Training the Heavens

Chapter 97 Internal Reference
Gao Jialin took out the draft he had written, which listed in detail the changes in Japan's economic data since the signing of the Plaza Accord, and focused on the impact of exchange rate changes on exports, domestic stock markets, real estate markets and other fields.

At the end of the article, Gao Jialin also temporarily attached a specific plan of the experiment. Tokuma Shoten expected that "Showa American Story" would sell more than one million copies, so it should pay him 210 million yen in royalties, and this royalty would definitely not be paid in one lump sum.

According to the practice in the publishing industry, a batch of books are printed and royalties are paid. The first print run will not be too large. Fifty thousand copies will be printed first and released into the market to see the trend. If they are sold out in a short period of time, more copies will be printed quickly. This process is called "reprinting" in Japanese.

This way, even if sales are not good, there will not be too much loss. There will be no backlog in inventory, so won’t the cost expenditure be reduced?
Based on the first print run of 1500 copies and a price of yen per copy, Gao Jialin's first royalties would only be million yen, which is just over US dollars. Using this small amount of money to conduct experiments would not result in too much loss even if it failed.

The head of the delegation communicated with the country and agreed to Gao Jialin's plan, allowing him to use the first income to conduct experiments. However, correspondingly, the foreign exchange quota promised to Gao Jialin was lost. If the experiment was unsuccessful, the remaining royalties had to be converted into RMB, and the foreign exchange would be handed over to the state for unified management.

Gao Jialin had no objection. In this era, it was already very good to be able to get such conditions. When it came time to sign the contract officially, Tokuma Shoten gave him another surprise. After signing the contract, Nibu Heita directly gave him a signing fee of 10 million yen to show Tokuma Shoten's sincerity.

Gao Jialin fought for it, and the 10 million yen became the first experimental fund. He then commissioned Tokuma Shoten to help open an account in the financial market and operate the funds according to Gao Jialin's instructions, mainly purchasing stocks of real estate-related companies.

Since the signing of the Plaza Accord, Japan's domestic wealth has expanded rapidly, and the prices of assets such as real estate and stocks have risen rapidly, forming the so-called "bubble economy". This "bubble economy" will not burst until the early 90s, and the stocks purchased by Gao Jialin will continue to rise for another four to five years.

Gao Jialin was not pursuing high profits from short-term operations. First, he was about to return and it was not convenient to operate in Shanghai. Second, the main purpose of this experiment was not to make money, but to demonstrate his understanding of the economy. There was no need to take greater risks. The profits from long-term operations were enough.

Furthermore, the higher up the hierarchy, the more strategic acumen is emphasized. Short-term trading is more about tactical proficiency. So, do those at the top need a strategist who can clearly judge economic development trends over the next decade, or a tactician who is adept at short-term judgment? Needless to say, this is the key.
After signing the contract, the exchange group was about to leave Japan. Mibu Heita accompanied Gao Jialin to the plane and bowed 90 degrees before boarding. "Sensei, please, please be sure to get the first draft of "Showa American Story" out as soon as possible."

"Don't worry, I will definitely get it out before the end of this semester." Gao Jialin solemnly promised.

Gao Jialin felt a little regretful when boarding the plane. It was a pity that he couldn't have close contact with the Japanese girls while listening to them call him "Sensei" during his trip to Japan.

But it doesn't matter. As long as I can write "Showa American Story", I will definitely become a famous writer in Japan. When I leave the system in the future, it won't be too late to come to Japan and enjoy the admiration of beautiful girls for writers.

After returning to Beijing, Gao Jialin chatted with the staff of the relevant department for a while. Then they helped Gao Jialin apply for leave from Pujiang College and found him a quiet room in the guesthouse where he could finish writing the article.

Gao Jialin knew this was a very important test for him, so he wrote it seriously. He divided the article into two parts. The first part was the content he had shown to the exchange group leader. Based on what he had seen and heard during the exchange in Japan and the data in the materials, he judged the future development trend of the Japanese economy. The second part was about the impact these changes would have on China. First, the yen would continue to appreciate in the future, so when seeking yen loans in China, they should pay attention not only to the interest rate but also to changes in interest rates.

In the past, China suffered a lot in this regard. The loan terms offered by Japan seemed very favorable, sometimes even interest-free, so people signed the contract without hesitation. However, when it came time to repay the loan, they found that the yen exchange rate had changed a lot. Repaying the loan according to the original contract was equivalent to paying a high interest rate.

These losses can be recovered, so Gao Jialin used a lot of text and data to highlight the points.

Secondly, the appreciation of the yen has had an extremely adverse impact on Japan's export industry. Some Japanese scholars proposed the "flying geese model" to address this phenomenon. Japan, which was the first to achieve industrialization, transferred mature industries or industries with potential comparative disadvantages to other countries in turn. The "Four Asian Tigers" rose because of this strategy.

The four Asian tigers then transferred their mature industries to ASEAN countries in turn, such as Malaysia, Indonesia, Thailand and other countries.

Japan needs to transfer its backward industries, and China's reform and opening up requires a lot of financial and technical support. The two sides complement each other. We can fully seize this opportunity to take over some industries, accumulate experience in the process, catch up with Japan, and ultimately surpass it.

The Plaza Accord and the appreciation of the yen have many other impacts on the country, and Gao Jialin has not mentioned the others for the time being. It is not easy for people to remember if you say too many things at once. These two points are enough to leave a deep impression on some people, and it would be a bad idea to write more.

He submitted the manuscript, but the editor in charge of reviewing it did not immediately decide to publish it. Instead, he asked an expert to help review it first, and then handed it to the leader for review.

After reading it, the leader deliberated and made a decision, "This article is well written, especially in terms of its impact on China. It's very inspiring. Such articles should be seen by some people, so let's publish it here."

The internal reference he mentioned is of a higher level than the previous internal reference that published Gao Jialin's articles. Only leaders at the department level or above are qualified to read it. Gao Jialin was able to publish an article in such a high-level magazine at his age, which can be said to have created a new record.

After finishing all these, Gao Jialin could go back and attend classes at Pujiang College for a few days. The translator found in China and the materials sent by Tokuma Shoten arrived at the same time.

It’s time to start writing “Showa American Story”.

(End of this chapter)