Chapter 12 5. What is pricing power?

At present, the entire global financial system and system are more conducive to financial powers and international financial speculators with strong financial means.Whether it was Japan in the 1980s, the Asian financial crisis in 1997, the Vietnam crisis in 2008, or a financial unrestricted war using oil as a means, we can all see that powerful international financial speculators took advantage of a A series of elaborate means to manipulate.According to my point of view, the highest strategic guiding ideology of these international financial speculators is to obtain pricing power. The ambiguous relationship between international financial speculators and governments of various countries, especially the US government, is unimaginable.And their methods are so sophisticated that you have no idea what they will do.Then you have to ask me, Professor Lang, why are these international financial speculators so powerful?Because the highest strategic guiding ideology of international financial speculators is to obtain pricing power.

Therefore, the prices of these international commodities are not determined by supply and demand, but by international financial speculators.In the future, everyone should stop using the principle of supply and demand to judge the price of international bulk materials. If there is an oversupply, the price will fall, and if the supply exceeds the demand, the price will rise. That is a book theory, and it is basically wrong now. These prices are manipulated by international financial speculators.International financial speculators manipulate pricing power and then sweep the world. This is their strength.

●Exquisite design, launch a war without gunpowder smoke. ●Through China's bank reform, a party swept away 130 billion yuan.Why can sweep so much? For example, the listing of China Construction Bank.The largest foreign shareholder of CCB is Bank of America. Bank of America announced at the end of 2007 that they lost a lot of money due to the subprime mortgage crisis, but CCB’s listing made them earn 130 billion yuan, which means that every reader lost money. If you lose 100 yuan and multiply it by the population of 1.3 billion, it is exactly equal to 130 billion yuan, and you don't even know that you are losing money. This is called the level of international financial capital.Through China's banking reform, Bank of America swept away 130 billion yuan.Why can sweep so much?Please think about it, who owns the pricing power of CCB's listing?What is determined by international financial capital must be aimed at benefiting international financial speculators.So in the end, I want to tell you that international financial speculators profited from pricing power, raised oil prices to 147 US dollars a barrel, calculated Chinese companies, and swept away hundreds of billions of dollars. This is my judgment.

The most important part of the CPI, which is seriously underestimated, is the price of chicken, duck and fish—it causes your food expenses to rise sharply.I give you a data. In May 2007, pork prices rose 26 percent and egg prices rose 37 percent.In other words, you pay 26% more for every bite of meat.Pay 37% more for every extra bite of egg.From May to August, the situation continued to deteriorate, with no signs of improvement, and the cost of food for each of our ordinary people increased by an average of 50%.In other words, you have to pay 50% more for breakfast, 50% more for lunch, and 50% more for dinner.

The 50% increase in food costs is not reflected in the CPI, why?Because it is the average of all the consumer goods you use, your 3% means that the growth of all your supplies is 3%, but the really important indicators should be viewed individually, such as how much the price of pork rises, how much the price of chicken rises, and the price of grain and oil. How much did it rise.Therefore, audiences and guests, please do not be misled by the CPI. This cannot reflect the increase in your daily living expenses. If you want to understand the increase in daily living expenses, you have to look at them one by one.

How does inflation come about?Does it have anything to do with this policy?Let me take pork as an example. Why did the price of pork rise?There are two reasons for the rise in pork prices, the first is swine fever, and the second is the rise in feed prices.Due to swine fever and rising feed prices, the market environment for raising pigs continued to deteriorate, so pig farmers stopped raising pigs and went to speculate in stocks and real estate.Due to insufficient supply, the price of pork has risen in an all-round way. Can this situation be alleviated through the so-called monetary policy?no.what to do?We must encourage pig farmers to raise pigs and increase supply to solve the problem of rising pork prices.This is why the central government recently encouraged everyone to raise pigs and chickens.For what purpose?It is to use the money flowing into the stock market and property market to suppress the rise in pork prices.

Monetary policy is not always useful, but for ordinary people, inflation and rising interest rates are basically two factors that cancel each other out.Generally speaking, the interest rate minus the inflation rate is the real rate of return on your deposit.If the inflation rate is 10% and the bank interest rate is 6%, it means that your money will depreciate at a rate of 4% every year.Do you understand me?If you keep this money at home, it will be even worse. Your savings will depreciate at an annual inflation rate of 10%, and you can save a little loss if you store it in the bank. You only lose 4%.

(This article is excerpted from Lang Xianping's)