Recently, the hottest topic that has touched investors’ sensitive nerves is the issue of global inflation, with oil prices soaring, U.S. bond interest rates climbing rapidly, and U.S. stocks fluctuating sharply, all of which highlight investors’ deep unease with the current economic environment. At the same time, mainland power restrictions have damaged corporate production, while electricity prices have risen following the restrictions, with full-blown inflation on the horizon.
Inflation” is the keyword that appears most frequently in recent foreign press reports, and domestic economic newspapers are also reporting soaring prices, including the U.S. CPI of 5.4% in September, Taiwan’s central bank vice president Chen Nan-Guang jumping to warn, and Moody’s warning of a worsening global supply chain crisis! All reports point to the advent of inflation, which is the most urgent issue for the global economy.
Taiwan Caixin Media Chairman Xie Jinhe said in a Facebook post today (October 14), the past decade or so, we have become accustomed to the days without inflation, such as the tragic drop in container shipping prices, in 2015 Hanjin Shipping Bankruptcy, bulk shipping losses, the electronics industry has only fallen prices, no price increases. This year, the spread of the epidemic has changed the world supply chain, coupled with the U.S.-China trade war, to this time China’s power pull crisis, power coal, European natural gas prices iterations of record highs, the most amazing is the silicon raw materials for two months up three times, oil prices rose to more than 80 U.S. dollars, agricultural prices rose, the next may be a rise in interest rates …
Xie Jinhe pointed out that in the past 30 years, China has become the world’s factory, any industrial products as long as they are made in China will become very cheap, under the banner of globalization, multinational companies are trying to find the most suitable production base inexpensive, so, from China to the East Hebeng, India, Bangladesh, Pakistan, to Africa … and now, China is no longer a cheap production base, this is a big topic, the global supply chain will take time to rebuild. The broken chain caused by the epidemic also needs to be relieved, and the next is a new issue brought to the world by inflation, which will turn into stagnant inflation if you are not careful, depending on how governments take it!