Many current measures are groundbreaking. For example, the Ministry of Housing and Urban-Rural Development has given local governments the right to regulate real estate, which has never happened before. Another example is the latest measures, which allow foreign capital to hold shares in financial institutions here, and even to control financial institutions. This has not happened in over 20 years, and this is financial opening up.
However, in the current environment of economic collapse here, and the continuous collapse of confidence of foreign capital, all so-called opening measures, all so-called beneficial measures, can no longer boost any foreign capital or any confidence.
Why was Wall Street once so closely related to here? One important factor was that Wall Street was eager to delve into the financial market here to get a share. Now it has opened up, but the overall environment has fundamentally changed, and international geopolitical relations have fundamentally changed. Under the premise of common change, further opening up is of no avail, because here has become the number one public enemy of Western civilization.
The long-term economic recession here has become a common consensus of the world. Since the beginning of last year, after including JPMorgan Chase’s pessimistic remarks about here, Paul Krugman also pointed out that a long-term recession will occur here. Then came Biden, then Yellen, then Japan and South Korea made emergency response measures, and finally international rating agencies downgraded the rating here.
When inflation has occurred in Europe and the United States, and even Japan, here, on the contrary, is showing deflation. What kind of scene does this present to all foreign capital and various institutions? It is the 30 years of recession in Japan, but even if Japan had an economic recession back then, Paul Krugman also pointed out that Japanese companies still have the ability to continuously create wealth value and still be able to repair their balance sheets. The unemployment rate is very low, and the welfare security is very complete. Japan and here cannot be compared. And this has also become the consensus of the whole world.
Looking at the current reactions of various stock markets, the Indian stock market has become the fourth largest stock market in the world. The Japanese stock market has repeatedly hit new highs. Not to mention the US stock market. And the stock market here has reached the 2800-point defense battle, coupled with the collapse of real estate’s impact on the entire economy, has also become the consensus of the entire world.
The so-called policy is the decision of the decision-makers, which means there are no rule of law rules. Today it can be opened up, and tomorrow it can be withdrawn.
Don’t underestimate consensus, consensus determines everything, and consensus also determines all confidence and expectations. Why did here become the world’s factory and a value depression at that time? It was because of the world’s consensus on here, which had strong growth potential, and finally led to here becoming the world’s factory. Once this consensus disappears, or even if it is commonly believed that here is showing a great economic depression and a debt deflation trap, everything will be irreversible. Here will no longer absorb any foreign capital, any financial capital, but on the contrary, it is a continuous and crazy escape, which is the most terrible scene facing an economic entity. Of course, this is a continuous accumulation process.
Why did Xiao Qiangzi say at the Davos Forum that the economic growth here last year was 5.2%, and many people at the scene sneered. At the same time, the A-share market collapsed instantly. In fact, it is a kind of irony. They no longer trust here at all, because the other party’s expectations have been fully achieved.
It can also be seen that they are all extending step by step. From institutions such as JPMorgan Chase and Goldman Sachs holding negative views and expectations on the economy here, to top economists such as Paul Krugman questioning the economic prospects here, then Biden said that the economy here is like a time bomb, then Yellen visited here, then Japan and South Korea established an emergency group to address the possible risks here, and finally Fitch International lowered the rating here, all of which were formed step by step. Ultimately, it is an overall short-selling, not including the impact of the geopolitical environment on here. The trend has become. Behind the trend is the reversal of common expectations and confidence, and any measures or even financial opening up. The effect on external capital is minimal. This is the current reality here, and the reason for opening up the financial market, this link that has always been in competition with the outside world after the WTO negotiations for 20 years, has finally opened up. It is also enough to illustrate the urgency of the organization, but everything has no meaning.
In fact, it is also the current and future national fortune. Under the reversal of national fortune, not many people can be spared. Not to mention the distant future, you can look at the migrant workers who are waiting on the streets every morning in many cities to find jobs. Then look at the middle class who are now running to the library and pretending to go to work. Look at the increasing number of people who are extremely anxious and eager to sell their houses and cash out, this is our symbiotic picture. It’s just that this symbiotic picture has been blocked by all media and public opinion.
The political system determines the economic height, and economic development has reached the ceiling, and the next step is recession. What’s more, politics is regressing. To be objective, our current state, especially the unemployment rate, is comparable to the Great Depression in the United States at that time, and even exceeds the unemployment level of the Great Depression in the United States. However, all of this is completely covered up by various mandatory measures. It’s not returning to poverty, it’s negative assets.
When the house prices continue to fall in the future, and the collateral houses of mortgage loans continue to depreciate, the bank will find you and ask you to supplement the collateral. If you can’t provide collateral, you will be directly socially dead. This is the reality that many middle-class people will face in the future. And after social death, not only is it a divorce issue, but even finding a decent job in a legitimate company becomes impossible. Even if you set up a stall, you can’t have too much money in your account, otherwise you will be fined by the bank at any time.
This recession is bottomless. The worse the economy, the more left-leaning the politics, the more left-leaning the politics, the worse the economy, the death spiral. The problem is layoffs and salary cuts. An era is coming to an end, and it will fall on everyone.
The latest meeting held by the Ministry of Housing and Urban-Rural Development. It shows that after a series of stimulus policies were adopted last year. It didn’t work at all. The focus of this meeting is to put all the rights of real estate market regulation down to the local level, and the local governments can take any preferential measures according to their own actual needs. This shows that in the situation of the gradual collapse of the real estate market, the Ministry of Housing and Urban-Rural Development has surrendered and has no way out.
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