States, most manufacturing and heavy industry enterprises no longer employ local labor, but industrial relocation to Asia, Africa and Latin America to find a cheaper labor force, such as going to Bangladesh to invest in the construction of factories employing Bangladeshi workers when the monthly salary of Bangladeshi workers twenty, Europe and the United States a month of a thousand or two thousand a month, by the East European countries of the three and a half thousand wages squeezed enough.

But once transferred to a lower labor cost countries, itself in all aspects are high out of a level of Europe and the United States is temporarily safe, but the location of the lower Eastern European countries will be the first to be hit.

So in Europe and the United States before the implementation of neo-liberal reforms, relative to Europe and the United States local enterprises, Hungarian enterprises of industrial products in the international market has a cost advantage, so the Hungarian enterprise’s products can earn more money, naturally, the export of prosperity to stimulate economic growth. On the other hand, the products of European and American enterprises had no cost advantage, so exports were weak and affected the economy.

In Europe and the United States after the implementation of neo-liberal reforms, European and American companies no longer employ local workers but to Asia, Africa and Latin America to hire cheaper labor costs of laborers, the production of industrial products naturally compared to the Hungarian companies have a labor cost advantage and technological advantage.

As a result, Hungary’s economy became worse, and Yugoslavia is now experiencing economic difficulties for the same reason.

Eastern European countries can only feel their own economic difficulties, and do not know what the reason is, the Soviet Union control of the population was less than Europe and the United States, Europe and the United States also preempted the transfer of low-end industries, other countries to pull in to make their own plate is bigger, Eastern Europe naturally can not stand up.

On the surface of the talk and laughter, secretly observing the Hungarian Congress, and not only Alan Wilson, the purpose is of course all the same, looking forward to something wonderful.

Sure enough, two days later, the news came from Budapest that the reform of political pluralism could be implemented on the basis of the parliamentary system, and that Hungary, instead of Poland, had become the first Warsaw Pact country in this world to have to change its system.

The news was certainly a cause for joy, but it was still up to the Soviet Union to react, after all, everyone knew who really owned the Eastern European countries, and then everyone breathed a sigh of relief, the map head said that this was a triumphant assembly, and the Soviet Union congratulated Hungary on taking the crucial step of not interfering.