Rebirth of the Wild Age

There is a joke called "Real estate speculation will rejuvenate the nation, and industry will derail the country."

If you put this sentence at the end of the 1990s and the beginning of the 21st century, it still has a bit of flavor.

Some of the measures taken by China after the Asian financial turmoil have worked well, but some have been lacklustre.

Infrastructure construction has achieved good results. Starting in 1998, the central government has issued 100-150 billion construction treasury bonds each year, specifically for local construction projects. what does this mean? The local government launched a project, and there is no shortage of start-up funds. Banks are rushing to give loans. The scale of investment formed by this "government investment and bank follow-up" is quite astonishing. Local governments can open their hands and feet to develop by leaps and bounds while driving related industries. Rapid prosperity.

This model will definitely not work in European and American countries after World War II. It will inevitably cause a "crowding effect", which will lead to a decline in private investment and expenditure, and market interest rates will also rise. However, China has a special system, special national conditions, and economic environment in a special period. After doing so for many years, the "crowding-out effect" has hardly appeared in China, and market interest rates have fallen instead of rising.

Therefore, at that time, so many Western economists criticized China because it was not in line with their economic laws. No matter how they calculated, they felt that the Chinese economy was about to collapse.

However, the Chinese government's efforts to stimulate domestic demand and increase private investment have had little effect.

After several successive reductions in the deposit and loan interest rates, the common people are still reluctant to consume and deposit a large amount of funds in the bank. The money cannot be loaned out at all, because export restrictions, insufficient domestic demand, and intensified competition have made many industries difficult to develop, and private entrepreneurs have become more and more cautious in investing.

This caused a phenomenon-

In the early and mid-1990s, it was more difficult for private owners to get loans from banks than to get loans. They had to go through relationships, and even pay bribes, to get loans from banks. By the end of the 1990s, the bank begged you to get a loan, but for any well-known company, the examination was completely formal when applying for a mortgage, and some people even borrowed more than one billion yuan.

Private companies have become scary. What should I do if I invest cautiously and don't take loans?

Then develop real estate!

Thus, the era of real estate speculation has come. Real estate companies have sprung up like mushrooms, borrowing a large amount of loans from banks to repair houses, the state has provided policy support, and the restrictions on real estate transactions have been completely lifted. People are rushing to buy houses. Hey, in this way, the bank's deposit funds have been revitalized, domestic demand has also been pulled, and all problems have been solved. It is simply...perfect.

This situation is conducive to economic development at a special stage, and the policy should be controlled after 2004, because domestic demand has already been pulled up, and private investment has also heated up, and there is no need to rely on the real estate industry to promote it.

But you can't stop the car. Once the beast is released, it will be difficult to shut it back into the cage.

...

Mayor’s Office.

The moment Huang Yunsheng opened the door, he stood up with a smile, and walked a few steps to shake hands with Song Shumin: "Boss Song, I've been up for a long time, I've finally met today!"

"Don't dare," Song Shumin smiled, "As an ordinary citizen of Rongping City, I would like to thank Mayor Huang for his efforts and contributions to Rongping's economic development."

"It's not for me alone, I dare not take credit for it," Huang Yunsheng said, "please sit down! Oda, take out my treasured Biluochun."

Secretary Tian was ordered to make tea, and Huang Yunsheng and Song Shumin were able to talk vigorously. They looked like two old friends who hadn’t seen each other for many years. I couldn't tell how, Song Shumin was arrested by Huang Yunsheng and put into prison, which did not affect the communication between them in the slightest.

Song Shumin took out a stack of manuscripts and said: "Mayor Huang has asked me to take a look. This is a development plan that I and Dogzi made together. I have a humble opinion and laugh at it generously. Please help me."

Huang Yunsheng opened this material curiously, and he caught his eye on the "Suggestions for the Transportation Development and Construction Plan of Rongping City in the Next Five Years". This thing should be done by the city government, but it was taken out by a private owner, which seemed a bit funny.

However, Song Shumin gave Huang Yunsheng his ideas for the development of the city’s industry in the prison, and now it’s not a big deal to talk about transportation development.

"Boss Song, please wait a moment, I'll read it first." Huang Yunsheng took it very seriously.

This material begins with a discussion on the disadvantages of Rongping's traffic location. You can enter the Yangtze River by water, but it is only suitable for ships with very small tonnage; by railway, you can pass through provincial capitals and extend beyond your province, but the speed is too slow and there are not enough trains. Only constructing expressways is the best choice to break the traffic bottleneck in Rongping City.

If it's just these, then it's nothing unusual. Everyone wants to build a highway. The question is where does the money come from?

The next step is to discuss China's economic situation, and discuss the impact of the Asian financial turmoil on China, and draw the conclusion that the central government will inevitably carry out large-scale infrastructure construction.

Huang Yunsheng quickly scanned it, then turned it back and looked at it carefully, and took a cigarette and handed it to Song Shumin, "Boss Song, here's one."

"Thank you, quit." Song Shumin waved his hand.

Huang Yunsheng lit his cigarette and said: “The central government’s large-scale investment in infrastructure is nothing but speculation. It will cost at least several billion to repair the expressway to the provincial capital easily, plus the difficulty cost of the mountainous area, which is likely to be tens of billions. No matter how you plan the route, you must pass through two prefecture-level cities in the middle. This requires unification with the leaders of other cities. I can't be the master, only the province can be the master."

Song Shumin smiled and said: "Leave aside the question of who is in charge. The central government invests in infrastructure on a large scale. Does Mayor Huang think this is possible?"

"After reading your article, I think it might be possible." Huang Yunsheng said.

"Then we can discuss the construction of the expressway," Song Shumin took out the map of the province from his bag and swiped his finger. "As long as Rongping's expressway is repaired to the provincial capital, Yicheng and Lucheng will follow up immediately. Connecting the expressway, the traffic between Wuliangye and Luzhou Laojiao will be opened. Therefore, the five cities should be linked together to jointly write to the province. This line can solve the traffic problem of a small and a half well-known enterprises in the province and revitalize the entire southeast of the province. The economy of the region!"

Huang Yunsheng looked at the map and was hot all over. He knew very well what it meant when the highway was repaired.

But still that sentence, no money!

Song Shumin said: "Learning from Roosevelt's New Deal measures, the central government is likely to issue a large number of construction treasury bonds, and some of the funds can be used for policy loans. The remaining part of the funds is for private investment at home and abroad. Both Xifeng and Xianjiu are willing to invest. Yes. Communicate with the leaders of the other four cities in advance, get a written plan, and at least report the project application first. The more you cry, the better you can get the policy loan next year. The earlier the project application, the better you will have Provincial leaders’ impression of priority. Even if the central government does not have relevant policies next year~www.readwn.com~, we will not lose much."

Huang Yunsheng's brain was in a mess, and his mouth was dry and he said, "Let me think about it first."

Song Shumin smiled and said, "Then I will visit again another day."

"Boss Song, go slowly." Huang Yunsheng personally sent Song Shumin out of the office, then closed the door and smoked one by one.

This plan is too tempting for Huang Yunsheng!

Song Shumin himself couldn't formulate it, and Song Weiyang helped make a lot of expositions by taking advantage of the traverser's advantage.

Once the highway is completed, the transportation costs of Xifeng and Xianjiu will be reduced.

Another point is that Song Shumin is preparing to build a cement plant. He wants to monopolize the expressway cement supply in Rongping City. He also has a chance to bid in the next city.

In any case, as long as Huang Yunsheng reveals the content of the plan, Wuliangye and Luzhou Laojiao must be pleased, and then squeeze their respective local government support plans.