2014 China urgently needs a massive fiscal stimulus
People still remember the end of 2008, China launched an unprecedented 4 trillion fiscal expansion. By the end of 2008, Chinese economists are loudly shouted 4 trillion fiscal stimulus is how important and wise. Indeed, so far as many Chinese are still Economics 2008 4 trillion fiscal expansion excuse.
Today, the reality is our U.S. stock market hit a record high and the Chinese stock market into a catastrophic crisis.
In 2007, when the Chinese stock market 4,5 thousand points I pointed out - the future of the U.S. government strategy is made in China to the 2000 stock market crash the following 2008 after China's real estate boom into the most crazy and by the end of 2008. At the time, this view is a fantasy for the Chinese people things. However, in September 2008 to allow the U.S. central bank Lehman Brothers went bankrupt. As a result, by the end of 2008 China's stock market plummeted to 2000 points or less on schedule. So, we immediately launched a 4 trillion foolish fiscal expansion. Meanwhile, China is also scheduled today in unprecedented real estate bubble.
September 2008, the U.S. Treasury Department could have easily rescued Lehman Brothers with $20 billion. So, when the U.S. Treasury natural crocodile tears that he has no money. The $ 20 billion for an economy the size of $ 15 trillion in national currency and the country has the world right, is simply a fraction of thing. In this way, we should know the 2008 4 trillion fiscal expansion is the Chinese being fooled by America.
Today, Chinese economists desperately oppose China launched a massive fiscal expansion. Talking about reform, talk about how there can be no creation without destruction, after the crisis China can have hope, and so on. The problem is that China's central bank and Chinese economists are idiots, fooled by a handful of Americans at the end of 2008. Now, the United States and Japan are waiting for emergency fire Chinese real estate crash and debt crisis. Idiot Chinese economists again want to sacrifice themselves for the U.S. central bank and Japan's Shinzo Abe.
At present, China's central bank already missed the opportunity to release money. China can only rely on an immediate 4 trillion yuan strategic fiscal expansion to counter the United States and Japan.
2014 edition confront the mind with the mind
(1) all of the state-owned shares is injected into the Social Security Fund;
(2) the establishment of grain and oil reserves with more than 1 year's supply;
(3) a substantial increase in personal income, slash the personal income tax;
(4) to stop the stock market IPO, allowing only military, agriculture, new energy enterprises in the equity financing;
(5) stop mixed-ownership policy;
(6) to provide rental subsidies and free food to low-income families;
(7) start to pay for universal health care;
(8) start the 2014 Chinese version 4 trillion fiscal expansion into the military, agriculture and new energy;
(9) start 2014 Chinese version of QE, which is China's central bank begins large-scale buying of Chinese long-term bonds.
(10) re-revised steady GDP growth of 7.5 percent catastrophic error strategy should be based to a substantial increase in GDP growth rate of 10% correct strategy.
And in February 2008, I published an article in Sina blog , "Mr. crash - the Great Depression, Bernanke and short," the article pointed out - the U.S. central bank will soon manufacture the stock market crash and the global economy, therefore, China should immediately confront the mind with the mind. At that time, I suggested, "February 2008 edition confront the mind with the mind," the policy is as follows:
February 2008 edition confront the mind with the mind
(A) establish a $ 300 billion fund stock tray, allowing banks to buy shares of listed companies, to suspend futures;
(B) the purchase by the public investment vigorously turning public benefits;
(C) to provide rental subsidies to low-income families, a "total social housing";
(D) to stop the appreciation of Renminbi;
(E) public ownership of national resources;
(Vi) the privatization of monopoly industries;
(Vii) the elimination of export tax rebates, export of resource products to increase high export tariffs;
(H) a substantial increase in personal income significantly longer significantly longer significantly reduce individual income tax;
(Ix) the establishment of $ 300 billion global resource reserves;
(J) the establishment of a special fund $ 300 billion in transition;
(Xi) the establishment of small government, big market framework;
(Xii) the establishment of the RMB currency of target.
February 2008, China's stock market is still popular in the 4500's. No Chinese feel China has been under the control of the United States began systematically. If, in February 2008 China to launch immediately above the 12 policy. So, by the end of 2008 China's stock market will not fall below 2000 points to the end of 2008, a disastrous 4 trillion fiscal expansion will not be available. Thus, today's Chinese economy will not fall into the absurd unprecedented real estate bubble. How can it be that, step by step, the nation was led by the nose by Americans?
So, as I have been saying the last ten plus years - Americans are not clever, clever is the old adage "mediocrities lead the nation to disaster."
"2014 edition" the 10 policy must be synchronized immediately launched, one cannot be too little, one cannot be too much.
Of course, China's future is bound to fail. Because my 2014 Edition 4 trillion fiscal expansion and China QE policy is opposed and mocked by all Chinese economists.
So, can only say that the U.S. central bank and Japan Shinzo Abe are laughing to their heart's content. Therefore, China's central bank and the idiot Chinese economists are just the U.S. central bank and Shinzo Abe's faithful unsung heroes.
This is China's great tragedy. Originally there should be a strong China, or inevitably would be a strong China, but today no one understands the U.S. central bank and Shinzo Abe's strategy, can only be caught in the United States and Japan's set up, entering the trap and suffering a crushing defeat.
Liu Jun Luo
2014 Thursday, April 17, 2009