Why the Chinese central bank obviously no monetary easing, but was shouted "money super"? While the European Central Bank printed several years of currency, there is no mainstream experts criticized? China's thing is so strange.
In fact, the United States on the global economic influence has been two or three years ago can be compared. Americans want to tighten their currencies, raise interest rates, and return global funds to create global deflation. In this currency contraction process, small countries may be unable to stand, the exchange rate collapse, but the developed economies will not have much impact. This is not, for the US interest rate plan, the European Central Bank, the Bank of Japan are not the so-called strategic cooperation, or prepaid notes printed money. China's real economy is much larger than Europe and Japan, Europe and Japan are not fake watches afraid, China will be more emboldened.
Europe's debt plan and Japan's "times times economics" is the printing of bonds issued by the national collection of seigniorage. Unfortunately, since the new People's Bank of China Act of 1995, China has seldom levied seigniorage. Many people are afraid that the central government will mess up money and make money. This is actually more worry, more than 20 years have passed, the whole country of China's national quality and the level of government governance has been greatly improved, the Chinese central bank a year stamped tens of billions of money things can not appear.
Because of fear of hyperinflation, to limit the central bank to buy bonds directly, is unworthy. The current decline in the background of foreign exchange, China has been unable to rely on exogenous additional currency. If the endorsement of bonds issued by the endogenous issuance of currency, the government will lose one trillion tons of seigniorage tax.
Since China does not impose a seigniorage, it is necessary to construct the infrastructure project which should be undertaken by the coinage tax. It can only be transferred to the property tax and value-added tax, which obviously increases the burden of production and living of the residents and enterprises. Under the rough estimate, the European Central Bank has purchased more than $ 5 trillion over the past year. If the Chinese central bank also with the scale of debt, the money, you can build 50,000 km of high-speed rail.
It must be pointed out that the central bank to buy the bond to the government is not the essence, but in mind, let people know that there is such a number only. As with the European Central Bank and the Bank of Japan, the cap on the rate of seigniorage is that the rate of inflation can not exceed the moderate level. Our country in the late eighties of the last century, the early nineties the collection of seigniorage, the tax rate is too high, leading to economic "overheating", prices rose too fast. Now, another article does not levy, all levels of government can only tap the potential of property tax, after buying the house after the zero, zero after the property tax can not become the biggest contributor.
China can temporarily tighten the currency, squeeze some of the bubble in the economy, but can not tighten the currency for a long time. If the central bank does not have a principle of long-term contraction of the balance sheet, will allow China to long-term into the deflation. Looking back at history, the middle and late period of the Ming and Qing dynasties, when the foreign exchange accounted for "silver", by the international trade situation and the impact of war outreach, the currency for a long time shortage, the long social and economic recession, social conflicts continue to intensify, The dynasty finally ended. Ming and Qing Dynasties intellectuals generally lack the common sense of monetary and financial, do not understand the currency on the economy, the importance of state finance and taxation, the economic phenomenon of money reduction helpless. The current foreign exchange reduction, China's monetary and financial history even repeated the same thing. A few hundred years have passed, the Chinese intellectuals can not be some growth?
Treasury bonds issued currency, do not necessarily let the yuan devaluation. The credit of the renminbi is a strong productive force in China, a sound industrial production system, and a vibrant economic development. China can provide the vast majority of industrial products to the world, which is the credit of the renminbi. RMB credit does not need dollars guarantee, with the dollar to buy things, the same can buy the yuan. Increasing money into the physical sector can promote consumption, expand production, increase productivity, and make China's economy more competitive. If the Chinese economy loses its vitality, economic development stagnates, foreign capital withdraws aggressively, and the renminbi is likely to devalue sharply.
The current problem is that there is not a lot of low-cost money issuance into the real economy, the economy can not be a good development. Chinese people will not return to the Wei and Jin Dynasties, rely on the Western Han Dynasty currency to live, but that China's most tragic history. There is no physical motion machine, the financial can not have a circle of money forever. No additional money, rely on stock, there are many examples of Chinese history, but miserable.
M2 is an objective indicator of the degree of uk replica watches wealth accumulation
China's broad money (M2) is too high, some people think that the Chinese currency is an evidence of super-fat. In fact, the illusion of China's currency is mainly due to the rapid rise in house prices this decade caused by the rate. In addition to real estate prices, other industrial and agricultural products prices are relatively slow pace, a lot of raw materials and industrial products even cheaper than a decade ago. If you have to say that China's economy is a problem, it can only say that the real estate economy needs to be adjusted, can not say that money overweight.
Chinese people are too demanding on their own, do not know how great their achievements. Only 30 years of reform and opening up, China has created about 670 trillion of GDP. This 670 trillion to the current price of GDP, including goods and services, part of the foreign-funded enterprises, most of the wealth of Chinese people. The wealth of this 6.7 million fortune is a lot of long-term wealth, you can money to replica watches make money. M2 contains the cash and deposits of individuals and units in China, the Chinese people generally love to save, the Chinese people will create wealth in the form of cash and deposits preserved, what is wrong with it? Japanese also love savings, Japan's M2 / GDP ratio is higher, the Japanese are indeed more money than the Chinese people. Chinese wealth in addition to some areas of some real estate bubble, the vast majority of wealth is also genuine. So, M2 is largely the sum of long-term accumulation of money and deposit deposits.
Americans are very high GDP, but this GDP is the big companies in the United States, big consortia, ordinary people had a tight day. Ordinary Americans have to read a university loan, after graduation have to go ten years eight years, how can the US people deposit? In the U.S