Ye Tan: The Biggest Crisis Of 2011 Is The Continued Killing Of Dignitaries.

This article answers a lingering question. Why am I so optimistic about China's economy that I am not too optimistic about China's future?

In a word,

China's market hinterland is large enough and its consumption groups are large enough. In the first thirty years, China has already accumulated huge wealth. China has become the world's second largest consumer of luxury goods, with fixed assets investment of around 25% per year. China needs to substantially raise the Australian ore and Australian dollar. The tightening policy of the Central Bank of China can affect the Asian Pacific stock market's ups and downs. In 2009, the housing prices in three or four cities rose straight up. Unfortunately, all these can not constitute enough to make the market develop healthily.

The government led economic model is not unique to China.

Grung Schenker, an economic historian, pointed out that in the early stage of the market economy, the government was deeply involved in the economy, not to mention China, a society born out of the planned economy.

The government led market exists in a wide range of planned economy models and early market economies, which is not the main cause of China's economic development.

Similarly, led by the government, China's economy is totally different from the latter thirty years in the first thirty years after 1949. The different years before and after thirty years have formed a space of mutual restriction and mutual promotion between the government and the market.

The government has become a market contentious, and has become an undisputed market aristocracy.

In the real estate market, the monopolist of the primary market is the leader of policy and state assets in the stock market. The government gradually releases the stock market into a gold absorbing pipeline through the release of tens of billions of state assets.

The government's individual individuals and those closely related to the power have also become the dignitaries in the market.

According to incomplete information on WIND, in 2010, more than 340 of the new shares listed in the stock market were worth 824 shareholders with a market value of 100 million yuan, mainly concentrated in small and medium sized boards and gem, which is equivalent to 2.4 billionaires on average.

In stark contrast, surveys show that less than 20% of the stock investors make money, and nearly 70% of them lose money.

This shows that China's securities market has not brought the money making effect to most investors, and the listing of some valuable companies has made most people poorer.

Such as Shuanghui and other companies after the suspension of continuous trading to ambush investors brought hundreds of millions of Yuan wealth effect.

The wealth effect of dignitaries is obtained through venture capital, through listing, through mergers and acquisitions, through insider trading, through the use of banking financial leverage in the capital and money market, and even through large-scale legal occupation of social resources.

Not surprisingly, 2011 is still a great year for venture capital in China, but the relevant rules lag far behind the crazy market.

Once the charm of the securities market is dispersed, it will expose the true face of the blood sucking machine.

If China's stock market can not return to the fundamental of resource allocation and fair trade, it will become the second real estate market that has been spurned by public opinion.

Real estate has become a serious area of corruption.

Former Henan Xingyang City Finance Bureau Director Xue Wuchen has 9 housing, the construction area reaches 1300 square meters; the former Shenzhen Nanshan District Committee Secretary Yu Dehai has the mansion 8 sets, the construction area reaches more than 940 square meters; the original Wenzhou economic and Technological Development Zone Administrative Committee Director Dai Guosen family has been searched the house property card 10 remaining copies; the former Shanghai Pudong New Area deputy district governor Kang Huijun because of the real estate more than 20 sets has the name "the real estate area mayor".

A long list of "redundant housing resettlement" is sold to the external staff list by temporary pricing. It shows that Shen Qiang, leader of Yueqing Qian Yun accident investigation team, has a set of 277.89 square meters of resettlement housing. According to the market price, this set of resettlement housing can bring 9 million benefits to Shen Qiang.

It can not be said that the government disregards the low income class.

Since 2009, the new reform of the medical system has been implemented. It plans to add 850 billion of the new investment in three years, which is about about 280000000000 a year, plus 100 billion in 2011, and the total expenditure on health care and personal health care will reach 400 billion in 2011.

The minimum wage has been rising frequently since January 1, 2011. Since January 1, 2011, the six minimum social security related treatment standards such as minimum wage in Beijing, basic pension for enterprise retirees, resident pension and unemployment insurance have been raised. The adjustment amount has reached the highest level in history, among which the minimum wage has the highest amplitude, reaching 20.8% to 1160 yuan.

Dignitaries are strangling China's efforts to cultivate middle class income and nurturing domestic demand. The minimum wage increase rate of 200 yuan is totally different from that of hundreds of millions of dollars in property income. When corruption comes to the lowest administrative level with startling figures, we can only draw power and wealth.

It is not too much to emphasize again and again. The outbreak of the French Revolution was not the third level, but because the free trade and related rights were deprived by the dignitaries. The Mississippi bubble in the Middle Ages was not a market disadvantage, but the French dignitaries swept away all the people's wealth in the market.

We have ten thousand reasons to prove that government led is inevitable in a populous country. The Singapore model is the best model we can find. But we have ten thousand and one reasons to prove that we lack the core of Singapore's model, that is, the relatively fair legal system of the people, and the way of resource allocation that respects market efficiency.

Why is there still hope for the future of China's economy? It is because of market accumulation and ongoing domestic demand reform in the past thirty years. Why do we always keep a close eye on dignitary capital? This is because this class is insatiable, free from rules and will destroy overnight reform and become immigrant.