RCEP overwhelming the westerly wind, effective January 1

Translated from the Headlines (Toutiao 头条新闻)

Author: Gu Ziming(顾子明)

RCEP is effective on January 1, 2022

“On the earth, we must create a paradise for people. Everyone is equal and happy there. We will never give up unless we reach this goal.”

At first glance, one might think that this is the most popular meta-universe slogan recently. In fact, this is the proposition of young Americans in the 1960s and 1970s. It is derived from the “White Leopard” written by Sinclair The Position of the Party Members.

In the 1960s and 1970s, the east wind was overwhelming the west. With the exception of the Soviet Union, a wave of spiritual universes emerged in major economies around the world. Hippies in the United States, punk in the United Kingdom, and the proliferation of sex and drugs became the era’s Mainstream thinking.

The ruling class and the people who are against the mainstream culture generally stand on opposite sides. Sinclair, a punk player, was arrested for drugs in 1969, which triggered a fierce confrontation between the government and progressive youth.

The proliferation of global revolutionary romanticism was behind the fact that the growth rate of the global economy lags far behind inflation, and the excessive currency issuance eventually triggered massive unemployment.

The excessive currency issuance has caused the price of the means of production to rise. When the price of the means of production exceeds the critical point, the company can only control production capacity and lay off employees if it is unprofitable. The layoffs and wage cuts lead to insufficient demand, which makes the company lose the motivation to produce. The ability to further lay off employees and reduce salaries to control costs has led to a further decline in demand and entered a vicious circle.

Young people cannot change their destiny through hard work and struggle, either go to another parallel universe to change the world, or use pornography, gambling, and drug stimulation to chase the dream of the multiverse.

The interesting part of history is that half a century after showing the face with a smile and a smile, facing the global risk of stagflation, China and the United States have taken the red pill and the blue pill each.

In order to avoid the impact of the unemployment wave, the United States had to acquiesce in the liberalization of drug control, and Zuckerberg’s meta-universe began to rush all the way.

However, China has launched a counterattack against hundreds of millions of young people at the bottom with drastic reforms on the three new mountains and a crackdown on new pornographic gambling and drugs.

After all, when the paper tiger is taking a nap in the meta-universe, a major change unseen in a century is also beginning.

But the prerequisite is that we must curb inflation and try our best to avoid unemployment caused by rising prices.

Therefore, from the Ministry of Agriculture knocking down the price of pork to the NDRC letting the price of coal fall down, and yesterday, the Ministry of Commerce was required to stabilize the price of daily necessities. In the face of a series of iron fists of socialism, the laws of the market also gave up the struggle. .

Whether these basic energy sources are stable, such as the oil, gas, charcoal needed by industry and the meat, vegetables, and grains needed by humans, determines whether inflation will be transmitted upwards.

The continued rise in global energy prices this year is essentially caused by the Federal Reserve’s excessive currency issuance, but China’s coal can be pushed out of the cliff by retrograde because unlike oil priced in the US dollar, coal shipped from Inner Mongolia is priced in renminbi.

As time goes by, as long as our renminbi can control the price, there may be a situation where the resources and commodities priced in US dollars will be inflated, and the resources and commodities priced in renminbi will be stable and flow smoothly.

Today, the ASEAN Secretariat issued a notice announcing that six ASEAN member states including Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, and four non-ASEAN member states including China, Japan, New Zealand, and Australia have formally submitted their approval to the ASEAN Secretary-General. The entry into force of the agreement is reached.

RCEP will come into effect for the above ten countries on January 1, 2022.

This means that within two months, consumers in the region will rely on China to buy high-quality and inexpensive consumer goods, and China will also purchase large amounts of ASEAN agricultural products to fight stagflation. Together with Iran’s oil and Russia’s gas, East Asia will be able to avoid the big market. Inflation, the impact of the future will form a huge chain link.

Half a century ago, the situation where the east wind overwhelmed the west wind may also happen again.

In the face of this unchanging situation in a century, we must not be led by the United States. Keep our eyes on the southeast corner, and we still have to open up the situation.

Looking back on this year, we have endured the continuous decline in GDP, greatly restricted investment in the three mountains of real estate, education, and medicine. We lowered our leverage and controlled prices at the same time. Not only did we keep cash in the pockets of ordinary people, but also reserve the world’s most valuable assets. Adequate monetary policy.

Sooner or later, the money printed by the Western big coin will have to be repaid.

This unprecedented round of water release will inevitably lead to serious stagflation when the water is collected. Not only will a new meta-universe be created, a large number of mismatched assets will also be reset and hit the bottom.

Those of us who do not believe in evil will have the opportunity to pick up the “Comparative Study of Two Global Crises” written by an authoritative person and suggest that these assets be reset according to RMB prices.