Understanding Macroeconomics
Law No. 1: Private investment is determined by monetary policy, and government investment is determined by fiscal and taxation policies
If the economy wants to grow, investment comes first. Investment is divided into government investment and private investment, but the growth of these two parts is determined by different policies. The growth of private investment is mainly related to monetary policy, and the growth of government investment fundamentally depends on fiscal and taxation policies. Private investment mainly relies on loans from financial institutions.
The financial environment is loose and private investment can expand dramatically. As the financial environment is tightening, private investment must shrink significantly. Therefore, the expansion and contraction of private investment are basically consistent with the expansion and…
What card does the U.S. play?
Looking at the extraordinary depreciation of the US dollar last week, the logical intention to deviate from economic fundamentals is clear, and it is obvious that subjective deliberate depreciation methods are appreciation prevention or economic protection. Therefore, the one-week depreciation of the U.S. dollar has led to the appreciation of the major currencies in the basket, which will suppress or make it difficult for the economic recovery of these currencies in the future. The U.S. dollar index detoured by 91 points in a week, and other currencies generally rose passively or resignedly.
First, The misalignment of U.S. stocks and the…
Can high salaries find talents?
How does a company define talent? Can high-paying talents be found?
If the boss himself is not a talent, he won’t be able to recruit talent for any amount of money.
First of all, you have to determine if you are a talent.
A good manager must have sufficient ideological realm and must actively understand and discover talents to find and manage talents.
These are the 4 essential elements of talent management:
1. What is talent?
2. Where to find talents?
3. How to retain talents?
4. How to manage talents?
1. What is talent?
Every company has different scales and different fields, so…
Several economic factors impact Treasury yields, such as interest rates, inflation, and economic growth
Recently, the US 10-year Treasury bond yields have risen, causing global financial market turmoil. For example, the stock market index has dropped significantly, the price of Bitcoin has corrected sharply, and the dollar index has rebounded.
At the beginning of 2020, the U.S. 10-year Treasury bond yield was around 1.90%. After the outbreak of the epidemic, the U.S. 10-year Treasury bond yield dropped to a record low of 0.52% in early August 2020.
At the end of 2020, the indicator rebounded to around 0.93%. From February to early March 2021, the yield on the 10-year U.S. Treasury bond rebounded significantly.
…
Market follow-up trend analysis
Since 2021, U.S. bond interest rates have risen rapidly. Affected by the rapid rise in U.S. bond interest rates, some previously highly valued stocks have fallen sharply, such as U.S. stock technology stocks and domestic white horse blue-chip core assets.
The Chinese bond market interest rates have also seen a slight increase. However, this article points out that the rise in U.S. bond interest rates is nearing the end, and the Chinese market may welcome a breathing window.
The U.S. and European economies show an accelerated recovery trend
The U.S. economy is getting better. The U.S. Manufacturing Purchasing Managers Index (PMI) in February was 60.8%, a new high since February…
Let’s talk about the real economy and Chinese manufacturing ideas
As an opening remark, China’s recent Fifth Plenary Session of the 19th Central Committee of the Communist Party of China made the formulation of the 14th Five-Year Plan and 2035 long-term goals, and then China also issued a planning outline.
This outline attaches great importance to the development of China’s real economy. There are many important expressions in the place.
When we talk about the real economy, it is a relatively broad concept. Most of the economy is the real economy, and it is not just about producing products, producing services, and dealing with resources.
Except for the media, it…
The U.S. stock market is among the most dangerous in the world
Since the epidemic, inflation expectations have continued to rise, and large-scale quantitative easing has always been criticized. The market is worried that as the global epidemic resumes, the side effects of quantitative easing will appear.
What kind of pressure is currently facing emerging markets? When will the turning point of global liquidity come?
An interest rate hike may come early
Recently, Fed Chairman Powell stated that as the US economy recovers and its goals make substantial progress, the Fed will gradually reduce bond purchases.
First, this reflects the Fed’s more realistic attitude. It realizes that the overall inflation or employment situation will be different from the Fed’s…
What should China do if the U.S. does not repay the money?
Recently, some experts have called for the reduction of US dollar assets, saying that the United States is cutting the world’s wool through abusive currency issuance, and China must resist the US dollar hegemony by reducing holdings. Called to buy oil and gas, etc.
If this viewpoint is raised by ordinary people, there is nothing to say. It is really blushing from the mouth of some professionals. Many experts lack basic common sense on the issue of foreign exchange reserves.
Many people don’t know that foreign exchange reserves are not the concept of assets in the full sense.
For example…
It took China less than 70 years to emerge from isolation and become one of the world’s greatest economic powers
Modern China has become a global model in terms of government governance of the economy.
At an uncertain point in time, but it must not be an indefinite point in time. Under the premise of a relatively open capital account, the renminbi will become one of the world’s major reserve currencies.
The United States really has to start to consider the limit that the earth can withstand. If medical breakthroughs can really enable human beings to achieve immortality, it will be a terrible reality.
China-U.S. debt and infrastructure
The federal government predicts that the US national debt has reached 106% of GDP by the…
The United States and China have publicly clashed during their first face-to-face high-level talks since Joe Biden took office
On March 18–19, 2021, China and the United States held the first high-level strategic meeting since the new US administration to implement the spirit of the conversation between the two heads of state. The high-level strategic talks were divided into three sessions, focusing on domestic and foreign policies, Sino-US relations, and major international and regional issues of common concern.
The talks were more intense and direct than before, with differences and consensus coexisting:
- First, China has stated its firm position on issues concerning its own sovereignty, security, and development interests. It clearly pointed out that sovereignty and territorial integrity are…
Arslan Mirza
Free-Lance Writer
