- Author: 土饭团
- Editor: 蚂蚁兄弟
- Proofreader: 阿伯塔
- Translator: Ranting
As we all know, after the outbreak of the international financial crisis in 2008, China’s economic growth rate fell rapidly and the economy faced the risk of a hard landing. In response to the crisis, CCP launched the infamous “4 trillion plan” in November 2008, which was touted as a set of ten measures to further expand domestic demand and promote stable and rapid economic growth. 4 trillion in essence is actually leveraging, all policy regulation, essentially a state of equilibrium, simple and brutal intervention in the economy, extremely irresponsible means of regulation, economic equilibrium is broken, the government, the corporate sector crazy leverage, high local debt, housing prices have been riding high since.
Nowadays, most young people understand the truth that it is basically impossible to buy a house by salary, especially after the “4 trillion plan” in 2008, the increase of salary has been far from catching up with the price of housing, work is better than real estate speculation, has long been deeply rooted in people’s hearts. So, as asset-based income, that is, income generated through capital participation in social production and living activities (movable assets: such as bank deposits, marketable securities, vehicles, collectibles, etc. and income earned from real estate: houses, etc.), whose money does each person earn by buying property → property appreciation → selling property → making a profit? For example, A bought a property in a city at a cost of 1 million, after a period of time the market price of the property rose, then A sold the property to B for 1.5 million, A made a profit of 500,000 from B, so where did B get the money to buy the property here? For common people, first, the salary income (savings), or add parents’ income, or even “six wallets”, second, savings is not enough, choose to take a loan, is also the choice of most people. The most basic operating principle of a bank is discounted future cash flow, that is, the portion of your personal future income that you can earn by valuing it and discounting it to you in the form of lending. The $500,000 that A earns from B is also earning B’s future discount, which in layman’s terms means that A gets B’s future money in the present. From the old days of bartering to the later invention of money, currency had only one role, to exchange, and B exchanged out the most important thing, a most important asset that has been diminishing since the birth of man, and that is time. As a result of CCP’s various “house price control measures”, the abnormal house prices have been formed, and B has exchanged much more time than the citizens of other countries. Here’s a quote from the U.S. Department of Education’s National Center for Education Statistics, which shows that 67 percent of U.S. young adults between the ages of 25 and 34 worked full-time (i.e., 35 hours or more per week) in 2016, with 73 percent of those with a bachelor’s degree or higher working full-time and 65 percent of those with a high school degree or less working full-time. Among those working full-time, the median wage for those with a master’s degree is $59,000, the median wage for those with a bachelor’s degree is $49,900, the median wage for those with a high school degree is $30,000, and the median wage for those with less than a high school degree is $25,000. According to data from the National Association of Realtors, the median sale price of a second home nationwide in February 2017 was $228,400, and if you use this figure, among 25- to 34-year-olds with a master’s degree it would take just 3.9 years of annual salary to buy a house, less than 4.6 years for a bachelor’s degree, 7.6 years for a high school degree, and 9.1 years for those with less than a high school degree. In addition, China’s housing prices under the rule of CCP, on the global urban housing price to income ratio ranking available everywhere on the Internet, China has been on the top of the list of how many cities, in general, has long surpassed the developed countries, and this is still the result of the “real income data” allowed to be released by the Bureau of Statistics of CCP, not to mention that Chinese houses have the only “common area” in the world, after squeezing out the excess portion, the real data is alarming to think about.
Besides, B, exchanged out so much time (life) to buy a house, from then on the back of the mortgage, can only keep working, do not dare to resign, or the consequences of unemployment is beyond his reach. And A, who sells the house, gets the discounted future cash of B to enjoy in the present. Then B may think, I also wait for the price appreciation, 1.5 million to 2 million, also go to get the later C, D future discount, I will be able to enjoy the same as A. Once the later C, D choose to take out a loan to buy a house, the only way to get rid of it is continue to find the later E, F take over. However, as the price of housing rises, the number of people who need to participate subsequently is increasing, and the total price increases, plus interest is also needed to be paid by newcomers, otherwise the model cannot be maintained, and a steady stream of people is needed to hold up the pyramid model, which is commonly known as a Ponzi scheme, a Ponzi scheme led by CCP using state power and policy instruments. Due to the oppressive rule brought by CCP to the people, it makes the country highly distrustful of the government, no matter who is insecure, and insecurity is one of the main reasons why most people buy houses, and buying houses to preserve their value has become the only choice most people have to make. CCP saw this, using the means of pushing up the price of housing, typical of the Shang Yang harnessing the five techniques of the people, make people tired and poor. The people’s money is trapped in their houses and they can only work desperately to pay off their mortgages, and exploitation deprives the ordinary people of most of their wealth and time (life). The current global trend of countries jointly blocking and besieging the CCP environment, coupled with the threat of the CCP virus epidemic, the unemployment rate has increased steeply, income has decreased significantly, the population out of small cities housing prices are bound to hold up, such as the Northeast region, a large population outflow of cities (Hegang, Shuangyashan, etc.), the pyramid structure from the bottom began to collapse, even if the full liberalization of birth control policy will not help, because the money bag of the people is already empty. Only by extinguishing CCP, forgiving all home loans, and making all land and property privately owned by the people, is the first step towards a fundamental solution. Otherwise the last bats of the drumming will always be a large number of ordinary people.