2015At the end of the year, there is a lot of good news about the internationalization of the w88 casino games.11month3013097_13123SDR) currency basket.12In mid-month, Zimbabwe in Africa stated that in201613229_132722016Year1month1613357_13407

Economic rise is an indisputable fact

Since the reform and opening up, China’s economic achievements have attracted worldwide attention and its comprehensive national strength has been continuously improved.2014China’s GDP (GDP)reached10.38Trillion US dollars, becoming the second after the United StatesGDPEnter10Trillion dollar country. To understand the economic achievements represented by this number, we must look at it from both vertical and horizontal perspectives.

Looking vertically, China’s economy is developing rapidly.1990Year ChinaGDPHow much is it?4045billion US dollars, ranking tenth in the world, behind Brazil.2014Year ChinaGDPYes1990Year25.66times, which is equivalent to adding one to the world economy every year1990China. Everyone knows that there is Hunan Province in China. It is not a large economic province, let alone a strong one.2014Year Mainland China31Among provinces, municipalities and autonomous regions, Hunan ProvinceGDPRanked tenth, what is the scale?4414billion US dollars, ratio1990There are nearly more years in China300$100 million. This is why Chinese people are becoming more and more confident and proud. Same2014Year, Guangdong, China’s largest economic provinceGDPExceeded1.1Trillions of dollars, and2000Year ChinaGDPComparable in size. This is change, this is achievement.

Horizontally, China’s economy is catching up rapidly.2006Year ChinaGDPOvertaking the United Kingdom and becoming the fourth largest economy in the world, China has finally realized half of the dream of the founder of New China to “surpass the United Kingdom and catch up with the United States”.200716470_164912009In the year China surpassed Japan and became the second largest country in the world. China's economy is constantly surpassing, and this surpassing is accelerating.2006China surpassed the UK in 16586_16598|Year arrived2010China is BritainGDPmore than twice, use4Years have added an “extra” British Empire to the world economic map.2011Year ChinaGDPMore than twice that of Germany, also used4Years of time have doubled for the world's No. 4 player.2014Year ChinaGDPTwice that of Japan, use5Years have doubled for the third place in the world. Take another look at Occupying the WorldGDPshare,1990China’s share is1.78%, In the past, we often proudly said that China uses one-seventh of the world's land to feed one-quarter of the world's population, but the Chinese are just alive. Arrived201417121_1713213.4%. with199017193_17251

China’s economic rise is still on the way, and development and catching up are still ongoing. China's economy has entered a new normal. One characteristic is that the economic development speed has shifted to medium to high speed. How do you understand medium and high speed? and the past10%17819_17903

2014There was a very controversial news event in 18520_18555|, which was widely reported by domestic and foreign media and calculated based on purchasing power parityGDP, China surpassed the United States to become the world's largest economy. According to the International Monetary Fund,2014The purchasing power parity of the US dollar against the w88 casino games in 2018 is3.517. China calculated based on this2014YearGDPYes18.09Trillions of dollars, and America is17.35Trillions of dollars. The world is talking about China surpassing the United States, and many officials also feel that this is misleading.

Purchasing power parity calculationGDPReflects the potential national strength, the same output in the developed United States18Trillion instead10Trillion. If China's economic development reaches that of the United States, its potential national strength will become its actual national strength. From a development perspective, China, already the second largest economy, has the potential to become the world's largest economy. look back at the past, the past30Over the years, China has realized a large part of its potential through correct development paths, strategies and institutional choicesGDPContinuously becoming realityGDP。

The “Thirteenth Five-Year Plan” is an exciting and decisive stage. The 18th National Congress proposed building a moderately prosperous society in all respects. If measured by international standards, it depends on whether China can become a high-income country.2010China per capitaGDPapprox.4500The U.S. dollar has moved from a low-income country to a middle-income country, breaking away from the bottom of the world. The "middle-income trap" is a hot topic nowadays, which is the phenomenon that a country's economy stagnates after reaching the middle-income stage and is unable to move into a high-income country. The standard for middle income is per capitaGDPat4000To12000USD, where4000To8000USD is middle income,8000To12000The U.S. dollar is mid-to-high income.2014China per capitaGDPapprox.7600USD. Although2015The w88 casino games exchange rate depreciated slightly, but per capitaGDPWill still exceed8000USD. This means that China has entered the ranks of middle- and high-income countries during the "Twelfth Five-Year Plan" period. During the "Thirteenth Five-Year Plan" period, if the economic growth rate reaches6.5%A little more, and the exchange rate can remain stable, then to2020Year or2021year, per capitaGDPwill be reached1.2million US dollars, it becomes a high-income country. Therefore, there is a solid economic foundation for building a moderately prosperous society in all respects. This is the rise of great powers.

The road to rise is full of challenges

The process of China’s economic rise is the process of continuous integration into the world. This is a consensus, so we have always adhered to the basic policy of reform and opening up unswervingly. Reform and opening up means abandoning isolation, moving towards opening up for construction, implementing an opening-up policy focusing on exports and utilizing foreign capital, and giving full play to China's comparative advantage - its abundant factor endowment advantage of labor force. On the one hand, it liberates productivity through reform, and on the other hand, it continuously improves productivity through learning by doing in the process of opening up, and develops from a small trading country to a large trading country.

The role of w88 in China’s economic rise and development is irreplaceable.1990The annual export volume of goods is411billion US dollars, the total import and export of goods is752$100 million.2009In 2008, China surpassed Germany and became the world's largest exporter of goods.2013The annual import and export volume of goods ranks first in the world.2014Annual goods export volume reaches2.24Trillion US dollars, total import and export volume exceeds4Trillion dollars, yes1990Year54times, accounting for the world share11.12%. China's influence on the world is not only reflected in its scale, but also in the expansion of economic and w88 exchanges between China and the world, making the world truly feel China's existence.

China is changing, and so is the world. An important change is the trend of globalization. Globalization has made countries around the world increasingly interdependent and dependent on each other. On the basis of w88 links, financial integration has developed rapidly and become the dominant factor in globalization. Enter20century8023706_23769/The indicator of total import and export reflects this trend. Looking at the world as a whole, this indicator starts from2004Year2.40Up to2013Year2.97;Developed countries from2004Year3.12Upgraded to2014Year4.14, developing countries from2004Year0.36Up to2013Year0.91. The international competitiveness of finance has become an important factor affecting the world and the status of major countries.

The traditional opening-up model is increasingly difficult to adapt to new trends and changes. The prominent problem is the low efficiency of opening-up. China from200424791_2485420century90Became a creditor country at the end of the decade,2004Annual external net assets2764USD. From the perspective of changes in external net assets, it can be roughly divided into two stages. The first stage is2005—200825076_2509414936$100 million, increased12172billion US dollars, basic and current account surplus for the same period11380Equivalent to 100 million U.S. dollars.

200925832_258532015Year6The external net assets at the end of the month are1.46Trillions of dollars, ratio2008There is still less at the end of the year300Billion. Does it mean that China no longer has a current account surplus and a w88 surplus? no! In fact, the current account is still in surplus every year and continues to be at a high level.2009—2015In the first half of the year, the current account surplus accumulated1.35Trillions of dollars. Logically speaking, the net external claims should increase by the same amount, but in fact there was no increase, but a slight decrease.

Why is this? Because huge losses occurred in international financial channels, the current account surplus was swallowed up. The "disappearance" of surplus is very sad. China has always been a net creditor country and allocates part of its savings to foreign countries every year, which is called international savings.2009Year—2015In the first half of the year, accumulated output savings11.17Trillions of dollars. If you are a saver, what kind of return can you expect? I think most people are not satisfied with it3%Such a rate of return. However, as an international saver, China’s international investment income increased during this period1.27Trillion-dollar losses. China takes out11.17Trillions of dollars of savings are used by outsiders. Not only do they not receive interest, but they also pay1.27Trillions of dollars in custody fees. The w88 surplus is equivalent to gross income, which means China sells more1.35Trillion-dollar goods, however, the international financial channels on the other side have lost almost the same amount of dollars. This is the concept of net profit, so China has been very uneconomical in recent years. Why is this the result? Because the rate of return on external assets is far lower than the cost of external liabilities. Although China has large external assets and has net assets, it ultimately suffered losses, and has continued to suffer losses year after year. This is an urgent problem that needs to be solved in opening up to the outside world, and the seriousness of this problem has not yet been fully realized.

Why are the benefits of opening up to the outside world getting lower and lower? One of the important reasons is that the RMB is not an international currency, that is, there is "original sin". When China conducts foreign economic exchanges, whether it is w88 or investment, it must use other people's currencies. At the same time, it must prepare a large amount of international liquid assets in case of emergency, so its foreign exchange reserves were once close to4Trillion dollars, one-third of the world’s total. Huge foreign exchange reserves were considered in the past to be a symbol of improvement in overall national strength. However,201427995_28089

Be your own international banker

The real internationalization of w88 casino games is in2008Years later. Previously, the internationalization of RMB has been in a spontaneous budding state, mainly involving the cross-border circulation of RMB banknotes. The outbreak of the international financial crisis has turned the world into darkness. There used to be dollars everywhere in the world, but they disappeared overnight, liquidity dried up, and w88 financing was interrupted. Because China holds a large amount of U.S. dollars, it began to provide liquidity support to other countries and regions.2008Year12In March, the central banks of China and South Korea initialed an agreement amounting to1800bilateral local currency swap of w88 casino games 100 million. Bilateral local currency swap means that if either party makes a request if necessary, it can exchange its own currency or assets for the assets of the other party. Previously, Hong Kong people believed that the Hong Kong dollar was better than the w88 casino games, and Koreans also believed that the Korean won was stronger than the w88 casino games. The crisis has come, giving China such an opportunity. Both parties to the bilateral currency swap can take the initiative to use it, but in fact it is mainly China that provides liquidity support to the other party, which reflects the responsibility of a major country. Through bilateral local currency swaps, the w88 casino games is already providing international liquidity support to other countries and regions. This is a major breakthrough.

Officials put the starting point of w88 casino games internationalization2009Year7Month. Because at this point in time, China began piloting RMB cross-border w88 settlement in Shanghai and other places, encouraging the use of RMB in foreign w88, and later promoted it nationwide and globally. Subsequently, the cross-border use of RMB expanded from w88 to investment, and then allowed foreign investors to hold Chinese assets, including foreign central banks holding RMB assets as foreign exchange reserves. Since capital controls still exist and the financial market is not very mature, China supports the formation of offshore RMB markets overseas, including Hong Kong, and creatively uses offshore markets to promote the internationalization of RMB.

For a long time, Chinese officials have never mentioned the internationalization of the w88 casino games, and have always used the term cross-border use of the w88 casino games. Until2015Year630846_30905

Past6Over the past few years, RMB internationalization has made a series of important progress. More than one-fifth of foreign w88 is priced and settled in RMB. with33Overseas central banks have signed bilateral local currency swap agreements, with a cumulative amount of3.3Trillion yuan. International bonds issued in w88 casino games exceed5000billion dollars. Foreigners holding assets in w88 casino games already have them within the country4.4One trillion yuan, there are still nearly 1 trillion yuan in the offshore market2Trillion yuan. The w88 casino games has also become the reserve currency of other countries,2015Year10Yueyou38Countries report that their international reserves include w88 casino games. w88 casino games foreign exchange transactions are also developing rapidly, with active transactions in Hong Kong and London.

When you see these numbers, some are huge, but it may be difficult to intuitively feel them. You know, in2008Years ago, most of these figures were close to zero, so the internationalization of the w88 casino games was quite rapid. Generally speaking, the w88 casino games has been widely used internationally. International Monetary Fund joins the w88 casino gamesSDRWhen conducting the evaluation, it was determined that the w88 casino games was a freely usable currency. This is the international community’s recognition of the internationalization of the w88 casino games.

There is still a lot of room for w88 casino games internationalization in the future. How big is it? How big is it?2016Year10Effective in monthSDRCurrency basket will consist of w88 casino games including w88 casino games5Composed of currencies. past was4The U.S. dollar, euro, Japanese yen and pound are all currencies of developed countries. w88 casino games becomesSDR's basket currency is the first time that a developing country currency has entered as a new member. The weight of the w88 casino games in it is10.92%, ranking third, surpassing the Japanese yen and British pound.SDRThe weight of the currency basket is determined based on two aspects: w88 and comprehensive finance, each accounting for them50%, the w88 indicator chooses the exports of the five major economies, and the comprehensive financial indicators include foreign exchange reserves, international bank liabilities and international bond balances, and foreign exchange transaction volume, each accounting for one-third. RMB10.92%33508_3352410percentage points, the contribution from comprehensive financial indicators is less than1Percentage points. Among the five major currencies, the w88 casino games accounts for less than one-fiftieth of the three representative international financial transactions. w88 casino games internationalization, vertical comparison with myself, past6There has been great progress over the past few years; if compared horizontally with other currencies, the gap is still very large. This also shows that there is a lot of room for the internationalization of w88 casino games in the financial field in the future.

The situation of w88 casino games as an international reserve currency is very illustrative.2013In 2016, the w88 casino games ranked seventh among global reserve currencies, accounting for0.7%；2014Still ranked seventh in 2017, but the proportion has risen to1.1%. The w88 casino games's share of international reserves is very little different from the Canadian dollar, which is sixth, and the Australian dollar, which is fifth. It is also not very different from the Japanese yen, which is fourth, and the British pound, which is third. The British pound's share is just over4%. Now overseas central banks need approval to enter the Chinese bond market. Not only do they need approval to enter, but they also need approval for how much they can invest. Many overseas central banks have expressed strong demand, and their willingness to hold w88 casino games is far from being satisfied, and there is still a lot of room for it. If liberalization is allowed, the proportion of w88 casino games will rise rapidly and may exceed the level in two to three years4%, then the w88 casino games will become the third largest reserve currency in the world.

Looking ahead to the future prospects of w88 casino games internationalization. Let’s look at five years first. Judging from the three financial indicators of freely usable currencies, the proportion of the w88 casino games will exceed that of the Japanese yen and the British pound in five years, that is, five years laterSDRWhen evaluating the currency basket, the contribution of comprehensive financial indicators in the weight of the w88 casino games will exceed that of the Japanese yen and the pound. Therefore, it is almost a foregone conclusion that the w88 casino games will become the third largest international currency during the "13th Five-Year Plan" period. However, the w88 casino games is not yet one of the three major currencies alongside the US dollar and the euro. It is only ranked third. In fact, it is still in the second echelon. The first echelon is still the US dollar and the euro.

What will happen if we look further? Estimated203035849_3590815Would anyone believe it years ago? Almost no one.200135979_3600630In the future, there will only be three currencies left in the world, the US dollar, the euro and the renminbi. He is not saying that other currencies will disappear, but that other currencies will become subordinate to these currencies and form a currency area linked to these three currencies. More than a decade ago, few believed Mr Schmidt's predictions. Looking at it today, the probability of this prediction coming true is more than50%。

With your own international currency, you can be your own international banker. In the past, China has always exported savings, which were just savings rather than capital. Wall Street turned China's savings into capital and exported it to the outside world, including exporting it back to China. After the w88 casino games becomes an international currency, China will not only export savings, but also directly export capital until it exports international currency. China does not have to rely on the US dollar as an intermediary, nor does it need Wall Street to be our international banker. Financial Street is China's international banker. This is a huge change.

Play its due role in global governance

Past2037834_37945

Made in China, Chinese factors, and Chinese elements can generally summarize China’s status and role in the world order at different stages. During the Made in China stage, China relied on w88 to make itself known to the world. It mostly adapted to and accepted international rules and played a passive role in global governance.21Enter the Chinese factor stage at the beginning of the century. Not only in w88, China is also exerting an increasing influence in other fields and gradually becoming an important participant in global governance. Now we are turning to the Chinese element stage. What are the Chinese elements? The progress of the world is produced by the collision and integration of different civilizations. The continuous integration of Eastern civilization and Chinese culture in future global governance is China's contribution to all mankind. This is the Chinese element. Chinese elements should include three aspects: Chinese experience, Chinese power and Chinese culture. RMB internationalization mainly reflects the first two aspects.

The horizon is not flat, and the world is not fair. The huge benefits that dollar hegemony has brought to the United States are the core national interests of the United States.1989The United States became a debtor country, to2013Total use in years41Trillions of dollars in other countries’ savings. How much interest should you pay to borrow so much money? Data shows that the United States not only paid no interest, but also received huge international investment income, as high as5Trillions of dollars.1989The U.S. non-interest current account deficit has accumulated since the beginning of the year10.7Trillion dollars, even if the United States does not have to pay interest on its debt, the United States’ foreign debt will also increase10More than a trillion dollars, but actually only increased5Around one trillion US dollars. Americans are constantly borrowing money, not only without paying interest, but also only needing to pay back half of the principal. These benefits come from the international seigniorage of the US dollar as an international currency, through which the United States seizes economic benefits from around the world.

On the other hand, developing countries are constantly being sheared. The savings that Americans enjoy for free and the huge seigniorage they receive do not come from other developed countries, because most of the currencies of other developed countries are also international currencies. Who needs the United States to provide an international currency? It is those developing countries whose currencies are not international currencies, including China. The United States levies seigniorage on the export of international currency from these countries. This is also one of the important reasons for the disappointing development of the world after World War II.

Can the unfair international order be changed? It should work. As vested interests, developed countries will not take the initiative to change. Although developing countries cannot yet dominate global governance, they can change the world by changing themselves. Regionalization and groupization are key. Developing countries that follow the path of South-South cooperation, vigorously develop mutual economic and w88 investments, and bypass the U.S. dollar and Wall Street may not need to pay this seigniorage tax.

Take the BRICS countries as an example.2005—2013In the year 41460_41476|, the BRICS countries exported as a whole5With more than one trillion US dollars in savings, international investment returns are negative2More than a trillion. Assume that the BRICS countries achieve investment returns from negative to positive through monetary and financial investment cooperation0, if so much savings are exported during this period, it can also be brought to the BRICS countries2Net benefits of more than one trillion. This is the benefit brought by regionalization and grouping, which is beneficial to all participating countries.

How to do it? An important basis is that developing countries within the group must have their own international currencies. The w88 casino games is becoming an international currency. Therefore, the internationalization of the w88 casino games is not only a need for China, but also a need for developing countries. It is also China's contribution to the world and an important tool to solve global development problems.

South-South cooperation, which has been dormant for many years, has been revitalized in recent years. Regionalization and groupization are becoming important ways to promote economic development. Among them, the “One Belt, One Road” initiative proposed by the Chinese government is the most eye-catching. In South-South cooperation, China will provide funds and technology to the outside world through the internationalization of the w88 casino games, and a new situation will emerge in world development.

Of course, the process is arduous and cannot be smooth sailing.2015The U.S. Congress only passed it at the end of the year2010The IMF quota reform plan is mainly to increase the quota of developing countries, including China. This solution is2009The United States proposed it on its own initiative in 2001 because the U.S. government hopes that developing countries will participate in crisis relief. However, the U.S. Congress has been slow to vote on it, and it has been delayed for five years. Fortunately, the results finally came to fruition. China’s share in the International Monetary Fund now ranks third. This example tells us that in the process of promoting the internationalization of the w88 casino games and the regionalization and grouping of developing countries, we face various resistances every step forward. We must firmly believe that although fundamental reform of the world order is difficult, changes are happening every day.

Economics research needs to be rooted in practice

Theory comes from practice, and economics is no exception. As a summary, generalization and abstraction of practice, economic theory has its own characteristics of the times and specific national conditions. We must acknowledge the generality of economic theory, but we must also not ignore its particularity. From this perspective, economics is not without national boundaries. Only theoretical innovation rooted in practice can guide practice. Otherwise, the theory may be applied incorrectly, or the wrong theory may be applied.

Rich economic practice is the material for theoretical innovation in Chinese economics. In the past, the internationalization of RMB basically followed the general path in theory, first w88, then investment, then trading and then reserve, to expand the cross-border use of RMB. However, due to the high interest rates of RMB, cross-border use has become a channel for arbitrage, and RMB is second only to the US dollar in w88 finance. Moreover, this kind of cross-border use of RMB is actually a replacement of domestic and foreign assets, which is not cost-effective. More importantly, China is a major international savings country, and the internationalization of the RMB must be based on increasing the returns on China's international savings, so that we can directly use RMB to proactively allocate assets around the world. Therefore, the currency internationalization of countries with high interest rates and large international savings should adopt a model and path that is different from the general one, rather than following the map.

An issue related to the internationalization of the w88 casino games is the convertibility of the w88 casino games and the opening of the capital account. Making the w88 casino games convertible has always been China’s goal,1993It was proposed in a forward-looking manner in 2016 and was clearly included in the “12th Five-Year Plan”. The “13th Five-Year Plan” will continue to be mentioned. Why has it never been realized? Because many problems were discovered during the advancement process, it is not as theoretically said that if you let go, everything will be fine.

The mainstream theory believes that the international flow of capital can improve the welfare of the world, not only bringing benefits to developed countries that export capital, but also to developing countries that import capital. Under the influence of mainstream theories, the free flow of capital has become a natural and unquestionable concept. Mainstream theory assumes that the world is homogeneous. If the world is not homogeneous, and developing countries can only passively accept international capital inflows and outflows because their currency is not an international currency, what will be the result? Quite the opposite. In the process of opening up the capital account, no developing country can escape the crisis,20Developing countries in the 1980s and 1990sGDPThe decline in the world share is due to the crisis caused by excessive or improper opening of the capital account.2009The decline in the effectiveness of China's opening up after the year is also related to the lack of timely and necessary management of capital inflows.

The mainstream theory also equates international capital flows with currency convertibility and capital account opening, thus allowing international capital to stand on the moral high ground. When developing countries regulate capital flows, it appears to be doing something shady. Because of this, in the past, quantitative easing in developed countries caused a large amount of hot money to flow into developing countries. Now that the Federal Reserve has raised interest rates, this hot money has flowed out. When some countries tried to manage it, they found that they were almost unable to do anything. In fact, convertibility means allowing domestic currency holders to convert freely, and domestic currency holders are initially domestic people, so the convertible economic entities are first of all domestic institutions, enterprises and individuals. A country has no responsibility or obligation to allow free entry and exit of foreign investors and foreign capital. It can manage and control the opening-up process as needed so that capital flows conform to its own interests and needs. In this regard, we have been "brainwashed" by mainstream theories, and research on Chinese economics has not played a corrective role.

Research on Chinese economics needs to study China’s problems. We do not reject mainstream Western economics, but we must digest and absorb it, adapt it to China, and conduct theoretical research rooted in reality based on our national conditions. As the center of gravity of the world economy shifts, the research center of economics will also shift. This is a historic opportunity for Chinese economics research, and scholars have the responsibility and mission to develop and lead economic theory.

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