Rebirth: Japanese investor

   Chapter 26 Acceptance Bills

   Kishimoto Masayoshi and Yanai Masaaki can be said to have similar smells. After all, they both exude the nature of allowing capital to maximize profit and exert its greedy nature.

  So, from the very beginning, they brought the topic closer and introduced it to the topic of the Asian financial crisis.

   Right now, although Kishimoto Masayoshi has the idea of ​​investing in Uniqlo, it does not mean that he has an investment action. This project can be dragged on and off.

   After all, the capital in his hands is limited, so naturally he has to focus on the big and let go of the small, and it is impossible to cover everything. Your own investment strategy is not just a light touch, but a concentrated punch.

  Google and Uniqlo's market capitalization after 20 years, one is 800 billion US dollars, and the other is less than 10 billion US dollars.

   At a glance, you know that you should invest your money in that one. Masayoshi Kishimoto is based on the fact that the business is not successful, but there is benevolence and justice, but it does not prevent himself from making friends with the other party.

   Without his rebirth, this Yanai Zheng will also become the richest man in RB in the future. With your own existence, you absolutely cannot let this happen, after all, the richest man must be yourself.

   Whoever competes with him will not do. His small goal is to become the richest man in RB first, then the richest man in Asia in the middle target, and finally the richest man in the world in the big target.

   "Under this Asian financial turmoil, South Korea has been hit hard. The reason why the South Korean government is passive is that its foreign exchange reserves are too small." Yanai Masa expressed his opinion.

   "You're talking about one aspect. However, the reason why the Korean government is so embarrassed now is that the root cause of the disease is still on the acceptance notes.

   South Korea's commercial acceptance bills and bank acceptance bills are greatly over-issued. The core of these two kinds of acceptance bills is to link with the chaebol enterprises in South Korea, and gradually develop outwards layer by layer.

   On the surface, it seems that there is no problem, but in fact, we all know that the acceptance bill is a financial instrument that can be used to defer payment, ranging from 30 days to 180 days.

  Theoretically, even if it is not a 1:1 margin for support, it should be at least no less than 80% or 90%.

   However, before the outbreak of the Asian financial crisis, the situation in South Korea was already 1:2, 1:3, or even higher.

  1 KRW can be used as 2 KRW, and acceptance bills ranging from 3 KRW are widely used instead of cash. People's monthly wages need to be paid in cash. After all, people need to live, and they need to pay various expenses and expenses every day.

  The overheating of the economy will inevitably lead to an economic bubble. It's like a dog that is worth $1 million, but you can't sell it for cash, you can only exchange it for two cats for $500,000. "Kishimoto Masayoshi expressed one of his views.

   He paused here, smiled, and then continued: "The acceptance bill must not be cash. Only after it expires can it be redeemed in cash.

  The industry and commerce in Korea, from large companies to small and medium-sized enterprises, have already used this method in large numbers for financial operations such as payments and loans, which is equivalent to increasing the amount of currency circulating in the market at once.

  An acceptance bill is like a drum and a flower. An acceptance bill is like a flower. As long as it passes through the hands of a bunch of people, it will have an inevitable connection with these people.

  The stop of the drum sounds is like a breach of contract in one of the links, and then it breaks, and the dominoes will collapse, and it will be out of control. "

   Even if Kishimoto Masayoshi knew that the acceptance bill 20 years later could be electronically, it was very convenient, but it did not mean that it could be so convenient now.

  A paper acceptance bill must not have creases, and not even a single word on it. From the previous home to the next one, you have to write it down one by one. Going down layer by layer, you have to indicate layer by layer.

   Commercial bank acceptances are better than corporate acceptances. If you can't wait to use cash, you will need a discount (discount interest).

  This time is different, the amount is different, the longer the time, the higher the discount, ranging from 2% to 10%. This means that an acceptance bill with an amount of 100 yuan is only 98-90 yuan in cash.

  After the Asian financial crisis, in order to prevent the foreign exchange reserves from being too low and repeating the same mistakes of the Asian financial crisis, the South Korean government has gradually increased its foreign exchange reserves in the future, reaching 385.3 billion US dollars in 2018.

  High foreign exchange preparation does not mean that the country is necessarily rich, and ordinary people are equally rich, but it only means that the government is rich and has a strong ability to prevent financial risks.

The disadvantage of    is that it inhibits the development of domestic industry and commerce, investment decreases, and employment opportunities decrease, and ordinary people have little money in their hands. After all, jobs are hard to find.

   On the other hand, in the United States, the national debt is 21 trillion US dollars, and the foreign exchange reserves are only 44 billion yuan. Even though Russia's foreign exchange reserves are 356.5 billion US dollars, it has been disheartened from time to time, and its currency has depreciated significantly. Why?

  Because in 1997, the international hot money had already reached 7 trillion US dollars. Also in 1997, not to mention South Korea's 3.84 billion US dollars, even Hong Kong's 82 billion US dollars of foreign exchange reserves could not resist the crazy attack of Soros and other international hot money, and then asked the central government for help.

   Even the foreign exchange reserves of mainland China, which exceeded US$4 trillion at its peak, were only US$140 billion at this time. In 1992, China's overheated economy had only $19.4 billion in foreign exchange reserves.

  When countries increase foreign exchange reserves substantially, international hot money also rapidly increases the amount of capital. By 2018, the estimated total amount of international hot money has been uncertain, at least not less than 7 trillion US dollars.

   If you add five times leverage, it exceeds $35 trillion. How many there are, no one knows. Even if Hong Kong's foreign exchange reserves have reached 437.5 billion US dollars, it does not mean that it is absolutely safe.

  Similar to various funds held by Soros, a total of 600 billion-1000 billion US dollars can be used internationally to travel around the world, completely motivated by high profits.

   They are so destructive that they can completely destroy a country’s exchange rate regime overnight. During the Mexican financial crisis in 1994, the total foreign debt was as high as 165.6 billion US dollars, of which short-term debt accounted for the majority, which fell sharply by nearly 4 billion US dollars in the two days from December 20 to 21.

   International financial institutions such as the US government and the International Monetary Fund decided to provide huge loans to support the Mexican economic rescue plan to stabilize the exchange rate, stock market and investor confidence.

   The financial turmoil in Mexico subsided in the first half of 1995 until the gradual arrival of US$50 billion in international capital assistance, mainly from the United States.

   Therefore, the current South Korea is not the first country to ask the IMF for assistance. Before it, Mexico had it.

   (end of this chapter)