Chapter 8 sequence

To understand the future of the Chinese economy, one must gain insight into the past.Because, the trend is coherent.Without a deep and clear understanding of the past, it will be difficult to understand the logic and thinking of the author's judgment on future trends. China is taking a relatively radical route - led by government investment, activating real estate by pouring credit, so as to revitalize the entire chess game.The logical relationship here is: Once the credit pours down, it will inevitably arouse public concerns about currency depreciation. Under the impetus of this panic, a large amount of funds will flow into the real estate market, thereby activating the entire real estate market.That is to say, China's economic recovery policy is based on real estate as a breakthrough - this is the beginning of China's big chess game.

For China's stock market, not only the trend is determined by policy, but also which sector will be stronger and which sector will be weaker is also derived from policy.Those who do not understand policy interpretation cannot become a good investor in China. A strong recovery underpinned by government spending and bank lending may not be sustainable, because the government cannot continue to spend like this and the banks cannot lend like this forever.Residential consumption, the most important part of the national economy, has been neglected for a long time. If the residents' consumption cannot be effectively promoted, the mid- and long-term recovery of the Chinese economy will not be realized.

Only by learning from the strong can we improve the winning rate in the game and become a real strong.Furthermore, only those who know how to appreciate and learn from the enemy's strengths can truly defeat the enemy!As German Prime Minister Bismarck said: "I don't care about the enemy's intentions, I only care about their strength." How to maintain the strength of the dollar after abandoning the gold standard?The United States has found another anchor, which is oil. The United States has linked the dollar to the price of oil to form a "petrodollar" system, ensuring the hegemony of the dollar.