Chapter 596 The Nation
Masayoshi Kishimoto suddenly remembered something inside his head, it was also in this year that someone who was listed as one of the hundred red passers in the latter days had already made it to the position of the president of a commercial bank in a prefecture-level city in the eastern part of mainland China by virtue of his own talent at the age of 28.
This person privately embezzled public funds to the international financial market to go above as a tide, but was swallowed up by the big wave. As a result, he lost billions of yuan and fled to the United States.
This is something that happened in 2001. CCTV also gave this person a relevant special report in 2019.
Another mainland Chinese business family famous family originated big brother, also in the international financial market above the big heel, direct loss of billions of dollars, forced to retire from an important position above.
From this, we can see how terrible the international financial market is. Even the smartest people like them can not avoid huge losses, not to mention the general public?
Every time I hear or see someone bragging about how the international financial market is not scary, I really want to give each other two big mouths.
This is the same impulse that has brought me back to the people who say that Japan has lost twenty years or thirty years in the economy. The source of this notion is Nobuo Ikeda’s “The Lost Twenty Years”.
I am sure that the person who said this has never read the book. The book is not just about Nobuo Ikeda, but it is also a reflection on Japan’s economic past.
Nobuo Ikeda himself is not well known or well established in Japan’s economic academia. By way of background, he was born in Kyoto, Japan, in 1953.
After graduating from the University of Tokyo’s Faculty of Economics, he joined NHK (Nihon H艒s艒 Ky艒kai), where he worked as a reporter and planner.
He became famous in the industry for exposing the government’s misuse of financial program expenses and for his in-depth economic reports. After being promoted to a management position, he became bored and left to become a freelance writer.
After that, he became a professor at the Center for International Social Studies at Kokusai University and a chief researcher at the Research Institute of Economy, Trade and Industry (RIETI). He is currently at Uemu University (a Japanese private university established in 1963, Isesaki City/Takasaki City, Gunma Prefecture, i.e., a not-so-good, unknown existence).
Nobuo Ikeda can be found on Baidu, and there is very little information available. This academic level is not much in the field of economics.
Otherwise, it is an example of Japan from 1990 after the bursting of the economic bubble, has maintained a constant GDP (gross domestic product) of about 5 trillion dollars a year.
Japan has been the world’s largest creditor nation since 1991. Japan’s real per capita income is one of the highest in the world, and the country is not known as a developed country.
Japan’s deflationary policy has kept the yen stable and has not depreciated much. Of course, in contrast, the income of the people in general has not increased much.
The actual life of the average Japanese citizen has not changed much over the years. Japan’s annual economic growth rate, but also in the case of a little more than two percent.
As a result, a book “Low Desire Society” by Kenichi Ohmae was written about Japan. This person’s book is written a lot, but are superficial, completely to cater to the needs of the mass commercial market.
These books of theirs and Song Hongbing’s “Currency Wars” all pretty much belong to a mass economic or financial reading.
Actually, the reason why Japan’s economy can’t go up is simple. Its own country’s volume is so big, the development of the development are almost.
Continue to invest in some areas, that is over-investment, not only completely meaningless, but also in the waste of resources. It’s hard to find new growth areas or new economic sectors.
Japan has a population of 128 million, with a serious aging and childless population, and a land area about the size of China’s Yunnan Province.
It’s already topped its limit. Japan’s economic growth has long been targeted at overseas countries.
This is similar to China’s later strategic ideas of domestic de-capacification and Belt and Road overseas investment. In China, even the roads in remote villages have been repaired.
From an economic point of view, there is no need, after all, there are not many cars running on the road, it is completely over-investment. The same thing happened in Japan during the period of high economic growth.
However, this is not the way to calculate the accounts, not just the economic accounts, but also the social accounts, political accounts, and so on. Otherwise, neither the country nor the society will be stabilized in the long run.
Gross National Product (GNP) = Gross Domestic Product (GDP) + Net Factor Income from Abroad = Gross Domestic Product + Taxes on Production and Imports minus Subsidies on Production, Imports (Net from Abroad) + Employee Compensation (Net from Abroad) + Property Income (Net from Abroad).
“You’re thinking of a what?” Maki Iwasaki said while noticing Masayoshi Kishimoto’s sudden inarticulateness, he also noticed that he was a bit lost in thought.
Masayoshi Kishimoto came back to his senses and said, “Didn’t I tell you earlier about the reform and opening up of mainland China? The good thing is that the world has witnessed, also began to look at China differently.
Soros has always been short of the Chinese economy. China’s economy will have a hard landing. I am the complete opposite of him, I am long China’s economy. China’s economy will have a soft landing.”
“The two of you do have one thing in common, you both favor shorting.” Iwasaki Maki smiled sweetly and said.
Masayoshi Kishimoto did not deny it saying, “Indeed. I guess that the original conception of the Chinese authorities was to support some people to rise up, and then we can work together to govern the country well, and even recreate the glorious position of ancient China in the world.
Some of those who got rich first have followed the strategic concept of working together to make the country better. However, some other ideas of the first rich people, is always thinking of running towards the outside.
It is not a big deal for this person to run out. The problem is that he wants to run away with the property he has earned from mainland China, and that will not do. People who want to run, but also because of fear in the heart.
In the beginning, there was no shortage of them who had also traded their chains for riches and had done some illegal things behind their backs, so they were afraid that they would be settling scores later.
Later on, the powers-that-be had a new strategic concept, that is, to let the middle class in mainland China grow, so that they could push the upper class to carry out further in-depth reforms.
In the end, who would have thought that the middle class in mainland China would be so timid that they would not even think about it, and would only expect the top class to take strong-arm tactics to push forward the in-depth reforms directly from the top down.
If you think about it a little more carefully, it’s easy to figure out. China’s population of more than a billion people, the bottom of the base is too large, the number of people in absolute poverty is so large.
This climbing up from the bottom to become the middle class is not only a lot of hard work, but also requires a bit of good luck.
Otherwise, it’s simply not your turn. It’s just too easy to get screwed down. For example, a dismissal from a public office or something like that can directly bring down the middle class to the bottom of society.
China’s middle class lives carefully, afraid of losing their hard-earned food, clothing, and decent lives.”
“You really are particularly knowledgeable about Chinese society.” Maki Iwasaki complimented.
“It’s alright! After all, I’ve put quite a bit of my investment into the mainland Chinese market. If I don’t know and study more about it, wouldn’t I be throwing my money into the water for nothing?” Justice Kishimoto said seriously.