Rising prices, a variety of times are monetary phenomena. Because you print more money, the currency purchasing power becomes weaker, small time use supply exceeds demand or prices are manipulated by certain segments. Not long ago, the central bank set the proportion of housing loans, large banks real estate loans accounted for 40% of the ceiling, personal housing loans accounted for 32.5% of the ceiling.
Such a restriction gives the impression that the assets of more than 70% of the loan, I am afraid that all into the real estate sector, not counting a variety of wealth management products, loans, trusts and other huge amounts of money in the country of the flood lake a sea. The flood of money continues to roll into the real estate market, only to have a super bull market that lasted for twenty years, housing prices turned up, less five times, ten times, as many as twenty or thirty times.
Remember the lady next to you who forgot about the house for 28 years? When the first few thousand a flat, twenty-eight years later, the neighborhood around the property has been priced at more than seventy thousand per unit, up a full 28 times the rise in housing prices. Based on the directional manifestation of inflation, it is also because the property market has attracted the greatest firepower, so that there is no general inflation, prices in general to turn over a few heels.
Last year in February, the new crown virus ravaged, the demand for masks surge, so usually 10 cents a mask is also sold to ten dollars a, so before a few thousand dollars a ton of meltblown cloth, but also be speculated to six hundred thousand per ton, the demand is huge, the financial insufficiency. The root cause of this surge in the price of some commodities, is the price of some vegetables and fruits, that sometimes because of climatic reasons, such as torrential rains leading to flash floods, premature frosts, etc., produced less agricultural products, the end of the scale of sales is significantly reduced, the price increase will become inevitable, which is the market's self-regulating mechanism. Price increases reduce demand, and gradually reach equilibrium. Pork price fluctuations are more complex, the beginning of the use of strict environmental requirements, shut down too many small farms, production capacity has been significantly inhibited.
Combined with the series of African swine fever led to a large number of hog deaths. Now capacity is slow to recover, to the back of the breeding risk becomes greater, retail households, farmers confidence is difficult to recover, and large capital has entered the game, has formed a local monopoly. Less about the retailer, the price is more easily manipulated, high meat prices are also logical.
2020 by the new crown virus, Europe and the United States economic recession, countries in order to boost the economy, have opened the money printing machine mode. Among them, the United States is even more unscrupulous, a year to print out the past 20% of the banknotes. In this case, the United States other countries are not necessarily is at a disadvantage, the United States does not do anything, can easily buy the assets and commodities of various countries by printing money, is simply robbing money.
It is because more money on the market, and therefore flow into the stock market, the stock market rose, investing in all types of assets corresponding assets rose, the industry leading stock P/E rate of hundreds of times, there are still funds optimistic about this to buy the expected to seek to preserve the value of value-added opportunities. In this context, this is why Maotai has been up, but also has been others. The reason for the mad rush, because everyone is looking for long-term stable value-added preservation channels, and Maotai will not expire the longer you put on the contrary, but also appreciation, in addition to thatch and gold, the ordinary people seem to be unable to find a reliable channel.
In short, the rise in stock prices is mainly caused by currency. Domestic short-term inflation need not be nervous, but the medium and long-term inflationary pressure will be relatively large, how to preserve and increase the value of the need to learn to think, but absolutely can not touch the house.