What is macro finance?
Macro-finance is the financial knowledge to study the financial opportunities among countries in the world, grasp the financial imbalances among countries and within countries, and thus realize the transfer of national wealth. The main means are interest rate, foreign exchange, international commodity futures, stock market, futures, swaps and options. Sometimes the capital involved is so large that only the exchange rate market can accommodate it. The smaller one is the futures market, and the smaller one is the stock market and the property market. "Macro-finance" players will study the economic situation and bubbles of various countries in depth before making their moves. The bigger the bubble, the more they like it, and the greater their patience and determination. For example, the method of shorting the property market in China: The property market bubble in China came from the low interest rate after 2000, so this bubble has accumulated for 10 years, and the increase rate has reached 10 times, which is a very good "short" opportunity. Especially in big cities, Beijing, Shanghai and Shenzhen. Once the policy is tightened and the money supply is reduced, many banks, companies, enterprises and individuals with a large number of real estate will be short of money and look for funds everywhere to solve their urgent needs. At this time, "macro-finance" players will adapt to the demand, sign an agreement to let the owner borrow the house, pay a fixed "interest" every month, and return the house to the owner after a certain number of years. Once the house is lent, it will be sold. When the number of houses lent by "macro-finance" players is considerable, because there are enough houses sold, the house price will fall badly, and finally it will be bought back at a low price and returned to the owner. This is just the principle of short selling. In practice, the "macro-finance" players will borrow modern financial instruments and trade directly with financial institutions such as banks, without even having to borrow a house from the owner in person (banks have many mortgages), and then open positions through a series of financial instruments. Finally, the house price fell back to its original shape and realized huge profits. Mode of wealth transfer: 1. The state stimulates social creativity and creates wealth through free economic policies. Wealth is in the hands of the people. 2. The state transfers people's wealth to a very small number of people through financial instruments, and generally adopts the method of currency depreciation. Forming financial bubbles-stock market bubbles and real estate bubbles. Wealth is transferred to very few people. 3. "Macro-financial experts" pushed up the country's currency through national commodity futures and foreign exchange, continued to push up the country's financial bubble, and began to open positions. The wealth of a few people began to invest internationally. 4. "Macro-financial experts" shorted the futures and stock markets of this country, which led to the depreciation of foreign exchange and even forced to liberalize foreign exchange control. Wealth is transferred to "macro finance" players. The "macro-finance expert" made huge profits and quit this country. "Macro Finance" players retire and seek a new bubble. It can be seen that the key for "macro finance" players to gain wealth lies in whether there is a "financial bubble" in a country or region-a stock market bubble and a real estate bubble. Once the "financial bubble" is getting bigger and bigger and shows signs of madness before it bursts, players of "macro finance" will definitely make moves. If you don't do it anyway, someone else will. Why not make money if you have money? Participants in "macro finance" are essentially businessmen and profit-seekers. "Macro-finance" players themselves have no ability to make a country or region have a bubble, and the bubble is often played by the country itself. No wonder others!