After several years of development, the Chinese Empire has developed relatively fast in mortgage loans, which is also a kind of overdraft consumption, which began a long time ago.

Therefore, the Chinese Empire's economy developed rapidly before, but the people had to pay back mortgages, which to a certain extent restricted the growth of domestic demand.

However, the down payment is high, so the overdraft level is not high and the housing prices are not too high, so many citizens have already paid off their loans.

The main market for mortgage loans began to move to inland areas, while the mortgage market in coastal areas began to become saturated.

Due to the continuous release of mortgage loans, the Chinese Empire's economic growth rate has been much faster than that of the United States. However, the overdraft consumption of the Chinese Empire is still in the category of basic living facilities and has not yet involved commodities such as cars, because cars are currently luxury goods and have not become necessities for daily life.

However, as long as car loans are released on a large scale and most citizens buy family cars, cars will become necessities for daily life.

After several years of comprehensive and crazy construction, the Chinese Empire's economy maintained a very stable and high growth rate on the 1st, thanks to the continuous supply of funds by the Asian Federal Reserve.

Under this crazy construction, the Chinese Empire gradually had the ability to carry out large-scale overdraft consumption.

At the same time, the Chinese Empire is also expanding its automobile production capacity, and its speed can only be said to be beyond the reach of Americans.

Among them, Zhongsheng Group and Huasheng Group have successively entered the family automobile manufacturing industry and competed with East China Group. East China Group retains the monopoly production of engineering vehicles and trucks.

Competition sometimes has great benefits, that is, it is the ability to constantly innovate.

The competition among the three major Chinese groups in the civil field is becoming fierce at this time. The technologies used by the three parties are basically the same. At the same time, the three groups are also constantly making innovations, so that the industry can maintain extremely high competitiveness in the world.

When one of the groups makes an innovation, the other two groups will follow up quickly, but they must pay a certain patent fee to the innovative group, so that the innovative group has a cost-competitive advantage.

The production capacity of family cars is growing wildly, which is preparing for the next large-scale car loans.

The production capacity problem must be solved first, otherwise even if the car loan is released, there will be insufficient production capacity.

At the same time, the Chinese Empire has also vigorously built transportation. Under the continuous and crazy construction, railways and highways have extended to the Russian region.

Only when the roads are clear can there be no restrictions on the transportation of raw materials.

As a country with a population of 500 million, the Chinese Empire will consume huge resources once it uses the overdraft consumption model. However, in terms of the resources currently controlled by the Chinese Empire, it is completely sufficient to consume. Even if the population grows to one billion, the Chinese Empire can even consume global resources to supply national consumption.

In this world, resources are not actually limited.

There are only a few types of limited resources, among which agriculture may be the biggest constraint. For example, in later China, the main reason why overdraft consumption is the first priority of agricultural constraints.

At this time, the Chinese Empire was very developed in agricultural productivity, enough for the people to eat and drink hard, and the territory expanded a lot and its sphere of influence was also large. Therefore, it is not impossible to support a billion-dollar population.

As for water resources, I am afraid that I will use up so much water in the sea?

Iron ore and other resources, even if one billion people are consumed by a very wealthy population, although theoretically it will be consumed soon, as long as the recycling technology is developed, it is enough.

The scarcity of resources is just a false concept made in later generations of the United States.

In the context of the emergence of free energy, resources are not scarce.

When a large amount of resources was needed, it was very wise for the Chinese Empire to build railways into Russia, and it was also a preparatory act to start building Russian mines.

In Russia, the money released by East China Bank is mainly mortgage loans.

Houses in Russia are relatively expensive, but they are not good without houses. In particular, a large number of people have been transferred to the area east of the Volga River, which was not too developed. Therefore, houses have denied Russia's current primary construction goal.

Mortgages have driven the development of steel, cement and other related construction industries, and a large amount of money has been put into the market, allowing the Russians to solve the employment problems and stimulate other consumption.

Those steel, cement and other manufacturers were mostly built by the capital of the Chinese Empire.

Most of Russia's resources are controlled by the Chinese Empire. The prosperity of the market has given the Chinese Empire enough profits to build mines and transportation facilities.

The real estate currently controlled by the Chinese Empire is enough to continuously exploit the Russians.

The Russians owed a lot of money from the bank just on the issue of houses. Nigira II would provide Russians with basic living supplies for the sake of rule, but it did not mean that he was willing to build affordable housing like the Chinese Empire. This also led to a bit high housing prices in Russia.

With the increasing amount of money, housing prices are also rising.

Some Russians became very rich in such a prosperous market, so they bought some assets controlled by the Chinese Empire at high prices, and even went to the Chinese Empire to invest and buy assets on a large scale.

Many of the assets of the Chinese Empire were bought by the Russians.

The Chinese Empire did not restrict these Russian capital's extensive purchase of assets, but only increased the price and sold it to the Russians.

Anyway, the Russians will still vomit out the amount they buy now.

By then, when the Russian economy collapses, most of the Russian assets will be taken away by banks or sold to capitalists of the Chinese Empire at a low price.

The selling at this time is a huge profit.

For those promising assets, China will raise the price to the Russians at a high price, and at the same time guide the Russians to buy some meaningless assets.

Especially some things that make Russians feel that they have bought very face, such as some landmark-style buildings, which Russians buy at high prices.

In fact, some Russians are so rich that they don’t care about profits and losses, and they are very generous in their actions.

The overdraft consumption of the Chinese Empire has not yet been launched on a large scale at this time, but it will not take long.

1924 was the final preparation stage for the Chinese Empire. Most of the construction plans were completed ahead of schedule with the enthusiasm of the people.

The inland transportation environment was greatly improved in 1924, and the main railway roads in inland provinces were basically completed. At the same time, in terms of railway branches, local governments were also organizing private capital to build them.

From the Republic of China to the Chinese Empire, from the 13 years from the 1911th to 1924, the Chinese Empire had successively built 50,000 kilometers of railways.

The speed of its construction is simply terrifying.

Basically, the whole people built roads, and most of the funds were built by the Chinese Empire loaned banks. Some were raised to build railway bonds, and some were built by private capital.

But most of it is funded by the government.

At this time, the Chinese Empire government was already heavily in debt, but the government could persevere because the government could issue banknotes.

But debt is an objective fact.

The Chinese Empire government was confident that it would pay off these debts, because the government was owed at this time, and the people had not yet carried out large-scale overdraft consumption.

Once citizens overdraft consumption, the railway system will continue to receive benefits from energy sources, and it is easy to pay off these debts.

When national consumption overdraws to a certain extent, the Chinese Empire also pays back debts through the benefits of railway operations during the prosperity.

Even if it doesn't pay it back, it doesn't matter. When the national overdrafts consumption to a certain extent, the national owes a lot of money to the bank. Once the economy collapses, it means that the national owes a lot of money to the government. The government can use the overdraft money to build some projects that have less income than investment but have to be built, or go directly to war with other countries. This debt is nothing at that time.

Looking at the economic development of the Chinese Empire, the government was overdrawing consumption in the early stage and investing a lot of money into infrastructure, thus creating a lot of employment for the people.

This model can theoretically last infinitely, as long as it is continuously issuing banknotes.

This is also a model adopted by China in later generations, but this applies to the early stages. When construction reaches a certain level, the government will issue a large amount of banknotes to maintain operation, that is, increase seigniorage tax.

But the Chinese Empire did not increase its seigniorage at this time, but went to banks to borrow money to build projects. The bank's money was withdrawn from the money from national savings.

Although banks can even borrow 100 yuan from money to money, after all, there is a limit. With the growth of the economy, bank reserves will continue to increase. Moreover, banks do not only lend money to the government, but also investors and national loans, etc.

Therefore, by the end of 1924, the central government of the Chinese Empire was no longer able to maintain such an overdraft construction policy. Even in 1924, the central government of the imperial government had to issue an additional seigniorage of 50 US dollars to maintain such an overdraft construction policy. In general, it was already very difficult.

At this time, the baton is to be handed over to national consumption, otherwise the economy will collapse. If it is to maintain the failure to collapse, you can only issue a large amount of seigniorage tax, or allow national consumption to continue to drive the economy.

The Chinese Empire's plan was to hand over the baton to national consumption.

Both have to issue large amounts of banknotes, but this is a difference.

The state issues seigniorage tax, which is equivalent to printing a note for the government to spend, so the money is equivalent to directly taking it out of the pockets of the people, which is equivalent to an indiscriminate attack.
Chapter completed!