Chapter 535 Let's play a new game, credit consumption!
Just talking about painting, it is really simple to draw on a piece of white paper, but it would be too difficult to draw on a messy color base.
Li Mengyang is now painting on a piece of white paper, but he, a master of abstraction, is now drawing the economic blueprint of the Chinese region of the Pacific Rim Federation!
It should be said that this piece of white paper was created by Li Mengyang himself, and he naturally experienced a lot of things, many storms and difficulties and obstacles, but the most difficult period has passed, and next, as long as you don’t make a mistake, that is, you don’t interfere too much, then there will be no problem.
The current situation is actually quite good. Although the entire Pacific Rim Federation is in a situation of high in the west and low in the east, that is, the economic situation in China is much worse than that in the United States.
But it doesn't matter. Li Mengyang believes in the market's ability to regulate, and as long as he can grasp it well, everything will be OK.
And the good news came soon, that is, the Jews began to invest a lot of gold and silver in China!
To be honest, Li Mengyang did not feel so close to Jews. He was not a Jew. He also understood very well that everyone was actually for the sake of interests, that's all.
But however, foreign capital cannot be rejected. You must know that all countries in the world have the same attitude towards foreign capital, that is, welcome!
Yes, let’s put it that way, many foreign investments actually enjoy certain tax exemptions. For example, foreign investment in the stock market will not collect any tax burden. You just need to pay the handling fee normally.
The reason for this is actually very simple, because foreign capital is relative to the money given to you by others to let you develop. Although foreign capital will also earn their benefits, the things developed really stay in our own country.
Of course Li Mengyang knew these things, so his attitude was naturally welcome, but now there is a problem.
Where is the consumer market?!
Li Mengyang has always emphasized the ability of a market, but where is the market, that is, where is the goods to be sold, and what should I do?
We invest in production, and this is easy to deal with. As long as we have resources, places, and there are people, we will have all the basic conditions, and we still have money now!
Yes, there is no shortage of money. Those Jews have come to invest. In addition, Li Mengyang’s own net worth is definitely enough.
So. Now it seems that what remains is a problem, the market!
This is the consumer market. It means that the product is digested, and this thing is actually very difficult to find!
The current world situation is like this. In the past, Europe had an economic crisis, and the United States had produced a lot of things and had already occupied the market. In addition, now, because Jewish funds fled, there was another economic decline in Europe, so the European market basically didn't expect it.
So, there are two places where you can get the chance now, namely, two, one is the American Empire and the other is the Chinese region!
To put it bluntly, it is the Pacific Rim Federation, but now we need to take care of the Japanese's emotions.
However, exports in the United States have always been in a reversal, and this has always been the case.
And the Chinese region is now in a mess. Although the economy has improved, it is not realistic to let our money spend money with big money.
Then, there is only one way to turn the United States into a consumer market!
This matter is very simple to say, but if you want to do it... this is called transformation!
It is a major transformation of the entire society, and the difficulty here is simply hell.
Could it be that Li Mengyang has no choice?
No!
Not long after 1882, the former president of the Imperial Central Bank, the big guy Bill, came to the imperial capital of China on a boat and traveled thousands of miles!
Needless to say, of course this guy is here to meet the Emperor, but what are you talking about?
"Ahhhh! Your Majesty! I miss the old minister so much! Mu! Mu!"
The big guy Bill is really powerful enough. When he saw the emperor Li Mengyang, he rushed over and chewed him with his own hands.
"Okay, okay..." Li Mengyang didn't see too much about this kind of flattery.
"Oh, your majesty is wise." This guy, the big guy, is worthy of being an old man, and he sees the opportunity very quickly.
Li Mengyang was really moved at this time. This big Bill is considered to be a big boss... Well, he is actually quite old, but he lives a tough life!
It can only be... the disaster will last for thousands of years?
Forget it, I don’t count on those, let’s talk about the serious business.
"Big Bill, I'll ask you now, what do you think of private consumption in the United States?"
Li Mengyang’s question is quite professional, and this question is asked by this big man Bill. To be honest, it is really very accurate.
The big man Bill is the current governor of the central bank. He must have a good grasp of the economic level, and of course he must be clear about the situation in the consumer market.
"Well, it's still the same, and the demand is not strong."
Yes, this is the reality, the demand is very ordinary.
As for this answer, Li Mengyang actually knew it because this was the case when he was in the United States, and the demand market within the United States was not very strong.
At the beginning, the United States was mainly an outward-oriented economy, and its internal needs were just that.
But Li Mengyang knew some of the tricks, and he only heard him ask: "Then, just like before, the price of food is very low, while the others..."
"That's right! Your Majesty is indeed extremely wise! It can still see everything in America thousands of miles away..." This big man Bill is going to make up for all the flatteries he hadn't played for such a long time today!
"..." Li Mengyang's expression, alas~
But, however, there are actually important things in it.
Why is the demand in the United States not strong?
You should know that the population is one aspect, that is, the population in the United States is average and not a lot. Although there are still immigrants coming in, they are not as large as in Europe and China.
Another one is the key, by the way, the price of food is low!
Generally speaking, ordinary people feel that the low price of food is just a good thing!
This idea is correct, it is indeed a good thing, but the problem is that if you look at this matter in a macro economy, it is not a good thing.
Low food prices mean that the needs of the minimum people can be easily met!
Well, this is indeed a good thing, but the problem is that this incident has led to a superficial phenomenon, that is, the inflation in the whole society is difficult to improve.
inflation?
Yes, this thing doesn't sound like a good thing, but in fact, how do you think about the score?
Of course, vicious inflation is not a good thing. However, if a country's GDP rises by 10%, but its inflation only rises by 1%, will my country's economy be good or bad?
Li Mengyang knew that it was definitely bad if he could say 100%!
Because, since GDP has risen, it means that the economy has grown. The economy has grown, and it will be accompanied by a certain amount of inflation. Simply put, it means that you have money and everyone has money, so...
If I bought something that cost one dollar before, if it didn’t grow to 1 yuan and 2 cents, then it would be a pity for society!
There is a key point to see the phenomenon here, that is, since the economy has developed and everyone has more money, but prices have not risen, there must be problems here.
Why haven't prices risen?
It must be the situation of supply and demand, or it is still the same as before.
Then, let’s talk about it again, although the economy has grown and everyone’s income has also increased, but no one has bought anything, so why not buy things?
So, the problem is here, that is, if inflation does not rise with GDP, then there must be a problem, and this problem is still very big. Why don’t people dare to consume?
When the price of grain does not rise, other consumption will not rise, which is absolutely a problem. Why don’t you spend money? There must be a problem.
The key is that such things will cause serious consequences. For example, there was an emperor in the Tang Dynasty who was anxious and no one took out money to spend. Everyone put copper coins in cans and buried them.
Therefore, the Emperor of the Tang Dynasty forced everyone to spend money, and no one could have deposits...
This kind of thing is actually very terrible, and Li Mengyang would not do it like this, he needs to use other methods now.
"Big Bill, tell me, if we start doing it now, we will implement some supervision and investigation on the United States, and we need to know their credit status, whether they owe money in the past, then can we complete this job?"
"Is this?" The big Bill really doesn't understand. What is this Emperor?
"Hey! You guy." Li Mengyang knew when he saw the expression on the big Bill's face, so he simply said: "My idea is that the bank of our empire should start a kind of thing called credit transactions. That is, if there is credit, those individuals with good credit can guarantee some of their transaction behaviors, such as buying something first, but the money has not been paid, and only half is given, or less. What do you think of this?"
"Ah?" The big Bill was completely confused, but he understood a little, "Your Majesty, what do you mean is to let everyone borrow money to spend? Let everyone take credit?"
Well, I have to say that this metaphor of Big Bill is quite appropriate.
right!
Li Mengyang just wants his people to have an opportunity to buy things on credit!
Abbreviation: Yin eats Mou grain! (To be continued.)
ps: Thank you everyone! Thank you very much! In addition, the New Year is coming soon. Black Car is here to wish you all a happy New Year and all the best, hehe!
Chapter completed!