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Chapter 566 The myth of the first island country

"We have a trump card. Although island countries will prohibit it on the surface, we can also secretly get what we need in private. ▲∴,” Mhamad said: "Besides, it won't take long to break out of an economic crisis in the island countries. At that time, the island countries' economy will not recover, and they will definitely not listen to the Americans. Secretly exporting high-tech technology to us to make money is their must-have choice."

This trump card is that in the Kumagata incident, Pakistan secretly controlled Kumagata. When the Toshiba company's people were disobedient, they could push Kumagata and go to Batumi to inform him. Now Americans must have found that the silent performance of Soviet submarines has been greatly improved, right?

When the Cold War was at its peak, the islanders dared to sell the multi-axis linked CNC machine tools that Batumi absolutely forbidden to the Soviets. What else did those merchants dare not? As long as they had money, they could buy anything. The US sanctions were nothing. And just so happened that Mhamad was very rich.

The economy of the island country! Now, the island country is in an absolute economic overheating, and it is time to cool down!

"Mr. President, are you looking for me?" At the door of the president's office, a woman in a well-deserved professional attire stood outside, with her concave figure, outlining delicate curves under the wrapping of her clothes, her calves were slender, her face was full of smiles, and her eyes were full of affectionately looking at Mhamad.

"Lilis, don't you have to be so formal, right?" Mhamad said.

Both of them are dedicating themselves to the country. Mhamad is the president and the helm of the entire Pakistan, while Lilis is the country's Minister of Health and Education, responsible for these aspects of Pakistan. Usually, Mhamad will work until very late. When Mhamad comes back, Lilis is already asleep. The time they get together is getting shorter and shorter, but their relationship has gradually sublimated.

Now, Mhamad called Lilis over. Lilis said that he was the president, which made Mhamad very upset.

"What should I call you?" Lilith said, "Dear?"

After saying that, Lilith walked to Mhamad and looked at Mhamad.

"Lilis, I have to deal with many national affairs during this period. You know, the Americans are going to impose sanctions on us." Mhamad said, hugging Lilis.

Lilith sat skillfully on Mhamad's lap, a chair, and just bearing the weight of two people.

"Of course I know, are you here to ask about my attitude? I have become a Pakistani nationality, and now I am an absolute Pakistani." Lilith said.

In fact, since she married Mhamad, Lilis has even changed her faith. For her, being with her lover is the most important thing. Especially her lover is still such an excellent person.

"No." Mhamad said: "The United States is a world policeman, and we are unhappy. We just sanction us. However, it is not necessary for the island countries to follow the trouble. Moreover, I speculate that the island countries' economy is about to reach a trough after the peak, and our wealth cannot shrink because of this."

Lilis stood up from Mhamad's leg: "Dear, you are simply a god. I'm just about to report to you. After analysis, our experts predict that the island country's current economy has reached its peak and is about to usher in a turning point."

At the beginning, after sweeping wealth from Britain, Pakistan's financial funds flowed to the island country under the control of Lilith, without arousing any suspicion, because not only the funds of the bag companies controlled by Lilith, but almost all the funds in the world were flowing to the island country.

All of this starts with the Plaza Agreement.

At that time, as US Treasury Secretary, Baker discussed with the Treasury Secretary of the island countries, Germany and other countries in order to solve the economic problems of the United States, and finally decided to let the yen appreciate!

Under pressure from the United States, the island countries can only agree to the appreciation of the yen.

As the yen appreciates, huge foreign exchange reserves shrink, and it also leads to an increase in production costs of island-country enterprises and a decrease in export competitiveness. As a result, island-country people began to invest in building factories overseas to reduce labor costs. Many island-country enterprises in Pakistan were also established at this time.

This has made it difficult to find employment in the island country and its domestic purchasing power decline. Therefore, the island government can only stimulate domestic investment and consumption through loose monetary policies. Since 1986, the island country banks have cut interest rates continuously, and the ultra-low interest rates have made deposits very unprofitable. As a result, a large amount of capital flows to non-productive industries such as real estate. Real estate and stock prices have risen rapidly in the short term, creating an economic bubble in the island country. At the same time, after the rise in housing prices and stock prices, mortgages to banks can get more loans for a new round of speculation. As a result, the bubble has become larger and larger.

No one is willing to engage in the real economy. Relying on real estate and stocks alone can make many people profitable. What expands this bubble is international capital investment.

In addition to making profits in real estate and stocks, international capital can also make profits through the appreciation of the yen. After the Plaza Agreement, the yen appreciates at a rate of 5% per year. This means that even if international capital does nothing, it can only exchange the US dollar at hand for yen and exchange it back a year later, and then get 5% of the net profit. This investment method that is stable and profitable has attracted a large number of international investors.

The snowball is getting bigger and bigger, and the large inflow of international capital has exacerbated the pressure on the appreciation of the yen. At the same time, international capital speculation in the stock market and housing market has accelerated the rise in stock prices and housing prices. What is even more terrifying is that with the inflow of international capital, the domestic money supply in the island countries has increased excessively, which has led to the further appreciation of the yen, just like a balloon, and the bigger it blows, and it will eventually explode.

In the past five years, the stock prices of island countries have risen at a rate of 30% every year, and land prices have increased by 15% per year. During the same period, the annual growth rate of GDP of island countries is only 5% per year. In this way, the bubble has become increasingly larger. The per capita GNP of island countries exceeds that of the United States, but the high housing prices make the people of island countries dare not expect to own their own houses at all. They have not enjoyed any benefits brought by the appreciation of the yen, and their living standards have been lowered.

Now, it is time for this bubble to burst.

"So we'll withdraw our capital," said Mhamad. "Just like last time, let our capital withdraw from the island country and flow to Southeast Asia!"

Fearing that the Americans continue to adopt more radical measures, it is not a good choice for Mhamad to flow to Europe. If the United States wants to freeze Pakistan's property, those snowballed wealth will be cheaper for the Americans.

"Now, our funds have been hyped up to 800 billion US dollars," Lilith said.

Eight hundred billion! It is only 90 years since it is a medium-strong country in Western Europe, and its annual GDP is only 100 or 200 billion. Even if Pakistan's economy is developing well now, its GDP is only 300 billion US dollars. The current capital speculation has reached 800 billion! Lilith has accumulated a large amount of wealth for Pakistan in recent years.

"Lilis, I thank you on behalf of Pakistan!" Mhamad said. With such a huge amount of funds, Pakistan does not have to worry about financial resources whether it is developing its economy or military.

"Dear, you can only thank me on behalf of my husband." Lilis was full of charm when she said this: "Funds entered Southeast Asia? You proposed a good idea. We now have huge funds. With this funds, we can easily destroy a country's economy and we can sweep away a country's wealth. Let's start with Indonesia. Do you think this is the case?"

Mhamad was stunned. Isn’t this the Southeast Asian economic crisis in later generations? It seems that Lilith has found fun in fund speculation.

"Okay." Mhamad said. He, who came from later generations, naturally had no good feelings for Indonesia. It would be fine if Lilith was tormenting. He could continue to grow these funds in Pakistan. He could not withdraw all the funds back to Pakistan anyway. At most, he would only draw billions of dollars at a time. If it was too much, it would be troublesome if it was found out by the United States.

With Mhamad's decision, Pakistan's funds were finally withdrawn from the island country's market, with 800 billion US dollars. Once such a huge amount of funds were withdrawn, a little smart economic expert should know what was going to happen.

A year ago, just as housing prices in the island country continued to rise, Pakistan's funds had already withdrawn from the real estate market. After all, although real estate is very profitable, it is very difficult to withdraw the investment at the end. Stocks can be sold online, and real estate cannot be sold just by selling. Especially Pakistan's funds are injected into the most valuable areas. For example, Ginza Shiding, Chuo District, Tokyo, Tokyo, was originally purchased at a price of 5 million yen per square meter, but by the time it had risen to 30 million per square meter last year, it had already been sold.

Now, the main thing is to sell the stocks in your hands and sell various futures. This move also requires skill! If you sell them all at once, the stock price will fall too quickly, and you may lose your hands.

The stock market in the island country is still rising, and Lilith directed traders at all levels to start selling out all the stocks and futures in her hands.

Recruiters are constantly beginning to accept, but the market's growth rate has gradually slowed down.
Chapter completed!
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