Chapter 935 Drink a Glass of Tequila

...

Because after Bill Clinton came to power, he carried out some radical social transformation plans, which triggered a backlash and completely upset the conservative forces in the mainstream of American society. As a result, after the results of the mid-term elections came out this month, The Democratic Party collapsed thousands of miles and retreated in an all-round way; the Republican Party won a complete victory and the revolution was successful.

Specifically: the Democratic Party lost 8 seats in the Senate and 54 seats in the House of Representatives; after many years, the Republican Party finally took full control of the House of Representatives and the Senate for the first time, ending the Democratic Party's 40-year control of Congress. At the same time, the Republican Party also won more than half of the governor's seats and successfully controlled more than half of the state assembly seats for the first time.

You know, since Franklin Roosevelt came to power in 1933 and implemented the New Deal, the Democratic Party has controlled Congress for a long time, while the Republican Party only controlled Congress from 1947 to 1949 and from 1953 to 1955. and control of the Senate during the Reagan presidency.

It was during the Democratic Party's control of Congress that the Civil Rights Act and the Peace Bill of Rights were promoted. At the same time, public finances increased significantly; Measures such as the declaration of war have greatly increased the power of the federal government, and the government budget and expenditure have also increased significantly.

The "New Deal Coalition" that began with Roosevelt's New Deal enabled the Democratic Party to dominate the U.S. presidential election for 36 years until it collapsed in 1968 and the Republican Party's Nicholasson came to power.

Bill Clinton's ambitious attempts to recapture that glory only dealt an even worse blow to the Democratic Party. From January next year, he will be a veritable "bad duck" president.

Bill Clinton, who has a feeling of loneliness of "I would have set my heart to the bright moon, but the bright moon shines on the ditch", this time he came to Bogor, Indonesia to attend the APEC summit, and he was naturally not very interested. The private walk with the richest man was even more interesting. Don't hide your personal emotions.

After hearing Tang Huan mention the turmoil in Mexico's financial market, Bill Clinton asked absently, "If there is a financial crisis in Mexico, how can it make the United States worse?"

"Under the general trend of global economic integration, everyone will prosper, and each may have to rely on his own ability, but everyone will lose, as long as he does nothing." Tang Huan said leisurely: "At that time, a large number of unemployed Mexicans will Crossing the border and pouring into the United States will increase the financial pressure on the federal government, and even the benefits that the United States can get from the North American Free Trade Area will shrink, traditional enterprises will be affected, interest in IT spending will decrease, and high-tech industries will be hit."

Bill Clinton paused before seriously answering: "I have heard reports from my staff about the situation in Mexico—the United States will never let the financial crisis erupt at its doorstep."

Tang Huan pondered, "In January next year, the new congressmen will take office. At that time, I am afraid that the voices of everyone sweeping the snow will be louder."

Bill Clinton sighed softly, and asked humbly: "There are hundreds of thousands of employees under Tang's command, but they are in order. They have been rated as the best employer by the media for many years, so they are naturally very rich. Leadership charisma—do you have any good suggestions for my reference?"

After the New Deal coalition became popular, in terms of the domestic image of the United States, the Democratic Party is considered to be a party representing the working class and low-income groups, while the Republican Party is regarded as a representative of the business community and high-income groups—— The former supports the big government, spends a lot of fiscal expenditure on national economic projects, and helps those people who are in the bottom class. The latter represents a restricted small government, with relatively little financial expenditure invested in national projects and less interference in business.

Of course, this is just a generalization. When it comes to specific people and things, you have to fight for resources and energy according to your ability.

Tang Huan cannot be said to be completely inclined to the Democratic ~ Democratic Party or the Republican Party - as a "vulnerable group",

The political correctness of the former is needed, but Tang's IT Kingdom wants the so-called non-interference of the latter.

There are many conflicts like this, but this is the way to check and balance - if you don't recognize the essence of the rules of the game, in the end, you will be the one who suffers.

Tang Huan is still very happy to see the successful results of the Republican Revolution——During the first decade or so before the rise of Tang's IT Kingdom, the Republican Party and the Democratic Party were divided in the President and Congress; ~The Democrats have come to sit, and the seat of Congress should be vacated.

In short, Tang Huan, who has little choice, is quite satisfied with the current new balance state, and then hopes that Bill Clinton, who has been frustrated, can regroup and deal with his political opponents evenly until the end .

So after serious thinking, Tang Huan seriously analyzed: "Before this year's mid-term elections, the conservatives within the Democratic Party were an important force, and they were relatively easy to cooperate with the Republican Party; and this time In the mid-term elections, almost all of these groups were brought down."

"If the White House wants to alleviate the resistance it encounters in governance, the most realistic way is to find the buffer between the Democrats, Democrats, conservatives and the Republican Party—maybe, you can draw an isosceles triangle and put the White House at the apex. , so as to maintain the same distance with members of both parties in Congress, so as to adopt a position in the middle of the two. Of course, more professional people need to be consulted on how to operate. "

After Bill Clinton listened to this suggestion, the first thing he felt was that he had no idea, but until now he couldn't find a better solution, so he could only laugh at himself: "This 'crazy duck' president, I It's settled."

...

After attending the APEC summit, the richest man did not leave Indonesia immediately, but made friends with some famous local Chinese businessmen.

Tang Huan has no direct investment in the IT industry in Indonesia, that is, Qinhe has cooperated with local Chinese businessmen in some projects.

On the whole, although Indonesia is rich in resources, its investment environment is definitely not comparable to that of Singapore and Xiangjiang, and the richest man is not very concerned about it. This is also revealed from the content of his inspection work.

For example, when Tang Huan visited the office of a local subsidiary, he paid extra attention to the monitoring system, and even checked the shooting range of the camera himself.

The extra time for the richest man to stay in Indonesia was not long, and his subordinates had to regard the company’s monitoring system as a future work focus if he wasted so much time—maybe this is related to the rumor that through the Internet, the boss It is even possible to hold video conferences in the United States with employees around the world, including Indonesia, to directly understand the situation on the spot.

Next, the richest man accepted the invitation to visit neighboring Singapore and Malaysia. He had a close look at Indonesia and Malaysia, members of the "Asian Five Tigers" whose gdp growth rate has remained above 7% in recent years. learn.

The original trajectory of time and space is really not that easy to change - under their prosperity, the seemingly solid fortress is completely undefended for the calculations of those who are interested.

It seems that the Asia-Pacific circle that I value is doomed to a bad fate.

...

When Tang Huan returned to the United States, it was already December. The ship queen Christina, who went on a sightseeing trip to Mexico City, also returned to the United States not long ago.

"Except for some special assets, which will be liquidated when the time comes, so that you can buy the bottom, everything else is gone." Christina smiled and pointed to a document and said, "I'm just waiting for you to fill in the corrected number."

Tang Huan made the finishing touch, and then explained: "US mutual funds, the assets invested in Mexico are estimated to be about 45 billion U.S. dollars—I estimate that the Clinton administration, which will definitely provide aid, will use it The size of the capital is no less than 30 billion U.S. dollars."

The female ship queen was surprised: "The United States is so good to Mexico? This is almost the same as the defense that the United Kingdom could achieve when the British pound was attacked. Can the Congress agree?"

"Who made Mexico right on the doorstep of the United States?" Tang Huan smiled slightly, "If the White House does not take action, then the situation it faces will not only be made difficult by Congress."

In the last year of the 1980s, Latin American countries were in debt crisis and urgently needed domestic economic reforms.

To this end, the US Institute of International Economics invited researchers from the International Monetary Fund, the World Bank, the Inter-American Development Bank, and the US Department of the Treasury, as well as representatives from Latin American countries, to hold a seminar in Huashengdun, aiming to provide economic reforms for Latin American countries. Provide solutions and countermeasures.

Economist John Williamson of the US Institute of International Economics wrote the "Hua Shengdun Consensus", which systematically put forward various proposals to guide Latin American economic reform, which was supported by the World Bank.

The content includes monetary policy——promoting floating interest rates; trade and capital policy——promoting trade liberalization and foreign capital entry liberalization, etc.

In this era, the "Huasheng Shield Consensus", like "shock therapy", is a popular theoretical system, promoted by international organizations such as the International Monetary Fund and the World Bank in developing countries.

Not everyone can become a universally applicable truth. These things cannot be said to be absolutely correct, nor can they be said to be completely wrong. The key lies in adapting measures to local conditions and applying what they have learned. ~ From the flow, don't expect it to be willing to be a well-behaved baby.

To put it simply, the current economic problem in Mexico, which has been completely copied, is that the current account deficit is abused by short-term foreign capital to make up for it. In order to stabilize the confidence of foreign investors, short-term bonds are issued to protect the inflated value of the Mexican peso. As a result, foreign exchange reserves are getting less and less, and the result is the same as people who rely on credit cards to overdraft the future to maintain their current material life. One step closer.

In particular, the political turmoil in Mexico this year has added uncertainties out of thin air.

Of course, there are many savvy people who sense the approaching financial risks in Mexico, and one of the major manifestations is the phenomenon of capital flight.

But any such upcoming speculation will definitely be settled. Otherwise, the tragic product that will be involved in the end will be yourself.

Of course Mexico doesn’t want to collapse on its own, but it has already become a sieve, and the successor can only be taken by the United States, which is afraid of being affected, and the firmness, timing, and other information of this big guy’s entry become the game in this game. key.

What Tang Huan has to do is to use the resources he has accumulated to accurately capture the most important information quietly; as for the specific operations, there are naturally trustworthy people in charge.

In this way, the richest man was orderly tasting the glass of tequila in Mexico while sorting out the manuscript that was about to be handed over to the publishing house.

...

On December 20, the new Mexican President Ernesto Zedillo, who took office on the 1st of this month, announced that the Mexican peso would depreciate by 13% to 15%.

This decision to abandon the previous administration's promise not to devalue the Mexican peso directly crushed any chance investors had for policymakers, and they began to sell Mexican pesos frantically and snap up dollars-the inflated Mexican peso is very likely. The panic of another depreciation immediately spread.

Mexican peso crisis broke out!

On December 22, the heavy news broke out again-the Mexican peso implemented a floating exchange rate.

As a result, the Mexican peso plummeted from 3.4:1 to 7.2:1 against the U.S. dollar in free fall.

In an effort to curb capital flight, Mexico's central bank raised interest rates, but that did nothing but hamper growth prospects.

At the same time, some of Mexico's debts have come due, and it has had to burn through its precious dollar reserves to maintain its credit, but the Mexican government still faces an imminent sovereign default.

The current national economic system affects the whole body - the stock market plummets, inflation, etc., are coming one after another.

Although psychologically prepared, the Mexican government is still struggling. While launching an emergency economic rescue plan to reduce the current account deficit to a level that can be paid as soon as possible to actively save itself, it also applied for emergency loan assistance from international financial institutions to help Mexico. The government tides over the difficulties and reduces the losses of foreign investors.

At this time, there were two documents on Tang Huan's desk - one of which was US President Bill Clinton and Treasury Secretary Robert Rubin, Federal Reserve Chairman Alan Greenspan, and Lawrence Summer the Minutes of the meeting; the other is the 1995 Mexico Debt Disclosure Act that the White House is about to submit to Congress.