China is currently in the stage of 'malignant deflation', as below 2% is deflation, and below 1% is severe deflation. Currently, China's CPI has reached -0.1% (reflected in clothing, food, housing, and transportation). For example, two representative deflation events that have occurred in history: the Great Depression in the United States in 1930 and Japan's lost 20 years Example: Automotive industry 10 years ago, a Camry was sold for 200000 to 250000 yuan The selling price of SUV models in 2025 is only 100000 to 200000 yuan Indicating that consumers are reducing their consumption, consumption is sluggish, prices continue to decline, and corporate profits continue to deteriorate. How should we deal with deflation? 1. Try to hold cash as much as possible, rather than fixed assets. Cash is the safest and most valuable. U and BTC are also 2. Reduce debt because the borrowed money will also be more valuable, increasing the pressure to repay debts 3. Save more money to provide stable future cash flow