Chapter 24 Second, the means of rescue

●What method and means are they going to use to rescue the economy? ●Do this today and do that tomorrow, because he doesn't know how to save himself. Let’s go back to China’s 4 trillion yuan rescue project. I would like to compare it with the US rescue project in three aspects.First, purpose.The purpose is to cut off the industrial and commercial chain and set up a firewall.Second, speed.You need to be fast. If your speed is slow, it will be too late. The entire industrial and commercial chain will collapse due to the collapse of confidence. Therefore, you must be fast, that is, you must be decisive.Third, means.What is the effective means.All three are indispensable.

Paulson said this when answering a reporter's question on November 25, 2008. He said that everyone should not think that the problems of the US economy can be solved by resorting to one trick. He said that the actual situation is much more complicated.The United States uses various methods and means to rescue the US economy.So the biggest problem with the U.S. bailout is what means you are going to use, which is very complicated.In the same way, it can be pushed back to China's 4 trillion yuan bailout project.In a short period of time, our government immediately decided to propose 16% of GDP, or 4 trillion yuan, to rescue the market.Well, the purpose is clear at present, which is to cut off the industrial and commercial chain and set up a firewall.Otherwise, the collapse of common people's confidence will impact the entire Chinese economy. This is the background of Premier Wen Jiabao's repeated statement that confidence is more important than gold.So in terms of purpose, I think China and the United States are the same, which I also give a positive evaluation.

Moreover, this time the Chinese government rescued the market very quickly, unlike in the past, when everything was pushed to the market, the government's response was too slow in the past.Not this time.Very decisive.I think China has also learned from the experience of the United States in cutting off industrial and commercial chains, and the speed is fast enough. The most difficult step is the third step. I believe that whether it is the US government or the Chinese government, they are also caught in a problem of means. What kind of methods and means are they going to use to rescue the economy?The U.S. government has made it very clear.It takes one step at a time, and it doesn't know when it will be effective. Anyway, what it should do, so it can be said to change every day, doing this today, and doing that tomorrow, because it doesn't know how to save it.

We, like the U.S. government, don't know exactly what will work.Therefore, most of the initial 4 trillion yuan was used for infrastructure construction. The government hopes to continue to boost my country's GDP by investing 4 trillion yuan in infrastructure construction, hoping to maintain a high growth rate. A small part of the 4 trillion yuan is used for other construction related to people's livelihood.The question is, is this method right? We have such a major recession problem ahead today.Our government is also very determined to spend so much money to save the market, but I would like to appeal to the government and the people across the country, the means of saving the market are very complicated.If you think about it, the U.S. government has so much financial experience that they don't know how to rescue the market.Therefore, we must have considerable flexibility in the use of funds.Please note that the purpose of the US government’s first $700 billion bailout fund was to buy banks’ non-performing assets, but it was completely changed after one month because the actual situation was too complicated.

In the beginning, the 4 trillion yuan was basically invested in infrastructure construction. I also hope that our government’s rescue measures should also be quite flexible.So we must take one step at a time. Fortunately, the government's rescue measures are slowly being adjusted.