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Part 1. CCP’s shifting economic policies - correct sentiment but not quite [Copy link] 中文

Post time 2006-3-16 08:57:28 |Display all floors
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Post time 2006-3-16 08:59:03 |Display all floors

Part 2. Continuation of interrupted lead post.

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Post time 2006-3-16 09:13:05 |Display all floors

The Sure Fire Asset is Still Real Estate

In developed nations, typically real estate account for between 50% to 60% of all assets.  

China sits on a mountain of gold because most of the land is state owned.  By turn over ownership (or at least ownership of land use rights) to the 1.3 billion individuals, it would be releasing at least 10 trillion US$'s worth of wealth into private hands (as point of reference, U.S. real estate is about $30 Trillion).  With that, and with the recently implemented credit reporting system, and to the mix add a strong mortgage system - voila, you are looking at over a trillion dollars of new liquidity, and hundreds of millions now with the wherewithal to become entrepreneurs.

I personally do not understand the argument against private ownership of land (or at least land use rights).   If the concern is that the wealth would concentrate in too few hands, there can be laws providing that each transaction (real estate changing hands), part of the gain has to go to support public programs - be it health insurance, national retirement program, etc.  Having the land just sitting there is like having oil in the ground and not pumping it out for use.

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Post time 2006-3-20 10:24:37 |Display all floors
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