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Chapter 391 What is overheated economy? How many dishes are there in Japan and Taiwan?

After listening to the explanation, Wang Qiang was filled with emotion: "Just relying on the current state of the US imperialism that there is no industry, can it be that China's internal strength be the only one?"

Su Su smiled: "Maybe, but no matter what, this is a fight between experts. You can understand the basics by looking at the actions of both sides. As for the people's urgent housing needs, China has also launched affordable housing and low-rent housing, which is a magical tool to control housing prices at critical moments. In fact, Singapore has always had this thing, and it is also a good example. Many knowledgeable people attacked the government with Singapore and said that Singapore has solved perfectly, why didn't your government learn from others?"

Wang Qiang immediately understood: "They didn't know that housing prices were the weapon for China and the United States to engage in financial wars!"

Su Su sighed: "Yes, if you don't be in charge of your family, you don't know that the food, food, oil and salt are expensive. Their vision limits their situation."

Wang Qiang coughed dryly: "Now I understand, my brother's pattern is higher than theirs."

Su Su smiled and said, "It's a must. Brother Qiang is the one who fights on behalf of our civilization. The pattern is not only bigger than them, but also transcends the dimensions of time and space!"

Wang Qiang excitedly said: "It must be!"

Su Su smiled and said, "Then, after reading the master's challenge, it's time to learn the negative textbook. Although Japan cannot sign the square agreement, he can resist this scam and it shouldn't be so direct. What is Japan's intention to sign a contract? Relieve the overheating of the domestic economy and take advantage of the appreciation of the yen to buy factories and resources all over the world - by the way, after talking for so long, does Brother Qiang know what economic overheating is?"

Wang Qiang said in surprise: "Isn't it just that the economy is very hot?"

Su Su laughed: "Sorry, economic vocabulary is really a scam. Yes, it's really hot. Traditional economic overheating refers to the insufficient supply of goods, which constantly pushes up the prices of goods. For example, in the 1980s, Chinese people should have three major items: "refrigerator, color TV, washing machine" when they get married, and Japanese electrical appliances are the most popular in the market, so a Japanese color TV makes ten times more profitable in China, and the original Japanese color TV is more than 3,000! Brother Qiang think about what the concept of 3,000 in the 1980s, your father's salary for two years? Those who started as traitors can also make three or four times more profitable. This is the overheating of China's economy."

Wang Qiang said in surprise: "Damn it!"

Su Su smiled and said, "After all, the Chinese market is too large and there are too many people. Even if Japan's production capacity was fully opened at that time, it would not be able to supply it. Then Japan's problem came - the factory power was fully opened, but the raw materials did not keep up, which led to a shortage of raw materials and prices, and also increased prices for products. This is the overheating of Japan's economy. It can also be considered as supply in short supply."

Wang Qiang immediately realized: "So Japan's intention is to take advantage of the opportunity of the appreciation of the yen and buy power to buy resources all over the world to solve the problem of shortage of raw materials."

Su Su smiled and said, "Yes! That's what Japan thinks, but it turns out that this is a naughty idea."

Wang Qiang coughed dryly: "Brother is not a tycoon, he is just a primary school student. But Japan has no choice, right? What can he do if the United States forces him to appreciate?"

Su Su sighed: "Japan has only one correct way, that is, quickly transfer the industry to China on a large scale, and China is its safe haven. Instead of thinking about acquiring industries around the world under the control of the US eyelids."

Wang Qiang said in shock: "Is this possible?"

Su Su laughed: "It was China-Japan friendship at that time! At that time, the Soviet Union was dying, and that was Japan's last chance to be useful. Unfortunately, Japan could not trust China. The scale of industrial transfer was very small and it was the lowest-end OEM. It was mainly about dumping color TVs into China to make money, so let's stay at home and wait for death."

Wang Qiang was happy: "Japan is afraid that after the industry is transferred to China, the industry will become hostages!"

Su Su smiled and said, "Maybe, after all, China and Japan have a grudge."

Wang Qiang was even more happy: "That's still unsolvable, I deserve it!"

Su Su continued: "Anyway, the two I'm talking about are traditional economic overheating. China experienced two overheatings in the 1980s, and one was when it started the first wave of large-scale national road construction and housing infrastructure activities in 1984, when all building materials soared. Then in 1988, all industrial raw materials were in short supply and materials soared. So how did China deal with it?"

Wang Qiang said in surprise: "Since Japan is relying on appreciation, then China is depreciating the RMB?"

Su Su smiled and said, "Yes! For traditional industries, the depreciation of the RMB is like 'how stupid people come and invest and buy things', which is conducive to attracting foreign capital to build factories. This is the first step for China to become a world factory. So the advantage of depreciation is that Japan and Taiwan came to China to set up factories. Because China's labor is cheap, China also gives Taiwanese supermarkets duty-free treatment. After such a round of discounts, the factory will be available and the cost will be reduced sharply. Wouldn't it solve the problem of supply shortage?"

Wang Qiang nodded: "It's easy to understand! What about the unconventional economy overheating?"

Su Su smiled and said: "With the advancement of technological productivity, it is difficult to see a shortage of supply. Therefore, the economic overheating under the new situation means overheating of production capacity, that is, the shirts and shoes produced by factories are piled up and cannot be sold, and the radishes and potatoes in the warehouse are waiting for insects, which means that the supply is overheated."

Wang Qiang immediately understood: "This kind of depreciation must be beneficial to export!"

Susu nodded: "Yes. Then there is a certain industry that makes money, and it just rushes into it to push up prices. This is the case with the stock market and the real estate market. Whether it is the supply and demand push up prices and inflation, or the inflated prices such as the stock market and the real estate market, it is all called an economic bubble."

Wang Qiang once again understood: "The United States is the high stock market and real estate market, so the US dollar depreciated!"

Su Su nodded: "Yes, China also uses depreciation to regulate the real estate bubble. The principle is exactly the opposite of the stock market and the housing market growing wildly after the yen appreciation. It is normal to have a bubble, but it must be punctured and returned to the original prices. When the bubble bursts, it is bankruptcy that should go bankrupt. If you should jump off a building, it is called "squeezing abscess" in Chinese terms, which is a pain that must be experienced. But for the huge bubble of the US stock market, it is big that cannot be punctured at all. Once the US stock market collapses, it is not a problem of several companies going bankrupt and several people jumping off a building. It is a landslide and tsunami that the US dollar is over. The US splits!”

Wang Qiang said in surprise: "The US stock market is so serious?"

Su Su said in a deep voice: "Well, or rather, the US stock market has become hostages that international financial groups threaten the United States - if the United States dares to chase them, they will trigger a collapse in the US stock market. But this issue is too complicated, I won't talk about it."

Wang Qiang coughed dryly: "Yes, it's too complicated."

Su Su sighed: "So, China's economic response is based on the moment and looking forward to a hundred years! It is better to teach mermaids than to teach people how to fish. Its advantages will only be played out after 20 years. It is different from the kind of buying and buying that Japan and Taiwan that only look at the immediate interests and seek quick money, let alone the democratic government must achieve results in a four-year term. How could they hold up their big moves? Speaking of which, after Abe came to power, he also wanted to learn from the depreciation of the RMB and get out of the predicament, but it turned out to be useless."

Wang Qiang said in surprise: "What's going on?"

Su Su smiled and said, "Because currency depreciation can only be used when the economy is overheated, that is, people need to be active and motivated, and the market needs to have a market. If everything is hot, the east wind of investment will blow up. But Japan, where Abe took over, was sick, weak and depressed. It is not the same thing at all, he can't even learn it!"

Wang Qiang coughed dryly: "I don't know what kind of situation is that I'm sick and weak."

Su Su smiled and said, "This is a course for top financial students. Brother Qiang is now in the second grade of elementary school. If you don't have a choice when Japan is being beaten by the United States, then let's take a look at Taiwan and see how this former leader of the Four Little Dragons developed, how to show off in front of the mainland, and how to behave."

Wang Qiang immediately became interested: "Yes, Taiwan was so pretentious at that time. The textbook only said that Taiwan was Sun Moon Lake, Alishan, Baodao. On TV, I only knew that the Little Tigers returned to the Condor Heroes, and I never knew how they got rich."
Chapter completed!
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