How Does the World of Money Operate? - Huxiu#
#Omnivore
How Does the World of Money Operate?#
This article depicts a painting titled "The Waterworks of Money," showcasing the operation of the money world through detailed analysis. From the control of central banks to government fiscal policies, and from the tax system to the pyramid of the real economy, the author vividly presents the flow and influence of money in different fields.
• The painting illustrates the complexity and vast scale of the money world.
• It reveals the relationship between the financial world and the real economy, as well as the flow of money.
• It emphasizes the impact of financial markets on the real economy and the widening wealth gap.
Before I started writing, I knew this would be one of my most satisfying articles of the year.
It’s somewhat strange to say, but this article is actually an appreciation and analysis of a painting called "The Waterworks of Money," which looks like this:
Due to the excessive and dense elements, the painting is enormous, making it difficult for everyone to see the details clearly on their phones.
I spent an entire day enlarging, screenshotting, stitching, and translating, ultimately producing a nearly 5-meter long, over 3-meter high, 1.2G replica.
Aside from its grand framework, what is most commendable about this work is its details, which I will appreciate through partial analysis.
Before we begin, allow me to take some space to introduce the authors and the background of the work, to express my respect.
The three authors are:
Carlijn Kingma - Painter (left), Thomas Bollen - Economist, Writer (middle), Martijn van der Linden - Professor of Finance (right)
This work was initiated during the peak of the fourth round of quantitative easing by the Federal Reserve in early 2021, with a research period lasting 14 months. They interviewed over 100 individuals, including central bank governors, pension funds, bankers, politicians, and monetary scholars, created hundreds of sketches, and verified them with relevant parties before starting the painting, which took nearly 5 months and over 2200 hours to complete.
Wang Guowei said: Knowledge can be roughly divided into two categories, the lovable is not credible, and the credible is not lovable.
I think this work should belong to the latter.
- Money is like water; money is power.
"The Waterworks of Money" depicts a scene like this:
Human society resembles a gigantic waterworks, with pipes crisscrossing, flowing with money.
The waterworks is surrounded by a circle of the financial world—central banks, commercial banks, the Ministry of Finance, the tax system, stock markets, public and private funds, pension funds, and Western economic education.
Inside the waterworks is a pyramid-shaped real economy, with the real estate and industrial systems resembling the pyramid structure. Within it, the household sector and the corporate sector are nested together.
The financial world delivers money to the top of the real economy pyramid through various pipes, then irrigates, recycles, and stores it throughout the entire system from top to bottom.
The financial world and the real economy are separated by high white walls, on which slogans like "Building a Better World" are written.
From the perspective of the real economy, the white walls appear so simple, as if the world is functioning just as those beautiful slogans suggest.
However, behind the high walls, the entire system operates in a complex and precise manner, with those in power in the financial world overlooking society from high conference rooms. Almost half of the 50 largest and most powerful companies globally are financial firms.
The entire system is so vast and complex that its operation is a mystery to most people.
Moreover, anyone who cannot speak this complex financial language will be excluded from the public debate on how the monetary system should operate. The interpretive power of the financial world is held by a small group of people with financial knowledge.
Money is like water; money is power. Western economics has cloaked production relations in a rational guise.
This work metaphorically represents the entire system as a waterworks, aiming to make the world of money accessible through simple and understandable imagery.
While appreciating the details, please take a good look at the picture; the most captivating aspect of this masterpiece is its wealth of details, which become more intriguing the more you savor them!
- The Central Bank Controls the Main Valve
This is the water tower of the central bank, occupying the highest point of the entire waterworks, controlling the main valve of the system, and being the source of everything.
Figure 1:
Below the water tower is the Basel III agreement, which is observed by many and mocked by Jack Ma as the "Old People's Club." It is an updated banking regulatory standard from the end of 2010, reflecting on and correcting the subprime mortgage crisis, aiming to enhance the stability of banks, reduce systemic risks in the financial system, and improve resilience against financial crises.
Basel III exceeds 2 million words, three times the length of the Bible. A simple question arises: Is it useful given its length?
You could ask Silicon Valley Bank.
From the water tower of the central bank extend several thick water pipes, providing base currency and various term liquidity to commercial banks, a pipe for distributing money to the household sector during crises, and a pipe supplying the government directly through bond purchases, used for quantitative easing during crises.
Figure 2:
This is the helicopter used to distribute money, which is usually locked up.
Figure 3:
The central bank also monitors price changes because maintaining moderate inflation is one of the central bank's core objectives.
At the same time, the central bank monitors the market, with three searchlights directed at commercial banks, the corporate sector, and the household sector, using this to determine the amount and price of water.
Figure 4:
This is the central bank's core objective, where maintaining price stability is always the top priority.
This means that the water level cannot be too high, as it would lead to inflation, just like from 2021 to now.
But it also cannot be too low, as the harm of deflation is more terrifying than inflation. Just look at the Great Depression from 1929 to 1933; the deflationary spiral can lead banks to tighten lending and even cause the entire waterworks system to collapse.
The second goal of the central bank is to ensure full employment, but it seems this goal has been abandoned.
Instead, it supports government economic policies, and later policymakers added a line below it: "At all costs."
Here’s a joke: The central bank is independent.
Figure 5:
The central bank's monetary toolbox research room is also studying digital currency, where experts are adjusting the properties of digital currency.
The notes on the board reference the digital currency "LIBRA," which Zuckerberg initially promoted, with a note saying, "If you can't beat them, join them."
Digital currency is highly anticipated, as its advantages in promoting currency internationalization, replacing the money-distributing helicopter, and precise allocation are evident.
Figure 6:
When economic problems arise, all parties in the waterworks will demand that the central bank open the valve and increase the water flow. When the entire system has issues, it often means a reduction in water flow and a slowdown in the flow. Thus, the central bank has developed various unconventional monetary tools—they are given various complex names, but essentially they all involve releasing water.
Figure 7:
- Government Departments
Next, let’s look at the government departments adjacent to the central bank; Figure 8 shows its full view:
Continuing to delve into the details:
The "monetization of fiscal policy" in the image is considered a taboo. The very thick pipe in the image originates from the "direct supply to the Ministry of Finance" pipe in Figure 2.
"Monetization of fiscal policy" means that when the government faces a fiscal deficit, it does not finance its deficit by borrowing money, but rather by printing money itself. Here, "printing money" refers to the government instructing the central bank to print money, which can take the form of the central bank permanently holding government-issued bonds.
More bluntly, proponents of "monetization of fiscal policy" believe that these bonds issued to the central bank do not need to be repaid, and the government does not actually need to pay interest; even if interest needs to be paid, it can borrow money from the central bank to do so.
Whether to "borrow money" or "print money" to cover the deficit may sound like a minor difference, but its long-term impact on macroeconomics, fiscal sustainability, and financial stability is vastly different.
Images often convey meaning more clearly than words, and the peculiarity here is—if "monetization of fiscal policy" is a taboo, why is there such a thick pipe here? It shouldn't exist.
Figure 9:
This is the research department for fiscal policy, where researchers are staring blankly at "long-termism." What are they thinking?
Compared to current issues, what does long-termism even mean?
Figure 10:
The government department collects various suggestions and opinions from the real economy, discusses them in internal meetings, and then launches various policies and resolutions, followed by press conferences to synchronize with society.
Figure 11:
Every year, the government department prepares a budget, planning how to spend money.
For the fiscal budget, expenditures are rigid, and the actual spending is always more than planned, so fiscal deficits are the norm, with the overspending covered by "national debt," which connects directly to the real economy.
Figure 12:
The "fiscal expenditure" pipe flows directly into the real economy.
Figure 13:
- Tax System
The tax system has always been the main source of fiscal revenue, aimed at preventing excessive distribution within the pyramid of the real economy. Theoretically: the higher the income, the heavier the tax burden.
The government then spends the collected money through fiscal expenditures, taking from the people and using it for the people.
This is the full view of the tax system.
Figure 14:
However, looking closely inside, interestingly, there are the tax burdens of three major classes.
The tax pyramid in the image reaffirms the approximate stratification ratio of the household sector: 1% rich - 9% middle class - 40% middle-income - 50% low-income group.
The pie charts in the image display key data on income, wealth distribution, tax rates, and surplus rates of the household sector.
Figure 15:
- The 50% low-income group holds 2% of total wealth, 8% of total income, and bears over 50% of the actual tax burden and an unclear surplus rate.
- The 40% middle-income group holds 22% of total wealth, earns 40% of total income, bears 40% of the actual tax burden, and has a surplus rate of about 24%.
- The 9% middle class holds 38% of total wealth, earns 33% of total income, bears 36% of the actual tax burden, and has a surplus rate of 8%.
- The 1% wealthy group holds 38% of total wealth, earns 19% of total income, with tax burden and surplus rate unspecified.
Looking closely at this wealthy platform, they own companies and social resources, using various means to deal directly with tax authorities instead of paying the taxes owed.
They arrange the social ranking, even building a helicopter landing pad. Wait! Where did the helicopter come from? Oh! It’s the helicopter responsible for distributing money in Figure 3.
One important reason for the unfair tax burden is: capital gains tax rate < personal income tax rate.
In other words, if your core production resource is yourself and your main income source is labor income, then the tax rate you bear is higher than those who profit from capital!
At the same time, it is well-known that capital return rates > wage income growth rates.
Every crisis moment in the world of money is precisely a good opportunity for the 1% wealthy to significantly increase their wealth. The K-shaped divergence since 2020 is a reflection of this pattern.
Because when problems arise, water must be released to stimulate, and the pipeline system determines that: water drips down from the top of the pyramid.
Figure 16:
The trigger condition for capital gains tax is selling; thus, as long as one does not sell, there is no tax to pay.
But if one does not sell, how can they have money to spend? They can pledge their stocks and then use low-interest loans to extract money!
This is the two public secrets of the wealthy:
- No sell, no tax.
- Buy, borrow, die. Each step avoids taxes.
I once wrote a post using Buffett as an example to introduce this type of tax avoidance operation by American billionaires.
Let me put it more bluntly: this distribution system and pipeline system determine that most people in the real economy will not benefit when the financial world operates well, because profit recognition and asset price increases belong only to a small group. However, the real economy will certainly bear the costs when the financial world is in a drought.
The middle class is always eager to calculate how much they saved through personal income tax deductions, yet when they compare the thickness of the "income tax" and "capital gains tax" pipes in Figure 16, they will realize the absurdity of the middle class...
Figure 17:
A little-known fact: In our country, over the personal income tax threshold, approximately 65 million people are eligible to pay personal income tax.
- The Real Economy Pyramid
Next, let’s shift our focus to the interior of the waterworks and examine the pyramid symbolizing the real economy.
Just as water nourishes plant growth, money is like water; it drives the operation of the entire economy.
Figure 18:
The flow of water within the real economy pyramid begins with the large companies at the top. Positioned at the top of the industrial chain, they continuously extract water from the real economy, then after spending necessary costs, expenses, and capital expenditures, they store the remaining water.
Figure 19:
Simultaneously, major shareholders, professional managers, and minority shareholders of different companies all demand that the company allocate a considerable portion of retained profits for dividends or buybacks—this money flows into the hands of those in the household sector who hold stocks, like a stable and ever-widening river.
The costs, expenses, and capital expenditures paid by large enterprises flow down layer by layer, driving the operation of the industrial system. However, as savings are made at each level, the further down, the thinner the water flow.
Figure 20:
Wages flow little by little through the waterworks pipes into the savings jars of the household sector, and in exchange, the vast majority of people must work.
Figure 21:
To survive and live, everyone must sell their time to work for money and then use that money to exchange for goods.
Every commodity has two types of value: one is "use value," and the other is "exchange value."
The use value of a commodity means that a loaf of bread can fill your stomach.
The exchange value of a commodity means that if you have no money to buy bread, you either find a kind person to give it to you for free or starve to death. Even though the bread is right there, you will starve.
Professional managers will formulate the company's operational and production plans.
Figure 22:
The middle-class white-collar workers in cubicles will then implement the leaders' plans one by one.
Figure 23:
Finally, the blue-collar workers earning middle incomes are responsible for fulfilling and circulating the products.
Figure 24:
The production of goods comes from nearly non-stop assembly lines.
The people here have no names; they are called factory brothers and sisters, and their greatest advantage is called "labor cost." Their consumption aggregation is referred to as the "lower-tier market."
They are the groups that Xiaohongshu cannot reach; apart from the curious reports from people within the fifth ring about the lower-tier market, they are rarely seen. Most of the time, they are just a number in consumption reports.
Figure 25:
The most arduous and heavy work is often done in the harshest environments.
Many low-income individuals cannot cover their basic survival needs—housing, medical care, education, and hot meals.
Figure 26:
There are approximately 1.5 billion such people globally.
Life is also not easy for the middle-income group; they can always vaguely feel that the rise in prices and rents outpaces income growth, and they often find themselves in tight spots near the end of the month.
Many still wish to believe in the simple and beautiful hope that "as long as you work hard, you can live a good life." They hang some totems on the wall to motivate and comfort themselves.
Figure 27:
Many others believe that the narrative of struggle and success has collapsed; reality is too bitter, and they prefer to resort to cyber mysticism and those quick stimuli that can activate dopamine circuits.
Of course, there are also those who have no idea what they should advocate or oppose.
And the middle class, as shown in Figure 21, is living relatively well, anxiously concerned about class descent or ascension, while believing they will do better and can earn more passive income through investments.
The financial market seems to operate independently of the real economy, but this work has clearly told us that both are parts of the system.
- An asset has valuation because a portion of people within this system are responsible for it;
- A person's "passive income" often means another person has to work actively.
The profits that large enterprises return to shareholders come from goods or services provided by others.
The rental income of landlords comes from tenants who work hard and pay rent.
The wealthy class seems generous, but their willingness to consume is far less than their willingness to invest and manage wealth.
Holding the most wealth, they continuously invest money into the two major wealth storage containers: "real estate" and "financial markets," forming an exceptionally stable investment river throughout the pyramid.
Figure 28:
Financial professionals like to call this "the great era of wealth management."
The wealthy class never hesitates to invest in the education of the next generation, describing it as "educational capital expenditure."
Figure 29:
Compared to income inequality and wealth inequality, the most brutal injustice in this world is opportunity inequality.
Of course, the descendants of all classes are participating in peer competition to the best of their abilities, competing under the meritocratic system.
"Enduring hardship to succeed" means not treating oneself as human to achieve success, while "being superior to others" means not treating others as human after achieving success.
Figure 30:
The slope and cycle of economic growth will determine people's paradigms of thought, leading to many commonly accepted beliefs presenting vastly different meanings under different historical contexts.
- Pension Funds
Another major task of this waterworks is to ensure the pension of the household sector as much as possible.
To this end, the tax system mandates that the labor force pays social security, which is essentially forced savings for their future pensions.
Figure 31:
This portion of money is generally divided into two directions: one part is directly transferred to the already retired generations, while the other part becomes the principal for long-term investments of social security funds, also credited to individual pension accounts.
Unsurprisingly, the pension levels of different classes also vary greatly.
Figure 32:
Under the trend of an aging population and declining birth rates, the pressure on social security is significant, which is a challenge for most economies.
Figure 33:
Nowadays, with the development of financial markets, many countries' pension funds invest more externally than internally.
For example, to achieve a long-term annualized return of 6%-7%, pension funds will diversify their investments across assets with different risk-return ratios.
In a low-interest-rate era, the returns on government and low-risk corporate bonds are decreasing. To achieve target returns, pension funds will increase their equity investment ratio and entrust various external institutions to invest, with this money racing through financial channels between Amsterdam, Shanghai, London, New York, Hong Kong, and Singapore in pursuit of higher returns.
Figure 34:
Looking closely at the investment directions of the equity portion of pension funds, you will find many familiar names: besides those well-known large companies, there are also renowned investment institutions like BlackRock, Vanguard, Bridgewater, Blackstone, KKR, 3G Capital, and Hillhouse.
Figure 35:
- Public and Private Funds
Today, these large mutual funds and hedge funds manage complex investment portfolios, and they have a somewhat "too big to fall" flavor. They are often invited as guests by banks and other financial heavyweights in a consulting capacity, and their policy recommendations have a direct impact on their investment portfolios, making the conflicts of interest self-evident.
Just like Bridgewater, which has recently been embroiled in conspiracy theories, the New York Times financial reporter Copland's witch hunt against Dalio cannot be confirmed or denied, but people tend to believe there is some behind-the-scenes manipulation involved...
Figure 36:
Of course, public funds are also an important way for household wealth to invest in the stock market, serving as a type of wealth storage.
Then there are private funds, which, aside from having more flexible, diverse, and opaque investment targets and methods, many large private funds will also acquire companies, then lay off and restructure, packaging valuable businesses for listing or sale. Meanwhile, those worthless businesses are left to die with their debts. This is also why private funds are referred to as vultures or vampires.
Figure 37:
These professional investors also steadily and subtly extract considerable management fees and performance rewards from clients' investment flows, becoming wealthy in the process, and are likely to buy yachts before their clients do.
Figure 38:
- Stock Market
The stock market portion of the painting has inspired me quite a bit; the author vividly illustrates the principle of stock price fluctuations—buyers and sellers stand on a seesaw, and whoever has the heavier water weight determines the rise and fall of the price water level.
The higher the stock price rises, the more it inflates the balloon above, until the bubble bursts and the water level falls.
Figure 39:
In fact, this work also showcases the grips of different investment schools:
- Some focus on the water level column in Figure 38, studying the long and short forces and price trends.
- Some focus on the water storage tanks of companies in Figure 19, studying the inflow and outflow of funds, analyzing who has significant water flow changes and who has stable water flow.
- Some study the positions of different companies in the pyramid, determining at which order they can access the water flow and how much they can save.
- Commercial Banks
Let’s shift our focus back to the financial market and examine the commercial banking system.
On the left side of Figure 40 is the commercial bank, and on the right side is the real economy pyramid, with the passage between them being the most obvious link between the real economy pyramid and the financial world:
- Commercial banks provide financial leverage to households and enterprises, but their attitudes and prices differ significantly across classes.
- Low- and middle-income groups can only apply for high-interest credit loans or student loans.
- The middle class can apply for low-interest mortgages or secured business loans with their property deeds.
The common characteristic of both groups is: they need to go to the bank to apply themselves.
Banks will scrutinize them—where they come from, where they work, their income, whether their credit is clean, whether they have other assets or liabilities, and whether they can rely on family support, etc.
Meanwhile, the wealthy class can wait for banks to proactively approach them with low-interest credit offers.
Yes, commercial banks excel at adding icing on the cake but rarely provide help in times of need.
Figure 40:
Banks will offer low-interest rates to enterprises with good collateral, high loan limits, and strong repayment capabilities, but they will not raise interest rates for enterprises that do not meet ESG standards or pollute the environment.
Commercial banks are the amplifiers of the entire waterworks system, as the deposit and loan behaviors of the real economy increase the water flow of the entire system out of thin air.
Similarly, deposit and loan behaviors also allow the real economy and the banking system to complete the "balance sheet" swap:
Deposits made by the real economy in banks constitute the bank's liabilities, for which banks must pay deposit interest.
Similarly, loans applied for by the real economy from banks constitute the bank's assets, for which banks must collect loan interest.
Deposit rates < loan rates; the difference between the two rates is the main source of profit for banks.
Figure 41:
A large amount of loans from commercial banks flowing into the real economy pyramid is primarily stored in the form of real estate and industrial capacity, which continuously drives up real estate prices.
Taking China as an example, from 2006 to early 2023, the price increase in the four major first-tier cities was at least over 10%, which is a very tempting return.
The wealth of landlords and tenants diverges in this process, and many people's fates change accordingly. The huge profit-making effect and economic development encourage more middle- and high-income groups in large cities to boldly take out loans to buy houses.
From another perspective, these loans do not contribute to productivity or economic growth. On the contrary, while driving up housing prices, they also widen the wealth gap, increase urban living costs, and raise rents, forcing tenants to pay more rent and then demand higher wages from employers—if they have bargaining power.
Since 2021, the proportion of real estate loans in China has been declining from a peak of 28.7% to around 23%, while the proportion flowing to the industrial system, agricultural system, and inclusive financing for small and micro enterprises has steadily increased.
In terms of new loans, the flow to industry and small and micro enterprises has significantly surpassed that of real estate.
Year by year, this change in water flow is evident and drastic.
The loan behaviors of the real economy also place a stable debt flow on the entire pyramid.
Figure 42:
Outside the balance sheets of commercial banks, there exists a similarly large "shadow banking system."
These institutions perform financial activities similar to banks to some extent but do not belong to the traditional banking system and are not subject to the same regulations and oversight.
Shadow banking activities often involve various financial derivatives, investment funds, brokerages, and other non-traditional financing tools. These activities are usually implemented through legal structures or financial engineering methods, making them difficult to track directly on traditional banks' balance sheets.
However, they also have a significant impact on the financial system and can lead to systemic risks.
Figure 43:
Taking the United States as an example: the rise of new shadow banks during this interest rate hike cycle has not attracted much attention.
The low-interest-rate assets of the past decade and the current high-interest-rate assets have created a huge arbitrage space—such as money market funds with rates over 5%, approximately $6 trillion in reverse repos on the Fed's balance sheet, quantitative funds, banks' intermediary businesses, and various bizarre financial derivatives...
In other words, the high-interest environment brought by rate hikes has not led funds to return from finance to the real economy; rather, the opposite is true, as the shadow banking system has a stronger ability to lock in interest rates.
- The Narrow Door
Finally, let’s look at the narrow door through which the real economy pyramid enters the financial world—Western economic education. The passage is directly built on the upper social strata of the real economy pyramid, appearing magnificent and leading straight to the hall of rational beings. However, it suddenly narrows near the end.
Figure 44:
Then, prepare to accept the brainwashing of economics as you descend the steps!
In terms of expression, I absolutely love the treatment in the next image; notice the painting illuminated by searchlights on the wall, which embodies the essence and totem of economics, as economics cloaks production relations in a rational guise.
Figure 45:
Next comes a series of filtering processes:
- First, those rebellious young people who do not love to recite scriptures are unworthy of receiving respectable economic education and will be eliminated.
- Then, classic books and theories will be engraved in everyone's minds, aligning their thoughts for future synchronized recitation.
- After that, frameworks will be used for uniform shaping.
- Finally, pay the fee, enter the economics pipeline, and begin ascending the steps.
Figure 46:
Studying along the planned route, kneeling in worship, accompanied by classic theories and masters, increasingly distancing from reality and becoming more "rational."
On this "orthodox" path, a multitude of Nobel laureates in economics illuminate your way: "The market is fair, money is neutral, we believe in rationality..."
Although this pyramid structure feels wrong, these are all results of the natural rational evolution of the market. "The Essence of Poverty" must certainly attribute poverty to individual flaws and adverse local environments; otherwise, what else could it be?
Economics is not physics; it is sociology and also political science. No matter how powerful your theory is, can it compare to a Nobel Prize winner?
Don't think about it; as long as you are willing to walk this path, you can obtain a ticket to the financial world, possess the interpretive power over financial markets, either engage in money-making or publish academic papers, achieving success and fame:
Figures 47-49:
Meanwhile, those rebellious individuals, rejected by the orthodox, discover that there is a narrow path of economics waiting for them, which also allows them to ascend step by step.
Figure 50:
This is a relatively niche path, difficult as the path to the hall, but there are also masters accompanying them—Veblen, Minsky, Schumpeter, Keynes, Hayek, Marx...
Figure 51:
- Conclusion
Is the distribution game of the market economy rational?
Once upon a time, Karl Marx was also a proponent of rationality, viewing Hegel as the most sacred sage.
While serving as the editor of the "Rheinische Zeitung," driven by the most basic sense of justice for humanity, Marx attempted to advocate for the impoverished farmers of the Rhine Province, as the provincial parliament had passed a series of new laws, one of which stated:
Farmers in the Moselle region of the Rhine Province picking up fallen branches in the woods would be considered theft of timber—what was once a perfectly normal behavior suddenly became illegal. Because the timber is private property, the rights of timber owners need to be protected.
In the public debate with the Rhine Provincial Parliament, Marx attempted to use the legal philosophy theory of his idol Hegel as a weapon, using rationality to prove that such legislation was erroneous!
However, he painfully discovered that depriving impoverished farmers of their right to collect dead branches had sufficient legal philosophical justification and was rational.
Interests are the most practical things. If humans are rational animals, then is it truly rational to oppress or even eliminate one's kind for the sake of interests? Or is interest itself a product of rationality?
From then on, Marx began to reconstruct his theoretical system.
In the past 40 years, the growth of the financial world has likely been 2.5 times that of the real economy. Living in a big city, I can clearly feel that the values within the fifth ring are gradually leaning towards social Darwinism.
Small business owners feel ashamed of working hard and of not buying more houses.
It is hard to say whether finance serves the real economy or the real economy serves finance.
Or rather, whether taxes serve whom is a question of the underlying values of an economic entity, and whether there is the courage to place social impact above financial returns.
During the days I wrote this article, the Central Financial Work Conference provided important guidance for China's financial industry:
We must adhere to the centralized and unified leadership of the Party Central Committee over financial work, uphold a people-centered value orientation, ensure that financial services to the real economy are the fundamental purpose, maintain risk prevention and control as the eternal theme of financial work, promote financial innovation and development along market-oriented and rule-of-law tracks, deepen structural reforms on the supply side of finance, coordinate financial openness and security, and adhere to the overall tone of seeking progress while maintaining stability. (Source: People's Forum, https://mp.weixin.qq.com/s/YkFvB5KnJGq_ADEQb9u6_Q)
This content represents the author's independent views and does not reflect the position of Huxiu. Unauthorized reproduction is prohibited; for authorization matters, please contact hezuo@huxiu.com
If you have any objections or complaints regarding this article, please contact tougao@huxiu.com
Those who are changing and those who want to change the world are all on Huxiu APP