Brief introduction

Super Bubble – Disclose the Secret of China Real Estate Finance, telling the reader energetically: the world trend of 21 century is changing! The 20^th century was government intervention in the economy, while the 21^st century is towards to an open market. Whoever grasps the trend first will become the leader of 21^st century. The first 10-year of 21^st century has illustrated the trend coming. To develop a powerful China, let’s reverse the rules and regulations of planned economy once and for all, and hug the arrival of free economy!

 Editor’s Choice

Super Bubble – Disclose the Secret of China Real Estate Finance: why does not the real estate bring fortune? Who moves our land? What’s the inside story of the phenomenon that the housing price stays high for ever?

If you want to untie the riddle of the heart, please refer to the profound thinking on Chinese economy in this book!

For the first time, disclose the truth of inflation in China;

For the first time, uncover the truth of the monetization of GDP;

For the first time, reveal the truth of high housing price and high land price;

And also for the first time, point out the source of sound economy development in China.

About the author

Dongfangdao – Oriental Guide, born a native Yiyang citizen of Hunan Province, China, is an independent economist, has spent over 20 years in exploring the Chinese political and economic problems. Nine tenths of his spare time is used to read representative works in the political and economic field, and pound over and write concerning Chinese problem. He firmly believes that the free economy will becoming the theme of China and the world, autocracy and slavery will withdraws from the arena of history. Only under the free economy, can the human creative ability be stimulated to the maximum and reflect the natural justice of wealth distribution. All the unfair distribution is the result of illiberal intervention policy by the government. The past 100 years have witnessed human suffered so many disasters, however, the free economy is irresistible.

Ever since the time opened blog on http://www.sina.com.cn/ (author’s site: http://blog.sina.com.cn/u/1161861653), almost every article posted, taking the China real estate bubble as breakthrough point, researching the Chinese economy in depth, was recommended to the housing blog and blog home page, has struck a wide response among netizens. Some of them have become the firm supporter of the viewpoint proposed by the author. Meanwhile, nearly every post was widely shared by media and netizens, some of which was regarded as classics. Some new point on Chinese real estate and economy were firstly put forward by the author and attracted much attention, which had a great impact on the sound development of Chinese real estate. Some famous Chinese economists and high-level government officials browse articles on his blog now and then. The blog of Dongfangdao has been listed on the celebrity blog and elite blog.

Preface

Everyone try his best to make full use of his capital to generate the maximum value. Generally speaking, he does not seek to promote public welfare, neither know how much of his capital to be improved. What he chases for is only his own security or self-interest. But, he dose so while there is an invisible hand guiding him to help achieving another goal, although the goal is not his intention. The result of chasing personal interests is he has often to promote the interests of society, which effect is better than he really want to do so.

This quotation is the complete description of “Invisible Hand” on market in The Wealth of Nation, written by Adam Smith, the father of market economy. Nowadays, the market theory of “Invisible Hand” of Adam Smith is so familiar to the world that few people can really understand its secret. Strictly speaking, most of the economists, policy makers, and the spokesperson of every interest group, who chatter about the invisible hand everyday, do not catch the point of it, let alone to practice it in the real world. They are using this great theory for decoration, just Lord She loves dragons. For they believe in another invisible hand of the government.

As in the market, in the government field, there seems has another invisible hand; however, the direction is just the reverse of that of the hand proposed by Adam Smith. If one wants to promote public interests through strengthening government intervention, he would be subject to that another invisible hand’s guidance to promote personal interest. While this is not the goal he wants to achieve to his intention.

This paragraph is the description on the theory of invisible hand about government in the book Free to Choose of Milton Friedman, the winner of the Nobel Prize for economics and the greatest economist of the United States. Compared with Adam Smith’s theory “Invisible hand” of market, Friedman’s “Invisible hand” of government is rarely known to the world. The current economic theoretical circle, few people mention this same great theory. To testify it, the author of this book will take the Chinese real estate market as an example to analyze the theory objectively. If we want to promote public interests in public housing through strengthening government intervention, we would be subject to “another invisible hand’s guidance to increase some government departments and relevant’s private interests.

The marketization reform on China’s real estate was mainly realized through government-led. Under the government guiding, the housing in China was to be transferred from planned distribution to market supply, which was also the government goal. However, this good wish, under the guidance of “invisible hand” of the government, degraded to planned monopoly, which is much more monopolized and terrible than the planned distribution.