What Can "Appreciation" Bring? The New Life Of The Dollar In The Era Of "Head 6"
The number of US $1 convertibility to RMB has now turned to 7. When the US dollar continues to depreciate, it is very likely that we will enter the era of "6".
Will the renminbi become more valuable at that time?
Will life in the United States be closer to us?
The price of RMB against the US dollar has been rising. To some extent, it is better than the dollar to depreciate voluntarily instead of raising the price of RMB.
Around this issue, the domestic economic circles are debating fervently. What is the pros and cons of RMB appreciation to China?
For a time, it seems that there is no conclusion, but we never worry so much about the appreciation of the goods we have.
What kind of impact will the depreciation of US dollar bring to our life?
The financial editor of the first financial weekly has made some predictions and forecasts of the changes and changes in the life and behavior of the city's companies during the continued devaluation of the US dollar through reading related information. There are also good intentions of jokes and gag in order to give some benefits to the companies who are struggling in the turbulent and prosperous economic trend.
Cheaper luxury
Whether Jeffrey, Coach, Mitchells and Richards, or beautiful clothing, jewelry accessories, cosmetics, or Harley motors, Hummer SUVs, these luxury brands from the United States may be more popular, the main reason is that they will be cheaper.
The depreciation of the US dollar has made the products of American exports cheaper and cheaper, especially those luxuries, which were originally a dream in the Hollywood blockbusters, but came to our eyes in a blink. And if the price is acceptable, I believe more people will try it.
The term "luxury" refers to the English luxury, which has three main points: good, expensive and unnecessary.
If the theory of luxury is "fundamentalist", there is actually a paradox in it, which is luxury and cheap. The less expensive luxury item itself has a sick sentence, but I believe it will achieve perfect harmony in Chinese consumers. And because of the proliferation of luxury consumption, there will be many new "industries".
For example, we have a female colleague who sniffed like a cat in a newly bought handbag, and then was proud to tell whether it was genuine or not.
Anyway, let's make some cheap luxuries. Those more expensive European guys will let more affectation people enjoy it.
According to our vice minister of Commerce, China will probably become the largest luxury market in 2014, of which luxury goods from the United States will probably account for a large proportion.
More popular resource industry
The resource industry will become the preferred choice for employment.
As the international commodities are settled in the US dollar standard, the international commodity prices have been rising rapidly in recent years due to the depreciation of the US dollar. The enterprises that have mastered the domestic resources exploitation will get higher profits, and these industries will also become the direction of new employment.
And the relevant mining survey, petroleum and metallurgy majors will attract more young people to study.
Domestic listed companies engaged in resource mining and sales will also have more profits to repay shareholders.
In Shanghai and Shenzhen two listed companies, resource stocks reached or had reached more than 100 yuan, the most listed companies.
Because the securitisation of resources will also bring more money to the rich people in the central and western regions.
To say that one of the advantages of big commodity price increase is to let rich resources and economically backward areas get huge profits and bridge the imbalance of China's economic development. In such a case, resource rich areas may be a new hot spot for corporate employment.
The rapid rise in the price of precious metals has also provided the foundation for investment in precious metals. The futures and extension of precious metals and other related financial derivatives have provided us with more investment channels. Of course, this dangerous zero sum game is also a tool for small investors to go bankrupt faster.
More environmentally-friendly new energy and new materials
If the US dollar depreciates, the price of oil will go up further, and the domestic oil price will be in line with the international standards, plus the fuel tax, then the people who drive to work will surely hate to put their ass in the house before going out every morning, so as to reduce the weight of the vehicle.
Perhaps in the case of soaring oil, environmentally friendly and healthy BMX will have a better market, but new problems to be solved for the company.
As decent company people can not work in sweat shirts and sneakers, and office baths will replace office tea rooms to become the main formation and dissemination place of office culture. At that time, the most fashionable company magazine "first financial weekly" might report the spicy report of "drifting bathroom".
We will save plastic and reduce disposable items, especially plastic bags, chopsticks and paper towels.
Once plastic bags are thrown away at once, they will be regarded as a very disgrace to society. Condoms will be environment-friendly and reusable, and will be sought after by environmentalists.
New energy companies will be better anticipated by the market. Wind, water, solar energy and other recyclable energy will be taken seriously. More cities will have landmark buildings with windmills as the landscape. The new wind power facilities in the community will solve some of the power consumption problems.
Bigger city
If the US dollar continues to depreciate, the momentum of international hot money inflows into China will further increase, rather than direct investment funds will be more willing to enter some cities' real estate.
If China's rapid inflation, coupled with the depreciation of the US dollar, should be quite beneficial to these wealthy people.
The rise of real estate prices, especially in areas such as Beijing, Shanghai, Shenzhen and Guangzhou, will attract more development of real estate projects, which will lead to further concentration of local economy and attract more talents to these cities.
In this way, the Matthew effect is more and more obvious, so our city will be even bigger.
A super city of 23 million people
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