1/2/09

My point on current situation in China

For the previous couple of articles given and ungiven yet, I'd like to give my own point of view on the current economic situation in China.
For over the past two years, someone has drained all the wealth of Chinese security investors with only little left, which is, hope, that the stock price is going to rise in the coming years. Unfortunately, I was one of the victims. Who the hell is he? Who is able to do this? Who has that power so as to control all this? Of course, the money printing machine owner. It's easy to figure out who he really is.
For the past year 2008, the CPI has grown 4.5%(official data), while the actual CPI(of common consuming products for daily life) has grown over 12% which the authority is not likely to let people know. The value of RMB we have is shrinking all the time and the central bank is still printing funny paper money to plunder people's wealth. Unfortunately, people in China is completely unawared of this, most of whom are still traditional savers, in bank, in government they trust.What a pity!
The authority is busy doing printing stuff, on the other hand, pacifies the poor with a little comfort, like raising the minimum relief payment,or promising to offer enough jobs, etc. I think it works. People complain and accept it, arguing the price soar, the salary low, other than what the authority did to their shrinking wealth. People in China now is turning to National Lottery again like years ago because it's not easy for the most salary receivers to find a good money making way. The whole country's economy is deteriorating and the life of business owners is also tough. Where is the way out?
Accoding to the actual CPI vs one year fixed depository interest rate, the return on investment of deposition in bank is undoutedly negative, and the M4 grownth rate is around 5%, I'd like to believe that borrowing money from bank is a wise way to hedge the RMB devaluation. What do we do with the loan? Buying undervalued common consuming products manufacturing facility to earn steady fairly good cash flow. If you have enough resources, you can open a discount grocery or a discount supermarket. Or, like I mentioned before, buy gold and silver. The growth potential will cover the loan rate.

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