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Inflation: Why did commodity prices plummet?
My humble opinion is for reference only. Take the crude oil futures price as an example. In the early stage, it was fried by international financial speculators to more than $0/40 per barrel. Some people predict that it may reach $200. But in fact, when everyone enters the crazy buying stage, the price is contrary to you. Once in a while, you struggle a few times, and then you start to plummet. Now the price is no longer the limit. The market is so ruthless. The daily trading price of futures does not rise or fall, and your harvest is your satisfaction. No one will set a safe bottom line for you, unlike the A-share market, which has a price limit of 10%. There must be a big drop after a big rise, just like the stock market. Behind the crazy hype, there must be a quick departure. Will those speculators wait for you to wake up and leave together? In the stock market and futures market, the winner wins the loser's money. The only thing we can grasp is to restrain our greed and earn almost the same. We must know that the market always goes up and down, and the decline is always more than the rise, so we are not worried about not buying at a low price, and we are afraid of being quilted at a high price. Of course, in a bull market, selling in the middle may lose more income. This depends on your own judgment. You should have the awareness and ability to take risks. The conservative approach is of course the above. The futures market should be more cautious. If inflation is not handled properly, it is likely to be deflation. Because the price rises excessively, the raw material cost of an enterprise will rise, and naturally the price of its products will also rise, but people's consumption power is still so much, the sales of natural products will decline, the income will decrease, the income of employees will also decrease, the tax revenue will also decrease, people have no money, naturally have no consumption power, and enterprises naturally have no income, and so on. It will inevitably lead to deflation, so the government should carry out macro-control, exercise restraint when prices are high, encourage consumption when prices are too low, increase fiscal expenditure, reduce interest rates to meet corporate loans, upgrade and expand reproduction, and meet people's growing material and cultural needs. I don't know if you are satisfied with my answer.