The United States has two ways to deal with it. One way is to help low-income buyers, increase their income, and enable them to pay their mortgages on time. This method can fundamentally eliminate the crisis, and the whole expenditure is limited, which is the best method. But it involves a lot, and the Bush administration seems to have no such idea. The other is to print a lot of money to help financial institutions survive, but to prevent capitalists who fled before the subprime mortgage crisis from using the subprime mortgage crisis to buy and annex the assets of American financial institutions. These funds will certainly find a place to speculate. These funds are dangerous hot money for China. The author thinks that the latter option is the idea of American capitalists, which can make international finance complicated and changeable and benefit from the chaos. The United States itself, on the whole, will not have much loss, and can also control the whole situation well. Other countries, especially China, may cope with mistakes and lose a lot of wealth. Even if the response is correct, due to the increase in the discovery of US dollar currency, the price of US dollar is likely to rise, which will lead to the depreciation of China's foreign exchange reserves. Due to the impact of the financial crisis, the consumption of non-essential goods in the United States decreased, which led to the decline of China's real economy. Many foreign trade enterprises closed down and unemployment increased. The reason why there is no major social problem is that the main workers of these enterprises are migrant workers, and migrant workers still have a piece of land to rely on and survive in the countryside.
China's coping principles:
Western classical economists and Marx both believe that wealth is created by labor. Knowing this, you will know how to deal with the current financial crisis in the United States. Various financial innovations do not directly create wealth. Historically, various financial activities, including stock market, foreign exchange market, property market investment and financing, futures and so on. , are disguised gambling places, its negative effect is far greater than the positive effect on the economy. Its role in economic development can be replaced by other ways. Generally speaking, the main function of these financial means is the place where a large amount of capital defrauds the wealth of ordinary people. China was right to abolish all the above financial instruments. Recently, China has launched a new financial market with faster wealth flow. With the relaxation of financial control in China, these gambling places not only provide casinos for China capitalists, but also provide casinos for foreign capital predators, absorbing the wealth of China people. China's foreign exchange must not enter various foreign financial casinos. Any casino owner has endless means to cheat the wealth into the casino. It is unrealistic to cheat the boss's wealth from the casino, and the final result is that his own wealth is cheated. So don't participate in saving European and American financial institutions. All kinds of speculations are very dangerous.
China's current countermeasures:
China needs to know the actual amount of foreign exchange it has, understand the rules of international currency flow under the financial crisis, and prevent foreign exchange flow from affecting normal economic activities. You can't invest all your foreign exchange, but you must keep enough foreign exchange at your disposal to cope with the more unpredictable foreign exchange flow in the era of financial crisis. The domestic practice of supporting foreign investment and foreign trade should be fundamentally changed (see annex). Economic development must be based on domestic production and consumption. We can't build a foreign-funded enterprise that only uses China's labor force and disappears at the first sign of trouble. This will not help the economic development of China, but will only lead to economic disaster in China.
Foreign-funded enterprises in China have actually become places where China's wealth is lost. In this financial crisis, some foreign-funded enterprises need funds to help their local enterprises, and the state should take the opportunity to buy and reduce the number of foreign-funded enterprises. The most important thing is to buy shares of foreign capital in domestic financial institutions such as bank insurance. Banks are the management institutions of national wealth, and foreign participation in banks means that part of the growth of national wealth belongs to foreign capital, and they have no contribution to the growth of national wealth. I very much agree with economists such as Zhong Dajun that the investments of foreign exchange and financial institutions such as US Treasury bonds purchased by China should be used to buy back US foreign-funded enterprises in China.
This financial crisis provides a good opportunity. Through the financial crisis, we can change the export-oriented economy at low cost and vigorously develop the domestic demand-oriented economy. Specifically, we should greatly increase the income of ordinary workers, including migrant workers, increase the product market for domestic demand, and at the same time make enterprises turn to producing domestic products. Appropriately tighten the funds of foreign trade enterprises and reduce the living space of foreign trade enterprises, thus reducing the production capacity and export capacity of foreign trade products, reducing the foreign trade surplus, gradually reducing the foreign exchange surplus and reducing foreign exchange reserves.
Now is not a good time to buy physical assets such as gold and resources. We have seen that the dollar price of various resources has risen sharply, which is largely a conspiracy. We are now buying resources, and the actual result is the loss of wealth. If gold itself is not used as a raw material for production, it is actually as worthless as the dollar, and its price is actually controlled by capital predators and fluctuates greatly. Now the price of gold is as high as several thousand dollars per ounce, which is much higher than the historical normal level. Now that foreign exchange is converted into gold, there is a great possibility of wealth loss. Oil prices have also been fired to the highest level in history. It is said that our country bought a lot of oil at a high price. Oil prices are likely to return to the normal level of $ 20-30 a barrel.
The current appreciation of RMB is a disaster. At present, there are a lot of foreign hot money in China, which has turned into RMB and entered the domestic stock market and property market through various channels. Now the domestic stock market and property market are hovering, and there is a financial crisis abroad. These hot money urgently need to flow back to save their nests. They hope that the exchange rate in China will rise sharply, so that they can make a lot of money when they leave China to exchange foreign exchange. The appreciation of RMB will also reduce the competitiveness of products, further reduce exports, increase the closure and unemployment of enterprises, thus reducing domestic consumption and leading to economic crisis. The state should legislate to greatly increase the income of ordinary people, so as to raise prices, create an environment for RMB depreciation, and suppress the stock market and property market at the same time, thus cracking down on foreign hot money.
We should establish our own economic system. Fundamentally speaking, the economic system established by western countries is a system to safeguard western interests. Historically, western countries have plundered the wealth of many countries through various so-called market means within this system. Southeast Asian financial crisis, Russian financial crisis, South American financial crisis and so on, all these historical facts show that the western economic system is deceptive. We have a good reputation in the third world. We have huge domestic production capacity, and our imported raw materials mainly come from the third world. All these have laid a good foundation for us to establish our own economic system. The only thing we need to do is to increase our spending power. In order to expand our consumer market, we must increase the income of ordinary workers. Otherwise, we can't provide markets for the products of other third world countries, and we can't let the people of third world countries use RMB to promote the economic development of third world countries. Without increasing the domestic market capacity, our surplus products can't be digested by ourselves. Exporting to developed countries to increase foreign exchange reserves is essentially suicide, and our own development has become a problem. How can we provide markets and opportunities for the development of the third world? If we turn to the third world and establish an independent economic system with China as the mainstay, our strength will have a solid foundation, and the decline of western developed countries will become inevitable. Western countries have no power to stop this historical inevitability. If we stay in the economic system headed by the United States, one day, we will become an economic colony completely controlled by the United States. In fact, now we are getting deeper and deeper (such as introducing new financial markets).
Summary:
The main problem of China's economic development is that the domestic authorities are not aware of their own economic strength. The domestic production capacity is very large, but it controls the income of ordinary people, so that their own people have no money to consume their own products and exchange them for American dollars and worthless IOUs. If Americans don't want them, their production lines will have to stop, and the economy will face stagnation or even collapse. This is really an absurd economic policy. Those in power must realize that the only correct way for China's economic development is to build affordable housing, realize real estate consumption and increase the income of ordinary workers, so as to improve production capacity and consumption capacity at the same time and keep the balance between production and consumption. Otherwise, China's economy will inevitably develop slowly, or even have a crisis. This is the fundamental reason why capitalist society has emerged from the economic crisis for hundreds of years. This is a successful experience adopted by those in power in capitalist countries after realizing this.
For the ongoing American financial crisis, if you realize that western financial activities are a kind of gambling, you can understand its elusive operation process and make correct countermeasures. Those readers who are skeptical about conspiracy theories will understand that conspiracy is everywhere in economic activities as long as they think about the behavior of businessmen in commercial wars. The American government is actually controlled by American financial capitalists, and their behavior is not much different from that of businessmen.
Our patriotic economists should reflect on western economic theories, not be confused by western deceptive theories, and consider the law of economic development from the entity, not from the virtual or monetary theory. Call on our patriotic economists to fundamentally put forward countermeasures, including canceling the stock market, foreign exchange market and futures market. (See the annex to demonstrate that the funds needed for national development are issued by banks, and the stock market reduces the funds used by ordinary people for consumption, which hinders economic development). Legislation should be made to ban the stock market bubble and put an end to the crisis brought about by those deceptive stories, instead of calling on the stock market to rescue the market again and again. Every time we rescue the market, it means that some people's wealth is cheated away by capitalists, and the country.