Rebirth: My 80s

Chapter 316 I’m afraid this kid might have had his head touched by an immortal
"Compared with the experience of port cities, East Germany's social cooperation real estate development model is undoubtedly more suitable for us."

"That's what it is said, but as Xiao Li said, applying it mechanically is not enough. Our people are too poor now."

“I think it can be divided into two parts and go hand in hand. First, open up this model and let people with spare money use their own homesteads or buy land to build houses. People who don’t have so much money can set up cooperatives and raise funds to build houses. Second, For people who really don’t have money, the government will build low-rent housing, and if they pay the rent, they can have a home, so they don’t necessarily have to buy a house.”

"Xiao Li, does the housing system in East Germany also have the characteristics of 'renting as the mainstay and purchasing as a supplement'?"

If you don't say he is a dean, give him a point and he can show off his face.

Li Jiankun nodded slightly, "As far as I know, it's like this. [-]% of the residents are renting houses."

Chen Daisun said: "There is another feature that Jiankun also mentioned just now, which is the weakening of the connection between real estate and the financial system. This is very critical. People no longer have to bear decades of mortgage loans per capita like in Hong Kong cities, and at the same time, we have to fundamentally change the relationship between real estate and the financial system. This eliminates the possibility of real estate dividends flowing into the hands of a few people.”

There should be applause here.

Got it!

Whether he should say it or not, Li Jiankun felt faintly excited in his heart.

After the economics big guys understand, if our real estate model changes in the future and looks like East Germany, then his butterfly will be like a hurricane.

Will it get worse?

He doesn't think so.Will Germany later become the leader of the EU?

An economy that exploits real estate and withholds taxes is ultimately a temporary pleasure, a castle in the air.

If you want to revive and rise, regain glory, and stand proudly on top of the world, you have to rely on technology... From the perspective of an experienced person like Li Jiankun, you can only rely on manufacturing.

Britain took the lead in the Industrial Revolution and thus created an empire on which the sun never sets.

During the two world wars, the beautiful country acted as a creditor behind the scenes, working hard to develop manufacturing and manufacturing desperately. At the end of World War II, their manufacturing share accounted for more than 30% of the world's share, while the United Kingdom dropped to a dozen.

Therefore, this country, which was built by immigrants and has a history of only 200 years, suddenly became a superpower.

Li Jiankun has a rather paranoid idea: if you control the manufacturing industry, you will control the world.

No matter how technology and finance develop in the future, or how advanced they become.It would be extremely foolish to abandon manufacturing and plunge into the technology and financial fields where money can be made faster.

Because all the wealth in this world, to put it bluntly, comes from one thing - demographic dividend.

The vast majority of people are ordinary people. They need job opportunities. Most of them cannot do finance. They may not use high technology, but they cannot do without the basic necessities of life.

In a country without manufacturing, wealth must only be in the hands of a few people.

For these people, there are usually no national boundaries and they can go wherever they want.

Once they are wet, what will be left of this country?

Some things are foreseeable, such as the rise of manufacturing powers and the decline of the world of pure capital.

Of course, there is a process to this, and people living in this historical period...like us, still suffer quite a lot.

Therefore, Li Jiankun clearly mentioned several capital traps in his paper. The purpose is to prevent our country and our people from suffering at this stage.

No, after the discussion on the real estate model came to an end, the big guys immediately focused their attention on this.

What they are most concerned about is the dollar tide.

As we all know, China and the United States are now in the honeymoon period.American capital and companies gradually entered the country, and some factories were built, such as Coca-Cola.

Many people who come later may not know that when you walk into the supermarket and want to buy a bottle of drink, you scan the dazzling array of products on the shelves, such as Pepsi, Sprite, Minute Maid, Fanta, Amazing, Queer, Nestlé...

Just when you think you have a lot of choices and can taste products from various companies, sorry brother, they are all from Coca-Cola.

There are many similar U.S. companies. How do they achieve dominance in the industry and leave you with almost no choice except them?
This has to mention the dollar tide.Mr. Sun Zhifang restrained his excitement from finding a suitable real estate development model and said in a deep voice: "Xiao Li, can you tell us about the dollar tide?"

Talking about this, Li Jiankun was also not very happy, and said with a dark face: "Just as I defined it in the paper: wolf ambition, harvest the world!"

All the big guys present looked serious.

It’s no wonder that they don’t understand it well. After all, American capital has just entered our market. If this is true, it is really a shocking conspiracy!
Li Jiankun continued in vernacular: "The so-called tide refers to a cycle, a cycle in which the Federal Reserve cuts interest rates and raises interest rates. Let me give you an example now: a tide begins, when the Federal Reserve will significantly lower loan interest rates. Capital is money that makes money. A snowballing process.

“As a result, businessmen borrowed money from banks and invested them in various industries. As the country’s economic model stabilized and there was no longer any big profit, businessmen turned to other countries. Developing countries like ours are in urgent need of Foreign exchange funds are their favorite.

"For example, if an American businessman comes to our door now, carrying a large amount of US dollars in foreign exchange, and wants to establish a joint venture with us, should we agree?"

Li Jiankun looked at the bosses.

This is not a difficult question to answer. We are now in urgent need of foreign exchange, especially U.S. dollars. As long as the project is compliant and the joint venture policy is acceptable to the other party.

Is there any reason not to agree?

Mr. Sun Zhifang said: "I must have agreed. You continue."

"Okay, the joint venture company has been established and construction has begun. The project is huge for us. The construction alone will take several years. I think our joint venture units, including the regional government, are all flattered.

"I'm afraid that we need policy for policy, and resources for resources. We are so poor that we have to tighten our belts and stuff money into it.

“Seeing the high-rise factory buildings rising from the ground, even if you are a little worried, you should give up your worries now, and the support will definitely become stronger and stronger.

"That's when the Fed raised interest rates."

The breath of all the old men in the audience suddenly stagnated following Li Jiankun's pause.

Li Jiankun continued: "As I said before, the American businessman borrowed the money from the bank, and the interest rate was very low at that time. It is different now. If you add 5 points, the American businessman may still grit his teeth. What about adding 10 points? He must have panicked. What if it was increased to 20 points?
"He must have panicked and immediately withdrawn his capital and left, even if he lost money, because if he didn't go back and repay the loan quickly, he would go bankrupt."

When Li Jiankun said this, he looked at the old men again, "In a country with such a difficult economy as ours, with such a big project, foreign businessmen run away and abandon half-finished industries. What should we do?"

He asked himself and answered: "If we continue to build, we can't come up with the money. If we just leave it alone, we have already invested a lot, and I will definitely want to cry when I look at it! But there is no other way, I can only stare."

"When we have been depressed for a while and become disheartened...oh! The Federal Reserve cuts interest rates again, and businessmen can borrow large amounts from banks at extremely low interest rates.

"An American businessman came to our door, but it wasn't necessarily the same one last time. He was looking at our unfinished project...for example, a project of 1000 million has been invested, and he wanted to buy it with [-] million. Do you want to sell it or not?

“If we don’t sell it, we won’t be able to continue it at all, and it’s worthless to put it there. If we sell it, people can revitalize the project and it can also bring tax revenue to the local area.

"Gentlemen, think about it, when we are desperate, should we sell it or not?"

All the bosses in the room were silent.

Is that even a question?
Li Jiankun spread his hands and said:

“This is a standard dollar tide. I gave an example to illustrate it. In fact, in every dollar tide, there are countless similar business cases around the world.

"In this way, the United States harvests high-quality global assets at a very small cost, especially in developing countries, and more and more industries have fallen into their hands."

Snapped!
Mr. Sun Zhifang jumped up at the crime, "This is robbery!"

Chen Daisun closed his eyes slightly, "A kind of disguised colonization, capital colonization. I have some insights, but I have not reached this level of depth. I lack cognition and understanding."

After hearing this, all the old men were angry and disgusted. At the same time, the eyes they looked at Li Jiankun became different.

Even your mentor only has a superficial understanding of things, how can you study it so thoroughly?

I went to Hong Kong City and you were touched by an immortal!
(End of this chapter)