Copper, iron, aluminum, plastics(stretch film) and other materials have all increased by more than 30%. Who is behind the price control?
Recently, many raw materials have seen substantial price increases. According to CCTV Finance Channel, copper has risen by 38%, plastic has risen by 35%, aluminum has risen by 37%, iron has risen by 30%, glass has risen by 30%, and alloys have risen by 30%. Stainless steel rose by 48%, and stainless steel rose by 45%. What caused the rise of these basic raw materials? Is it caused by manipulation or natural inflation? What impact will the rise of these materials have on the economy and the lives of ordinary people? What impact will it have?
Many raw materials are rising in price
Question 1: Why did these basic raw materials rise? Is anyone behind it?
Any problem has surface reasons and deep-seated reasons. Let me take a deeper look at the surface reasons and see what caused the rise of these basic raw materials.
Surface reasons: Many people see that the reasons for the increase in raw materials are economic recovery expectations and inflation. On the surface, these two reasons can explain the past, because the past 2020 was a year of global economic stagnation or regression. As the basic raw materials for industrial production, copper, aluminum, iron, plastics, etc., the inventory has also been greatly reduced due to the reduction in demand. With the gradual relief of the epidemic, the economic recovery is expected to be very strong. In this way, it will naturally be The demand for basic raw materials is expected to be strong, the short-term production capacity has not recovered, and the demand side is expected to be strong, thus pushing up the prices of related assets.
In addition, in order to deal with the epidemic and prevent deflation, all countries are releasing water. In a certain period of time, the total amount of assets has not changed significantly, and the money in the market has become more, and the funds and assets do not match, so the assets The price has gone up.
Superficial reasons
Deep-seated reason: It may be that Wall Street in the United States once again used the hegemony of the dollar to harvest the world!
For now, the United States is still the most powerful country in the world, and the most important settlement currency for trade in the world is still the U.S. dollar. It has the advantage of U.S. dollar hegemony. It is also an over-issued currency. The U.S. will not cause too much approval. Inflation, and other countries will inevitably cause inflation. The reason is that the United States can transfer part of the domestic inflation to other countries through the hegemony of the US dollar. That is to say, the United States’ economic problems are largely paid for by the world, especially It is a country whose economy is mainly export-oriented, and the injury is more serious. In order to get rid of the influence of the dollar hegemony and international trade on China’s economy, China has proposed a future economic development with internal circulation as the main and external circulation supplemented by the double economic cycle. Strategy.
Deep reasons
What impact will the rise of raw materials have on the economy and ordinary people’s lives?
Impact on production companies:
The big fluctuations in any financial and economic-related fields in the world are indispensable for Wall Street in the United States, and this time is no exception. Due to the price transmission mechanism, the more downstream companies and people feel the price increase, the later, but often the more often. Downstream enterprises and ordinary end consumers are more likely to be the target of price increases.
Here is an example that may be easier for everyone to understand. Although the example is not very rigorous, it can help you understand why small and medium-sized enterprises and ordinary people in the middle and lower reaches are more likely to be harvested.
Dollar hegemony
Take the export of goods produced by an enterprise as an example. The basic process is to purchase raw materials 5 million yuan + manufacturing and processing costs 500,000 yuan + various miscellaneous expenses 500,000 yuan + export sales of 1 million US dollars (USD denominated) + repayment (USD exchanged in RMB) , Assuming that the contract is signed for 1 million US dollars of goods, the exchange rate at that time is 1:7, which means that the sale of the goods can eventually be exchanged for 7 million yuan, minus all the previous costs, and the profit is about 1 million yuan.
However, because the U.S. used financial hegemony to promote the relative appreciation of the renminbi, assuming that the exchange rate is pushed up to 1:6.5, the 1 million US dollars that this foreign trade company will settle back in the future will eventually become 6.5 million yuan when it is converted into renminbi. Changes in the exchange rate have virtually lost 500,000 in profits. At the same time, due to the US’s large-scale release of water and excess currency, basic raw materials such as copper, aluminum, and iron have risen. When you produce, you find that the main raw materials have seen a large increase. Rising, production is very likely to make a loss, and if it is not produced, it will cause a contract breach. In order to maintain customers, many companies will choose to bite the bullet and have to produce. Therefore, many export companies are losing money and making money. Busy, in fact, it is very likely to be in vain and not making money.
Impact on end consumers
It is the same in China. Ordinary wage-earners are most likely to become the most tragic receivers and become the target of harvest. Why do you say that?
Working-class
Because various raw materials have risen sharply, corresponding terminal products, such as refrigerators, color TVs, automobiles, motors, small home appliances and other terminal products can only choose to increase prices. Many giant companies such as Haier and Midea have announced directly or indirectly. The price of products has risen, and this part of the price is ultimately paid by ordinary consumers. At the same time, due to the substantial increase in material prices, for most midstream and downstream manufacturers, it will undoubtedly depress the profits of these companies. Correspondingly, the wages of workers cannot be increased. The prices of various commodities have increased significantly, while the incomes of ordinary people have not risen significantly. This has increased the pressure of ordinary people to survive, but financial systems such as Wall Street are at the top of the food chain. And the initial raw material companies may make a lot of money, which further aggravates the possibility of the polarization between the rich and the poor.
Therefore, every time there is a problem in the economy, it is a harvesting opportunity from the top of the food chain to the bottom. Do you agree with this?