Chapter 228: Life is like a chess game

Tuesday, April 9, 2024.

There was a lot of news last night, a lot that needs attention.

The first news: Yellen is leaving.

So, the news released last night is very important.

She said that important progress has been made in three areas. The first is that the two countries "carry out intensive exchanges", the second is "jointly combating illegal financing", and the third is "financial technology exchanges".

Sure enough, she didn't get what she wanted.

Because, just a few hours ago, my country's Ministry of Finance stated that "overcapacity" is a manifestation of the market mechanism at work, and supply and demand are balanced. For new energy industries, such as new energy vehicles, "current production capacity is far from meeting market demand."

It can be said that this is a direct rejection and a slap in the face.

Internationally, you can’t achieve anything by just talking big.

Especially for our country.

The second piece of news: Russian Foreign Minister Lavrov has arrived in Beijing.

China and Russia will discuss sensitive issues such as the Ukrainian crisis and the Asia-Pacific region, and pave the way for Putin's subsequent visit to China.

Now, Li Feng increasingly feels that the world is a big chess game.

There are only three chess players in the world who are qualified to be chess players and are good at maneuvering. They are China, the United States and Russia. Other countries are just chess pieces.

Many things become clear if we analyze them from this basic point.

This can be seen from the price of oil, the mother of inflation.

To be honest, the reason why the price of oil is so strong nowadays is directly related to OPEC's production cuts.

The reason why OPEC is so determined to limit production is, on the one hand, because of its interests, but more likely, it is because China and Russia are manipulating it behind the scenes.

Because in the Middle East, the United States' influence is gradually fading. It has withdrawn its troops from Afghanistan, and its influence in Iraq, Syria, and Yemen has dropped sharply. Even Saudi Arabia has joined the BRICS.

Instead, Russia directly participated in the Syrian civil war, China became the largest trading partner in the Middle East, and single-handedly promoted reconciliation between Saudi Arabia and Iran.

Therefore, the current international situation is very complicated, with countries maneuvering among themselves.

Li Feng's eyes were fixed on the diplomatic relations between China, the United States and Russia.

This is because these huge chess players possess enormous energy, and a slight fluctuation in the roulette wheel can create huge waves in the world, thus affecting the course of the world.

Not to mention the inflation caused by commodities such as food and oil?

In fact, we can analyze this issue from a broader perspective.

In essence, the entire world can be divided into three categories. The first category of countries are resource-rich countries, the second category of countries are manufacturing countries, and the third category of countries are consumer countries.

For countries like Europe and the United States, their values, or their nature and culture, are fishing and hunting culture. The whole world is their hunting ground, and they want to be the controllers of the world and act tyrannically.

They don't sow, they harvest.

Since the Age of Exploration, European countries have begun to colonize the world, burning, killing and looting on every continent. After World War II, the United States has become the world's policeman, competing for hegemony in East Asia, bombing in the Middle East, and launching a war with just a bag of laundry detergent, all for wealth.

It can be said that his actions are wanton and reckless; his behavior is unbelievable to us, and his words are difficult for us to accept.

In fact, all of this can be explained from their origin - fishing and hunting culture.

Therefore, the great man said that imperialism is very arrogant. It will definitely not be reasonable if it can be unreasonable. If it is to be reasonable, it is because it is forced to do so.

Therefore, we should not feel so surprised by the arrogance and rudeness of the current leaders of European and American countries.

Because they really don't know etiquette.

If we look at the entire human history, the social structure of European and American powers should be that of my country's Eastern Zhou Dynasty. The aristocratic capitalists were domineering and arrogant in the country, becoming the masters of the people. The common people with property could barely make ends meet, while the proletariat could only live on the streets and become vagrants, and no one cared about them at all.

With their limited history, they simply cannot understand that: "Water can carry a boat, but it can also capsize it."

The memories of those common homeless people do not know: "Are kings, princes, generals, and ministers born into different species?"

I can say with certainty that only our country truly values ​​the people, works hard to alleviate poverty, and honestly respects the masses, because this is the respect that has been earned through thousands of years of rise and fall, the blood and tears of countless dynasties, and the lives of countless people who resisted oppression.

In other words, it is a compromise between the rulers and the common people.

Nowadays, our country has proposed to build a "community with a shared future for mankind".

This must be taken seriously and truly implemented. Only our country's civilization can truly lead other developing countries to build a "community with a shared future for mankind."

Because if Europe and the United States were to lead the world, the whole world would be a disaster. The whole world would be a large jungle. They would be the top hunters, and everyone else would be prey and slaves.

I believe that the evolution of civilization will continue to move forward, and the jungle-like international community will surely enter the era of "a community with a shared future for mankind" under the leadership of our country.

Stay tuned!

The third piece of news: Gold prices hit a new high, and gold listed companies increased gold production.

This news is quite important and deserves attention.

It is important to remember that the rarity of many rare metals is based on their price.

A metal that was once rare will no longer be rare if the price is high enough.

Because, due to the increase in prices and the stimulation of profits, many previously low-grade mineral deposits have become worth mining; many high-profit mineral deposits will be put into production beyond expectations; and a large number of small and medium-sized mineral deposits will also be discovered.

This will ultimately lead to an increase in supply, which will depress prices.

The current oversupply of lithium and coal mines is an example.

Thinking a step further, the current surge in gold prices is partly due to inflation and partly due to geopolitical tensions.

However, a "Ukrainian Mediation Conference" will be held in Switzerland in June.

What if Ukraine stops fighting, the Israeli-Palestinian conflict subsides, and geopolitical tensions are no longer so high, will the price of gold fall?

The fourth piece of news: CICC lowered the number of Fed rate cuts to one.

Originally, the Chinese and American duo acts complemented each other, with one side producing and the other side consuming, forming a perfect closed loop.

As a result, decoupling led to continued inflation in one country, while overcapacity in the other country led to deflation.

Today, after several years of adjustment, China has gradually gotten rid of the problems brought about by the real estate crash. Moreover, through its own supply-side reforms, it has expanded and expanded foreign trade with developing countries, especially those along the Belt and Road Initiative, and has basically absorbed these production capacities and basically established an industrial and circulation chain independent of the United States.

The highest good is like water; water benefits all things without contention.

It can be said that the offense and defense between China and the United States have now been exchanged unconsciously.

my country is conquering the chip industry chain, vigorously developing the new energy industry, and developing the economy together with developing countries. It should be able to achieve low inflation, medium-speed growth, and stable common and healthy development.

In contrast, the United States cannot stop domestic inflation, the international situation is dire, and the economy is in a mess, so it can only hype AI chips.

How can we compete with China if we don’t lower interest rates and continue to maintain interest rates above 5%?

If interest rates are lowered, will it lead to inflation again?

Dilemma.

In addition, there are other noteworthy news today:

1. Iran stated that “the United States bears responsibility for Israel’s attack on the Iranian embassy in Syria.”

It seems that there will be no peace in the Middle East for the time being.

Therefore, it is the last hold of the United States in the Middle East and it is impossible to let go.

However, Israel wants to kidnap the United States to personally intervene in the Middle East.

However, the United States focuses on the Asia-Pacific region and does not want to enter the Middle East again.

The two sides are competing with each other.

2. Data statistics from the Shanghai and Shenzhen Stock Exchanges: "More than 100 companies terminated their listing applications this year."

The new policy is still being piloted, and the quality of listed companies will be greatly improved in the future, so investors can invest in new stocks with confidence.

From now on, whether it is securities companies, funds, or listed companies, it is time to improve their internal strength. The previous way of speculative listing and reaping the benefits will no longer work.

3. "The wholesale reference price of 53%/500ml Feitian Moutai has dropped again, currently at 2,510 yuan/bottle, down 50 yuan from yesterday."

Previously, a big V cut his position and lost 10 million yuan when Vanke announced that it would not distribute dividends, and then bought all of his shares in Kweichow Moutai.

Now it seems that this was not a good decision.

A sector cannot be reborn if it cannot go through some storms.

If a stock does not have an attractive price and performance that exceeds expectations, there will be no new capital inflow.

If only old funds are moving in it, once there is any disturbance, there will be a cliff-like drop.

In fact, Kweichow Moutai's performance growth has encountered a bottleneck, which can be seen from its development of Moutai Latte, Moutai ice cream, and direct sales (the curse of corporate diversification).

In the future, Moutai really needs to focus on three points:

One is the issue of stock price and value: this determines whether Kweichow Moutai has investment value.

One is the issue of social inflation: this determines whether Kweichow Moutai has the potential to continue raising prices and increasing production.

Another issue is internationalization: this determines whether Kweichow Moutai has an incremental market.

After reading this information, the stock market opened.

Today, the Shanghai Composite Index opened low at 3044.61 points. From a morphological point of view, it has been four consecutive declines, which is not optimistic.

The non-ferrous metals sector was severely divided, with stocks of early leaders such as China Aluminum, Zijin Mining, Luoyang Molybdenum, and Northern Copper all falling, with a drop of around 2%.

Zinc Industry Co., Ltd. and Zhuzhou Iron and Steel Group fell by more than 5%.

Only Jiaozuo Wanfang and Oriental Zirconium performed strongly. The former once hit the daily limit and then opened it, while the latter rose by more than 6%.

Other sectors such as coal, gold, oil, shipping, and shipbuilding have also begun adjustments.

On the contrary, theme stocks began to become active, and sectors such as solid-state batteries, organic silicon, and flying cars began to perform well, closing the board, and two consecutive boards were common.

The turmoil in strong cyclical stocks seems to have subsided.

At 11 o'clock, a wave of funds poured in, pulling the market almost to the red. Many stocks recovered their losses, making investors who were looking at the charts a little uneasy.

Indeed, the Shanghai Composite Index is said to be strong, but it is not strong at all. It cannot even break through 3100 points.

It’s not weak, but it is. After breaking through 3000 points, it recovered in one day and had three consecutive days of positive lines.

Old Chen looked at the Shanghai Composite Index, the trend of strong cyclical stocks, and the stocks he held, and he felt mixed emotions.

"Alas... why did I fall again... Alas..."

"It's so hard to trade stocks. If you buy stocks that won't rise, you're afraid they won't rise. If you chase popular stocks that are doing well, you're afraid they'll fall... Look, they've fallen again today, ouch..."

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