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Feng Xingyuan: Opening The Market Is The Biggest "Economic Security".

2012/3/15 18:42:00 7

Market Opening Economy

In March 7th, the CPPCC National Committee member and Zhu Yanlai, the daughter of former Chinese Premier Zhu Rongji, took part in the discussion of the CPPCC economic group. They believed that in the fields of resources, military industry and even national strategy, they should be controlled in the hands of state owned enterprises. However, other areas that had been gradually matured should introduce more market mechanisms, and the government should withdraw and intervene in the economy.


Looking back at ancient Chinese philosophers, there are also ideas that do not compete with the people.

The government avoids itself as the game's rule maker and participator, and is the most basic common sense in the mature market economy system.


  

Banking

No exception.

According to the analysis of financial circles, if last year's inflation was calculated by 6% and the one-year deposit rate was 3.5%, our country's savings could actually shift from depositors' deposits by about 2.5% through inflation.

To put it plainly, it was robbed so much.

Since the use of funds is replaceable, buying Treasury bonds is also an option.

Treasury bonds are generally regarded as risk-free bonds, and the actual annual interest rate is generally about 2%.

That is to say, banks do not exist. If the Treasury bonds are to be absorbed, they will be required to provide 2% of the annual revenue.

This part does not yield revenue and is also the loss of opportunity cost of depositors' deposits.

The average annual deposit balance in China last year was about 76 trillion yuan.

Compared with the open market economy system, this amount multiplied by 4.5% to 3 trillion and 400 billion yuan.

The estimated amount is the total amount of wealth that the depositors actually lose.

Even after half a discount, the amount of losses has far exceeded the profit of banks last year (the profit of banks last year is 1 trillion).


Therefore, the banking industry should also allow other capital and state capital to compete on an equal footing.

In addition, the interest rate for savings and loans needs to be marketed.

The government's duty is to establish a fair competition market environment, and interest rate marketization is exactly one of the premises.

Interest rates are endogenous and are determined jointly by the supply and demand sides.

The government does not have the power to inflate inflation, and even if it does not have the power to inflate inflation, it will also slap the face on the face of the real estate. It should punish itself first and at least comply with the monetary rules.


Mithers in "

A country of freedom and prosperity

In the book, we should talk about opening up the market, in addition to mining and other resource areas.

There is one problem in this view.

Opening up the market is definitely the right thing to do. Mining is no longer necessary for government monopoly according to modern technology and system. It also needs private opening. The government only auctions ore rights and taxes.

The government should not compete with the people.

The United States, Australia and so on, many countries have successful experience.


In China, government mining is often carried out in a large area. The efficiency of using land or mineral resources is very low, and waste is serious.

Private development of minerals can be bigger and stronger.

It is only necessary to provide them with the minimum conditions for market access and to implement a set of minimum requirements for environmental protection and labour.

As long as it is in a fair competition environment, private fund-raising will be very large for resource listed companies.

There is no such reasonable logic that resources must be controlled in the hands of the government.

On the contrary, resource control in the hands of the government will also cause another big problem.

Because the administrative monopoly enterprises are mostly resource industries, located at the high level of the industrial chain, its monopoly is administrative monopoly pricing rather than market monopoly pricing.

Administrative pricing is high priced. Under such circumstances, it is unfair for the downstream enterprises and consumers to pay large sums of money.

The administrative monopoly departments pay a lot of taxes and fees, which in the final analysis is the contribution of private enterprises and the people.


In the 2001-2009 years, all state-owned enterprises are losing money.

Although its book profits are very high, it is achieved in the case of paying less interest rates, less taxes (the tax rate of Listed Companies in China is far below private enterprises), paying less or not paying resources and land fees and enjoying high subsidies. The amount of these extra and less paid (including non paid) sums up far more than their profits, so state owned enterprises are losing money.

From the perspective of China's economic structure and financial structure, there are many problems.

But why can our country sustain it? The sacrifice of private enterprises and individuals is great, and the sacrifice of the environment is also great.

According to data from different sources, the cost of environmental pollution in China accounts for 6%-10% of GDP.


Therefore, it is necessary to form

Mature market economy system

In the final analysis, there is a need for a competitive order.

The core principles of this order are six: currency stability, private property rights, open market, freedom of contract, responsibility (what you do and what you invest in, what you need to bear), and continuity of economic policy.

The success of the United States and Germany is closely related to the six elements.

The success of China's reform in the past 30 years is also related to this.

The difference between China and the United States and Germany lies in the fact that the United States and Germany are universally suited to such a common application principle. China has selectively promoted some of them and provided a larger space for the private sector to operate.


State owned enterprises, including these monopolistic enterprises, are generally losing money.

State banks and the entire banking sector are in fact also losing money.

Since it is a loss, why should we maintain it as a pillar for safeguarding the so-called "economic security" or "financial security"? Like Deutsche Bank in Germany, it is all private and there is no need for state control.

State owned enterprises and state-owned banks should withdraw from the holding status at least.

It is unmistaken to maintain the so-called "economic security" or "financial security" in the face of loss.

In fact, it is the best choice to open up the market and allow private enterprises to have room for operation so that they can expand through the operation of the market and the survival of the fittest, so that the spontaneous order of the market economy will play a role.

Therefore, as long as the order of open access of North, a Nobel laureate, can be developed in a good direction, this is the biggest country, the biggest economic security and financial security.

A lot of high-quality private enterprises such as HUAWEI are the foundation of national economic security.

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