Trend-W? U?L? -LOST BALANCE
Posted on Jun-09-2010· by china investor
Yesterday I read a news which said a offical said the stock markt should begin rise up, the lSHANG HAI Index is closing the bottom(Now is 2521).
I think maybe I understand why he say it,but I think that is not the most important things and is not runing a right way…, I am admire and respect his courage, as a official , he can open mouth and say out his forecast, in the current, not many official dare to do it, but maybe what we need to do is face the main contradiction, there are no shortcut. The most important things is not guess the bottom,or the point of the stock market.
I heared another news which said 12 GB economist said Euro will collapse, REALLY?! Also I read some news in which somebody begin to guess again are we in a W trend?
It seems in the same time , there are hopefulness and pessimistic in the diffirent area of the world. But maybe the truth is not like what they said.Actually in the last 2 years, we lost the valuble chance to avoid the crisis and seems we are continue losing the chance.
2 years ago ,I said “Helicopter Money” can not work, because the most important issue is we lost balance.
“LOST BALANCE” , yes .
In china, we shed huge money , but the result is the price of the house rise up quickly, some news said in their city, the price of the house rise up 15% in one month. The most of people said they have no money to buy a house, because the price of the house equal the total amount of 25 years salary. Many news paper said the report show : In China, the 1% people own the 41% asset .In the same time , many many young people can not find a job. We shed so hugh money, the price of many vegetable is double of the last year. We shed so hugh money, but banks give money to big company, these little company is hard to get money, so these big company use people’s money to buy the land in the highest price, and little company had to close. But please remember, in this country 70% job is offered by middle and little company! ALSO, we shed so hugh money, the debt of the government rise up CRAZING! We all remember , just a few years ago, we use another hugh money to let these “bad assests” disappear from the “Balance Sheet Of The Bank” , but, the really OWNER of these money in these Balance Sheet is PEOPLE, PEOPLE PAID FOR THESE BAD ASSETS! No anyone get punishment for these “bad assets” , the loster is people, now the debt rising up crazing, this time, how to avoid hugh “bad assest” ?
In USA, many bank get huge money from the country, because they is too big , so they can not failed or closed. These money is come from the people , But the CEOs are asking get hugh payment for profit , we are still in crisis, right? Also these bank is not intersted give money to these company which create new job, because they are face “RISK” of crisis, maybe these company will cause these bank lost money, But these bank taken people’s money to invest in HIGH RISK MARKET! The truth is not the RISK, the TRUTH IS PROFIT AND GREED. The price of the socks is not controled by chinese factory , it is crontroled by wallstreet, these smart investor use hugh money to control the price of the materials, oil, cotton.
The most important things in economy is let people can get job, get money from their work, can use these moeny to support their life , become customer . In crisis, we DO need do things to remove the roket before out road, but more important thing is to choose a correct road. “Helicopter Money” = continue “LOST BALANCE” . We can not always “Helicopter Money” ,or we can not in one hand shed “Helicopter Money” but in another handwaste these “Helicopter Money” . We need use these “Helicopter Money” to help the most of people, not a little . Economy is build via the most of people, not a little.
If the price of these materials continue rise up, as we all know, in many country , their people can not earn 2$ or 1$ a day, there will more and more confusion, conflict, dead ,war in the world. As we all know, in USA, poverty line is more than $15000:
| Persons in family | Poverty guideline |
|---|---|
| 1 | $10,830 |
| 2 | 14,570 |
| 3 | 18,310 |
| 4 | 22,050 |
| 5 | 25,790 |
| 6 | 29,530 |
| 7 | 33,270 |
| 8 | 37,010 |
| For families with more than 8 persons, add $3,740 for each additional person. | |
So Inflation is not a big problem for richer country, but it is a deadly problem for poor country. “Helicopter Money” = Inflation .
In last year, the “Military expenditure” in this world create a new record , the cost is $1530000000000 !!! Are we still in the CRISIS, are you sure? Can you believe?
If we do not face lose job, lose banlance and only “Helicopter Money” to support little greed people or just waste these “Helicopter Money” , “Helicopter Money” = dead , there will have more and more conflict in the world.
I am not against “Helicopter Money” , I am against “LOST BALANCE” , if we find balance, these money is valueble, it will not wasted else “Helicopter Money” =
CRISIS .
If you say we are in crisis, find the balance.
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