In the face of the Republic's display of heavy troops along the Yalu River and its aggressive posture, the Americans and the ROK did not show weakness and made corresponding military arrangements-for-tat, and the United States dispatched the Seventh Fleet aircraft carrier battle group stationed in Japan to move to the waters of North Korea on the side of the Sea of Japan. The ROK, on the other hand, has begun to increase a large number of troops near the 38th parallel, and has also begun to dispatch automatic rocket launchers and tactical ballistic missiles to areas near the 38th parallel, increasing the number of precision strike weapons, in an attempt to exert pressure on the republic in the same way and force the republic to return to the road of "peaceful settlement" of the Korean issue.

Japanese Prime Minister Shinzo Abe first signed an order ordering the Japanese Maritime Self-Defense Force to "actively support the operational plans of the US allies" and to send their own fleet to follow the US Seventh Fleet under the pretext of the "Japan-US Defense Treaty" to shout for the Americans to shake the flag.

As for Russia, the greedy polar bear, it has begun to mobilize its elite military forces in the Chita Military District to the Far East, intending to exert pressure in this way.

However, in the face of the aggressive attitude of the United States, Russia, Japan, and South Korea, the Republic did not give in, but announced again that it would test-fire an improved version of the Republic's latest DF-31 intercontinental ballistic missile in three days, and at the same time, the Republic would officially launch its own synthetic aperture radar imaging satellite and its own anti-satellite system.

This is also the first time that the Republic has openly admitted that its Dongfeng-31 ICBM has officially entered a state of strategic duty, and at the same time, the latest Dongfeng-31 improved ICBM has entered the countdown to the installation of troops. And the news that the Republic has officially tested its own synthetic aperture radar imaging satellite and its own anti-satellite system has made the United States even more progressive.

As soon as the remarks of the republic came out, the whole world was in an uproar

Many countries have expressed "concern" about the republic's unprecedentedly tough statement, and the Western anti-China media have taken this opportunity to reiterate the "China threat theory," as if the Chinese army may kill their country at any time...... In fact, what really worries them is not the DF-31 intercontinental ballistic missile that China is about to test, but the Republic's own synthetic aperture radar imaging reconnaissance satellite and anti-satellite system.

After all, ICBMs carrying nuclear warheads are only the last killer weapon of the republic, until the last moment, the republic is impossible to use these weapons, in terms of threats to the world in peacetime, synthetic aperture radar imaging reconnaissance satellites and anti-satellite systems that can work around the clock to the world deterrence power, in fact, far greater than the former, everyone knows, the current war, fighting is a high-tech war, the role of satellites at this time is unprecedentedly amplified, if then the Chinese reconnaissance satellites can still work, And their own satellites have been interfered with and destroyed by the Chinese, so how can this war be fought?

Moreover, the republic understands very well that by this time, it has no way to retreat, and once it retreats at this time, there is no possibility of pursuing it back, and when it faces the United States or even the world, the republic cannot back down...... By this time, the republic had no way to retreat.

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In the face of the republic's tough statement, the United States began to have a headache: In the future, how can this life be changed? Also, how can the Chinese make progress in cutting-edge military science and technology so quickly?

The Americans did not expect that the reason why the republic's space technology has been able to progress so rapidly is entirely due to the Americans, and that the 1996 Taiwan Strait crisis made the republic's determination to vigorously develop its own cutting-edge aviation industry.

During the Taiwan Strait crisis in 1996, on the eve of the Republic's test of three intercontinental missiles, the United States stopped GPS signals against China.

Now, after 10 years of development, China's space monitoring capability has been greatly enhanced and improved, and special attention has been paid to the development of synthetic aperture radar imaging satellites, and the unique capabilities of synthetic aperture radar imaging satellites enable the republic's reconnaissance satellites to operate day and night around the clock, and are also the key to automatic target recognition of ships at sea, so they are very suitable for detecting ships in a wide area. Because it means that China now has the ability to observe the Taiwan Strait and the surrounding East and South China Seas to track the movements of U.S. maritime equipment in real time, this news is obviously the most troubling news for the Americans. …,

However, compared with the Republic's own synthetic aperture radar imaging reconnaissance satellites, what worries Americans more is related to China's fledgling anti-satellite (ASAT) capability, and at the same time, anti-satellite means are also an important means for the Republic to counter the United States.

"I think that in the event of a conflict, China's ASAT technology would allow it to interfere with a large number of U.S. space communications facilities, making it difficult for U.S. space military assets to coordinate even if they can respond." At an emergency meeting at the White House, U.S. Secretary of Defense Donald Murphy Rumsfeld is very concerned about Chinese's anti-satellite capabilities, "China's ability to openly test its ASAT technology in front of the world with such a confident attitude this time not only shows that China's capabilities in space are increasing day by day, but also shows the speed at which its capabilities are being enhanced...... Here, I need to remind you that the Pentagon has many concerns about China's military capabilities in general, but Beijing's ASAT capabilities are always one of the most troubling."

"Yes, the U.S. military has faced recent conflicts, and the wars that the United States has taken the initiative to provoke, the balance of power between the two sides of the war is very disparity, the U.S. military is now heavily dependent on high-tech weapons platforms, but the problem now is that those opponents of the United States in the past were not strong, so the United States' strong technological superiority can easily defeat them, but in the face of China, can the high-tech weapons platforms that the U.S. military relies heavily on still be effective against a country with the ability to have the ability of China's ASAT? I guess that question remains to be seen now. ”

Speaking of which, Donald. Rumsfeld is worried, "The ability of the ASAT not only makes the United States defenseless, but it may also put us under more pressure when making and launching a preemptive attack to destroy China's ASAT launch facilities, I believe you all understand, because then it will require deep penetration into Chinese mainland, and that will inevitably lead to a wider war." ”

Including President George W. Bush and Secretary of State Condoleezza. All the core team members of the Bush administration, including Rice, listened to Donald Jr. with their ears pricked up. Mr. Rumsfeld, a professional, knows that after China has made a-for-tat military move, the United States must take military action, but how it will act depends to a large extent on Donald Rumsfeld. Mr. Rumsfeld's analysis.

"Of course, we also have to admit that China, the adversary of the United States, is a country with nuclear weapons, so we are considering the coordination and guidance capabilities of China's space technology on China's latest, especially destructive, missiles when the United States is in conflict with China."

"These new Chinese missiles are launched from the ground and from the sea, cruise missiles and ballistic missiles, and they will be connected with satellite positioning and inertial navigation systems. Rumsfeld warned everyone, "According to the intelligence obtained by our CIA, the Chinese submarine-launched giant * missile and land-launched Dongfeng missile will be closely linked to China's air and space SAR program, and the advantages of missile loading SAR include all-weather capability, high resolution, large-range imaging and autonomous guidance, so I need to remind you that I am not opposed to war with the Chinese, but before going to war, we must remember that in addition to the battlefields of Iraq and Afghanistan, The level of the Chinese in some cutting-edge science and technology is enough to threaten us and affect the outcome of this war that may begin."

"But I think that, in fact, compared to the United States, China is in a weak position in terms of space capabilities, and it happens to be China that suffers from the headache. Now that the United States has returned to the Asia-Pacific region, it is specifically targeting China as the object of containment, and our goal is to encircle and clean up China," said Secretary of State Condoleezza. Rice said without hesitation, "I understand that China's three major space capabilities have indeed made great progress, but they are still far from giving the United States a headache......

"Mr. President, no," White House Chief of Staff Card rushed into the conference room in a panic. "The U.S. Home Mortgage Investment Corporation Filed for Bankruptcy"

"What?" President George W. Bush, Secretary of State Condoleezza. Rice and Secretary of Defense Donald. At the same time, Rumsfeld let out an exclamation of disbelief: "What do you say bankruptcy? ”…,

"It's the U.S. Home Mortgage Investment Corporation that has declared bankruptcy," Card's face was bitter, "Mr. President, the situation is very serious now......

Before Cade finished speaking, Bush Jr. was already gray-faced, and the US Home Mortgage Investment Corporation declared bankruptcy, and it was already the second major US company linked to the US real estate and financial industries after the New Century Financial Corporation, the second largest subprime mortgage company in the United States, announced that it had filed for bankruptcy protection and laid off 54 of its employees.

After that, in the face of this situation, the RAND think tank, the largest think tank of the U.S. government and the military, has issued a warning to the White House, believing that the current situation, the outbreak of economic crisis will increase indefinitely, but the U.S. government at that time did not take it seriously, but now it seems that the U.S. government is very likely to make the same mistake that the U.S. government made before the Korean War...... Didn't take a good look at the information given by the RAND think tank.

The U.S. Home Mortgage Investment Corporation, the 10th largest mortgage lender in the United States, suddenly filed for bankruptcy protection from the courts, making the U.S. Home Mortgage Investment Corporation the first large mortgage lender in the United States to file for bankruptcy after the New Century Finance Corporation...... What are we meeting to discuss? There is no longer any need to continue the discussion.

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The so-called subprime mortgage is a subprime mortgage.

In the U.S., lenders classify loans as "preferential" and "subordinate" based on the creditworthiness of borrowers. Subprime loans are subject to higher interest rates than prime loans due to their higher risk.

Bush Jr., who is full of bitterness, actually understands very well that the root cause of the economic crisis that has already shown signs this time lies in the bursting of the real estate bubble, and the formation of the real estate bubble is directly related to the "consumer culture" of American society, the improper real estate financial policy, and the long-term maintenance of a loose monetary environment.

The U.S. economy has long been characterized by high debt and low savings, and not only are residents accustomed to borrowing for consumption, but the state also encourages large-scale borrowing and advanced consumption. In addition, in order to prevent the US economy from falling into recession, the US Federal Reserve has been pursuing an expansionary monetary policy for a long time.

Loans are a very common phenomenon in the United States. Locals rarely buy a house in full, often with long-term loans. But unemployment and re-employment are common here. These people who have an unstable or even no income at all, and buy a house because their credit rating does not meet the standard, they are defined as subprime credit lenders, referred to as subprime lenders.

Due to the high price of the previous home, the bank believed that although the loan was given to the subprime credit borrower, if the borrower was unable to repay the loan, the mortgaged home could be used to repay it, auction it or sell it to recover the bank loan. However, due to the sudden drop in housing prices, when the borrower is unable to repay, the bank sells the house, but finds that the funds obtained cannot make up for the loan + interest at that time, or even the loan amount itself, so the bank will lose money on this loan.

It's fine for one or two borrowers to have such problems, but due to the rising interest on installments and the fact that these borrowers are subprime lenders themselves, this has led to a large number of borrowers who are unable to repay their loans. As mentioned earlier, the bank repossesses the house, but it cannot sell it at a high price, and it loses a lot of money, which is the root of the problem.

The U.S. subprime mortgage market typically uses a combination of fixed and variable rate repayments, where homebuyers repay their loan at a fixed rate for the first few years after home purchase, and then repay the loan at a variable rate. In the five years leading up to 2006, the U.S. subprime mortgage market grew rapidly due to the continued boom in the U.S. housing market and the low level of U.S. interest rates in previous years.

As the U.S. housing market cools, especially short-term interest rates rise, subprime mortgage repayment rates have also risen sharply, and homebuyers' repayment burdens have increased significantly.

At the same time, the continued cooling of the housing market has made it difficult for homebuyers to sell their homes or refinance them through mortgages. This situation directly leads to the failure of borrowers to repay loans on time, which is also known as asset bubbles.

In order to stimulate economic development, we all know that moderate price depreciation and asset bubbles are very effective means, because this can effectively stimulate the people to work hard to make money and ensure that their assets will not depreciate, but Bush Jr. and others understand that because of the liberal economy that the United States believes in, it has led to a false boom in the subprime housing market in the United States, so that the root cause of the crisis has begun to be buried. …,

The U.S. housing market was in such an asset bubble before the subprime mortgage crisis, and U.S. home prices rose sharply from 2001 to 2006, and the rising housing prices were neither based on real demand in the housing market nor supported by disposable income. The asset bubble has become an indisputable fact, and the bursting of the bubble is only a disaster sooner or later.

From January 2001 to June 2003, the Fed cut the federal funds rate 13 times in a row, bringing the rate from 6.5 to an all-time low of 1. The expansion of money and the low interest rate environment have reduced the cost of borrowing, prompting Americans to enter the real estate sector. Optimistic expectations that house prices will continue to rise in the future have prompted banks to expand their marketing of home loans, i.e., subprime mortgages, to very creditworthy borrowers in order to earn higher interest rate income. As a result, the subprime mortgage market in the United States is growing rapidly and expanding, and the housing market bubble is inflating day by day.

At a time when the U.S. housing market is in full swing and bubbles are accumulating, the U.S. macroeconomic situation is also quietly changing: along with economic growth, inflationary pressures in the United States have increased, and the Federal Reserve has raised the federal benchmark interest rate since the second half of 2004.

Although the initial increase in interest rates has increased the interest cost for mortgage applicants, it is far less than the increase in the income from lending to invest in real estate, and if this situation persists, the demand for loans will continue to be strong and the bubble will not burst.

However, interest rates continued to rise, and into 2006, The interest rate has been adjusted from the original 1 to 5.25, at this time the rise in loan investment costs finally began to catch up with and exceed the rise in real estate prices, that is, more than the rise in the return on investment, the inflated speculative demand began to decline, the surging rising housing prices gradually weakened, moderately rising, and the rise in the cost of investment funds formed a larger and larger gap, housing prices are expected to fall gradually, speculative demand is competing to withdraw from the market, the demand for housing has returned to its true face, housing prices have inevitably fallen from a high level to the abyss, the real estate bubble can no longer be supported, and finally burst.

Once a bubble is detonated, it can have a series of catastrophic chain reactions leading up to a crisis. First of all, housing prices continue to fall, when falling below the repayment balance of the housing mortgage, the mortgage lender, especially the subprime mortgage lender, will enter a rational default period, because the subprime mortgage loan object is generally those low credit rating, heavy debt, lack of income proof of speculative customers, their source of repayment is not from their own repayment ability, that is, disposable income, but based on the fragile assumption of rising housing prices, its probability of default is higher than that of high-quality customers, Now that the decline in housing prices has become an irreversible trend, the original repayment assumption is no longer valid, and the possibility of high default can easily evolve into a high default reality.

Since the second quarter of 2004, the delinquency rate of prime loans has risen only slightly, but the delinquency rate of subprime loans has risen sharply, from 10.4 to 13.5 in the fourth quarter of 2006, which is more than five times that of the same period.

With the bursting of the asset bubble in the housing market, the default rate has risen, mainly the default rate of subprime loans has risen in a large area, and various derivative bonds of housing mortgage loans, especially subordinated bonds, have to return to their true value, or even fall below their true value, at this time, the housing mortgage crisis, more precisely the subprime housing mortgage crisis, that is, the so-called subprime mortgage crisis, is about to break out in full swing.

Bush Jr. and Rice recalled the warnings they had given to them at the RAND think tank last year and the documents they had handed to them, and they were full of bitterness: If the US government had adopted the opinions of the RAND think tank at that time and effectively regulated the economy and the US housing market, perhaps the US Home Mortgage Investment Corporation, the 10th largest financial loan and mortgage institution in the United States, would not have been forced to suddenly fall into bankruptcy......

Every day, thousands of companies are established in the United States, and thousands of companies are closed down at the same time, and the collapse of a company is normal, but if we think of the current tense economic situation in the United States, and then think of the unique position of the US home mortgage investment company in the two fields of the US real estate industry and the financial industry, what does this signal mean?

It's all those damned Wall Street speculators, if it weren't for the fact that they took advantage of the loopholes in the American system, deceived the public, and deceived the public, how could such a crisis have begun to emerge?

George W. Bush and Rice cursed the greedy Wall Street speculators with annoyance, believing that the root cause of this crisis was caused by these damn Wall Street speculators, and that the deep-seated cause was the government's lack of financial regulation, but they did not realize that the root cause of this situation was the neoliberal economic policies that the United States has accelerated in the past three decades.

The so-called neoliberalism is a set of trends of thought that take the revival of traditional liberal ideals and the reduction of government intervention in the economy and society as the main goal of economic policy. The neoliberal economic policy of the United States began in the early 80s of the last century, and its background was the economic stagflation crisis of the 70s, which mainly included: reducing government intervention in the financial, labor and other markets, cracking down on trade unions, and implementing economic policies to promote consumption and promote high growth with high consumption.

An important element of neoliberalism is deregulation, including financial regulation. Since the Reagan administration took office in the early 80s, the United States has been formulating and amending laws to relax restrictions on the financial industry, promote financial liberalization and so-called financial innovation, and eliminate barriers between the banking industry and the investment industries such as securities and insurance, thus opening the door to so-called financial innovation and financial speculation in the financial market.

Against this backdrop, speculation on Wall Street in the United States is growing. Especially since the end of the 90s, with the continuous decline of interest rates, the acceleration of asset securitization and financial derivatives innovation, coupled with the luxury consumption culture and blind optimism about future prosperity that permeate the whole society, it has provided the possibility for ordinary people to borrow ahead of consumption, but it has also bought the root cause and bane ......of today's situation.