Mao Yushi, private investment should be started as soon as possible

 Interview with renowned economist Mao Yushi
mm Source: rational use of resources to help us with some input by the maximum output. In view of the socio-economic issues, Mao Yushi stick to their personality, and often language does not startle, their respective ; low-rent housing should be built toilet the principle of equality and freedom of exchange of destruction caused by the crisis
very few, because the rich to help out the words to be scolded, but a lot of work for the rich, because it certainly would be beneficial; and help the poor people who talk a lot, too easy, but doing very little to help the poor, Because too much trouble.
then briefly summarize what you?
Mao Yushi: the prosperity of a society must make the best use of expertise and resources, in general, is free trade, equality, free trading. a thing, if there are two purposes, I It is used where the highest value, and this is the best use. commodity economy can do to increase a further increase the value of goods, and finally make the best use, not wasted. The theory of exchange used here .
how the exchange will create wealth? any seller wants to sell our goods at high prices, it has a bottom line price mm cost, and the buyer has a bottom line is that their purchasing power. seller's bottom line cost of a lower bid, the buyer made an offer relatively high, the price difference between the two in the middle of a transaction price. from the increased cost to the buyer made an offer, to increase the value of goods, any sale of both a normal value of goods increased by one. This means that the exchange created wealth. traditional economics, the exchange does not create wealth. And now economics, are the creation of wealth for each exchange is a prerequisite for equality and freedom.
The financial crisis is that the United States and some European countries free market economy gone too far?
Mao Yushi: No. freedom and equality are linked, not free to inequality. the free exchange is the exchange time of the transaction, paid their dues hand delivery. the financial markets about the future exchange, sent money without delivery, or the back of an IOU, a year later how much interest you principal. If the problem does not occur within this period is very good, But it was during a problem. For example, the money paid to buy things, but no other things to pay, did not think prices have gone up a few months later, the other side also requested increased the price. The financial crisis that has appeared in such issues. a lot people think that the financial crisis is a problem with financial regulation. But I think, even if there is no problem monitoring the financial crisis will occur. This is because many transactions are made on Wall Street's current and future exchange,bailey UGG boots, which has a lot of uncertainty factors can not be avoided.
economy, the same article, the owner of the goods old and new estimates are different, so they exchange will occur, thereby creating wealth. In China, freedom is not enough. For example, in the United States, although not the same as the laws of each state, But the overall market is free, you can drive around the country run enterprises, corporate relocation, moving no major obstacles. but in different places in China have a variety of restrictions.
free market economy is not the greatest government intervention. Keynes advocated government intervention, there is a premise that, in the case of insufficient aggregate demand, there must be an additional demand, this demand can be the government's purchase, rather than limiting freedom. So, now some countries trade protectionism, in fact, the
Mao Yushi: Now the reasons for the closure of foreign trade enterprises, to a certain extent that is precisely due to the exchange is not free. Why? foreign trade and exchange rate distortions are related, the appreciation of the RMB is not timely. Why not timely appreciation of the RMB? is because of government intervention. This was three years ago out of the question, when only two or three billion in China's foreign exchange reserves, now 2 trillion U.S. dollars.
, for a high dependence on foreign trade economies, will have a tremendous impact on exports.
Mao Yushi: I have long said the yuan to appreciate. RMB appreciation is beneficial to all,UGG bailey button, not selfish, but an adjustment of the cost. China's surplus items too, need to appreciate. I've said, as early as late rise up. RMB appreciation advantage is that with less money to buy foreign products, but also created many new opportunities, such as imports, travel abroad. In my view, China is no need to export, to import more. Three years ago, appreciation of the renminbi would not have appeared in so many problems, and now in terms of too much trouble.
not optimistic private enterprises and state-owned enterprises co
development of the is a good thing, but today's perspective, the biggest problem is not well implemented. This year, the general trend is relevant departments to strengthen the state economy, the implementation of a new round of business different, some good and some bad. but I think the way private enterprises and state-owned enterprises will not be very good cooperation. because there is a problem, that is, what is the basis of cooperation in the end? cooperation is of interest because of the new generation, the two parties on the distribution of interests on both sides. But the state-owned enterprises is not the same, the concept of state-owned enterprises and private enterprises of different.
resources coupled with vitality, boost the economy is not to do?
Mao Yushi: At this stage, private enterprises and state-owned enterprises or state-owned enterprises saw in the monopoly of various resources,Bailey UGG boots, like a piece from. but economically science perspective, this is an inefficient allocation of wealth to improve the allocative efficiency in accordance with the maximization of corporate profits to be, but just can not do that many state-owned enterprises. This is the biggest problem of cooperation, it will hinder more enterprises to create wealth, freedom and equality to undermine the free market economy system. So, I am not optimistic about this trend.
private capital to invest in services as soon as possible
Many local governments, private capital developed, many private entrepreneurs to present a common problem, how these savings into productive forces?
Mao Yushi: It is now the national security out of the 4 trillion economy, this money comes from the government or banks, This is a government-led actions. Moreover, China's private savings demand increases on a regular basis about 23 trillion, more than the power of 4 trillion five or six times larger. if we can private savings into investments, it would be better to solve the economic difficulties. and more efficient private investment, they will not vote of no profitable projects.
The problem?
Mao Yushi: private investment cast it? find a variety of exchange opportunities, dig out opportunities to create wealth. My advice is not to large investment projects, large projects can not afford to vote, but people always easy to open a shop. a person who did not make it two out, this investment is the best, not only to create wealth, but also bring a lot of jobs. and the direction of investment is the services sector, China services have great potential, auto shop, insurance, mobile phone shops, leisure and fitness. In addition, students learn the training industry is also very promising, now parents are willing to spend money on their children.
We are looking forward to to further open up rural financial institutions, which can absorb hundreds of billions of private capital. the future of rural banks may become the new commercial banks. But now let's efforts were not enough, will continue to relax. This will be private capital the direction of a good investment.
Besides the effect of, how do you see this mentality?
Mao Yushi: I hope that everyone vote early, early solution to the current recession, the worse the later vote will miss investment opportunities. But investors do not vote wrong, can not vote in the export processing-oriented industries, the industry itself is shrinking, it should vote to services.
China's economy is just too strong manufacturing industry, services too weak. China's service sector accounts for only 40% of GDP in China, the United Kingdom accounted for 50%,UGG shoes, 80% of the U.S., so China's service industry there is still much room for development.