After reading The Logic of Finance, what did you learn from the book The Logic of Finance ?

The basis for the emergence and development of finance is the contractual structure and the guarantee of individual power, because the cross-space and time exchange of value is based on credit, so a corresponding system is needed to ensure the fairness of the exchange. Starting from the perspective of finance, "The Logic of Finance" makes an in-depth analysis of the development of society, the changes of the humanistic spirit, and the connotation of Confucian culture, and gives a new thinking concept by comparing the thinking mode and historical development of China and the United States.

What is the role of financial markets in the development of a country? <>

Through the study of the development model of various countries, it is found that the rich ** develops backward, while the borrower develops well. The United States is developing faster than any other country because it has a capitalization system that allows any asset, any future income stream, to be turned into a surplus of financial capital through lending. Whether it is land and resources, or the future income that cannot be seen or touched, can be turned into liquid capital now, which can be used to develop the economy and make money with money.

According to traditional Chinese thinking, debt is not a good thing. However, in the modern financial market, if the return on investment generated by the borrowed capital is greater than the debt itself, then the value of the borrowed asset increases, creating a larger total social asset. While the overall wealth of society has increased, the people's living standards have increased year-on-year.

Therefore, it is not necessarily a bad thing that he is heavily indebted, and the issuance of bonds is only to spend future income to develop the current economy, and the pressure of supporting the vertical payment will be evenly distributed in the future time. As long as there is no major disaster that causes the country to be unable to repay the national debt, the country will become richer and stronger. At the same time, being heavily indebted will promote the development of democratization, because the poor will never and dare not do things that make the majority of the people unhappy, and rich countries are different, take the Ming Dynasty during the Zhu Di period as an example, the treasury is full and there are thousands of treasures, not to mention that the people dare not resist Even the surrounding countries dare not provoke the Ming Dynasty.

At the same time, the more wealth that can be controlled, the more corrupt behaviors will be, the more intense the social contradictions, the more serious the gap between the rich and the poor, and the social order will be in a disaster that is about to erupt. It can be seen that less taxation and the development of a country's economy through the issuance of treasury bonds can not only hide the wealth from the people and better maintain the stability of a country, but also effectively restrict the rights of the country and promote the improvement of the democratic system.

Economic independence is the foundation of individual freedom. If the elderly can also be financially independent, then they will not interfere too much in the behavior of their children, retirement**, pension insurance, etc. provide sufficient options to avoid future risks, and the elderly will enjoy the return of financial investment when they are old when they participate in these financial activities. <>

When the economy develops and the financial market is sound, the financial market can replace the economic function of the original Confucian culture of "filial piety" and replace the "debt of human affection". This sock quietly liberated the economic function of the Confucian "filial piety" culture, and turned "filial piety" into pure "filial piety" and pure "love". Therefore, further improving the financial market system and establishing a sound financial market can promote and realize individual freedom.

It can be considered that there are two investment subjects: either the first to invest, or the people to invest, but it can be considered that the total amount of ** investment and private investment is fixed.

If the return on investment is lower than the return on private investment, then private investment should be encouraged and the occupation of private capital should be reduced, so it is necessary to borrow less and reduce taxes and refunds.

Of course, on the contrary, if the return on investment is higher than the return on private investment, then you can appropriately concentrate financial resources to allow you to invest, that is, to borrow for development and increase taxes.

But in any case, the general direction should always be to hide the wealth from the people.