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Only By Controlling Printing Money Can Prices And Prices Be Lowered.

2011/8/8 11:05:00 36

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In August 4, 2011, the US and European stock markets slumped for second days in Asia.

equity market

The "A" market is also adjusting to a new low.

It is said that the source of the storm was spread over the European debt crisis, but then the US debt was lowered by S & P: S & P cancelled its US debt for the first time in 70 years. The S & P downgraded the US Treasury debt to AA+, which is lower than Liechtenstein and the same as Belgium and New Zealand.

This is called a "cornerstone of the global financial system" by the Wall Street journal article.

In fact, Rodgers has revealed before that that we all know that the United States has lost its AAA status.

Anyone who knows what is going on already knows that the United States is now the largest debtor nation in history.

Indeed, the current world economy is in a precarious situation. It wants to print money and fight chicken industry to save the industry.

Just imagine that interest rates are almost zero. Is this not a sign of printing money to achieve results?

It is impossible to maintain such low interest rates without the supply of large quantities of paper money.

Therefore, from the perspective of Europe and the United States and Japan, the problem of printing money to solve industrial problems is not only fruitless, but rather leads to a serious illness.

Although the US dollar, the yen and the euro are the real reserve currencies of the world, the problem is that the three currencies are already not domestic problems, but they print money and the world has high inflation.

This is also the reason why the global resource prices are hard to call back. After all, paper money is not gold, subject to control of resources and technology, resulting in gold standard money supply difficult to keep pace with demand changes, and paper money supply is almost no cost at present.

The three economies then played the game of diluting domestic wealth in their own country, printing money in the world, and deliberately debt, so as to achieve the purpose of repudiation or diluting debts and looting wealth.

We must learn lessons, especially China.

housing price

The most direct reason for the problem is that the rate of printing money is faster than that of economic growth.

It is necessary to speculate in order not to be diluted by new currencies.

The most direct measure of China's anti inflation is to print less money. If this does not change, monetary policy will be useless again because it is not monetary policy at all.

As Zhou Qiren said, excessive currency is the root cause of inflation.

Similarly, excessive money is also the fundamental reason for rising property prices. It is also the decisive reason why capital must be speculative and enterprises far away from industry.

In the age of paper money, the most important task of the government is to fight against inflation. The so-called anti inflation is mainly to control the excessive circulation of money.

The speed of M2 is 20% very normal. So far we have to control it within 15%. We can see how much money is happening. Many people blame this phenomenon on foreign exchange reserves. This is only a superficial phenomenon. No matter what the reason is, every time a currency is printed out, the holders of other currencies will lose the same proportion of wealth.

Therefore, if we want to make the land price return to a reasonable level completely, first of all, the value of the currency itself should be returned to a reasonable level. If the measurement is not accurate and is shrinking every day, do we still expect the price to be comparable?

If there is no comparability, how can price callbacks be possible?

Therefore, China should avoid mistakes in the US, Japan and Europe. We should resolutely strengthen the control of banknote printing machines. Otherwise, our problems will be even more serious.

China was the first country to use paper currency system. Since the Song Dynasty, China appeared.

Notes

The trouble has brought heavy calamities to China, especially the Yuan Da and Ming Tong Bao.

In the real life, the most impressive Chinese people are probably the great devaluation of the legal system in the period of the Kuomintang's great defeat. They can buy cigarettes in French money and pay sacks, which can buy two coins, which can not be bought in matches in ten years.

If there is no electronic pfer, I believe that the rate of currency depreciation in Japan, the United States and Europe will not be any good.

The current world paper currency system has not yet undergone a cycle, so the lessons of the collapse of several banknotes in Chinese history may be a disastrous prediction for the future banknote system.

When Premier Wen Jiabao returned to the press to mention inflation in March 2010, he said, "you mention a problem that worries me very much.

I once said that if inflation happens, plus unfair income distribution and corruption, it will affect social stability and even consolidate the political power. "

In March 2011, he also stressed that "inflation is like a tiger. If it is released, it will be difficult to shut it in again."

In fact, inflation is no longer a simple matter of CPI. CPI can not reflect the rise of the cost of living, and often feel that the relationship between money and prices is often inconsistent with the people.

Therefore, we expect that the central bank can manage the excessive circulation of money. After all, this is not a small thing: because money is not a neutral phenomenon. In the age of paper money, it is related to the distribution of wealth and the driving force of economic growth.

If we want to reduce property prices, we must control the banknote printing machine if we want to reduce the living costs of the people.