Let’s briefly talk about the recent macroeconomic situation.
After President Trump (Trump) was removed from office by the massive fraud hosted by the extreme left, the entire world is bound to lean sharply to the left under the leadership of the United States. And the first evil consequence of the global left tilt is the return of extreme environmentalism to the mainstream, and is bound to bring an extremely heavy additional evil – Inflation!
That said, Trump, he is to see the hypocrisy of the European and American left those democratic fresh, so simply ignore those nebulous environmental slogans, the first big thing in office to withdraw from the Paris environmental agreement, no longer pay attention to the so-called carbon emissions this bullshit to the boundless pseudo-concept, while strongly encouraging domestic oil extraction. So one way or another, the U.S. shale oil industry has made a revolutionary breakthrough, the United States actually became the world’s largest oil producer and the second largest oil exporter during Trump’s term of office, and no longer have any dependence on Middle East oil.
I have said this many times before: the essence of the economic crisis is that consumption power is not enough to cover production, that is, the crisis brought about by the lack of consumption power. And to delay the economic crisis, the best way to replenish consumption power is to do so. The extreme environmentalism advocated by the extreme left in Europe and the United States has brought to the global economy only a dramatic increase in the cost of all businesses, without any other use (yes, there is no point in curbing pollution, for example, the indirect pollution caused by electric cars is dozens of times higher than gasoline cars). Increased costs lead to higher prices for goods, which then kills consumer power and accelerates the economic crisis. And Trump so that the U.S. shale oil industry pulled down the global price of oil, and then effectively curb inflation, the people’s spending power was actually protected, so the world in recent years are not good days, but the economic crisis was actually temporarily stopped. Even in 2020, the entire European and American world together with crazy printing money to the people trapped at Home to send subsidies, inflation actually did not break out, it seems that the economics textbook does not work at all. The reason behind this is nothing more than a brand new energy industry like shale oil, which has greatly suppressed the rise in oil prices.
Ladies and gentlemen, you must clearly realize that there are two things in this world that are the basis of all commodity prices, first, Food; second, oil. Food is left out. The price of oil not only determines the cost of transportation, freight costs account for more than half of the price composition of commodities, but more importantly: the by-products of oil refining, is the raw material for the chemical industry, is the root of the basic consumer industries such as plastics, clothing. Oil prices rise, not only commodities to rise, even the most common clothing industry to follow the price increase, there is no way.
Well, now that Biden, the extreme white left, has been inaugurated as president of the United States through massive fraud, in order to give back to the fraudsters behind him, he of course has to intensify his support for left-leaning environmentalism. So his first executive order after taking office was to cancel the construction of the oil pipeline between the U.S. and Canada; his second order was to stop approving shale oil extraction permits indefinitely, with no extensions of any of the extraction permits already issued by the Trump Administration after their expiration dates, which are mostly concentrated in the next year.
What does this mean? It means that the Biden Administration is about to destroy America’s homegrown oil industry under the banner of extreme environmentalism. This foolish to chic move is sure to have a terrible ripple effect, with the primary consequence, an unstoppable rise in global oil prices. Even now the global economy has not actually recovered, and European and American countries are still in a state of severe blockade, but oil prices are still rising unstoppably, from $40 in mid-November, all the way up to more than $60 now. The rate of increase reached fifty percent. And this rise is just the beginning.
Well, the oil price so up a wave, the commodity price composition of freight accounted for more than half, of course, must also follow the rise, so the copper price rose by 30% so far last November. Similarly, styrene, an important petrochemical by-product, also rose by fifty percent. In the context of the global economy is now a hundred thousand miles away from a real recovery, the price of oil + commodities + chemical raw materials generally soared, this thing is simply magic. China’s industrial enterprise bosses returned from a New Year, they were surprised to find that they could not actually complete the order, because the raw materials are too expensive, according to the original order price to do, simply can not do. Abolition of the order means a high amount of liquidated damages, so after the New Year this half month, China’s manufacturing bosses are all anxious, even sleep can not sleep.
Everyone, please think carefully: oil + commodities + chemical raw materials, these three things, constitute the vast majority of the basic human consumption. These three things have increased significantly, what else can not increase the price? Can hyperinflation still be stopped? Below you will find the results of a Baidu news search on “raw material price spikes”, which will give you a little insight into how the world works. After all, the world, not just rely on environmental slogans, you can run on. People, still need to eat.
Originally, the whole world of Europe and the United States in 2020 is bottomless printing money, helicopter-style spreading money, inflation would have been a touch. Now well, the last chip to stop the outbreak of inflation, but also by the white left gleefully withdrawn, but also shamelessly claimed that this is to protect the future of mankind, for the sake of the human environmental protection industry, our generation even if the collective starvation is okay, as long as the zero dollar purchase of black Life expensive can live beautifully. And the only price the black life expensive people need to pay is simply to support the same toilet for men and women.
In such a context, the funds will of course sell off U.S. Treasuries, an asset that relies on the creditworthiness of the dollar, and instead embrace commodity-based assets. After the bond is sold off its actual transaction price falls, the book interest remains unchanged, interest ÷ bond transaction price is the bond yield, so U.S. bond yields have skyrocketed in the recent past, the past two days have tried to break through the recognized 1.5% U.S. bond yield risk barrier once. Because once effectively broken, it in fact pulled up the bottom line yield of the global financial markets. If you buy U.S. bonds with a 1.5% yield, then other investments will need a higher yield in order to keep the money. And higher yields mean higher risk. So the global funds were forced to shuffle, which is commonly known as the dollar harvesting the world. In fact, it is not the dollar harvesting, but the financial risk is rapidly rising, the funds are looking for safer havens.
Recent movements in US 10-year Treasury yields (author’s blog)
I personally don’t have much to criticize about this matter. That said, Europe and the United States has been brainwashed by the extreme left thinking, not environmental protection rather than death, Chinese nationals in this regard is no better, tesla in the country as sold like wildfire. In the degree of brain damage, Europe and the United States and China, basically on the same level.
But it is difficult to understand is that Europe and the United States in a state of prosperity maintained for 40 years, and from 1991 after the collapse of the Soviet Union there is no real rival, so raised a whole two generations of brain-damaged people. And China clearly from 2001 after joining the WTO slowly undertake the global transfer of basic manufacturing, only to begin to have a good Time, hold up less than 20 years. It is reasonable to say that the first generation of brain-damaged have not been completely washed, the second generation has not even come out of society. Counting 20 years ago, most families are long years to see no meat, occasionally go out to a banquet, on a roast meat, all have to fight to grab a piece of fat hidden in the sleeve to take home a week to lick, now how dare to lick the face to follow Europe and the United States together with the extreme environmental protection fade it?
What is the sociological principle behind this?
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