Will the soaring price of pork affect the digital currency market?

The recent skyrocketing price of pork in our country has become a topic of close attention from the Party Central Committee to the common people.

The soaring price of pork actually affects not only the daily life of ordinary people, but also affects the country's economic and financial policies, which in turn affects our investment behavior, which is closely related to our digital currency investment.

my country's pork demand is very large. According to official data, my country's pork shortage this year is as high as 9.23 million tons, and the pig shortage in 2020 will climb to 12.37 million tons. Taken together, this year and the next two years, the pork shortage in a total of more than 400 days is as high as more than 20 million tons.

However, the total global pork trade output is only about 7 million tons, which means that all pork from the world is imported to China, which will not be able to meet my country's pork demand this year and next.

Since August, the price of live pigs in my country has experienced a large increase. Due to the decline in the number of live pigs and the increase in the gap between market supply and demand, pork prices have repeatedly broken new highs.

According to the data released by the live pig price website, the current national average price of live pigs has risen to 12.36 yuan per catty, a month-on-month increase of 27% compared with last month.

There is a cycle for the rise and fall of pork prices. Once the cycle arrives, the price rise and fall will last for a period of time. Pork bottomed out in April and May this year, and has now entered an upward trend, which will continue at least until the middle and late next year or even the end of next year.

The price increase of pork will affect some people to eat less or not to eat pork, and invisibly transfer to consume other meats, which will cause the prices of chicken, beef and various meats to rise simultaneously in the future. An increase in the price of meat will lead to an increase in the overall price level, which will cause inflation.

Let’s not say how high the overall price of pork and meat will rise this round, but it is certain that it will affect my country’s economic and financial policies.

Inflationary pressure will emerge at the latest by the end of this year or early next year. At that time, the management's monetary policy will not be able to continue to be loose and may be forced to tighten: if it is light, it will recover liquidity and if it is heavy, it may raise interest rates.

Therefore, the policy of lowering the RRR and releasing water introduced last week will be difficult to reappear in the future.

However, at present, countries around the world, including the United States, are collectively releasing water and cutting interest rates, and there is very little room for my country to adopt austerity policies.

Therefore, I am afraid that we will have to endure the double attack of inflation and tight liquidity at the same time.

There is not much room for national regulation and control, so how will my country's economic situation develop?

As we discussed in the previous article, the release of water last week proved from the side that my country's economic situation is not optimistic, otherwise the country would not release the water.

The state releases water to help small and medium-sized enterprises. However, funds have always been profit-seeking. We remain cautious about how much money can actually enter the entity. We saw that once the news of the water release came out, it was the stock market that benefited the fastest.

In addition to its own economic situation is not optimistic, the biggest hidden danger sweater war is still not resolved.

Therefore, overall, the future economic situation of our country is not optimistic.

In recent years, my country's inflation level has remained relatively stable, which ensures the steady development of the national economy and social stability.

However, the inflation brought about by the recent rise in pork prices is very likely to impact this core element of stability, bringing unexpected risks.

When inflation comes and national policies are tightened, the operations of small and medium-sized enterprises will be affected, personal employment will also be affected, and ultimately the liquidity of each of us will be affected.

Under such circumstances, for us ordinary digital currency investors, the primary task is not to pursue high growth and high returns, but to guard against personal liquidity risks.

Therefore, in order to cope with the "cold winter" starting from the second half of the year and continuing until next year, ordinary investors must pay attention to retaining enough funds, and invest in digital currencies without affecting their lives.