Debt reduction will be the main theme for many years to come

In the end, it will still take the path of increasing money supply, because forced debt repayment is painful and difficult for those in power. Relieving debt by increasing money supply is the approach with the least resistance. There are several forms of increasing money supply:

1. Increasing money supply to reduce interest rates: reduce interest burden, stimulate economy, and maintain stable inflation. If you earn 10,000 today, you will feel pressure to pay back 10,000 debts; if you earn 30,000 10 years later, the pressure to pay back 10,000 will not be so great.

2. Quantitative easing: The central bank directly increases money supply to buy assets so that everyone has money to pay back debts. This is also the mainstream practice of Europe, the United States and Japan after 2008. Quantitative easing will directly accelerate the rise in asset prices, and people without assets will be hurt and will be pulled further and further away by people with assets.

3. Deficit monetization: Replace high-interest debt with interest-free or low-interest debt. The endings of countries that engage in deficit monetization are very bleak, and it will trigger hyperinflation.

Therefore, in the foreseeable few years, the money in your hands will continue to depreciate; if you just lie down, it is also a gamble. Modern society will not let you lie down, there will be countless whips behind you; blood-sucking and cruel top-level design is also one of the foundations for the continuous development and progress of society.

In general, the cost of this round of debt reduction will eventually be passed on to the cattle and horses. The real thing is to exchange the hot money for relatively scarce assets/personal skills that can generate sustainable cash flow.

Holding cash in hand represents the right to choose the future, which means that you can go all in when opportunities arise in the future. Instead of being a fool who firmly believes that cash is king, you will be robbed of everything you have left, even your underwear, when you see the price of a roujiamo costs 25 yuan.