Vol 7 Chapter 30: The future of Japan

Since the monthly stock market reached an all-time record of 38,915 points, the Nikkei Index began to decline.
In addition, the First Quanye Bank previously sold one trillion yen worth of put options to the U.S. International Investment Bank. As a result, as the stock market prices fell, the First Quanye Bank lost almost one in its securities investment business. Trillion yen.
　　 Since the summer of the third year of Heisei, the Ministry of Finance has issued a notice on the total amount of real estate financing.
The Ministry of Land, Infrastructure, Transport and Tourism announced the nationwide publicly announced land prices, land prices assessed at fixed points, and the suspension of bank loans to real estate, resulting in a continuous decline in real estate prices. There is no sign of stopping the decline. More than 200 financial institutions, including commercial banks, Securities companies, insurance companies, as well as residential financial companies, credit portfolios.
　　 First Quanye Bank was also hit hard by these bankruptcies.
　　 I originally thought that following Sumitomo's investment in non-ferrous metals, I could find some gains in new markets, but who would have thought that Sumitomo was attacked by many international investment institutions, causing the First Quanye Bank to lose 1.2 billion US dollars.
　　 If it was three years ago, five years ago, ten years ago.
　　 It doesn't matter if I lose this little money.
　　 But now, the storm has been precarious, and the debt ratio of the First Quanye Bank has suddenly exceeded the total assets.
　　 Noda Kiri had no choice but to pick up the phone and call the office of the central bank. The non-performing asset rate and the bad debts of the real estate industry and securities companies were too high. Now I can only ask the central bank for help. Otherwise, the Bank of First Quanye would have to wait for bankruptcy.
　　 The Central Bank of Japan.
　　 An emergency meeting is also being held urgently.
　　Because the three large financial institutions in Greater Tokyo have also reached the brink of bankruptcy.
　　 are Tokyo Credit Union, Tokyo Concord and Safety Finance.
　　The deposit scale of the three institutions reached 210 billion yen, and in the capital, under the eyes of the leaders, the Ministry of Finance, the Central Bank and senior officials at all levels discussed how to deal with this serious problem.
　　 But after discussing with each other for a long time, there was no final conclusion.
　　 Because the relationship between the province of Tibet and the central bank has always been very delicate, and each person represents a different force.
　　 Those who are interested have discovered decades ago that the central bank and the province of Tibet have always appeared alternately in the background of the president of the Japanese central bank.
　　 That is to say, the direct line of the central bank and the airborne of the province of Tibet alternately assume the position of president, and this is definitely not a coincidence.
　　 The origin of this incident goes back to the end of World War II.
　　 At that time, Japan’s most powerful central bank governor Tenmanda Naoto was inaugurated. The longest reigning central bank governor in history was also one of the heroes of the founding of Japan after the war. He was called the "King of Law."
　　From this title, you can feel his supreme authority.
　　 This person's judgment on the general situation is insightful. After Japan was defeated, it was a waste of time, but the manpower and material resources were extremely scarce. People could not eat enough and were immersed in the bitter fruit of defeat and sanctions.
　　 On the one hand, there is a large amount of war reparations to be paid, and military autonomy has been deprived of, and the economy has been suppressed by the victorious country. The entire country has almost no hope.
However, Tenman Tian Shangdeng saw hope from the suffering, insight that there will be an ultimate confrontation between the Soviet Union and the United States, and Japan’s geographical location in the Pacific, this person realized that Japan’s only chance to get out of trouble was In the Soviet Union.
　　 Of course, not for the Soviet Union.
　　 The Soviet Union at that time was still a long way from the United States, but they had reaped great benefits in the defeated countries, and they have accumulated a huge amount of heritage.
　　 The light industry of the Soviet Union, unlike later, was a mess. It has a pivotal position in the Asian market.
　　 Ten Thousand Tian Shangdeng realized that for the United States, Japan’s greatest value is to hold back the development of the Soviet Union, so he fully supported the development of Japan’s light industry manufacturing and gained the support and trust of the United States.
This central bank with the longest term of office not only has outstanding ability, but also often turned the tide. He not only made full use of the vacuum period of power after the war, but also understood the general trend of the country’s fortune. It was under his leadership that Japan quickly moved out of the post-war period. The predicament laid the foundation for becoming the world's second largest economic system.
　　 The contribution that no one can match has made this person a huge prestige in the financial system. In order to realize the monolithic elite system of the central bank, this person even emptied the legally superior department-the Ministry of Finance.
　　 It is precisely because of this that the Ministry of Tibet was dissatisfied with this. After Yimanda Shangto retired, he began to cut the vassal of the Bank of Japan and airborne the second official of the Ministry of Finance, Shanji, as the central bank president, which is equivalent to full control of the central bank.
　　 The predecessors of the race, the descendants will get the results.
　　 After a few decades, it has become a pattern in which the airborne president of the province of Tibet and a direct line of the central bank take turns as the president.
　　The open and secret struggles, with the arrival of Sanchong Kangye in the province of Tibet, have become even more intense.
　　 On that day, the discussion was fruitless.
　　 However, the reporters who got the news have already flocked to the news department of the Central Bank.
Mie Yasuno was born in the military and worked vigorously. He asked questions more than reporters and said firmly: "Financial institutions have broken away from the supervision of the central bank and have made serious mistakes in their ability to resist systemic risks. Such mistakes should not have all. People pay for it."
　　 the same day.
　　 The Tokyo Economic News interpreted Mie Yasuno's speech.
　　 Mie Yasuno believes that the unrestricted leverage of financial institutions in real estate is the main reason for the financial problems of these institutions.
　　 But before that, the Ministry of Finance strictly emphasized the restrictions on leverage by banking institutions, strict examination of loan qualifications, and measures and regulations to prevent systemic risks.
　　 Banking institutions have ignored these issues. They have loosened loan reviews and even encouraged overdraft consumption. They have harmed the normal and orderly development of the financial system. The central bank, government, and owners are not obliged to pay for the mistakes made by these institutions.
　　 This is an irrefutable fact.
　　 Because the results of the investigation by the Ministry of Finance found that the large-scale bad debts of these bankrupt banking institutions are based on the bitter fruit of loose money.
　　 There are many customers with very poor qualifications, but they use the leverage effect of using loans to support their houses.
　　 It is the explosion of these leverages that have caused the current dilemma of these financial institutions.
　　 Therefore, there is no reason for the central bank to make all citizens pay for the mistakes made by financial institutions in violation of the banking law.
　　 The front page of the Tokyo Economic News included Mie Yasano's avatar as the cover, and edited it: President Yasushi Mie announced that the "bad boy" should not indulge him in making mistakes.
　　 After that, the report received the support of all citizens and the government.
　　Because in principle, these bankrupt banks and the depositors who have suffered losses are all ‘guilty deserved’, so it is only natural that the "black sheep" will die for everyone to see.
　　The central bank cannot be kidnapped by the mistakes of these institutions, and the people are not obliged to pay for the mistakes of these financial institutions.
　　 As Mie Yasuno disclosed the central bank's strategy in front of the media.
　　 Many senior executives of the central bank held a separate emergency meeting.
　　 "I think the central bank must help them get out of trouble and avoid bankruptcy and liquidation. Otherwise, if depositors lose huge amounts, panic may continue to spread, leading to continued expansion of financial systemic risks."
　　Sadaichiro Morinaga, a direct line of the central bank, knows that these banks and credit institutions must get out of the predicament at this time to strengthen the central bank's authority and prestige in the financial system.
　　 Of course, to some extent, what he said is not wrong.
　　 If all the banking institutions in Tokyo go bankrupt and are liquidated in accordance with the Bankruptcy Law, without the central bank, and depositors suffer huge losses, it is likely to cause social unrest.
　　 Hearing this, Sasaki Nao also said: "I agree with Maekawa-kun’s proposal that these three institutions have more than 10 million depositors. If they cannot minimize their losses, I am afraid it will cause a lot of trouble."
　　According to the Japanese Banking Law, a deposit insurance company is required to guarantee the safety of depositors' funds, but the deposit insurance company established in 1971 has only 80 billion yen in capital, which is far less than the total deposits of the two credit cooperatives.
　　In other words, there is a gap of at least hundreds of billions of yen, and the central bank needs to cover it.
　　No one said that the money actually came from the wealth of other citizens, but in the morning, when the first bank was insolvent, the central bank could no longer take care of that much.
　　 First Quanye Bank’s weight in the financial system is really too great. If it goes bankrupt, the central bank is bound to be in huge trouble.
　　The best way for the central bank is to find a "receiver" to take over Tokyo Concord and Safe Finance, but real estate prices are still falling, and no other bank is willing to assume these two credit unions.
　　 after 24 hours of sleeplessness.
　　The Central Bank and the Ministry of Finance came up with a plan: The Bank of Japan and several other private financial institutions jointly set up a new bank: Tokyo Joint Bank (TKB).
　　 This bank will take over all the assets and liabilities of the Tokyo Concord and the Safety Financial Credit Cooperative; the central bank will contribute 20 billion yen, and other private financial institutions will contribute 20 billion yen; the new bank TKB has a registered capital of 40 billion.
　　 Obviously, the central bank has become the "receiver".
So.
　　 This plan was strongly criticized by the Japanese media.
　　 The central bank hurried to affirm that the central bank’s approach is based on Regulation 25 of the Banking Law. The central bank, as the ultimate payer, provides assistance to financial institutions in difficulty. He also believes that Mie Yeyao has confused the fact that in the end the payer only needs to provide necessary liquidity support instead of directly contributing capital to become a shareholder.
　　 The Asahi Shimbun quoted the statement of the spokesperson of the Japanese central bank that this is the first time Article 25 has been used by the central bank since the establishment of the Banking Law 30 years ago!
　　 When Mie Yasuno knew that the central bank had made the decision behind his back, a lonely look flashed through his dim eyes. He didn't furiously blame those colleagues for their violations, but felt a deep exhaustion.
　　 Sitting under the bright incandescent lamp, Mie Yasuno looked at the financial situation handed over by the First Quanye Bank, and his eyes gradually blurred.
　　 Before Mie Yasuno took office, at the end of 1988, the government’s total short-term national debt was 21.2 trillion yuan, while the central bank held 15.3 trillion yuan, which is basically a take-all situation.
Japan’s economic boom is due in large part to the central bank’s use of
window guidance
to support large enterprises and control the exchange rate, and on the other hand to print money to the government for large-scale construction of civil engineering. It can be said that export and investment are both fun. Because the international environment is quite favorable to Japan, foreign capital cannot enter, but Japanese companies have the protection of the national system and the tilt of funds.
　　 The yen is cheap and the exchange rate is stable, so you can sell as many products as you produce.
　　If the general trend remains the same, and if this trend continues, Japan will definitely become the largest economy in the universe.
　　 However, the time and place and various factors that helped Japan achieve its economic take-off are changing. The world has turned around and the earth has turned upside down. With China’s withdrawal from the Warsaw Pact, the Soviet Union has gradually shown its decline during the Cold War.
　　 Then...
　　 American companies can't stand it.
The first issue was Caterpillar of the United States. At that time, Caterpillar was struggling to find teeth by the Japanese Komatsu production. The then president took the lead in drafting a paper entitled "The problem of the mismatch between the dollar and the yen and the solution. In the "Morgan Report", the issue was directed at the exchange rate and declared: "As long as the dollar depreciates by 20%, we can push the bulldozer to the capital of the Japanese Empire."
　　 This report heated up rapidly and triggered a nationwide anti-Japanese upsurge. Because Japanese cars accounted for the bulk of the U.S. trade deficit, many people at that time poured their anger on Japanese cars.
　　 Various tricks to smash cars are staged all over the country.
　　 Then... a premeditated strangulation began.
　　 The internationalization of the yen was officially put on the agenda.
　　 But with inherent shortcomings, how can Japan afford the path of internationalization?
　　 Then to the Plaza Accord, and then to the appreciation of the yen...The increase of 60% in three years, Japanese manufacturing suddenly became difficult to sell.
To make matters worse, under the background of internationalization, Japan has to open up to foreign capital in the fields of banking, trust, securities, and national debt. In the past, companies could only find banks for financing, but now there are more choices, not only to find foreign capital, but also From the bond market, the global stock market financing, so the bank's customer base has been lost.
　　 And the central bank could not issue orders to foreign banks, the "window guidance" policy was torn open, and the central bank could no longer control the total amount of money perfectly.
　　 Are you willing?
　　 Mie Yasuno clenched his fist.
　　 I am really unwilling.
　　 The country was forcibly opened by the United States and used those treaties to restrict Japan’s trade.
　　 But as a defeated country, what can you do if you are not reconciled?
　　 Now that the Soviet Union no longer poses a threat to the United States, what value does Japan have to the United States?
　　 Mie Yasuno's eyes gradually condensed from the blur.
　　Since that Huaxia guy is interested in Sumitomo, maybe... it's an opportunity.
　　 At this time.
　　Sumitomo Commercial and Social Chief Office.
　　Qiu Shuifu looked at the loss statistics passed back from London, lost his former demeanor, and was so angry that his teeth were split.
　　 The long position of the Non-Ferrous Metals Department was liquidated on a large scale. While Sumitomo lost US$6.2 billion, the loss continued to expand.
　　 Although it is said that Sumitomo's annual trade volume is about 120 billion U.S. dollars, but such a large loss still feels very painful.
　　 First International Capital, Quantum Fund, Tiger Fund, these bastards.
　　 If possible, Qiu Shui Zhongfu really wants to grab all these and scrape off their flesh with one knife to make up for the pain in his heart.
　　 Forget about the Americans.
　　 That Shen Jiannan is a Chinese, and he dares to be so rampant.
　　 Regarding Sumitomo as a fat sheep, you are challenging the ancient majesty of Sumitomo.
　　Qiu Shuifu fiercely clenched his fists, gritted his teeth.
　　 Behind all major funds in the United States, there are American shadows. It is not convenient for Sumitomo to provoke these guys, but behind First International Capital, it is nothing more than close relations with Russia, and there may also be a shadow of China.
　　 But Sumitomo is not afraid.
　　 This account ~EbookFREE.me~ must be calculated.
　　 Ling Ling Ling
　　 Just then, the phone on the desk rang suddenly.
　　 Qiu Shuifu suppressed his anger and picked up the phone to feed him. With his status, he didn't need to be polite to anyone at all.
　　 Then, a voice came from the earpiece: "Qiu Shui-kun, I am Mie Kangya, I am sorry to disturb you at this time."
　　 Mie Yasano?
　　 What is this guy looking for himself now.
　　 Is it for the First Quanye Bank and those banking institutions, want Sumitomo to reach out for help?
　　 This is absolutely impossible.
　　 "Oh. Zhongfu didn't expect that it was your call from your lord. It was a bit rude just now, please forgive me.
　　 Mie Yasuno ignored Qiu Shuifu’s rudeness and said directly: "Qiu Shui-jun, I want to talk to you about the losses of Sumitomo Nonferrous Metals in London. Do you have time?"
　　Nani?
　　Qiu Shuifu had already figured out how to refuse Mie Yasuno's request to provide assistance to those banks, but he did not expect that he would mention something irrelevant.
　　 Confused and agreed, and agreed on a meeting place, Qiu Shuifu was puzzled, and met Mie Yasuno.
　　 are all acquaintances, and they don’t have much politeness to each other.
　　 After a few words of greeting, Mie Yasuno personally made tea and handed it to Qiu Shuifu, "Qiu Shui-jun, what do you think of First International Capital?"