The specific reasons for price increases are as follows:
1. The long-term manifestation of the law of supply and demand is that supply exceeds demand;
2. The appreciation of the RMB leads to a reduction in exports , imports increased; but the current situation is how much the exchange rate of the RMB against the US dollar has risen within a year, that is, how much the value has increased. Nowadays, most of my country's various industrial products are exported and sold, and domestic consumption is actually very small. Because everyone’s money has been used to buy high-priced houses, who has extra spare money for their own consumption
3. The oligopoly industry has caused the products to be unable to fully compete;
4. The country Macroeconomic control, including raising or lowering bank interest rates, has not achieved substantial results, causing a large amount of capital to flow into the market and stimulating economic growth. Economic growth will inevitably lead to rising prices;
5. Inflation is a currency The phenomenon refers to the excess demand situation caused by too much money chasing too few commodities; in fact, there are three explanations for inflation, and this is just one of them.
6. The price of production factors, of which land is the most critical, is a non-renewable resource. Strict control by the state has led to a significant increase in land acquisition costs, and as a result, real estate prices have continued to rise. The related industrial chains will be affected at the same time; of course, the rise in real estate prices is also largely caused by real estate speculation.
7. National fiscal purchasing power, including national policy banks. If the country thinks that the price of a certain commodity is high, it will reduce the purchase of a certain commodity, and vice versa.
8. Price index, funds have investment return rate or capital value, that is, discount rate and principalization rate. To put it bluntly, future money is not as valuable as current "money", and the same money in the future The purchasing power is not as much as what we buy now;
9. The international economy has a great impact on our country, including the situation of foreign exchange reserves. At present, my country has approximately US$800 billion in foreign exchange reserves. Since China joined the WTO, its connection with the international economy has become increasingly close.
10. I think this is very important. Large American financial speculative groups have plundered the achievements of China's 30 years of reform and opening up.
Since China’s foreign exchange system reform, especially in 2010, the RMB has risen by 5% against the US dollar, which is controlled by the United States. The purpose is to plunder Japan economically like in the 1990s. For example: in 2006, 1 U.S. dollar = 10 yuan. Americans exchanged 1 U.S. dollar for 10 yuan in 2006, and used the 10 yuan to buy a house in Shanghai. In 2007, housing prices in Shanghai doubled, and Americans bought a house in Shanghai. The house was sold for 20 yuan, and the RMB appreciated in 2007. Assuming that 1 US dollar was exchanged for 8 yuan, Americans would exchange 20 yuan for US dollars, which would be 2.5 US dollars. It can be seen that an American's 1 US dollar becomes 2.5 US dollars in one year. How much does he earn from China? 2.5 times the profit. Moreover, when these 2.5 U.S. dollars return to the United States, they can continue to invest in the United States, the U.S. economy can develop again, and the U.S. dollar will appreciate again. After the remaining 1 US dollar is converted into 10 yuan of RMB to invest in fixed assets, there will be 10 yuan less in circulation in the market. The central bank will issue 10 yuan of RMB to make up for this gap. However, after the 2.5 US dollars are gone, what is left to China is the market. It would be strange if there is no inflation if there is an extra 10 yuan. After China was plundered, the yuan devalued again.
Just like Japan, watch it, my friend, there will be a day when you cry...