Chapter 45 China No Longer Needs the U.S. to Print Money to Shop

Reading Tip: Once we understand the true meaning of the principle of printing money for shopping, we can be sure that China does not need Americans to help us print money for shopping. As mentioned in the second section of the previous chapter, China can directly Print money to shop, instead of waiting for the United States to print money to shop to enjoy the second-round effect.China should get rid of the link of the United States, and directly enjoy the first round of dividends of printing money for shopping. After understanding the whole logic of printing money to buy, we finally know that it turns out that things are so simple, in any economy with excess capacity, you just need to print money to buy these items, which could not have been produced (because no one bought them) It can be produced, and the total wealth of society will increase dramatically because you print money.Printing money directly leads to an equal increase in social material wealth, which is the basic logic of printing money for shopping.We must overthrow the traditional economic view that printing money for shopping leads to inflation. Europeans and Americans are fooling us with this theory.On the one hand, Europeans and Americans are printing money to buy our goods. On the other hand, they scare us by saying that we must pay attention to the money printing machine. Printing too much will lead to inflation, and inflation will lead to political instability.

The U.S. has printed so many U.S. dollars to shop around the world, but why hasn’t there been a huge depreciation of the U.S. dollar (that is, the “inflation” of goods relative to the U.S. dollar)?It's very simple, because the world's production capacity is excess, so every dollar printed by the United States to buy things from foreigners will cause an extra dollar to be produced worldwide. You must understand that if Americans don't print this 1 dollar, this thing will not be produced in the world.That is to say, no matter how the US dollar is printed, it will always lead to the emergence of equivalent goods around the world. There are more currencies and more goods, so how can there be inflation?How can the dollar depreciate?In the long run, the dollar has been strong.However, few people in this world have really realized the reason for the strength of the dollar. Basically, everyone foolishly thinks that the dollar is strong because the U.S. economy is strong, and I will tell you here that the dollar is strong because of the above-mentioned The law of printing money to buy (more money printing leads to more goods) is at work.This is not because the U.S. economy is strong, the U.S. is clearly an empty shell.

Knowing the principle of printing money for shopping, we also know that this kind of thing is not only implemented between countries (the United States prints money to buy Chinese goods), but in fact, it can also be implemented within a country.As we said earlier, the Keynesianism implemented in the Great Depression in the United States was essentially that Americans printed money to buy their own things, and it was a country-wide printing of money for shopping.In fact, as we said earlier, the implementation of the Keynesian policy in all countries is actually a domestic printing of money for shopping. Keynesianism mainly refers to the government printing money to buy production materials during economic depression, thereby digesting the excess capacity of manufacturers that manufacture production materials. , so that they can operate at full capacity, employ sufficient workers, and keep jobs.For countries with weak infrastructure, Keynesian money-printing shopping can quickly upgrade and improve such things as railways, highways, urban facilities, and agricultural facilities, and these achievements are caused by printing money.

Because countries in the world have not yet realized the law of printing money for shopping, countries dare to use Keynesianism only when the economy is in depression. Keynesianism is a kind of printing money for shopping by accident. I didn't know at the time that this was actually using the law of printing money for shopping.The government is only raising money to buy investment products (steel bars, cement, workers, etc.) through the issuance of additional national debt and fiscal deficits. In fact, there is no need to go around in circles like this, and just print money to buy them.There will be no inflation at all, because once you print money, it will cause the steel and concrete that does not exist to emerge.In fact, almost all governments playing Keynesianism have ended up printing money for shopping, because the national debts issued are ultimately repaid by money printing machines, or new government bonds are issued to repay old debts, which is essentially nothing to do with money printing machines repaying debts the difference.

Now we understand that the government already knows how to print money for shopping, but it doesn't understand the true meaning of it, and has always called it Keynesianism.What is the essence of Keynesianism?Let me tell you that when overcapacity develops to an extremely serious level, that is, when the contradiction between insufficient demand and unlimited expansion of production intensifies to an irreconcilable situation, the government adopts the act of printing money for shopping to resolve the contradiction between supply and demand.Readers who know a little bit about Marx know that this situation is what Marx called an economic crisis. Isn’t an economic crisis just an overproduction, and milk that cannot be sold is thrown into the river.Of course, economic crises can be big or small, but contemporary countries rely on Keynesianism (in fact, printing money to buy steel and concrete) to solve all these big and small economic crises.

Therefore, the two points that the Chinese government promotes economic growth mentioned in Chapter 8, Section 4 of this book can all be classified into the system of printing money for shopping.The first point is that Keynesianism prints money for shopping. To put it bluntly, the government prints money to buy investment goods, such as reinforced concrete. The second point is that the government prints money to buy consumer goods.Both of these behaviors have greatly increased the total social demand, digested a large amount of excess production capacity, and greatly stimulated economic growth.

Here we need to re-examine the second point. In fact, only when we do not understand the principle of printing money for shopping, the huge consumption and waste of government personnel can be regarded as a great contribution to economic growth, because it is related to government layoffs and Compared with saving money, this result is many times better.And once we have understood the truth about printing money for shopping, then we can find a better way to promote economic growth than this. Distribute it to the common people, keep the wealth among the people, and let the common people have more money to buy things, which can also digest excess production capacity and stimulate economic growth.

In fact, printing money for shopping is not only available in times of economic depression, it can be used as long as excess capacity reaches a certain scale.This also means that the policy of printing money for shopping can be used as a daily policy of the government, because overcapacity is the norm in the modern economy, every year, every month, every day, every minute, every second in any corner of China Capacity is excess.We can print money to sweep away the excess capacity in all corners, maximize the products of the entire society, and thus the people's living standards are extremely high. Of course, the premise is that we can find ways to make these products available to the people.

To sum up, since from a spatial point of view, money printing for shopping is not limited to international markets, but can be implemented within a country, then why do we need the United States to help us print money for shopping?Let's do it ourselves!Since from the perspective of time, printing money for shopping is not only implemented in times of economic depression, why should we use Keynesianism only when the economy is in trouble?We can turn printing money for shopping into a regular national policy!It can be used yearly, monthly, and every day!