First, let me make two predictions: real estate will eventually be abandoned and the money from the US interest rate cut will not flow into China.
Real estate will eventually be abandoned. Real estate will become an investment product inferior to gold. Once confidence is lost, it is unlikely to come back. When people have less money in their hands, they need to use a fine net to sift small fish. By raising electricity prices or driving new energy vehicles, the cash in the hands of residents can be recovered. Real estate will eventually be abandoned. For real estate, the higher the rental-to-sale ratio is, the more it is bought. The lower the ratio is, the more it is sold. If it is close to 3%, it is only rented and not sold.
The money from the US interest rate cut will not flow into China. The spillover of US dollars may flow into cryptocurrencies, but not into A-shares, and assets denominated in RMB are all depreciating.
The Chinese are so pitiful. They have cash in hand, but there are junk assets everywhere, and even gold is sold at a premium. The weakest are those with assets below 2kw. This asset is just that of a worker, and the salary is unsustainable. If it is placed in the country, it will always be a loss, eliminating the middle class. People with this asset have been educated by the Red Scarf since childhood, and have a little bit of the so-called great power pride. The real estate and stock market Ponzi schemes endorsed by the government and assisted by the media, who will not be fooled? These people who have been cut have no extra assets for global asset allocation, or there is too little cash to transfer out, and it is not possible to diversify their assets. They either have a sense of superiority from working and feel that they can always do it, or they know the truth, but what can they do with so much money? The truth is to get through the dehydration period.
The social distribution model dominated by capitalist production relations will inevitably lead to relative surplus, no matter how hard you try. The solution is either to issue national debt like the United States, Europe and Japan to make up for this demand; or to take advantage of the inequality of economic status between countries and suck blood from backward regions to subsidize their own countries. All countries are deceiving the market through numbers. When the mainstream currencies in the world start to act rogue, BTC will definitely be sought after.
