The rise of nanometers

Just when Hasegawa Kenichi made a secret visit to Seoul.

April 18th.

A world-famous financial summit was officially held in Dalian.

The main venue of the Financial Summit is the press conference hall of Dalian Exchange.

In addition, several auxiliary venues have been set up, including the domestic cities of Magic City, Pengcheng, and Chang'an, as well as three overseas venues: Moscow, Seoul, and Bangkok.

The person presiding over this financial summit was Li Hongwen, general manager of Dalian Exchange, and delegations from all parties also gathered together.

Huang Xiuyuan discussed with the above many times, and also conducted in-depth research on the current world financial structure with Professor Wen and others from the strategic think tank.

Using financial hegemony to harvest the world is not a big problem in the short term.

However, in the long run, pursuing financial hegemony will sooner or later lead to the economy turning from reality to reality, and gradually transforming from an industrial country into a financial country.

The consequence of this is that a small number of financial elites, through financial rules, information gaps, and capital, are frantically harvesting global wealth, including the wealth of the country's bottom people, and will be swallowed up by these financial elites.

With the country's huge population, once it turns away from reality and engages in financial games, it will lead to a huge number of people becoming unemployed and the gap between the rich and the poor will inevitably widen.

Over time, social conflicts will inevitably intensify, and it may even collapse.

Therefore, Huang Xiuyuan does not recommend taking the old path of the United States, but a new path.

As the spokesperson of Suiren in the financial field, Li Hongwen became the first speaker of this financial summit.

"I am very happy to meet you all, and I am very honored to participate in this financial summit. I have done some immature research on recent global financial issues. If there is anything inappropriate, please feel free to enlighten me."

Li Hongwen turned on the synchronous playback on his laptop, and suddenly a line of Chinese text appeared on the big screen behind him: The Essence of Finance.

"Finance was born with the birth of human society. From barter in primitive society, to copper coins and silver notes in feudal society, to stock futures in modern society, it is a line of development."

"What is the essence of finance? I think the essence of finance is transaction, a tool to assist the economy. But I don't know since when, finance has turned into a kind of gambling and games, a casino where a few people make money, and a casino where a few people make money. A sharp knife for slaughtering people."

Li Hongwen showed a sad expression and continued:

“From the Great Depression in 1929, to the subprime mortgage crisis in 2008, to the current global debt crisis, from the birth of capitalism to the present, financial problems, large and small, have not been fundamentally solved, but have been repeated over and over again. Similar things, I can't help but think of a question in my heart, is all this inevitable?"

The participants below, who did not know the specific situation, looked at each other with confused expressions.

Even the Wall Street elites on the other side of the ocean silently watched this financial summit through live broadcast.

"I looked through all Western economic works, and finally I only found two words written all over them: cannibalism." Li Hongwen looked at everyone:

"Those who design financial instruments may have good ideas at the beginning, but as various financial instruments emerge one after another, the rules become more and more complex, the terms become more and more high-end, and transactions become more and more unrealistic."

"Can you imagine? Crude oil futures do not require crude oil, and there are all kinds of strange insurances, futures, debts, and loans. Can these things really serve the real economy? Can they really bring a happy life to the people?"

Many people were already sweating on their foreheads. They did not expect that Li Hongwen would be so direct, with a tone that seemed to eliminate all financial instruments.

"No! These complex financial tools are just tools for the capital elite to harvest wealth. They are just needles for them to suck blood. The people not only do not get the benefits, but also get harvested. This is the alienation of modern finance. They are no longer available. It is no longer a financial service tool at the beginning, but a financial blood-sucking tool.”

Although Li Hongwen's voice was not loud, it had a deafening magic power.

“Getting down to business, how do we solve today’s financial problems?”

He stopped to take a sip of water, but the financial elites below were whispering to each other as if they were facing a formidable enemy.

Two minutes later, Li Hongwen continued:

“I think the only way to solve today’s financial problems is to return to the original functions of finance, eliminate all complex financial instruments, and simplify finance.”

On the big screen, a new term popped up: effective currency.

“I’m introducing a brand new term here, effective currency.”

What is valid currency?

Effective money is money that has real value.

"In the past, the standard used to measure the economic development level of a region was called gross domestic product. I think this is an outdated calculation tool because it is neither accurate nor productive." Li Hongwen mocked.

On the big screen, a new term popped up again: Gross Effective Product.

“I think the standard for measuring a region’s economic development level should be its effective gross product.”

The so-called effective gross production refers to the total amount of goods or services produced in agriculture, industry, and service industries that are used for transactions.

It can be simply understood as: effective gross production = effective goods + effective labor

Under this calculation model, the value generated by a commodity must enter the social circulation link (that is, be sold), and no matter how many times it changes hands, it will only increase the added value (the added value can be negative).

When the product reaches the final consumer, the final price of the product is the effective production value generated by the product.

In the past, GDP calculations could be repeated and superimposed through a large number of transfer transactions.

In the effective gross production, only the final value of goods or services is calculated, avoiding double calculation.

At the same time, this effective value will achieve the purpose of de-virtual finance for a part of finance that cannot generate effective transactions.

The real economy of the United States only accounts for 11-12% of the overall economic scale, while virtual finance accounts for as high as 88-89%, and a large part of virtual finance is actually worthless transactions.

Why is it said to be a worthless transaction?

This involves the concept of unipolar hegemony. When the United States is the only hegemon in the world, this worthless transaction is forced to become a valuable transaction.

That is the common quantitative easing, that is, issuing additional currency and debt with both hands, and adding the advantages of its own world currency, thereby kidnapping the global market and making the world pay for the additional currency and debt issuance.

When the dollar loses its function as a world currency, the so-called GDP of the United States will shrink by at least two-thirds.

The money and debt they have issued over the years are finally coming back.

This is also the root cause of the global debt crisis, because a large number of "forced" valuable transactions were returned to their original shape and turned into worthless transactions.

As the saying goes: a pile of waste paper.

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