A tree in the United States, a house in China, demolition separated by a life
2023-07-07Comprehensive well-being! The reporter was informed that your city has achieved remarkable results in the exploration and practice of innovative precision poverty alleviation to realize comprehensive well-being. May I ask Secretary Hou, what are the characteristics of your city in this regard? Hou Xiaochun: Since the 18th Party Congress, General Secretary Xi Jinping has put forward the "Four Comprehensives" strategic layout, which enriches and develops Deng Xiaoping's "moderately prosperous society" strategic concept. In order to build a moderately prosperous society in all aspects, the most arduous task is to fight against poverty. Poverty alleviation and development has advanced to the present day, and the most important thing is precision. Innovative and precise poverty alleviation, to realize the overall well-off, is the current and future period must crack the subject. Guang'an is the Qinba Mountain special hardship area and the western hilly area, is also the "well-off society" strategic conception of Comrade Deng Xiaoping's hometown, in-depth exploration of precision poverty alleviation of innovative practices, will be sublimated into a systematic mechanism, innovation to promote poverty alleviation and well-being is of great significance, but also for other poor areas to promote poverty alleviation, so that the fruits of development of the whole people to share. It can also provide reference for other poor areas to promote poverty alleviation and share the fruits of development with all people.
2023-07-07The more you save, the more you lose in the era of negative interest rates
In January this year, China's consumer price index (CPI) exceeded the one-year deposit rate after the state-owned large banks, followed by February and exceeded the joint-stock banks, which marks the current stage of China has entered the era of real negative interest rates.
What is the era of negative interest rates and how does it affect us? A fun three-minute read that quickly takes you through negative interest rates.
Lao Wang is a small boss of an agricultural products processing plant. Due to the closed information and traditional values in the countryside, Lao Wang likes to deposit the money he earns in the bank just like other village names. However, he found that the bank is more and more unreliable. Last year he earned 100,000 yuan, and was able to enter 50,000 pounds of cucumbers at 2 dollars a pound. But at the beginning of the year he will be 100,000 yuan even profit a piece of money out of a total of 102,000 yuan, while the cucumber has risen to 2.5 yuan a catty, originally last year to buy 50,000 pounds of cucumbers, this year can only buy 40,000 zero 800 pounds of cucumbers. When the bank's interest rate can not catch up with rising prices, broadly speaking, the bank's interest rate has become a negative interest rate.
Putting money in the bank is not a solution, the old king went home and thought about it, and then communicated with his wife for a long time. Wang's idea of buying stocks or investing the money was rejected by Wang's wife. Lao Wang's wife is a traditional and pragmatic Chinese woman, she took into account the child in a few years to go to college, is a big expense, buy those city people welcome stocks although the return is high, but the risk is also big, once the loss of what to do? She can't possibly lose the money for her child's education, can she?
The two mouths and war for a long time, and finally the old king decided to go to the city bank tomorrow to look at the funds, bonds and other small and stable financial products, as long as they can catch up with inflation out of the "no loss of money" can be.
So the old king the next day by car to the city "inspection" a lot of banks, funds did not materialize, a variety of loans is refreshing to the old king. Bank staff said, now the bank interest rates are low, we are not willing to deposit money in the bank, everywhere to do investment, making more money on the market, to our bank loans are fewer people, in order to ensure that our lending business does not collapse, we had to reduce the loan interest rate, the recent purchase of the first set of real estate loans as long as xxxxxx interest.
Old Wang heard the heart moved, went back to discuss with his daughter-in-law, his wife is also incredibly excited, rather than money in the bank slowly lost, why not go to the city to buy a suite. Even if housing prices do not rise, later left to the son, or move to the city to live is excellent da. So, pouring some, not a month, the old Wang family finalized a suite in the city.
More people buy houses, and house prices go up. Both of the old Wang's family were very happy, so they continued to go home happily to work.
Then every month, the old king has to go to the bank to pay back the loan, the money in hand is getting less and less. Not only the old king, the people around him because of the negative interest rates of the bank, the money out of the investment, the money in hand is also less and less. Large sums of money back to the bank, the central bank will then lock part of the money back to not outflow. No one has any extra money on hand, no positive purchasing power, and prices go down. Seemingly, this ends happily for all?
However, the real estate developers who tasted the sweetness of violence in the previous years are not satisfied with the recent recession, and built a lot of houses are not sold, how to do? Real estate developers for the house headache, leaders for the performance headache, economists for the overcapacity headache, so trick, we think of a way to see how to sell the house?
The house has to be sold. To whom? Definitely the people! How do we get the people to buy houses? Print more money for them!
Real estate developers, leaders, economists, the three hands together, the result is that a large amount of money flowed back to the private sector.
Real estate developers have helpers behind them, and realizing that this wave of money being handed out is the rhythm of another big profit, they get a few more plots of land. But a few years later, the people who buy houses are not as many as before. Old Wang's family hard-earned money loan has not been paid off, there are two sets of houses is also enough. Real estate developers now panicked, the house no one to buy how to do? Lower the price?
So the realtor approached an experienced economist for a discussion, and the economist came up with a bad idea, lower the price? I have a way for you to make as much money without selling your home!
What a way to go, the realtor rubbed his head in confusion.
"Create a downtown and keep raising prices!" The economist pushed the glasses on the bridge of his nose and spoke in a forceful tone.
"Price increase, are you crazy? Now that the house can't be sold, you're still raising the price?" The realtors sat together, quite puzzled.
"You idiots. Do houses have to be sold to make money? You just need to create a real estate boom illusion, keep the annual housing prices rise sharply, once the rate of increase is higher than the bank's loan when you bought the land, you can not just sit and earn money. Moreover, the faster the house prices rise, the hotter the speculation, the people ....."
Six months later, Lao Wang's son is getting married. Old Wang's son, who is attending college outside of his home, no longer wants to go home and has decided to buy a house outside of his home. However, the son did not have the ability to buy a house on his own, so he hoped that his family would lend a helping hand. The son said, now the price of housing has risen so fast, and if you do not buy it, you will not be able to afford it later! So the old king gritted his teeth, reduce the usual quality of life, more hard work, all the money to his son and a family of three to share the loan.
The story of the old king's family here to end on a period of time, careful friends must have found that the real estate false prosperity, raise prices, and constantly lead to the bank's bad debt, that this bad debt will be dealt with how to solve it? We will continue to tell you the story of Wang's family in another issue!