Is there a difference between the macro economy mentioned in Lang Xianping's book and China's economy?

With the gradual improvement of the American economy, it is inevitable that the Fed will reduce the scale of bond purchases, withdraw from quantitative easing and eventually raise interest rates. The Fed's interest rate hike is a disaster for China's economy and China's real estate.

Knowledge expansion:

When the Federal Reserve raised interest rates, the good days of China's economy and China's real estate, which had been growing crazily for 20 or 30 years, ended. The Fed's interest rate hike has caused international capital to leave China like a flood (recently, China has been in full swing to build a free trade zone, allowing capital to flow freely to a certain extent, just in time to cope with the possible ebb of international capital in the future). The ebb tide of international capital, coupled with the soaring cost of capital, will cause hundreds of thousands or billions of local debts in China, and the China government is unable to resist, so it has to print a lot of money to tide over the difficulties.

Raising interest rates by the Federal Reserve will make everything in the world no longer cheap, and capital, oil, raw materials and food will all become very expensive. Imported inflation in China is inevitable. Imported inflation, the government printing a lot of money, will eventually make China's inflation out of control, prices soar, and the RMB will begin to depreciate. After several months of tenacious resistance by the China government, the foreign exchange reserves accumulated by the people of China for decades were all exhausted, and the RMB exchange rate finally fell and began to depreciate sharply. Dollar returns to 1 to 8, reaches 1 to 10, or breaks through 1 to 12. The domestic gold price reaches 600 yuan and 800 yuan per gram, or exceeds 1000 yuan.

Whether China's economy or China's government can survive this disaster is still unknown. There are no eggs under the nest. When China's economy was hit hard, it was also the day when housing prices in most cities in China collapsed. Many overseas financing housing enterprises have soaring capital costs and can only sell existing houses or companies at reduced prices. If no one takes over, they have to close the door and run. At that time, there were cheap houses everywhere, but at the same time, a large number of private enterprises went bankrupt, and the actual purchasing power of ordinary people fell sharply, and no one bought the house no matter how cheap it was. At that time, it was really unimaginable how low the house price could be.

In the disaster, only Beijing and Shanghai's housing prices remained firm. Although they fell slightly, they never fell deeply. Although China's economy has been hit hard, as long as China's system remains unchanged, corrupt officials will be born one after another. Corrupt officials are greedy for money, or prefer Beijing and Shanghai to buy a house. In addition, people with huge private capital still want to get married, and houses in Beijing and Shanghai are still not for sale.

In this catastrophe, with the fly ash of China's huge foreign exchange reserves disappearing, the internationalization of RMB has become the biggest joke in the world. However, the cheap RMB led to a strong recovery of China's exports (the American people still need cheap goods from China to live a good life), and China's economy was completely transformed. House prices in Beijing and Shanghai rose again, followed by those in export-oriented cities such as Guangzhou, Shenzhen and Ningbo. Unconsciously, the world economy has completed a cycle.