Chapter 720: Country M Reaps Latin America!

Yang Ming has been paying attention to Hong Kong real estate, stock market and other situations.

In addition, he is also paying attention to one thing.

At the beginning of last year, Yang Ming already knew in advance about the Falklands War between Country Y and Argentina this year.

Of course, when Kayla was active in Country Y, she also knew about this news in advance.

At the beginning, the two countries were still talking.

On April 2, 1982, it officially broke out.

At this time, Argentina faced many problems, including internal economic problems, and this war was also to ease internal conflicts.

Because the Falklands are relatively close to Argentina, the attack is very fast, and Country Y is far away from the Falklands.

When many countries in the world thought that Argentina would win, Country Y quickly counterattacked, through aircraft carriers and air and naval battles, not only sank many Argentine warships, but also left Argentina without any ability to fight back.

On June 20, the Y army recaptured South Georgia and the South Sandwich Islands and accepted the surrender of the local Argentine army; the two sides in the Falklands War officially ceased fire.

The impact of the Falklands War was still very large.

In addition to crushing Argentina's confidence, it also strengthened Mrs. Satchel's authority and played a very important role in her winning the next election.

Yang Ming was in Hong Kong, and he had always been paying attention. The news media in Hong Kong reported and analyzed it every day.

Yang Ming knew that this actually had a great impact on Hong Kong. It was even closely related to Mrs. Satchel's next trip to Yanjing.

Even so, it still couldn't stop Hong Kong's real estate from continuing to fall.

On the contrary, Hong Kong's stock market went back and forth, and there was no big drop. The Hong Kong dollar still depreciated, but it was not so obvious.

At this time, in the office of the chairman of the Empire Group.

Lin Xiuzhi and He Chaoxun were both there.

"Boss, why did Argentina lose so badly in the Falklands War?" He Chaoxun asked.

Originally, from the geographical advantage, Argentina should have won this war.

But in fact, it was the opposite.

It's not that Country Y is still so strong.

In fact, Country Y has long been in decline.

However, even a rotten ship still has three pounds of nails.

Country Y has long been in decline, but it still has strength. Argentina has deep internal contradictions. At that time, such an incident broke out mainly to divert domestic contradictions.

"Argentina's internal problems, and Argentina is already very poor and can't afford it at all."

In the final analysis, war still costs money.

Yang Ming knows that this is actually closely related to one thing.

Latin American sovereign debt crisis.

Under the temptation of low-interest funds, Latin American countries such as Argentina, Brazil, Mexico and Peru have borrowed a large amount of debt denominated in hard currency; however, with rising interest rates, capital flows reversal, and developing countries' currencies facing depreciation pressure, Latin America's debt ratio has risen to an unsustainable level.

On August 12, 1982, Mexico was unable to repay the principal and interest of its public foreign debt (US$26.83 billion) due to its foreign exchange reserves falling below the danger line. It had to announce the indefinite closure of all foreign exchange markets, suspend the repayment of foreign debts, and convert all foreign exchange deposits in domestic financial institutions into its own currency.

Mexico's private consortiums also took the opportunity to announce the postponement of debt repayment.

Following Mexico, Brazil, Venezuela, Argentina, Peru and Chile also encountered difficulties in repaying their debts and announced the termination or postponement of foreign debt repayment.

By the end of 1986, the total debt of Latin American developing countries soared to US$1,035 billion, and the debt was highly concentrated, with a large proportion of short-term loans and floating interest rate loans. Brazil, Argentina and other Latin American countries had the heaviest foreign debt burden.

Nearly 40 developing countries requested debt rescheduling.

However, in the 1960s and 1970s, these Latin American countries developed by borrowing a lot of money from banks such as the United States.

At that time, Latin America developed rapidly.

Especially in the 1960s, many people may not have thought that Argentina's per capita income was higher than Hong Kong and it was richer than Hong Kong.

After the 1980s, the US Federal Reserve raised interest rates to 20% in 1981, leading to a recession. A year later, Mexico announced that its reserves were exhausted and it could not pay the interest on $80 billion in foreign debt.

The US Federal Reserve raised interest rates, and those US banks began to require Latin American countries to repay their loans in advance. A large amount of US dollars and funds were withdrawn from Latin American countries and flowed back to the US.

This led to a debt crisis in major Latin American countries.

In this case, in order to avoid bankruptcy, Latin America can only turn to Europe and the United States for help.

And countries such as the United States, Japan, and Europe just took advantage of this opportunity to harvest a large number of high-quality assets in Latin America. Since then, many major companies in Latin America have become companies in Europe, the United States, and Japan, or joint ventures.

This is also a harvest of Latin America by the United States.

As for the outbreak of the Falklands War between Argentina and the United States, on the one hand, it was to recover the Falklands, and on the other hand, it was to divert domestic conflicts.

However, money is needed before and after the war.

At that time, Argentina could not sustain this war for a long time because of its internal debt problem, which meant that Argentina was doomed to lose from the beginning.

Now Lin Xiuzhi and He Chaoxun were very surprised after hearing this.

There is such a thing behind this.

Yang Ming knew that Latin America was the back garden of M country.

How could M country let Latin America develop?

In addition, M country had already set its sights on the high-quality companies and resources in Latin America.

Like banks in Mexico and Vale in Brazil.

Among them, Vale in Brazil is the world's largest iron ore company, and its iron ore production accounts for 80% of Brazil's total production. Vale in Brazil is the world's largest iron ore producer and exporter, and the largest mining company in the Americas. It is known as the "crown jewel" and "engine of the Amazon region" of Brazil.

Historically, the United States and Japan took advantage of such opportunities to invest in Vale and become Vale's major shareholders.

Yang Ming thinks so.

There are too many debts in Latin America, and a large number of high-quality companies, so he certainly can't eat them.

For those high-quality companies, he can still eat some of them.

Including Vale and other companies.

When Yang Ming was paying attention to the Falklands War, he also noticed this aspect.

During this period of time.

As Yang Ming's intern secretary, He Chaoling not only did things according to Yang Ming's requirements, she followed Yang Ming to learn and really learned a lot.

This made He Chaoxuan feel that it was better to study with Sir Yang than to go back to Santa Clara University in Silicon Valley.

However, Yang Ming thought it would be better for He Chaoxuan to go back to college.

After all, going to college is also a wonderful experience in life.

"Sir Yang, I have ten days to go back to school."

Summer vacation starts in May and school starts in July.

The summer vacation at the University of M is a little different from that in China.

Now, He Chaoxuan has been back for more than two months. She likes to stay with Yang Ming very much. She knows that she will have to go back to college when the time comes.

Chapter 5!

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