Chapter 7 6. Fight a financial overrun blocking war

International financial speculators who have a large amount of market resources, in an environment where the global economy is becoming more and more closely connected, have deduced the original simple market means into an "offensive weapon" in financial unrestricted warfare.Markets, prices, and exchange rates are gradually drifting away from economic laws in their agitation. This is what I call financial unrestricted warfare, that is, international financial speculators use financial means to seek huge profits. In the process, traditional rules are broken. Yes, all limitations are exceeded.

Do you think Professor Lang is smart?Smart enough, Professor Lang is so smart, but the international financial speculators are at least ten times or a hundred times smarter than me, which shows how smart they are. Then many young friends may say, Professor Lang, after I heard this, I am very excited, I do not believe that I am not the opponent of international financial speculators.So the next question is, what can we do to defeat the international financial speculators.Let me tell you that the undefeated, you must have two necessary conditions to defeat him: first, you must have the most sufficient international capital, which we have, we have so much foreign exchange, no problem; second , We must have the most outstanding financial talents. China has a population of 1.3 billion, including Lang Xianping, and there is no one who is a master of financial operations. The saddest thing is that we don't know that we have no talents.Some people may say, Professor Lang, what books should I read to become an international financial speculator? My answer is that reading books is useless, and reading is useless, because international financial speculators are master-apprentice. There are no masters in China, so there will be no apprentices. .

The smartest international financial speculator I have ever met in my life is probably at the Wharton School of Business, and I seldom see it again.Business schools, law schools, medical schools, where the elites of the United States gather.Excuse me, where did the President of the United States graduate from?law school.What about Wall Street elites, U.S. Treasury Secretary Paulson, and international financial speculators?business school.Sorry, I also graduated from business school, but I am not a talent, my level is really limited, because I have seen too many top talents in the world.Of course, there are also medical schools that are also full of talents. These three schools are the places where the American elites gather.

If everyone understands it, you can imagine how complicated international inflation is under such a strong operation.Many people asked me if Professor Lang could predict the trend of the US dollar, and I said you were joking.Is this something you can predict? Someone asked me, can Professor Lang talk about the trend of gold, and I said this is something you can talk about.Do you know how complicated the relationship between the US dollar, gold and various currencies is.I can tell you that they are planned by the elite of this kind of American business school.I can boldly say a word. In the first half of 2008, people all over the world believed that the U.S. dollar would continue to depreciate. It is falling, so many people stop investing in stocks and real estate, and then use their money to speculate in currencies, gold, and oil, because everyone thinks that the dollar will continue to fall, but you are wrong again.I never dreamed that when the price of oil reached $147 a barrel, the U.S. government held a congressional hearing, and one guy brought down the price of oil, and the dollar immediately strengthened, all other currencies fell, gold and oil also fell. Everything fell, and in the end, almost all investors in the world lost money, and only American financial capital made a fortune.So I can tell you, don't be sad if we stockholders get stuck, because there are many people at your level.Investors of non-financial (capital) speculators, including us Chinese, are people at our level: stocks, the stock market loses money; deficit.So what to do wrong, what to do to lose.So today I tell you that if you really want to speculate in international currencies in the future, remember the following words, you don’t want to make money, you can be thankful if you don’t lose money.

When will you make money?When the entire economy is going up, how to make money, even fools can make money, as long as the money is put in, they can make money. This is not a matter of level.When the entire stock market falls, or the global economy falls, you will lose as much as you do. If you don’t lose money at this moment, you are the greatest investor, because today you are in an unprecedented international financial unrestricted war. The United States, which is becoming a player rather than a leader in the global economy, may be able to achieve a new, more balanced posture in global markets that will be the basis for a more rational but still strong and solid era of economic growth.

This new understanding of the United States as an international player will also have some impact on its international political status.A more powerful and assertive China, Russia, Europe, and India may accelerate the inevitable transition to a new global landscape. It's not that the Fed has lost control over America's economic destiny, but that the Fed has realized that it has become a smaller fish -- because the oceans have expanded enormously.The future stability of the global economy may hinge on the ability of central banks to act in concert. Economics tends to focus on the efficiency of the entire market, while ignoring the important function of politics in distributing the fruits of economic development fairly.Politics is politics by its very nature, and economics, which has nothing to do with politics, has nothing to offer in it.Many people have noticed the arrival of the recent financial crisis.Just as farmers predict earthquakes and volcanic eruptions by observing the erratic behavior of domestic and wild animals, growing instability in the world's financial markets is an ominous sign.However, these precursors do not allow us to quickly deal with the current crisis, and in fact there are no precursors to the global catastrophe that will occur later.

So, can a strong Chinese economy save the world financial system from a global financial meltdown?The answer is: no.If there is one lesson this economic crisis has taught us, it is this: the era when one country drove the world economy is over.The new world financial order will be one of cooperation and coordination, in which China has determined to play an important role. We can foresee that in just one generation, China will be promoted to the largest economy in the world, it will have the largest banks, the largest companies, the largest middle class, the largest English-speaking population in the world, It will also have the largest number of scientists, doctors and engineers.

Now, our children can feel that we are perhaps more in control of our own economic destiny than ever before, and that we are also responsible for our own economic destiny.For us, the sooner we accept this economic reality, the better. (This article is excerpted from Colin Reed's "The Economics of Financial Crisis: How to Avoid the Next Economic Crisis")