I don’t know why. A lot of people scolded me in the message area, saying that I am an epidemic prevention enthusiast and labeling me.
Look now, what I feared is happening.
Some young people may not consider other social factors, and their understanding may not be mature.
I guess, maybe those who advocated further liberalization there before are the same people as those who are scolding them now.
Hey, it’s useless to say more. I hope everyone can take care of themselves and get through it, especially those with elderly people at home.
Today I will tell you about an issue that everyone is concerned about: money.
It has been three years. In addition to the explosion of savings, many people are complaining that they have no money in their pockets, local governments are in debt, developers are extremely poor, and ordinary people also say that it is difficult to make money. Some people even asked online and said that the per capita debt has reached 143,000, saying that it is very high.
Looking at it this way, why are savings exploding while everyone feels in debt? So, where did the money go?
Some people say that the rich ran away and took away the wealth. In fact, that little money is not worth mentioning in the face of China's huge wealth.
Where did the money go? This question is actually very simple.
Cherry wrote an article in 2019, called Where did the super-issued currency go? It has been deleted now. Many people reposted it when I finished writing it. You can add the WeChat message at the end of the article and ask us for it. I originally wanted to post it in the next article, but after thinking about it, I decided to forget it.
Let’s look back, have you noticed a phenomenon?
When the economy was good a few years ago, there was a lot of money, and various VCs and PEs were very active in new projects. They gathered money to find projects, and the projects were not short of money.
But in the past two years, financing suddenly became inactive. Then the projects were short of money, and the money suddenly disappeared overnight. Families and businesses said they had no money.
The key contradiction is that from a macro perspective, M2 is now growing at double digits, money is constantly being printed, and savings are still growing explosively, so the total amount of money is still increasing.
This is very strange. Money is increasing, but why do everyone work hard and earn money, but still don’t get the money?
Let me tell you the conclusion first: Because money is just a number, its essence is economic flow.
Please remember this sentence first, and I will explain it to you.
For example, if you buy a house and you take out a loan of 1 million, after the loan is released, the 1 million will be transferred from you to the developer, and the developer will take the 1 million to the construction company. Si Gai Lou, the engineering company, used the 1 million to pay wages to the people below. After the employees got their wages, they bought mobile phones. The boss selling mobile phones may have made more money, so he temporarily put the money in the bank. Assuming it is here, we see that the money has returned to the bank.
Count how many times this 1 million has been circulated, a total of 5 times, so the actual 1 million creates an economic effect and total wealth of 5 million.
As long as the economy is active and circulation is fast enough, everyone in the industry chain worth 1 million may be able to make money.
Because of this epidemic, the entire economic activity has slowed down, and the economy has even been suspended. Therefore, many companies and families in the entire market have no money. What is the professional terminology of
? The money multiplier is amplified through the base currency, thereby producing a currency-derived economic phenomenon.
Don’t understand? It's okay. To put it bluntly, if money doesn't circulate, it will become less.
So, why is real estate important and a pillar industry?
Many people only understand it as a simple understanding of a high proportion of GDP, land finance, etc. This understanding is obviously not enough.
Because most rich people will not tell you that real estate is the main source of currency derivation.
Before, when you had money, you would choose to buy a house. The credit expansion of money was very large, and the entire economy would be very good.
Once the financial attributes of a house weaken, people will no longer buy a house as soon as they get the money, but choose to save it. Therefore, the money appears to be deposited in the bank, but in fact it disappears out of thin air.
Therefore, it is not a good thing for savings to be too high. When savings drop, it may be when the economy gets better again. You only need to look at this indicator. When
developed the fastest in the past, it was a process of leverage , debt all the way, and a decline in the savings rate. This is called credit expansion.
If any economy wants to develop, it must have credit expansion. Without capital, it is impossible to bring prosperity. The development of the United States is based on the expansion and circulation of highly developed capital.
Therefore, the biggest problem now, which you may not understand:
is actually insufficient money supply and lack of capital, which is a current risk.
Having said this, everyone should understand:
Only when money circulates can the overall economy prosper, and only when money circulates can it create wealth for individuals.
Nowadays, more and more people choose to let their money lie in the bank and stop flowing. The money in the bank cannot be loaned out.
Therefore, the overall amount of money has decreased, and everyone’s income has naturally declined as a whole.
How can we revive the economy?
is to let money flow again, and only then can the economy become better and better.
Having said this, I don’t know if everyone understands it. If you understand it, you will understand the first layer: the generation of money.
The second level is more critical, which is the distribution of money.
Because the generation of money is a total amount, how to distribute it and according to what rules is it related to what you personally own in society? What you are doing and where you are are strongly related. This is the underlying logic.
If you don’t understand the basic logic of this distribution rule, how can you obtain more wealth than people in this stock society? In the end, you will be really busy and live in a daze until you are old.
Let me start with the conclusion directly. Owning assets will definitely be better than 996, and assets will allow you to earn more.
