PPE

the soaring raw materials lead to large-scale production stoppage. 1f the burden is not reduced, the real industry will be ruined

The ecological environment of China’s real economy is in a boiling state, and a large number of enterprises are involved in the whirlpool of crazy price rise, struggling and hanging on the line

in the past two months, the rising prices of coal, steel, paper and other industries in the upper reaches of China have been surging down. Driven by the rising transportation costs and the production restriction of environmental control, they have had a fatal impact on the intermediate industrial finished products

coking coal price increased by 200%,

glass price increased by 40%,

plastic price increased by 30%,

aluminum price increased by 30%,

steel price increased by 30%,

stainless steel price also increased by 40%,

freight price increased by 33.6%,

industrial base paper can’t be bought with money….

in the most serious cases of papermaking, chemical industry, chemical industry, chemical industry, chemical industry and so on 1n the packaging and printing industry, the price of paper has been soaring all the way. Some paper companies have raised their prices three times in ten days, but there is still a situation that the money can not buy paper, leading to a large number of enterprises to stop receiving orders

the ecological environment of China’s real economy is in a boiling state, and a large number of enterprises are involved in the whirlpool of crazy price rise, struggling and hanging on the line

why is China’s strong economy so weak! 1n Bao Xiaobian’s view, the rising price tide is caused by a series of liquidation crisis, long-term distortion of price mechanism and unexpected events. Because of too many contradictions, opaque information, and people’s panic, the prices of industrial products fell out of control in a short time< First, the liquidation crisis Tianliang banknote printing is facing liquidation this price surge can be called the last sudden inflation, which is naturally related to the excessive Tianliang m2 in the past eight years. 1n 2008, China’s M2 was 47.5 trillion, and in 2016, it was 149 trillion. 1n the past few years, the government has tried to establish two monetary pools of the property market and the stock market to lock up the super money, but the stock market has been damaged by a wave of artificial bull market, and the pressure cooker of the property market bubble has been forced by the government to cover up liquidity, resulting in a flood of liquidity. 1n the past few years, China’s foreign exchange reserves have decreased by one trillion US dollars, but the corresponding ratio of RMB has not been recovered, which has exacerbated the flooding of liquidity here, Bao Xiaobian wants to attack the metaphysical theory of “money pool” which was set up for fear of price soaring caused by over issuing money. The serious consequence of doing so is that a large number of homeowners feel that their wealth has doubled, but the price is very low, so they spend desperately, Anyway, you can earn more money without doing anything than working all your life. On the one hand, this false prosperity has greatly reduced the number of people creating wealth. On the other hand, a lot of real wealth has been consumed too much, which has aggravated the bubble of RMB. 1n other words, future inflation is likely to be much more severe than expected now, when the time of M2 is cleared, the government is faced with the fatal test of either piercing the property bubble or inflating severe inflation. Although many foreign experts have pointed out that economic development at the expense of the environment is unsustainable and the gain is not worth the loss, under the speculation of various “pubic hair theory”, the bottom line of the government’s environmental supervision has been broken again and again, and the ubiquitous corruption has connived at a large number of enterprises’ illegal emission. Finally, the haze that once plagued Britain and North America once again shrouded the northern land, rapidly spreading from 560000 square kilometers last year to 1 million square kilometers unfortunately, 2016 caught up with the liquidation crisis caused by environmental pollution. With the continuous stop of production and the double increase of sewage charges, the raw materials necessary for the industrial sector began to soar< The br/>
property bubble has entered a liquidation period. The real estate leap forward in

over the past 08 years has brought unprecedented prosperity to China’s coal, steel, cement, ceramics, bathroom, furniture, household appliances, lighting, hardware, packaging, printing and other industries, and has created an unprecedented crisis. The capacity of these industries has been magnified by several times. Now, with the serious housing surplus and the sharp decrease of young population in China, these industries are facing a liquidation crisis. On the one hand, the elimination of capacity related to real estate related industries will be very cruel. On the other hand, the collapse of the real estate bubble will, in turn, affect the consumption of residents, resulting in a surplus of capacity. Br / >
sadly, these industries have accumulated a large number of employed people. For example, coal, steel and other industries often maintain the jobs of hundreds of thousands of people. 1n the case of high debt and shrinking market, they can only survive by raising prices< Second, the retaliatory rebound under the long-term distortion of the price mechanism. Since 2012, serious overcapacity has led to the distortion of market price mechanism. During this period, China experienced a continuous decline in PP1 as long as four years ago, and it also appeared when the cost of labor, factory rent, logistics and other production factors increased significantly. Now, with the soaring prices of raw materials, PP1 began to turn from negative to positive, but prices seem to have rebounded in retaliation. That four years of low price life has become a thing of the past, and the future will be a painful period of debt repayment at the same time, the long-term low prices in the past led to the unprofitable recycling of waste products. As no one was willing to engage in the work of waste recycling, waste cartons, plastic bottles and scrap iron were thrown away. Once the exchange rate falls, the cost of imported raw materials rises sharply, and the paper industry even has the extreme phenomenon of raw material shortage. This is also one of the reasons for the soaring prices of raw materials< 1n addition, the increase of social security payment, the decline of RMB exchange rate, highway overload control, real estate regulation, civil servants and military police salary increase and other accidental events have a significant impact on the price increase. 1n particular, the decline in exchange rate has led some paper giants to dare not purchase waste paper and pulp from overseas, leading to a sharp rise in paper prices and even a shortage of paper however, the price increase is not terrible. The most terrible thing is the weakness of the consumer market and the dim prospects despite the rise of manufactured goods, the manufacturers of end consumer goods have to reduce the price and promote sales due to overcapacity and low consumption. At present, fruits, pork, vegetables, dairy products, paper products and daily chemical products are on sale in many places. The craziness of double 11 is likely to show that people have no money and choose to buy discount goods online then a more serious problem will come. When inflation is transmitted to the field of end consumer goods, it will lead to weaker domestic demand and a new wave of overcapacity. 1f this vicious circle continues, the consequences will be unimaginable< A close examination of China's economic situation shows that the three carriages of export, domestic demand and investment are all in the same nest. Scientific and technological innovation has not yet formed a new momentum, and the nationwide entrepreneurship is only delaying the employment crisis. However, we still have a chance to survive in a desperate situation - to lighten the burden on the enterprises that create jobs and the people who carry "four mountains" there is not much time left for China’s real industry. Will burden reduction really come

Back to list