Dominate South Asia

Chapter 566: The myth of the first island nation

"We have a trump card. Although the island country will ban it on the surface, we can also secretly get what we need." Mhamad said: "Besides, it won't be long before an economic crisis breaks out in the island country. By then, the island country's economy will be in ruins. "They will definitely not listen to the Americans. Secretly exporting high-tech technology to us to make money is their only choice."

This trump card is that during the Kumagai independence incident, Pakistan secretly controlled Kumagai independence. When the people from Toshiba disobeyed, they could push Kumagai independence out and go to Batumi to inform. Now the Americans , you must have discovered that the silent performance of Soviet submarines has been greatly improved, right?

At the height of the Cold War, people from the island country dared to sell multi-axis CNC machine tools that were absolutely prohibited in Batumi to the Soviets. What else did those businessmen dare not? As long as you have money, you can buy anything. U.S. sanctions are nothing. And as it happens, Mhammad is rich.

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

"Mr. President, are you looking for me?" At the door of the President's office, a woman wearing decent professional attire stood outside. Her convex and concave figure outlines exquisite curves under the clothes. Her calves are slender, and her face is... With a smile on his face, he looked at Mhamad lovingly in his eyes.

"Lilith, it doesn't have to be so formal, right?" Hamad said.

Both of them are dedicating themselves to the country. Mhamad is the president and the helmsman of the entire Pakistan, while Lillis is the country’s minister of health and education, responsible for these aspects of Pakistan. Normally, Mhamad Mad would work late. When Hamad came back, Lilith had already fallen asleep. The time the two spent together was getting shorter and shorter, but their relationship had gradually sublimated.

Now, Mhamad called Lilith over, and Lilith said it was the president, which made Mhamad very unhappy.

"Then what should I call you?" Lilith said, "Dear?"

After saying that, Lilith walked up to Mhamad. Look at Mhammad.

"Lilith, I have to deal with a lot of national affairs during this period. As you know, the Americans are going to impose sanctions on us." Hammad said, hugging Lilith.

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

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

In fact, since marrying Mhamad. Lilith has even changed her faith. For her, being with her lover. That's the most important thing, especially when your lover is such an excellent person.

"No." Mhamad said: "The United States is the world's police. If we are unhappy, it will sanction us. However, it should not be done if the island countries follow suit and make trouble. Moreover, I speculate that the economy of the island countries is about to reach its peak. After a trough, our wealth cannot be reduced due to this. "

Lilith stood up from Hamad's lap: "My dear, you are simply a god. I was just about to report to you. Our experts have analyzed it. It is estimated that the current economy of the island country has reached its peak. , is about to reach an inflection point.”

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

It all started with the Plaza Accord.

At that time, Baker, as the U.S. Treasury Secretary, discussed with the finance ministers of 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 nation could only agree to appreciate the yen.

The appreciation of the yen has shrunk the huge foreign exchange reserves. Moreover, it has led to an increase in the production costs of island countries' enterprises and a decrease in export competitiveness. As a result, islanders began to invest in building factories overseas to reduce labor costs. Many enterprises in the island country of Pakistan were also established at this time.

This has made it difficult for local employment in island countries and reduced domestic purchasing power. Therefore, the island government can only stimulate domestic investment and consumption through loose monetary policy. Starting in 1986, the island country's banks have continuously cut interest rates. Ultra-low interest rates have made deposits very uneconomical. As a result, a large amount of capital has flowed 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, as housing prices and stock prices rise, more loans can be obtained by mortgages to banks for a new round of speculation. As a result, the bubble has grown bigger and bigger.

No one wants to engage in the real economy. Many people can make huge profits just by relying on real estate and stocks. What further expands this bubble is international capital investment.

In addition to making profits from real estate and stocks, international capital can also make profits through the appreciation of the yen. After the Plaza Accord, the yen appreciated at a rate of 5% per year, which means that even if international capital does nothing If you just exchange the US dollars you have in hand for Japanese yen, and then exchange them back one year later, you can get a 5% net profit. This investment method of making a profit without losing money has attracted a large number of international investors.

The snowball is getting bigger and bigger. The massive influx of international capital has intensified the pressure of yen appreciation. At the same time, international capital speculation in the stock market and the housing market has accelerated the rise in stock prices and housing prices. What is more terrible is that with the influx of international capital, the domestic money supply of the island country has increased excessively, which has prompted the further appreciation of the yen, just like a balloon, which is getting bigger and bigger and will eventually burst suddenly.

In the past five years, the stock price of the island country has risen by 30% per year, and the land price has increased by 15% per year, while the annual growth rate of the GDP of the island country during the same period is only 5%. In this way, the bubble has become bigger and bigger. The per capita GNP of the island country exceeds that of the United States, but the high housing prices make the people of the island country dare not hope to own their own houses. They have not enjoyed any benefits brought by the appreciation of the yen, and their living standards have even decreased.

Now, it is time for this bubble to burst.

"In this case, let's withdraw our capital." Muhammad said: "Just like last time, let's withdraw our capital from the island country and flow to Southeast Asia!"

Fearing that the Americans would continue to adopt more radical measures, Muhammad's capital flow to Europe was not a good choice. If the United States wanted to freeze Pakistan's assets, the snowballing wealth would be cheap for the Americans.

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

800 billion! It's only the 1990s. A medium-sized power in Western Europe has an annual GDP of only 100 to 200 billion. Even if Pakistan's economy is developing well now, its GDP is only 300 billion US dollars, and now the capital speculation has doubled to 800 billion! Lilith has accumulated a lot of wealth for Pakistan in the past few years.

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

"Dear, just thank me on behalf of my husband." Lilith said this with full of charm: "Funds enter Southeast Asia? You proposed a good idea, we already have a huge amount of funds now. With this money, we can easily destroy a country's economy and take away a country's wealth. Let's start with Indonesia, what do you think?"

Mhammad was stunned. Isn't this the Southeast Asian economic crisis in the future? It seems that Lilith has found fun in capital speculation.

"Okay." Muhammad said. Coming from the future, he naturally has no good feelings for Indonesia. It's okay to let Lilith toss it. It's just right to continue to grow these funds in Pakistan. Anyway, the funds can't be withdrawn all to Pakistan. At most, a few billion US dollars can be withdrawn at a time. If there are more, it will be troublesome if the United States finds out.

With Muhammad's decision, Pakistan's funds will finally be withdrawn from the island country's market. Once such a huge amount of funds of 800 billion US dollars are withdrawn, economic experts with a little brains should know what will happen.

A year ago, when the 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 funds in the end. Stocks can be sold directly online, but real estate cannot be sold at will. In particular, Pakistan's funds are injected into the most valuable locations, such as Ginza 4-cho in the central district of Tokyo Ginza in the island country. It was purchased at a price of 5 million yen per square meter. When it rose to 30 million per square meter last year, it was sold.

Now, the main thing is to sell stocks and various futures. This move also requires skills! Selling them all at once, the stock price will fall too quickly, and it may be a blow to your hands.

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

There are continuous takers who start to take over, but the increase in the market has gradually slowed down.

Hong Kong has experienced a stock market crisis and a Hong Kong dollar crisis. The UK has experienced a pound crisis. The US also experienced a stock market crisis a few years ago. However, the islanders do not think that the island economy will experience a crisis because the island economy is very healthy! The island economy ranks first in the world! (To be continued ~^~)

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