In the movie, several millions of refugees fled their villages and towns to go to Xi’an（西安）, where they hoped they could find food and help, but most of them did not make it and perished during the long journey. In desperation, many parents sold their children for a tiny sum of money or just a bowl of rice in order to survive a few more days. The movie presented graphically a shocking story, a tragedy of the very harsh reality and unspeakable human sufferings endured by our parents’ generation not that long ago. 3. Well, this very depressing and horrible scene was only a movie. We now live in a comfortable world in which food is abundant and there is no shortage of daily necessities. Most of us take good lives for granted. The ugly and unpleasant scenes of parents selling their children as depicted in the movie “1942” were something of the past and do not seem to have any relevance in modern times. Is it so? 4. For those of us who are parents, we are absolutely convinced and determined that we will do our utmost to protect our children. We will give them nothing but the best that we can afford so that they have a good life and a bright future. All of us here would find it unthinkable why any parents would want to give away or mortgage their children. So, why should I choose this subject for tonight’s theme?
If a government borrows money to finance productive investments in physical infrastructure, such as ports, airports, roads, bridges and power plants, or to finance the development of human capital, such as education, research and training, then these investments should bear fruit in the future by raising the productivity and competitiveness of the economy concerned. In that case, the repayment of the money borrowed should not be problematic in the future. However, if the government borrows to finance consumption, wasteful investments and excessive welfare, then over time the economy will find it hard to repay the debts. 14. It is difficult for anyone to be overly optimistic on the prospects of an early resolution of the leverage trap in the developed world. Leveraging brings about enjoyment and pleasure, as it supports domestic consumption and demand, for as long as the capital market is willing to finance the borrowings at reasonably low interest rates. Deleveraging brings the opposite outcome, which is very, very painful. Deleveraging could result in economic recession, fall in asset prices, rise in unemployment, drop in personal, corporate and government income etc. in the short run. None of these is pleasant and it is not surprising at all to see the very strong pushback by the people in the crisis-hit countries in Europe on measures that attempt to redress the fiscal sustainability problem. Excessive government debt and “collective irresponsibility” syndrome 15.