As a mage, I just want to pursue the truth

Chapter 380 Perfect Strategy

The value of land in ancient times was based on its fertility and transportation convenience.

Therefore, most cities are built along water.

There is a strong correlation between the size of the city and these two indicators.

In modern society, social division of labor has become more clear, and at the same time, the wave of globalization is sweeping in. In such an era, the value of land depends on the population it carries, the quality of the population, the scale of the industry, and the quality of the industry.

The virtual world completely subverts this logic.

Both the real economy and the virtual economy are untied from the value of land.

This phenomenon has gradually become more and more common since the era of brain-computer VR, and has become a consensus after the birth of the virtual world.

No one recognizes the value of land itself anymore.

The industry in the real economy that needs the most land elements is manufacturing, and there are many factors that need to be considered in manufacturing.

It is definitely not simply cheap labor that can determine the location of manufacturing.

It needs to consider the price and stability of water and electricity, the convenience of transportation, the difficulty and cost of recruiting talent, etc.

Therefore, even if America tries every means to move its manufacturing industry back to its home country, at worst it can move it to Southeast Asia or neighboring countries of America.

But they can't do it. Compared with China, the only advantage of these countries is that their labor force is lower than that of China.

By 2031, the industrial application of artificial intelligence and autonomous driving functions will make the only considerations for manufacturing site selection the price and stability of water and electricity.

Especially after Zheng Li released a new set of artificial intelligence languages ​​and frameworks, the penetration rate of artificial intelligence in the manufacturing industry has further increased, and the overall unemployment situation on Blue Star has become more serious.

Compared with the optimism of economists and financial practitioners, a large number of unemployed people in the manufacturing industry are hitting the job market.

Urban white-collar workers who have not yet been affected by this fire have a clear feeling: the number of guys in yellow and blue vests on the streets has increased, and the delivery time for takeout is much faster than before.

Some users who tried to take advantage of the food delivery software by buying "ZhongShiBao" during heavy rain have repeatedly failed.

This is a large number of unemployed people turning to the service industry, and the profession in the service industry that exchanges future security for current high income is food delivery riders.

They have no welfare benefits and rely on long working hours in exchange for higher cash.

As for Didi drivers? In 2031, when autonomous driving has been fully developed, all Didi drivers will be replaced by autonomous driving.

Even those Didi drivers who drive the cars they bought themselves choose to let the cars run on the road instead of driving themselves.

Taxi driver and its variants have become historical professions.

The profession of designated driver is also about to become a thing of the past. If there were not still a few cars on the market without autonomous driving functions, they could still barely survive by relying on this.

However, the designated driver platform knows that this is an industry that is gradually dying out, so it has chosen to reduce its investment and just barely maintain operations.

Therefore, the most accepted unemployed people in the manufacturing industry are food delivery riders.

As for capital, companies that keenly sensed this quickly lowered the price per order for delivery riders.

There are so many people here anyway, if you don’t send it off, there are plenty of people who will.

This has resulted in Meituan’s financial reports in the past two years being the second best compared to other Internet companies.

The best one is Pinduoduo. A large number of unemployed people have led to a sharp increase in low-level shopping demand. Pinduoduo, which has been stagnant and declining for several years, has once again entered a high-growth channel.

Back to the land, the manufacturing industry does not need to consider so much when selecting land.

There is autonomous driving in transportation and artificial intelligence in the workforce, and advances in communication technology combined with industrial VR will allow technicians to perform some professional operations remotely.

In the second half of China's urbanization process, new districts built in various second-tier cities for the purpose of selling land came in handy.

As satellite towns of the old urban areas, these new districts can expect industrial and population transfer when the economy is developing well.

However, after the logic of attracting investment changed, even the land for the new district can only be guaranteed by urban investment companies and state-owned enterprises, which cannot play any role in supporting the local finances at all.

This has resulted in the land in the new district not being able to be sold at a price. The local government has no funds to carry out infrastructure construction in the new district. Without perfect infrastructure, there is no influx of population, and without influx of population, the land in the new district is even harder to sell.

It's a vicious circle.

In the past decade, almost every second-tier city, and even some third-tier cities, have new districts that have gradually become satellite cities in the true sense.

The intelligentization of manufacturing industry has made these new areas come in handy.

The incomplete infrastructure construction in the new district refers to the incomplete supporting facilities such as hospitals, large commercial districts, schools, etc. that serve the influx of population.

However, all the elements needed for the manufacturing industry in 2030, such as water, electricity, networks, industrial land, and commercial land, are available.

This has resulted in the new areas not seeing a large influx of population, but factories have started to operate in the new areas, which is a significant benefit for China.

At least local governments can take the opportunity to ease their precarious financial situation.

But the situation is not so good for developed cities.

High-income people can work remotely, and they no longer have to bear the unaffordable housing prices in first-tier cities.

For high-income people in first-tier cities, they can work remotely in different places.

This phenomenon has been very common in major Internet companies before, and it has also begun to become popular in some private enterprises.

This directly leads to the fact that housing prices in first-tier cities can only rely on freezing the trading market to maintain the figures on paper from falling.

After the large-scale deployment of Ke Chuang Bio's biocommunication network, it will not only be high-income people who will be affected, but all positions will be moved online.

For first-tier cities losing population, the consequences are far more than just a collapse in housing prices.

The massive outflow of population led to a total collapse.

This is a dilemma. Fortunately, China still has time. The current biological communication network is limited to Gusu.

At the same time, thanks to the biological communication network in Gusu, the housing prices in Gusu not only did not collapse, but instead ushered in a wave of skyrocketing.

The reason why China's technocrats chose first-tier cities as their next step is that they hope to take advantage of this opportunity to cause a significant increase in housing prices in first-tier cities.

Then, with the help of this wave of increase, the "financial bomb" will be dismantled at a given point.

Simply put, rising housing prices and active transactions force loan customers to repay their principal in advance.

Reduce the total amount of all mortgage loans.

When house prices fall, it is difficult for home owners to exchange their homes for cash flow at a suitable price in the market, and thus they are unable to settle their mortgage loans.

Defusing the financial bomb surrounding housing can only be done if everyone agrees that house prices will rise.

The opening hours of the biological communication network have been carefully calculated.

Each batch of cities must dismantle the "financial bomb" and use various taxes in the trading market to alleviate local fiscal pressure.

After communicating with China's financial system, Li Miaomiao couldn't help but feel terrified by their strategy.

Because it took only half a month from the report of the virtual reality equipment to the completion of the negotiation with Zheng Li. The technical bureaucrats have come up with a complete solution that can burst the real estate bubble without affecting the security of China's financial system.

Everyone knows that the real estate bubble is about to burst. China's real estate, American stock market and Japan's government bonds are hailed as the three miracles of the financial circle.

Everyone thinks they will explode, but they just don't.

Previously, the popularization of industrial VR and artificial intelligence in the industrial field barely maintained housing prices in first- and second-tier cities by increasing transaction difficulty.

The third and fourth tier cities collapsed long ago.

Virtual reality technology has given them an idea to untie real estate and finance.

Li Miaomiao knew that this plan would most likely succeed based on the popularity of the real estate market in Suzhou in the past two months.

Having been in the workplace for so many years, Li Miaomiao is completely able to keep her emotions under control.

Even though she was terrified inside, she pretended to be admiring on the surface: "This is a perfect plan. You are indeed a veteran in the financial field."

“That’s what the young people down there think, I didn’t actually do much work.

It was just some filling in the gaps in the plans they had made.

In fact, for us the work has just begun.

There is still a lot of difficult work to do later.

The problem of large-scale population outflow caused by the virtual world alone is a headache.

Xiao Li, you should have also felt that since the birth of VR, the enthusiasm for civil service examinations still exists, but there are more and more complaints about civil service examinations on social networks. "

"Yes, I often see similar topics like the difficulty of the civil service exam on the hot search."

“This is because first- and second-tier cities are reducing their staffing levels.

The overall staffing is in a state of reduction, with a slight increase in third- and fourth-tier cities.

The reason for this shift is mainly due to the population outflow caused by industrial intelligence.

Our estimates take time, after all, technological development also takes time.

I just didn't expect your company's technology to progress so fast.

The exodus will happen faster than any of us expect.

This will lead to a large outflow of population from first-tier cities, which will further lead to many derivative problems.

The operation of a city requires costs. The larger the population, the lower the unit cost will be, and the smaller the population, the higher the unit cost will be.

All we can do now is to take it one step at a time.”

“You have done a good job in straightening out the relationship between real estate and finance.

These should be a challenge for everyone.

In fact, as of 2023, the number of people we have working on-site in Gusu has been decreasing.

Often, less than one-third of the workstations in the entire building are occupied.

It took us a process of trial and error to gradually reach a balance.”

Li Miaomiao was invited to Yanjing this time to meet many key figures.

Everyone wanted to know from her what she and Zheng Li thought about the virtual world.

This was something completely new, and these people knew exactly how the virtual world worked.

Some have experienced it personally, and some have heard about it from others.

Everyone’s decision can directly affect all aspects of China.

The key figure in the financial field that Li Miaomiao met today can directly influence China's monetary policy.

The decisions they make must also take into account Ke Chuang Bio's next move.

Because Ke Chuang Bio's products do not follow the logic of technological development at all, this illogical existence will have a huge impact.

All we can do is increase the frequency of communication and make preparations in advance.

Compared with other countries, China at least has the upper hand in this regard.

“Malaysia and Lion City reached an agreement
Malaysia's Parliament passed a resolution yesterday to transfer a piece of land covering an area of ​​1572.7 square kilometers in southern Johor to Singapore.

The Lion City will pay a symbolic amount of 1 billion Lions.

This is another big move by Merlin since he took over Lion City.

The Lion City’s land area was expanded to three times its original size at one time.

We have specially invited Mr. Lee Hsien Loong, the former leader of Singapore, to share his views on this matter.”

After Lee Hsien Loong retired to the second line, he did not stay in the position of State Councilor for long.

The Li family does not need to manage the approximately 200 billion financial assets that they obtained from Zheng Li personally, as his wife will do so.

Ho Ching was previously the president of Temasek and is much more professional than him in the financial field.

While teaching at the National University of Singapore, Lee Hsien Loong also appears as a guest on major Singapore and international media.

Of course, this was done after consulting Zheng Li, who said that as long as you don't spread rumors, you can say whatever you want, whether it's criticism or praise.

“Thank you, host. I think this will expand the living space for Singaporeans, which is undoubtedly a good thing.

Singapore and Malaysia have had many disputes over territorial issues in the past, and Singapore’s original 700 square kilometers of land is far from meeting its own needs.

We had conflicts over the Johor Bahru Port before, but we lost the initiative after Malaysia proposed to reduce the supply of basic materials.

Over the past decade, Malaysia has spent hundreds of billions of lions on land reclamation, but the amount of land reclaimed has only increased by less than 200 square kilometers.

Earlier, it took us fifty years to increase our area by 140 square kilometers through land reclamation.

This time, only 1 billion lion yuan was spent to acquire 1,500 kilometers of land, which will undoubtedly benefit the present and future generations.

I have seen the land that Malaysia has leased, and it is all very high-quality land, whether from the perspective of transportation construction or from the perspective of building a city on the land itself.”

“Mr. Lee, why do you think Malaysia made such a big concession this time?”

The host's subtext is actually, why Merlin was able to do what you couldn't do before this time.

And it was done without much cost.

(End of this chapter)