How do rich people use currency devaluation to make themselves richer?

For whoever has it, give it to him so that he may be rich. However, if you don't, even what he owns will be taken away. "This is the famous Matthew effect.

Simply put, the poor are getting poorer and the rich are getting richer. Because the rich have more resources, it is easier to increase their wealth through various means. This is also an important reason why the total assets of the world's richest man are close to one trillion yuan. This is not as rich as an enemy, but as rich as a country.

First of all, it is simple for the rich to make themselves richer by devaluing.

Currency devaluation can also be said to be another manifestation of inflation, that is, money is becoming more and more "valuable", and the same money can buy fewer and fewer products. This is caused by excessive currency.

If the currency depreciates, the rich will get richer as long as they dare to invest. This is also one of the important reasons why the assets of the richest man in China have been rising like helicopters in the past 20 years.

200 1, the richest man in China is four brothers, Liu Yonghao and Sichuan, with a wealth of 8.3 billion RMB.

In 20 18, the richest man in China was Ma, worth 29 10 billion yuan. For more than a decade, the wealth gap between the two richest people has reached 35 times.

Because the rich have a lot of resources, in the period of currency depreciation, they can realize the return on assets through a large amount of investment.

For example, in the past 20 years, our country's currency has depreciated internally, but land prices and real estate prices have continued to rise, and a large number of real estate developers have become super rich; People who invest heavily in real estate have also become rich.

Secondly, during the period of currency depreciation, rich people can further mortgage assets and borrow money from banks while investing, which will have a great leverage ratio, further amplify the investment effect and realize excess returns.

Give a simple example of real estate investment. Buying a house with a value of 1 10,000 only cost 200,000 down payment; 800,000 is a bank loan. After three or two years, the house price doubled; Or in a few years, the house price will be multiplied several times, worth millions. That is to say, if you invest 200 thousand, you can make a profit of one million.

If there are millions, tens of millions and hundreds of millions, you can buy one at a time. That's what Wenzhou real estate speculators did.

The poor have no mortgage and can't even afford the down payment. In this round of real estate feast, they have fallen behind. Then, with the rise of housing prices, the poor are getting poorer and the rich are getting richer.

Third, use exchange rate changes to make money.

Generally speaking, when a country's currency depreciates, it means that the currency is oversold, that is, the purchasing power of the currency declines. Compared with the international mainstream currency, there will also be a process of depreciation.

At this time, the rich with more funds can buy a lot of foreign exchange in advance through professional foreign exchange speculators when their currencies are strong. When the domestic currency reserve is large, repurchase will bring a larger capital premium. For those who have no money, there is obviously no one.

But for the rich in China, the RMB actually has a special process of "internal depreciation and external appreciation". This is due to China's special foreign exchange control.

In the past few decades, China's economy has made remarkable achievements, and its economic growth rate has been in the leading position in the world for a long time. However, before 2005, the RMB remained above 8.2: 1 for a long time. That is, 1 USD can be exchanged for 8.2 yuan RMB. This is not in line with the international purchasing power of RMB brought by China's sustained economic rise.

After the central bank began the exchange reform, in 2006, the exchange rate of RMB against the US dollar broke through the 8 yuan mark for the first time; In 2008, the exchange rate of RMB against the US dollar broke through the 7 yuan mark for the first time. But later, the RMB remained at around 6.4 against the US dollar for a long time.

However, while RMB is appreciating against major international currencies, RMB is depreciating at home. This is the phenomenon of "internal depreciation and external appreciation" formed by special reasons. At this time, as long as you hold RMB, you will earn it.

There is a joke. In 2004, a foreign investor worked in Beijing and then bought a small house for his girlfriend to live in. However, in 20 10, when he sold his house and returned to China with ready-made dollars, he not only earned all the money he spent on his girlfriend for six years, but also made his original investment return several times. Because when he bought a house, he made money in two aspects at the same time, one was the premium brought by the skyrocketing housing prices, and the other was the premium brought by the strong RMB exchange rate.

Make a fortune! This is the world of the rich.

For ordinary people, in the face of currency depreciation and inflation, they can only expect the boss to increase their wages or the state to increase their pensions. Therefore, the poor people are very disgusted with currency depreciation and inflation, because they have finally accumulated a little wealth, but their purchasing power is decreasing. However, for the rich, they like devaluation very much, because devaluation can bring more wealth to the rich.

According to common sense, in a country, we say that currency depreciation and inflation are the same concept. However, in China a few years ago, the RMB "continued to appreciate externally, but continued to depreciate internally". This is mainly due to the large foreign trade surplus of China in the past few years, the rapid growth of domestic economy, and the continuous inflow of overseas hot money into China, which led to the increase in external demand of RMB and the natural appreciation of RMB.

But at the same time, due to the implementation of the "foreign exchange settlement and sale system" in China. Faced with a large amount of foreign currency flowing into China, the Bank of China can only passively convert RMB into equivalent foreign exchange. This leads to excessive domestic base money, and the long-term depreciation of RMB purchasing power in China is a strange phenomenon in foreign countries. However, in recent years, due to the slowdown of China's economic growth, the foreign trade surplus has shrunk, and the hot money flowing into China has gradually decreased. Therefore, in the past, the phenomenon of RMB "external appreciation and internal depreciation" was basically curbed.

I used to work in a large private enterprise and have dealt with many rich people. For the rich, they are not afraid of domestic inflation, but most afraid of domestic deflation. Because in the case of deflation, all walks of life are stagnant and financial operation is stagnant, which is not conducive to the rich to make big money. In the eyes of the rich, currency devaluation is an opportunity for them to get rich.

First of all, for the rich, currency devaluation is terrible, but they can pass on the risk of currency devaluation by borrowing. For example, rich people like to borrow money to buy a house, and rich people will also borrow money from banks for a long time when they run enterprises. Banks usually like to lend money to the rich. In the case of currency devaluation, the more debts the rich have, the better, because the interest rate of bank loans is very low at this time, and the rich take out bank loans to make profits. Therefore, for currency depreciation, the rich can dilute their debts.

Moreover, the poor live on wage income, and the rich pay dividends on year-end equity. Many bosses told me that if you are not afraid of inflation, you are afraid of deflation. Because deflation means economic depression, products can't be bought. Inflation (currency devaluation) means that the economy is overheated, and the products can't be sold, which makes the rich raise the prices of goods produced by enterprises and pass on the risk of currency devaluation. Therefore, in the face of currency depreciation, it is extremely passive for the poor to want to raise their wages. Currency devaluation, the rich are eager to raise the ex-factory price of products, so that currency devaluation has no impact on the income of the rich, but also allows the rich to make a fortune.

Thirdly, with the devaluation of the RMB, the rich have nothing to fear. Apart from keeping a small amount of money for normal operation, they exchange most of the money for other countries' currencies, such as US dollars and euros, which have little influence on the rich. On the contrary, ordinary families also have some deposits that can be exchanged for other currencies, but these RMB are often used for emergencies. Even if they can be exchanged for some foreign currencies, they will not be exchanged much. Therefore, it is the poor who are most affected by currency depreciation.

Finally, for the rich, they like currency depreciation very much, because the reason for currency depreciation is that the central bank's monetary policy is too loose. Due to the loose monetary policy, there will be a lot of liquidity in the market. The rich can make use of the abundant liquidity in the market to make waves. In recent years, the prices of agricultural products such as teasing you, garlic and ginger have soared overnight. This year, social hot money took advantage of the opportunity of reducing the production of apples and other fruits to push the price of apples to the highest price in history 10 yuan/kg through the apple futures market. Therefore, currency devaluation can make the rich rise to speculation, and there are signs of intensification in recent years.

For the poor, currency devaluation means shrinking purchasing power and declining quality of life. For the rich, there are endless ways to deal with currency depreciation. It can not only dilute the debt through high debt, but also raise the product price of its own industry and pass on the inflation risk. You can also exchange your own funds for other countries' currencies to hedge. You can also hoard and speculate on the prices of various social commodities and reap huge profits. So devaluation is not terrible, deflation is terrible. The rich are most happy to see the currency depreciate, because this is precisely their opportunity to make money.

Hello, friends! Currency depreciation, relative price increase, borrowing money is more cost-effective! Therefore, it also provides a foundation for making money ... Imagination space! Many people make money by devaluing their currencies, which is also the principle …

First, let's look at how to profit from currency depreciation:

1, loan! In the case that the currency depreciation exceeds the interest rate, the loan is undoubtedly a means to directly benefit from the currency depreciation! For example, if you buy a house with a loan, the interest rate is 5%, and the house price is 1 0,000 yuan per square meter. 10 years later, the interest rate reached 50%, the currency depreciated, and the house price rose relatively, doubling!

As shown above, by locking assets, you can effectively make money by depreciating …

2, currency and physical conversion to make money! It's simple: 1 1,000 yuan, and the price will rise with inflation if you buy the corresponding materials! Inflation is 10%. If you sell it at the right time and convert it into money, the difference will naturally come!

As can be seen from the above figure, currency depreciation is a long-term process. Buying fixed assets and materials through proper selection is conducive to isolating depreciation and maintaining and increasing value!

3, use the exchange rate differences of different countries to make money! When the currency depreciates, the corresponding foreign currency exchange rate will rise, and at the same time, depreciation is also conducive to export trade ... After all, things look "cheap" and are more competitive in the international market, so they can naturally make money!

4. Use the financial market to make money! The financial market is a two-way transaction, which can be long or short! Currency depreciation is relative to prices. When it depreciates, buying more financial assets or shorting the currency is also a means to earn inflationary profits!

As shown above, a clear understanding of the general trend is also a way to make effective use of currency depreciation to make profits!

Secondly, let's look at the impact of inflation on us ordinary people:

1, we should actively invest in financial management, at least to reduce the impact of inflation!

2, as far as possible to diversify assets, diversify a single risk!

3. Invest in fixed assets appropriately, solidify part of wealth and isolate risks!

Finally, let's make a summary:

Up to now, the world's paper money has generally depreciated. Appropriate depreciation will help the economy maintain greater vitality. The most favorable thing is to earn cash and spend it now, which will have a certain impact on the accumulated wealth! But through the rational use of different financial instruments, products, investment and financial management, the impact of currency depreciation can be greatly reduced, and even the value can be preserved …

Inflation refers to the fact that the currency circulating in the society exceeds the currency actually needed, which leads to the rise of prices and the devaluation of the currency. The more serious inflation is, the less valuable money is. For the poor, the only way to fight inflation is to increase wages. If wages don't increase and there are fewer and fewer things to buy with existing wages, then the poor will become poorer and poorer. So how do the rich use inflation to make money?

Debt+investment

Theoretically speaking, inflation is also depreciating the rich's money, but the rich will not simply put their money in the bank, because they have many investment channels, for example, they will invest their money, even through large debts. Inflation is the currency of the central bank. At this time, the amount of funds in the whole society is surplus. At this time, financing is extremely easy. Just like the 4 trillion plan of that year, any enterprise can borrow money.

The money borrowed through financing can be used to build factories, introduce equipment, expand production and produce more goods. Inflation represents the overheating of the whole social economy, when prices are rising. Therefore, the products produced are sold at high prices, and the poor pay the bill. The rich can make money from the sale and further accumulate wealth. Therefore, inflation is a disaster for the poor and a feast for the rich.

foreign currency

When the local currency depreciates, the corresponding foreign currency will appreciate. Therefore, we can avoid devaluation by exchanging foreign currency, and even realize low buying and high selling through short selling. However, this method is limited in China, because according to the formal channels, the amount of foreign exchange settlement and sale per person in China is only $50,000 per year, but the rich can convert RMB into US dollars through investment and other means, exceeding the limit of $50,000.

Take the Thai baht as an example: if investors expect the Thai baht to depreciate, they can buy all the funds in their hands and deposit them in the bank (assuming that 1 USD is equal to 10 baht before depreciation, if there is 10 billion baht at this time, it can be converted into 10 billion USD). When the Thai baht depreciates (assuming that it needs to be exchanged for 20 baht 1 USD), the rich can exchange the original 1 USD for Thai baht (at this time, 1 USD becomes 2 billion baht), and virtually they earn 1 Billion Thai baht.

abstract

In fact, in the face of inflation, the rich have many options. In reality, the wealth value on the inflation rich list tends to rise rather than fall, so the rich are not afraid of inflation, but are afraid of deflation. Deflation means that the whole market economy is depressed, things can't be sold, investment is weak, there is less money in the market and the operating space is reduced. After all, many operations need huge funds to support.

Rich people depend on how you define this rich person. If they are rich people worth hundreds of millions, their investment actually has many choices.

Stocks, funds, private placement, foreign exchange, etc.

If the currency depreciates, let's pay attention to foreign exchange today

Suppose a rich man foresees that the RMB will depreciate in the future, wants to make a fortune by this wave of RMB depreciation, and plans to invest 60 million RMB.

Assuming that the exchange rate of RMB against the US dollar is 6: 1, then the RMB 60 million can be sold to get100000 US dollars. Assuming that he has a good eye, the RMB has indeed depreciated. After a period of time, the exchange rate of RMB against the US dollar became 6.5: 1. At this time, the100000 USD in his hand can be repurchased to get 6500 RMB.

Of course, this also needs to consider transaction costs and currency depreciation costs!

This is called emptiness. As mentioned earlier, you have so much RMB cash in your hand. What if you don't have that much cash in hand?

Then borrow, in fact, almost all investors, when making these investments, no one will really use their own money to operate. For example, just now, rich people wanted to short RMB and planned to invest 60 million yuan. Many times, of the 60 million, it is very likely that only100000 or even100000 is your own money, and the rest is borrowed or financed.

The risk of shorting is actually greater than the risk of going long. Why do you say that?

Forget about foreign exchange. Take stocks as an example. If you are optimistic about this stock, the current share price is 10 yuan. You invested100000 shares and got100000 shares, but the stock has been falling since you bought it. The worst result is that the stock price becomes zero, and at most you lose100000 shares.

But suppose you are short, you don't have any stocks, and you have to borrow stocks from other institutions and sell them first. Assuming the stock price is still 10 yuan, you borrow 1 10,000 shares and sell them first. You want to buy back 1 10,000 shares when the stock falls to 6 yuan, and return it to the lending institution at a cost of 6 million. By this time, you have earned 4 million. Even after dozens of daily limit, it has become a stock in 300 yuan. At this time, the value of 654.38+00,000 shares became 300 million. If you close your position and stop loss at this time, you will lose 290 million yuan, and the price of rising stock price is theoretically infinite and has a lower limit.

So the risk of shorting is far greater than the risk of going long.

Do a good job in asset allocation 100 years later, the purchasing power of 100 yuan may only be in 96 yuan. However, if 100 yuan is exchanged for assets, such as eggs, and eggs with 100 yuan will still be eggs with 1 00 yuan after1year, assets will rise with the rise of inflation. I believe.

Find an investment that is higher than inflation, let your assets roll up, use Qian Shengqian, use your money to find a job, and let the money work for you. With the advent of the era of artificial intelligence, the labor force will become even less valuable, so for those who only use their brains, material resources, time, experience and skills to make money or lack financial and business thinking, inflation will make them poorer and poorer, because they will think it is wise or prudent to deposit money in the bank, but they can't keep up with the meager interest paid by inflation, and money will lose its purchasing power more and more. For the rich, they know financial and business thinking, leverage and hedging. They borrow money from banks at a fixed interest rate, and then pay off their debts by buying cash flow assets, and increase the return on investment through leverage. In an inflationary economy, if the debt expenditure is fixed, the cost of debt will decrease with the loss of money purchasing power and the increase of investment income. The reason for the increase in investment income of the rich is that they buy assets that hedge inflation, and investing in cash flow assets will make the rich richer.

Keep it simple. The main points are as follows:

First, buy fixed assets such as real estate.

Second, use exchange rate fluctuations to speculate in foreign exchange.

Third, buy the company's equity.

Fourth, hoarding tight materials.

Fifth, buy precious metals.

The intransitive verb invests in financial assets. For example, buy wealth management products and buy funds.

The so-called currency devaluation, in layman's terms, means that the currency is printed too much. The money supply in circulation exceeds the actual total output value of social labor, and our money has been diluted. In the currency circulation, the more the currency at the end of circulation, the more diluted it is. Therefore, in order to preserve the value and make money as much as possible in the devaluation of the currency, we must first find out which industry the "source water" in the sluice has flowed into, in other words, we must find out which industry the country will invest the excess money into.

For example, in 2009, the trillion yuan was mainly invested in infrastructure projects, so steel, cement, real estate and other industries benefited first. Many rich people also invested in these industries, and many migrant workers also benefited a lot from that money. At the same time, it also gave birth to the bull market of real estate for more than ten years, and created many rich people in the real estate industry!

In addition, if you want to make yourself richer in currency devaluation, that is to say, the speed of making money will exceed the speed of currency devaluation, and your income growth will outperform inflation, which requires us to find a "way out" for investment. Not only can pigs fly, but your wealth will also grow rapidly. For example, when the Internet just started, Ma Yun founded Alibaba, which pioneered the e-commerce in China and stood at the forefront of the Internet economy. ......

To sum up, in order to profit from currency depreciation, on the one hand, we should know which industries the country's surplus currency will be dispersed to and follow the national policy, on the other hand, we should also find out where the new market outlet is, and then slowly take root!

The above are personal opinions, for reference only, welcome to leave a message for discussion ~ ~

Rich people are most afraid of currency depreciation and that money is worthless. But the rich can take advantage of inflation by investing in assets. For example, investing in stocks, bonds, funds, commodities, real estate and other fields. As long as we insist on value investment, we insist that assets are for preservation and appreciation, not for speculation. Then when inflation comes, all kinds of investment assets will rise in turn, and the increase will generally be much higher than inflation itself. This is the secret of the rich using inflation to get rich.

I hope my answer can help you. Welcome to comment.

I really want to depreciate quickly, to 100 yuan a catty of potatoes, just a month's salary of 100 million, and there is no pressure to pay 10 thousand a month. . . . [Cover your face] [Cover your face] [Cover your face] [Cover your face] [Cover your face]