Print Money to Fund Co-Prosperity: The Debt Trap

Looking ahead, the gap between the rich and the poor in human society will always keep widening. In other words, the more you print money and the more debt you pile up for the future, the faster that future is projected onto the present, which shows up as an accelerating expansion of the wealth gap—projecting future inequality into today.

That’s what you see in America: the pandemic, massive money printing, billionaires getting richer, while CPI is heading toward 8 percent.

Flooding the market puts more money in the pockets of big-tech engineers, pushes house prices up, and drives CPI higher. Ask yourself—was this what we wanted? Could we really afford it?

The answer is clearly no.

If you have 20,000 yuan, would you double it for someone earning 1,000 yuan a month, or for someone already earning 20,000 yuan a month? The answer is clearly the former. Doubling the income of the poorer person generates far more purchasing power and stimulates domestic circulation—people at that level spend mainly on survival.

The latter won’t necessarily spend it. That person already has enough to get by, so maybe they’ll save up for a second home, adding pressure to purchase restrictions, or move the money overseas to trade stocks.

No matter what they do, there are only two outcomes: they profit, or they lose.

If they profit, it only widens the wealth gap and creates instability. If they lose, it’s more like throwing meat buns at a dog—except the dog is a foreign one.