Chapter 464: The Myth Disappears

September 1985, 9, Plaza Hotel, New York, USA.

The finance ministers of five countries, including the United States, Japan, Federal Germany, France, and the United Kingdom, jointly intervened in the foreign exchange market and signed the Plaza Accord.

The agreement stipulated that the yen and mark should appreciate significantly to restore the overvalued dollar.

After the agreement was signed, the five countries took the lead in selling a large amount of US dollars in the foreign exchange market, which then led to market investors following suit and selling, causing the US dollar to depreciate.

Within three months, by the end of 85, the US dollar had rapidly fallen to 1 US dollar to 200 Japanese yen, a drop of 20%.

This was just the beginning. By 89, the yen was worth as much as 1 dollars to the dollar, and the yen appreciated by twice against the dollar!
Since 85, Japan has been the largest debtor of the United States.

Japan's products in various fields such as home appliances, automobiles, textiles and clothing, and electronics industries are frantically occupying the American market.

Especially in the automotive and electronics industries, the three major auto giants in Detroit, USA have been losing money for several years and can no longer sustain themselves.

Japanese cars are fuel-efficient and cheap, and are even popular in the used car market.

What about American cars? They are big, black, and fuel-consuming.
Many people think that oil prices in the United States are cheap, but there are also many taxes. For an ordinary American family, housing expenses and car expenses are major expenses and must be carefully calculated.

For the sake of its own economy, the United States wooed France, Germany and the United Kingdom in Europe to put pressure on Japan. Although the German mark was also mentioned, the actual goal was to force the yen to appreciate.

On the one hand, it is to ease the domestic economy of the United States, and on the other hand, it is to take advantage of the appreciation of the yen to reap Japan's economic wealth and replace the US Treasury bonds.

Obviously, the United States achieved its goal. The dollar was printed crazily, the dollar depreciated crazily, and the yen appreciated. By 89, the U.S. national debt was not much left.

而这几年下来日本的股市已经从85年的1万点不到，升到了3万多点，房地产价格也比85年升职了超过10倍不止。

The Japanese Finance Minister's policies have always been loose and have fueled the trend. No matter how high housing prices and stock prices are, he has only introduced some ineffective policies.

People keep saying that they need to keep an eye on bubbles and cool down the real estate market, but it's of no use.

It can be seen from the policies of major Japanese banks towards real estate that the loan conditions for private home purchases are extremely relaxed.

It is said that the real estate prices in one city in Tokyo exceed those in the United States.

You should know that the land area of ​​the United States is second only to China at 960 million square kilometers, and how big is Tokyo? Only square kilometers.

Anyway, after the yen began to appreciate in 85, the Japanese had a collective orgasm, going crazy shopping in the United States and Europe. What luxury goods? Buy!

What Rockefeller Building? Buy it!
Wang Deming also took this opportunity to bring his children to Japan.

Standing on the top floor of a building he bought in Ginza, Wang Deming pointed at the buildings around Ginza with a smile, "Do you know why I specifically called you all from all over the world to come to Japan?"

Many children answered: "It depends on the development of the Japanese economy?"

"That's too general. I think we should look at the real estate industry in Japan. Several companies in my family are involved in real estate."

"I don't think so. I want to study Japanese stocks. I remember my family also bought a lot of Japanese stocks."

“It’s foreign exchange!”

“It’s futures!”

In short, the children all had different things to say. Of course, Wang Deming was not testing his children when he chatted with them. What made Wang Deming very proud was that none of his children were spoiled brats. They were either engaged in academics or industries. The 1000 million US dollars he gave them before was not spent on their own enjoyment.

Moreover, whether engaged in academics or entrepreneurship, some achievements have been made.

This time I came to Japan to show them that things in the world are unpredictable.

Wang Deming shook his head and pointed to the building under his feet. "I have arranged for all of my companies to gradually sell off all of their real estate in Japan starting this year."

"We only keep one for our own use when we visit Japan."

"Japanese stocks have also begun to withdraw from the securities market."

“As for the foreign exchange market.”

Wang Deming did not finish his words, but his children understood what he said. They must have sold all their bullish options on Japan long ago.

Although Wang Deming gradually sold off his shares in the Japanese stock market, by 90, the Japanese stock market still reached its highest point of more than 3 points.

Many Japanese financial experts are still shouting at the top of their lungs on TV programs that Japan's economy is number one in the world and that Japan's stock market will soon break through 4 points.

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However, Japan's stock market has become a tree without roots and water without a source. Ordinary Japanese people have long invested all their savings in it, while the real Japanese high-ranking officials have long secretly sold their stocks and exchanged them for money.

The same goes for real estate. Except for a few properties kept for personal use, all the others were sold.

Wang Deming likes a passage from Dangnian Mingyue very much: There are no waves that rise forever.

By October 90, Japanese stocks fell sharply, directly falling to 10 points on the Nikkei, almost halving.

After Wang Deming switched to short selling, he made another huge profit.

Although the Japanese stock market rebounded slightly in 91, it soon fell further due to large short orders like Wang Deming's, and the Nikkei index reached its historical lowest point of 14400.

The entire Japanese market was filled with grief. Every day, people did free-fall exercises on high-rise buildings in Japan and were smashed into pieces.

The real estate market in Japan is even more terrifying. Prices have fallen to one-third of the original price and are still falling. A large number of Japanese have begun to default on their mortgages. The houses that they bought with a lifetime of hard work and six pockets of money in their family have shrunk in price by more than half in the blink of an eye.

It’s okay for those who only buy one house, but Japan’s real estate speculators, who own multiple properties and want to use rental income to subsidize house prices, have all turned their properties into negative assets.

He was forced to pay back the money by the bank and the Japanese underworld.

These people also began to free fall from the rooftops in Japan along with the financial practitioners.

The Japanese economy subsequently fell into a state of stagnation, which directly led to the subsequent generation of Japanese people not working, not getting married, and not having children.
Until Wang Deming was reborn, Japan's economy was still lukewarm. Although there were many large companies to support it, it no longer had the spirit of mass innovation and entrepreneurship it once had.

No, there is another industry in Japan that goes against the trend, and that is AV!
It has contributed wonderful physiological education to the people of Asia and the world.

At the end of 91, after Wang Deming had finished all his work in Japan, he called his children over again and asked them with a smile: "What is your biggest gain from this trip to Japan?"

(End of the book)

(End of this chapter)