Let’s enjoy English 21st

【America has controlled the money in the world】

《The dollar becomes the money in the world》

Therefore each of the nations stopped the gold standard system one after another before the World War Ⅱ.

After the World War Ⅱ, the structure that the gold standard on the worldwide scale being able to exchange the dollar in America with the gold and linking to the gold by the dollar has formed.

The currency of each nation could exchange with the dollar always, and the value on the dollar was guaranteed by the gold.

Thus each nation was relieved being able to exchange the dollar with the gold in…

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【America has controlled the economy in the world】

Each nation was relieved being able to exchange with the gold in emergency, so being able to accept the dollar on the payment of the trade. The free trade learned to be guaranteed after the war then, for America had enough gold and declared allowing each nation to exchange the dollar with the gold whenever each of them liked.

After the World War Ⅱ, America alone used to have no less than 60% of the gold for the currency in the world, the overwhelming economic power in America changed the dollar into the money in the world.

『Column, being…』

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【America has controlled the economy in the world】

『Column, being unable to exchange with the gold within the nation』

It’s the government in each of foreign countries alone that the government America guaranteed the exchange the dollar with the gold. Even if companies and individuals in America applied for the exchange, the government in America doesn’t respond to it.

《Taking away the control on the world from England》

The money in the world used to be the British pound before the World War Ⅱ. The payment was done with the British pound all over the world, for there was overwhelming the …

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【America has controlled the economy in the world】

《Taking away the control on the world from England》

…for there was the overwhelming economic power of England in the background then.

England succeeding in the Industrial Revolution promptly became the factory for the world, for each nation in the world competed to buy the industrial product from England, and its payment was done with the gold, and the gold gathered in England from all over the world. Substantiating with the gold, England issued the pound. It’s the gold standard system.

As long as having the pound whenever being able to…

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【America has controlled the economy in the world】

《Taking away the control on the world from England》

As long as having the pound whenever being able to buy the industrial product from England, so each nation wanted to possess the pound, thus the British pound become the money for the world, but the World War Ⅱ made the economy in England wear out completely and the amount of the gold that England possessed decreased sharply then.

Instead of England, America became the nation which had more gold than England. America aimed at taking away the economic hegemony in the world from England by…

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【America has controlled the economy in the world】

《Taking away the control on the world from England》

America aimed at taking away the economic hegemony in the world from England by making use of the power of the dollar, so trying to change the dollar into the money for the world.

Contrary to it, Keynes who is an economist suggested they found the international currency before the international conference before the Breton Woods was founded.

Without adopting the specific currency, founding the organization like the international bank and issued the national currency from it. It was the…

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【America has controlled the economy in the world】

《Taking away the control on the world from England》

It was the internationalism extremely, but America firmly opposed it, regarding other international currency except for its own as the violation of the sovereignty of its own nation, and America didn’t admit it at all.

After all America was ahead of England with regard to the economic power overwhelmingly, so England was forced to compromise, the idea from America that the dollar was the international currency has won.

As the dollar has changed into the money in the world, the presence on…

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【America has controlled the economy in the world】

《Taking away the control on the world from America》

…the presence on England in the economy of the world faded away rapidly, but after establishing the Breton Woods system, the trade was done with the dollar within the Commonwealth of Nations. For example, when England imported supplies from India, the payment was done with the pound, but when exporting the material to other foreign nation, it received the dollar, so starting to say it wanted the England to pay with the dollar .
Thus the structure on the payment with the dollar has vanished…

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【America has controlled the economy in the world】

The structure on the payment with the dollar has vanished within the Commonwealth of Nations before one knew, and everything learned to be paid with dollars.

Thus instead of England, the hegemony by America on the field of the world economy has formed.

『Column, Keynes』

Keynes is the economist in England representing the 20th century and had a great influence over economic policy on the developing countries after the World War.

He was born in Cambridge and majored in math in university. Besides studying math, got a job of the civil servant.

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【America has controlled the economy in the world】

『Column, Keynes』

It was the Paris Peace Conference in 1919 which makes Keynes famous. He attended the meeting and opposed to the excessive compensation against Germany which was the defeated nation would destroy not only the economy on Germany but the one on Europe, and resigned from his position as the lead representative from England, and put his idea into his book and it caused a buzz.

He tackled the process on the economic problem after the war in the middle of the World War Ⅱ as the advisor of the Ministry of Finance, and had a headed…

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【America has controlled the economy in the world】

…and had a heated discussion against the representative from America, but the IMF was founded obeying by the idea of the representative from America.

He doesn’t only positing a numerous bright theory rewriting the history but being the practical man weathering the storm on the crisis of the economic world actually.

《The IMF does the bridging loan》

When the dollar in America becomes the key currency, at the same time the organization guaranteeing the system was born. It’s the IMF. As the name suggests, it’s the fund, putting the money from…

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【America has controlled the economy in the world】

《The IMF does bridging loan》

…putting the money from member countries and saving up the fixed amount of money and if a nation falling into the foreign currency shortage appears from the member countries, doing the bridging loan to the country falling into the foreign currency shortage.

As the Breton Woods system has adopted the fixed exchange rate system, the currency on the member country is always able to be exchanged with the dollar of the fixed amount of the dollar.

As being able to exchange with the dollar always is guaranteed, being…

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【America has controlled the economy in the world】

《The IMF does bridging loan》

…being able to trade with other countries at ease and to receive the payment with the trading nation of its own currency.

But when the economic situation in some nations goes bad, it doesn’t go well like that, so the fund like that has been established.

For example, if the economic situation in the nation named A goes bad, the company in a foreign nation having the currency of the nation thinks the value on the currency of the nation may have dropped, so trying to sell the currency and to buy the dollar.

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【America has controlled the economy in the world】

《IMF does bridging loan》

The central bank has to take the currency for exchanging the dollar any time, otherwise it affects the credibility on its nation, so responds to exchange the currency brought in there with the dollar on hand.

If going on it like that, the dollar which the central bank has on hand decreases sharply, and there is the fear there isn’t enough dollar which the central bank responds to exchange the currency with.

So the nation named A can receive the bridging loan so as to prevent the worst scenario from breaking out.

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【America has controlled the economy in the world】

《The IMF does bridging loan》

Then the nation named A received the bridging loan from the IMF.

The board of directors decides the decision on the IMF, but the vote to right is determined according to amount of investment.

For example, as to the change on the exchange rate of the member country, it can use as it likes until 10%, but if exceeding it, the approval of three fourths or more to it on the board of directions in indispensable.

America used to have the right to vote of 25% according to the amount of investment, so America learned…

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【America has controlled the economy in the world】

…so America learned to have the right of veto on the change of the exchange of rate, and there is the structure in which America has assumed the hegemony on the economy in the world, for the headquarters on the both of the IMF and the World Bank have been established in Washington so as to respond to discussion with America always, to be exact, we should say so as to meet with wishes of America always.

《Dollars in America have spread all over the world》

After the World War Ⅱ the world divided into the east and west, the Cold War started then

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【America has controlled the economy in the world】

《The dollars in America have spread all over the world》

The Europe which became the battlefield during the war and ran down divided into the east and west and was in conflict.

As each nation of east Europe joined group of the Soviet Union, America got on its nerves, and took the plunge and started the large scale of economic recovery, aiming at reviving the economy on each nation in the west Europe, preventing each of them in the west Europe from being under control by Soviet. We call it the Marshall Plan.

The Secretary of State named …

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【America has controlled the economy in the world】

《The dollars in America have spread all over the world》

The Secretary of State named George Marshall clarified America prepared for the large scale of economic support against each nation in the Europe at the lecture in Harvard university June in 1947, so it was named like that.

The support was for years from 1948, and reached fourteen billion dollar in total. Each nation of Europe bought goods from America with the dollars by the support from America. As a result the export industry in America developed by it. America gave the dollars to…

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【America has controlled the economy in the world】

《The dollars in America have spread all over the world》

America gave dollars to Europe and Europe bought the goods from America with the dollars. The circulation that the dollars flow back happened, and made the economy in Europe revive and the economy in America developed in America as well.

As the economy in Europe revived, exporting goods from Europe started, and America bought the goods from Europe. Then the payment was done with dollar, so the dollar overflowed in the Europe more and more.

When the Korean War broke out in 1950…

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【America has controlled the economy in the world】

《The dollars in America have spread all over the world》

…America bought the supplies for the war with dollars. The one which benefitted from it more than any nation was Japan which is closest from the Korean Peninsula. Dollars flowed into Japan and started to accumulated in Japan.

Moreover when the Vietnamese War broke out, America spent the large amount of the war expenditure in the Southeast Asia, so the large amount of dollars spread over the world more and more. Each nation held the dollar as fortune. Sometimes they bought the …

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【America has controlled the economy in the world】

Sometimes the people in each nation bought the government bond in America and got its interest, for even if having the money alone, no one can get the interest, but as long as changing the money into dollar and buying the government bond in America with dollars, everyone could get its interest.

《The dollar crisis attacked》

The premise on the Breton Woods system is overflowing dollars from America in the world. As each nation holds the large amount of dollars, the payment on the trade was done among each nation, but too much of a good thing…

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【America has controlled the economy in the world】

《The dollars crisis attacked》

…but too much of a good thing is bad, for the large amount of the dollars spread too much, it returned to America as if it had been the boomerang.

When each nation in Europe saw the actual situation that the dollar was filled with the world, they were suspicious of everything gradually. If the total amount of the dollar going around the world was more than the total amount of the gold America held, could America exchange the dollar with the gold actually? They became skeptical against the dollars.

Therefore..

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【America has controlled the economy in the world】

Therefore each nation thought they tried to exchange the dollar with the gold before being unable to do, and urged America to exchange the dollar with the gold, and America was forced to receive it, so the gold America had at hand decreased less and less.

The amount of the gold the government in America held was some twenty five billion dollars in 1949, but it decreased to no more than eleven billion dollars in 1970. America learned to refuse to exchange the dollar with the gold at last. It’s the dollar crisis.

《Nixon shock shook the world》

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【America has controlled the economy in the world】

《Nixon shock shook the world》

I’m wondering if it’s like the tongue twisters.

Then the President Nixon made a speech on radio and TV for the whole America and announced America stopped exchanging the dollar with the gold August in 1971, and it was called the Nixon shock. Then the economy in the world fell into the chaos.

The trigger was when England asked America to exchange the three billion dollars at hand with the gold all at once before two days on the announcement by Nixon. America couldn’t afford it.

Even if having the large amount…

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【America has controlled the economy in the world】

《Nixon shock shook the world》

Even if having the large amount of the money, America doesn’t exchange the dollar with the gold. It overturned the Breton Woods system after the war from the root.

Without informing the crucial decision to other nations at all, the President Nixon announced it on radio and TV all of sudden. Moreover in his statement, America wasn’t the one to be blamed for the decision like that and expressed as if the Europe and Japan which continued to increased the trade surplus had been responsible for it. What he wanted …

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【America has controlled the economy in the world】

What he wanted to say was America wasn’t in the wrong, the one which was in the wrong was foreign countries which saved up dollars as they like.

『Column, the part of the speech made by Nixon』

When the World War Ⅱ was over, the economy of major industrial countries in Europe and Aisa were exhausted. America continued foreign aid with one hundred forty three billion dollars for twenty five years so as to help them. It was right.

They have regained their vitality by helped our aid greatly recently, and have been our strong competitors and we …

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【America has controlled the economy in the world】

…and we are welcome with their success.

But when other counties’ economy become strong it is highly time to they share the burden fairly so as to keep order in the world. It is about time we should correct the exchange rate and major countries compete equally. America doesn’t have to compete with its one hand tied up already.

『No one could understand the content of the statement』

The Secretary of State informed to then the President Eisaku Sato by telephone Nixon would make speech immediate before.

As there will be an important…

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【America has controlled the economy in the world】

『Column, no one could understand the content of the statement』

As there will be an important announcement from the President, we want you to listen to voice of America which is short wave broadcasting by the government in America for overseas.

The Prime Minister’s official residence was in uproar so as to look for an interpreter and we saw the scene they listened to the short wave broadcasting at the Ministry of Finance.

Then the President Nixon announced that imposing a tariff on all the imported things by 10percent and stopping…

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【America has controlled the economy in the world】

…and stopped exchanging the dollars with the gold. The government in Japan was worried about the imposing the tariff by 10 % alone too much to understand the meaning of stopping exchanging the dollars with the gold.

《The currency becomes the floating exchange rate system》

If there was the thirty five dollars, everyone can exchange it with the one ounce of gold until then, but as it’s impossible, it means the value on the dollar drops as it was before.

The essence of the statement by Nixon is abandoning the responsibility by America that …

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【America has controlled the economy in the world】

《The currency becomes the floating exchange rate system》

The essence of the statement by Nixon is abandoning the responsibility that the dollar supports the currency in the world, at the same time, trying the devaluation of dollar.

Based on the announcement by Nixon, each nation in the world aimed at restricting the new international order. Once a new fixed exchange rate was decided in Washington December in the same year, but after all the dollar has been devalued against currency in other nations.

On the other hand, the yen was revalued.

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【America has controlled the economy in the world】

《The currency becomes the flat system》

Then the dollar was 308yen, but it didn’t continue so long, each nation migrated to the flat system one after another in 1973.

Thus the exchange rate on the currency of each nation goes up and down according to the demand and supply at that time. We call it the flat system.

The exchange rate changes from moment to moment. The word of strong yen and weak yen have been used from then.

America has announced to stop exchanging the dollar with the gold, abandoning the responsibility of maintaining the….

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【America has controlled the economy in the world】

…abandoning the responsibility of maintaining the dollars as key currency. The dollar being unable to exchange with the gold isn’t valuable as it was, but there is no other currency in place of the dollar, after all, the dollar goes on playing a role as the key currency.

《The Plaza Accord was done》

The ministers of finance and the Central Governors from developed countries like America, France, England, West Germany and Japan gathered at the luxury Plaza hotel in New York secretly October in 1985 and reached the agreement. We call it the…

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【America has controlled the economy in the world】

《The Plaza accord was done》

We call it the Plaza Accord. It was decided that each nation cooperated so as to push forward the cheaper dollar. America demanded each nation to round down the dollar by ten percent, and each of them accepted it, but Noboru Takeshita who was then the minster of finance announced rounding up the yen by 20% against the dollar. The one dollar was 240yen until then, but admitted to round down the dollar to 200yen.

The goods flowed into America from Europe and Japan then, and America suffered from the trade deficit.

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【America has controlled the economy in the world】

《The Plaza accord was done》

If the dollar is rounded down, the price on the goods made by America drops in foreign nation, so it could have been sold well. Or the price on the imported goods will rise by rounded down the dollar, so the imported goods could not have been sold well in America.

The government of Reagan demanded and tried to decrease the trade deficit like that, and each nation responded to it, especially the export in America from Japan increased so sharply that the trade friction between Japan and America became grave then.

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【America has controlled the economy in the world】

《The Plaza Accord was done》

Japan admitted the strong yen so as to ease the friction, and each nation sold the dollar and bought the currency of its own.

After moving to the flat exchange rate system, it has been arranged the system selling and buying the currency through the telephone line between banks or foreign exchange brokers of each nation in the world. It’s the foreign exchange market, and the central bank of each nation sold the dollar and bought the currency of its own here.

As the large amount of dollar was sold at the market…

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【America has controlled the economy in the world】

As the large amount of dollar was sold at the market in the world, the price on the dollar dropped owning to the relation between demand and supply, so the dollar dropped to some two hundred yen. Soon the dollar fell still to around one hundred yen. It means the yen rose. The position on the dollar has started to drop.

But without appearing the currency in place of the dollar, the dollar maintains the position as the key currency continuously.

《The money has been the goods》

As being the floating exchange rate system, the world of the…

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【America has controlled the economy in the world】

《The money has been the goods》

…the world of the international finance has changed completely, for the money has been the goods. The exchange rate of the currency in its own nation was fixed in the Breton Woods System until then, but as it is changed the business is formed by making use of the change.

For example, let’s suppose one dollar is two hundred yen, if changing millions dollar into the yen, it’s two hundred million yen. When one dollar is hundred yen, if changing the two hundred million yen into the dollar, it’s two million dollar.

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【America has controlled the economy in the world】

Moving the money from the dollar to the yen, from the yen to the dollar causes a chance of making big money. The money using for selling and buying the goods becomes the goods itself, so it has been sold and bought. The currency speculation has started then. Selling and buying the currency makes the currency start the self production.

The large amount of the fund has learned to fly around in the world. The ones who move the fund is the financial world in America and the company controlling the speculative funds called the hedge fund.

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【America has controlled the economy in the world】

《Asia was attacked by the currency crisis》

The hedge fund is willing to go out of the business the economy of other nation so as to increase its own fund. The cruel action attacked Asia from 1997 to 1999. It’s the currency crisis in Asia.

Instead of the floating exchange rate system, Thai and Indonesia fixed its own currency with the dollar. The currency in Thai is the Baht. The one dollar used to be fixed as 26.2 Baht. Everyone used to be able to exchange the Baht with the dollar at the bank in Thai whenever as they like.

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【America has controlled the economy in the world】

《Asia was attacked by the currency crisis》

By the way, I have little knowledge on the economy in the world. I’m afraid my expression is as if the Baht had been exchanged with the dollar in the past alone, but I’m not sure of it, it’s just that I’ve expressed as the author did. The word is hard to express.

Thai protected the fixed exchange rate and avoided the risk of change in the exchange rate and called in the foreign capital into Thai.

But the hedge fund thought the Baht was overestimated and aimed at the Baht and engaged in selling Baht

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【Asia has controlled the economy in the world】

《Asia was attacked by the currency crisis》

The hedge fund invested in Thai and changed the dollar into the Baht, but exchanged the Baht into the dollar all at once. As exchanging the Baht into the dollar, it means selling the Baht and buying the dollar, being engaged in selling the Baht, furthermore, launching short selling of dollar.

The short selling is selling a thing which we don’t have, but no one could sell anything we don’t have, so we borrow from somewhere and sell it. I’m sorry for my poor expression.

The hedge fund borrowed the…

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【America has controlled the economy in the world】

《Asia was attacked by the currency crisis》

The hedge fund borrowed the Baht from the bank in Thai and sold it. The government in Thai wanted to maintain the fixed change rate system, so it must confront the selling Baht being ordered through bank from each place. The central bank of Thai exchanged the Baht being sold with the dollar.

As exchanging the large amount of the Baht with the dollar, the dollar Thai had hit bottom, and being unable to exchange with the dollar at last, the fixed change rate system on the Baht collapsed then.

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【America has controlled the economy in the world】

One dollar used to be 26.2 Baht, but it plummeted to 47 Baht at the end of the year, and as the Baht crashed, the hedge fund exchanged the Baht with the dollar, and repaid the Baht to the bank which the hedge fund rented, making a fortune by the short selling.

In the next, rupiah in Indonesia was targeted and the rupiah also plummeted likewise, moreover Korea was aimed. Asia was in great turmoil then.

《The action by the IMF is always the same》

Even if the fixed exchange rate system collapsed by the hedge fund, they have to start the …

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【America has controlled the economy in the world】

《The action by the IMF is always the same》

…they have to start the foreign exchange market with the floating exchange rate system again, but they need the dollar responding to the request of exchanging with dollar.

Then it’s the turn of the IMF which is an abbreviation of the International Monetary Fund. The IMF is supposed to assist the nation urgently which needs the foreign currency.

But if seeking for the assistance to the IMF, the IMF always wants them to reform the economic system of the nation in exchange for the assistance, and …

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【America has controlled the economy in the world】

《The action by the IMF is always the same》

…and the reform is the American style.

Cutting back on domestic expenses, tightening the monetary policy, and raising the domestic interest rate. In addition, being thorough the industrial liberation by the Market Fundamentalism.

What is the Market Fundamentalism ? It means in the next.

Without being intervening by the government, leaving it to the economic freedom.

As a result, an inefficient industry will be eliminated, so the economy takes back its strength.

If being raised the domestic…

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【America has controlled the economy in the world】

《The action by the IMF is always the same》

If being raised the domestic interest rate, the overseas fund would return asking for the high interest rate. Without being regulated, the industry is liberated, the possibility on investing will open up for the investors overseas. In short, the investment from overseas increases more and more.

The movement of exchanging the dollar with its own currency appears, and the worth on the currency could have risen.

As America has controlled the center of the IMF, so the action by the IMF means that…

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【America has controlled the economy in the world】

《The action by the IMF is always the same》

…ordering to imitate the economic system like America, for if being the economic system like America, the fund in America learns to take action easily. Opening the domestic market for the fund in America. It’s the guidance from the IMF.

Regardless of the condition of the other nation, the guidance from the IMF is the blanket policy, so if putting it into practice as it was, various trouble is caused in the involved country.

Indonesia cut down on its household expenses and raised the utility bills…

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【America has controlled the economy in the world】

…obeying the guidance from the IMF, as a result, what’s happened in Indonesia?

The anti-government riot broke out against the Suharto government, and the Suharto government lasting for many years collapsed.

《Having not admitted the Asian Monetary Fund》

Japan took into action against the currency crisis in Asia, for Japan witnessed the economy of each nation in Asia was ruined by the speculative funds from the hedge fund, and thought of its original solution. It’s not the IMF but AMF which is the Asian Monetary Fund.

Each nation falling …

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【America has controlled the economy in the world】

《Having not admitted the Asian Monetary Fund》

Each nation falling into the crisis currency needs the foreign exchange reserves meaning the dollar urgently, for it needs the dollar so as to support buying its home currency.

Without asking for the IMF, each nation clubbed together and founded the fund and tried to construct the structure of lending the money. Japan thought of it.

The concept was the member of the central bank in the Southeast Asia New Zealand and Australia offered the fund of hundred billion dollar each other in total.

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【America has controlled the economy in the world】

《Having not admitted the Asian Monetary Fund》

Japan assumed of contributing some thirty billion yen, and then when lending the money Japan thought of the policy not adopting the action of the uniform reform like the IMF, for there could have been the way for economic reform in Asia, so trying to avoid forcing on the American style.

But America strongly opposed to it, for without America, the structure was thought. Even if it’s limited to the Asian area alone, America has never admitted the reconstruction of the financial order in the world…

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