Ali gave an example: for example, an ordinary American named Annie. She didn't have the money to buy a house, but in order to make money, the bank encouraged Annie to borrow money to buy a house, giving Annie a zero down payment or even a loan to make false accounts. Then, the bank keeps part of the interest, and the rest is packaged and sold to Fannie Mae and Freddie Mac in the form of bonds. Semi-official housing lending institutions, Fannie Mae and Freddie Mac, then sold these debts in the form of bonds to major financial institutions and governments around the world, including the government of China.
It was originally an elaborate money dream, and everyone made money. Who will doubt the prosperity and strength of America? But suddenly one day, when the bank, the core of the whole game, found that countless Anne in the United States could not afford the loan at all, the "American dream" of everyone having a house and a car was broken. In order to protect themselves, as soon as the bank collects money, the whole ship of American capitalism will not turn. Those banks that collect money late, those banks that are more greedy and reckless, are declared bankrupt and insolvent because they borrow too much. If banks do not lend, the operation of the real economy will stop, leading to unemployment, more people without jobs, unable to pay loans, and more bad debts of banks. Banks will be more nervous, tighten monetary policy, and a vicious circle will begin. This is why the U.S. rescue plan should rescue banks first and inject capital into them first. But the hole in the bank may be a bottomless pit. Japanese economists have long said that if you really want to save the American economy by injecting capital into banks, you need to inject $5 trillion at a time.
Let's look at this diagram: countless owners in the United States-banks-Fannie Mae and Freddie Mac institutions-sell toxic bonds to the world. The core is the bank. When countless owners were unable to repay bank loans, banks tightened monetary policy, capital chains of various industries broke, and financial crisis broke out.
In this case, what advice does financial expert Susan give to the American people? Is that cash is king! Cover your wallet if you have money, and don't spend it. Less money saves lives, and more money is waiting for bargain hunting.
Why did this financial crisis happen? The direct reason is that Bank of America has too much money, and it is eager to lend it out. So, where did you get so much money Everyone knows who is the biggest creditor in the United States-China!
The money comes from China. In the1980s, an economic crisis occurred in the United States. At that time, their products could not be sold, and the banking industry could not find a good investment channel. But just in time for China's reform and opening up, it is in urgent need of funds, equipment and various products. As a huge market, China actually eased the financial crisis in the United States and the West at that time. Just like today, if China can open the African and Latin American markets, it can also alleviate the domestic economic crisis in China. There are surplus products and abundant funds, and new sales channels and investments are needed. China hit it off with the United States and even the whole West, and everyone prospered for 20 years. Who is not greedy? Who is not for the money? Isn't GDP measured by money? Isn't well-off calculated by how many dollars per capita? The problem only depends on who can calculate who.
The people of China have worked hard for 20 years, sacrificing the environment, resources and the interests of workers and peasants, and put $2 trillion in the United States. Americans spent all their money in advance, even overdrawn, which triggered the financial crisis! People in China like to save money. They are superstitious about dollars. The government of China is also from China. We keep sending our products to the United States, and they keep printing money and satisfying our dollar dream with paper such as national debt and toxic financial debt. As a result, there is more and more money in America. At the same time, China also printed money accordingly. Both sides have more money. In this way, the bubbles in the stock market and the property market are getting bigger and bigger, and the false prosperity is fascinating. But the bubble will burst to a certain extent, and the financial crisis will break out in an all-round way.
If all the problems are under the control of the China municipal government, what can be done? If the central government gives the order, which bank will dare not lend? Everything will turn for the better. Just like what is happening in China now. 4 trillion, 18 trillion to stimulate the economy, people's stock markets keep falling, and the worst of the financial crisis has not yet arrived; We're going up. Reminds people of a saying often used in the Cultural Revolution: "The scenery is unique here".
The problem is that American bankers do not listen to the government. The government actually works for bankers. This is capitalism. What bankers consider is how to protect themselves in the financial crisis and make more money at the right time! If it's your money, don't you think? But politicians consider how to maintain their own rule and political power. In China, political stability comes first, followed by money. In the United States, the interests of bankers-capital security is the first. The constitution and laws limit the possibility that government leaders can do whatever they want to achieve their goals. Even if the leaders have good intentions.
The hidden dangers of China's economic development in the past 30 years broke out in this financial crisis. China's economy is driven by unsustainable factors such as export, investment, waste of resources and low labor cost. When the western financial crisis occurred, people reduced imports, and our side immediately lost jobs, factories closed down, workers fell into poverty, and all kinds of bad debts increased. Driven by investment, invest in what? How to save it? During the financial crisis, we should invest carefully and stop expanding. Resource-wasting development and low labor cost strategy have brought great pressure to environmental and social stability.
China is not without attractive cards. There are at least two: huge domestic demand market and huge foreign exchange reserves. China, after all, some people have money. This is the source of Premier Wen's appeal for confidence. Why did he go to Davos to preach confidence to western governments and capitalists? Because if they don't cooperate with China, it will make it more difficult for China to resist financial risks, resulting in serious social consequences, and then everyone will be unlucky. But western governments and capitalists are very shrewd businessmen. They saw the secret of the China government, so, on the one hand, open conditions, on the one hand, continue to observe. From the perspective of pure commercial interests, who doesn't want to wait for China's economic collapse and copy the bottom of China? Maybe we always want to steal from others? We can see that the China government decided to buy 654.38+0.5 billion euros of products from Europe, and it was the China government that bought them when the stock market and bond market were uncertain and the raw material market was high. The poor save the rich first. Let's see what they do.
Since the Qing Dynasty, China has been at a disadvantage in the game with the West. The best we can do is to save face and give benefits to others. As the saying goes, a swollen face fills a fat man. In the era of Mao Zedong, hundreds of millions of farmers in China did not have enough to eat, which would also benefit friends in Asia, Africa and Latin America. The countries we help, such as North Korea, Vietnam and Albania, have better lives than our people. Today, dealing with western capitalists is no easier than dealing with those poor friends. These people are very smart and have a high strategic vision. Remember what Stuart Leden said? People wonder what China will be like in a few generations. From ancient times to the present, the China government and the people now, who thought about their descendants? But if you think about it, it won't come to this: a nation that believes there are three kinds of unfilial and thinks there is no future is great, and a nation that has children and grandchildren as its only hope, and finally finds that the biggest enemies threatening its survival are not "American imperialists and Su Xiu", but its descendants! The government has forcibly controlled the birth of its own people through administrative means, killing nearly 400 million of its own descendants in the past 30 years! This is an incredible reality beyond human understanding and common sense! China's modernization and reform and opening up began on this basis. Today, 30 years later, the world financial crisis broke out, and the world is not in chaos. Maybe we need to think calmly.