Global price rises, inflation for 3 years?Ren Zeping: I suggest buying these three “hard currencies”

2022-06-11 0 By

“Global inflation is again at its highest level since the 2008 financial crisis,” according to a new Report from the World Bank.Last October, median inflation was a surprising 4.6%, and us inflation is exaggerated.At the end of December, the country’s inflation rate hit 7%, the highest in the United States in nearly 40 years and the third consecutive month of above 6%.Brazil, a South American country, also had an alarming inflation rate of more than 10 percent for four consecutive months.Global price rises, inflation for 3 years?Ren Zeping: I suggest buying these three “hard currencies”.Turkey, usually a low-profile country, grabbed the world’s attention with an inflation rate of 36.08% in December.The eurozone also saw its biggest increase in CPI in 25 years, rising 4.9 per cent year on year.Global inflation remained high in 2021, with more than 80 countries and regions recording their highest inflation rates in nearly five years.Global inflation as a whole is forecast to hit 4.3% this year, a 10-year high if the forecast comes true.What ordinary people worry about most is inflation, because inflation has brought great pressure to their lives, especially to some workers with low income. Inflation is robbing them of their few property.Why does inflation hurt ordinary people?Many people do not quite understand this, so let’s increase our understanding through some straightforward explanations: In fact, the root cause of inflation is the excessive issuance of currency. The most direct impact of the excessive issuance is the devaluation of currency, and the purchasing power of money in people’s hands drops sharply.The same money can not buy as many things as before, that is to say, inflation will greatly reduce the living standard of ordinary people, if the inflation is serious, even basic food and clothing can not be guaranteed.For example, before inflation happened, 10 yuan can buy 10 jin, but inflation hit, currency devaluation, prices rose sharply, rice became 5 yuan a jin, ordinary consumers can only buy 10 yuan two jin of rice.And the phenomenon isn’t just a myth. It used to be real.Another practical example is Venezuela. In 2018, the inflation rate in this country soared to more than 90000%, and the inflation rate in 2018 was not the highest, but as high as 350000% in 2019. Under such unprecedented inflation, people’s life was not guaranteed at all, and the unemployment rate exceeded 50%.As the value of the currency plummeted, Venezuelans used carts and sacks filled with wads of paper money to pay their bills.Inflation in Venezuela has continued for seven consecutive years, due to macroeconomic imbalances and shrinking oil revenues, which have also led to the expansion of the money supply.Now the global inflation is coming again, people explore the cause of this inflation found that it is actually the global countries to fight the impact of the epidemic, the economic stimulus measures taken by the cause.From the end of 2019 to the beginning of 2020, the global epidemic has hit the economies of all countries to varying degrees.Some countries have even experienced severe recessions and business failures, which have led to rising unemployment, most notably in the United States.In order to mitigate the impact of the pandemic, the United States has adopted the practice of issuing extra money.Over that period, according to official U.S. data, the NATION has created $32 trillion in excess money, which has fueled rampant inflation in the United States and led to economic collapses in other countries.In short, the dollar overflows, leaving the world to pick up the TAB.At the Fed’s press conference last December, some Fed officials said that inflation around the world today would last until 2024, meaning inflation would continue for the next three years from this year.If, as Federal Reserve officials say, global inflation persists for three years, China will not be immune.Some economists, as well as some financial heavyweights, are pessimistic about the future of the economy, arguing that we need to prepare for imported inflationary pressures in advance.As long as the inflation rate in the United States cannot be eased, its impact on the world economy will not stop, and countries will continue to suffer from the attack of inflation. What measures should we take to combat inflation in the future?In the past, the best way to fight inflation was to buy property, and that has worked over the past 20 years. Will we be able to fight inflation that way in the future?For the current situation that China is facing, Ren Zeping, a well-known economist in China, put forward his own opinion: For the fight against inflation, there are three suggestions at present. The first is to invest in the houses in the metropolitan areas and urban agglomerations with the net inflow of the first and second tier population in China.The second investment direction is the leading enterprises of the mainstream track.A final investment is the supply of scarce precious metals.But some people take a different view of Ren’s view, arguing that two things are the best way to fight inflation: first, having one or more professional skills.The second is to have a healthy body.They believe that professional skills are more important than anything else, and good health is the foundation of career achievement, but also the basic condition of fighting against inflation.Topic of the day: Will inflation last for 3 years as global prices rise?Ren Zeping: Suggestions to buy three “hard currencies”