When it comes to cultural output, you may be surprised. Don't Americans often protest against the cultural aggression of other countries? Yes, that's right. The export of other countries is called aggression, and the export of the United States is called saving culture. The struggle for the right to interpret the truth in the world is achieved by means of war, and the United States is a master in this field. War is barbaric and finance is civilized.
In the 1970s, in the name of supporting Latin American education, the United States helped Chile, Argentina and other countries to cultivate a large number of economic talents. It seems to be generally accepted that foreign monks can recite scriptures. These newly rich economists who have obtained master's degrees in the United States have made the neo-liberal economic concept take root in the motherland. After returning home, they actively participated in national construction. They don't know that what they have learned is a disastrous future for the country.
In the 1940s, a number of outstanding state-owned enterprises were built in Latin American countries. However, its industrial base is weak, and the demand for industrial products is mainly realized by imports. International trade needs foreign exchange reserves, which is a fact that Latin American countries had to face at that time. After the American elite returned to China, they found a good way to solve the foreign exchange reserves through on-the-spot investigation. The strategy is to develop energy export to earn foreign exchange according to local conditions, attract foreign capital to revitalize the domestic market, and privatize state-owned enterprises.
The implementation of these strategies has indeed solved the foreign exchange contradiction, but left many hidden dangers.
1. Export resources and auction state-owned enterprises to realize market liberalization and competition. The newly established industrial prototype is controlled by foreign capital.
2. Foreign currency bonds increase the fiscal deficit.
3. Open the domestic market without restriction. Foreign capital enjoys national treatment and can invest in any field at will.
The prices of resources and agricultural exports are exchanged for foreign exchange through fluctuations in the international market, but the repayment of foreign currency debts has to depend on the face of the US Central Bank (Federal Reserve). Because once the dollar tightens the currency (the dollar appreciates), interest rates will inevitably rise and prices will inevitably fall. You can imagine the fate of Latin American countries once the US dollar is laid out!
It is difficult for an opium smoker to give up drugs. Debt is opium to the economy. Latin American countries have gradually discovered that they are suffering from foreign debt dependence under the prescription of neo-liberalism with universal values. From 65438 to 0975, Latin America's foreign debt was $78 billion. By 1982, the debt scale reached $3 1000 billion. The share of the total economic output of the debt war rose from 46% to 66%, paving the way for Americans to harvest leeks.
In the 1970s, the United States implemented a loose monetary policy to alleviate domestic economic contradictions. For Latin American countries, it is not difficult to export resources to deal with foreign debts. Because in the long run, the dollar will implement a looser monetary policy, which will inevitably lead to an increase in energy export prices. Latin American countries enjoy the economic prosperity brought by energy exports, and the whole country's economy is thriving. Americans enjoy the energy of the world by printing money, and the American economy begins to recover. At this time, the Fed is ready to raise interest rates and tighten monetary policy.
1979, the Federal Reserve raised interest rates in August. By June 198 1, the Fed's benchmark interest rate had reached an all-time high of 19%. Anyone familiar with economics knows that once interest rates are raised, it is actually to recover liquidity from the market. This operation will inevitably lead to the appreciation of the US dollar and the decline of international commodity prices. If you are interested, you can look at the trend chart of the US dollar index and gold. Without exception, the appreciation of the dollar will inevitably lead to the decline of other commodity prices.
The appreciation of the dollar will also lead to the depreciation of other countries' currencies. In order to maintain currency stability, they have to use foreign exchange reserves to intervene in the exchange rate. However, these operations can not defend the depreciation rate of the local currency at all, because the increase in the interest rate of the US dollar will inevitably lead to the return of capital. Another huge hidden danger is the repayment of huge foreign debts, the price of energy exports has fallen, and it is no longer easy to repay debts.
1982 Mexico declared its inability to repay the interest on its foreign debt.
From 65438 to 0986, Latin American debt crisis broke out in Latin American countries.
Finally, the crisis ended in the form of resource mortgage, and Latin American countries entered the era of economic depression, which was named the lost decade by economics.
You always have to pay your debts, not to mention that the main body of your debt is the United States! In order to repay debts, Latin American countries can only increase energy exports, because this is the biggest demand of world trade. Due to falling prices, the export of grain, coal and oil did not bring much foreign exchange. During the period of 198 1- 1987, the export of Latin American countries increased by 20%, but the trade volume decreased by 10%.
At this time, Latin American countries are in trouble, while international speculators are sharpening their swords.
Latin American countries have released currencies to deal with foreign debts, and the soaring currencies have completely destroyed their economies. 1990 The inflation rate in Latin America reached an astonishing 1500%, and the sharp depreciation of the currency accelerated the detention of funds. Free financial policy is the symbol of the free economic world, and Latin American countries can only look at the ocean and sigh!
1994, domestic financial crisis broke out in Mexico under internal and external troubles! Gradually spread, triggering a Latin American crisis.
In the Latin American economic crisis, I don't know how many dollars I earned by shorting financial assets, but it was the people of Latin America and the future wealth that paid the price.
All these have brought cheap goods denominated in dollars to the American people. At the cost, the Latin American people lived a miserable life.
Let's sort out the thinking of the American financial trade war, export universal values, and believe in the free market-