Transitory Inflation Sparks the Fears of Economic Slowdown

The Federal Reserve left interest rate and monetery policy unchanged. This indicates that the US is incomplete economic recovery until now.

Some economic experts believe that Federal Reserve will be wrong on inflation being temporary. From my point of view, it is quite difficult to predict inflation at this moment. Fears about the highly contagious Delta variant of Covid-19 leading to another round of economic slowdown. However, rising infection cases will cause more supply chain interruptions leading to more inflation. 

Meanwhile, some leading companies expressed that they are passing rising costs along to consumers which point out that some inflation will stick around.

As there are industry raw material inflation and higher transportation costs, implementing additional prices increases become necessary.

Another concern is that it is stagflation instead of transitory inflation. That toxic combination of slowing growth and rising prices is a real risk and a dangerous signal of stagflation.

Theoretically, stagflation will trigger bullish markets for commodity and bullions. If there is rising inflation, investors will look at hard assets including bullion markets, like Gold, Silver, Platinum.

Do you believe that bullions prices are starting to rise again?

Let me know your thought.

1 oz gold Canadian Maple Leaf Coin

Safe Heaven – Bullions Markets

When stock markets plunged around the world, buying bullions will be one of the ways to preserve your wealth.

Do you know that the bullions like gold and silver have a significately increase in the past two year? Bullions investments have not been in the spotlight before the pandemic, However, they are rising enormously during the pandemic till now.

Bullions will surely become one of safe heavens during the volatility of the stock markets. Furthermore, some analysts believe that once pandemic is over, ecomony activities will rebounce in the speed that we cannot imagine. They believe there will be a strong demand on Silver, Platinum and Palladium.

No matter you believe or not, buying bullions is a good way to diversify our investment portfolios. Remember the rule that do not put all your eggs in one basket.

Do you share the same idea with me? Let me know your thought.

Influences of Chinese Investors in different Areas

China may become the World’s second-largest economy behind the US.

HSBC

One of the China’s biggest insurers, Ping An Insurance (Group) Co. is the second largest shareholder of HSBC Holdings PLC. Ping An said that the investment won’t influence how the U.K. based bank is run.

 

AMC

One of the largest movie theater chain around the world was bought by Dalian Wanda Group which runs by Chinese business Wan Jianlin for USD 2.6 billion.

 

GE Appliances

A well-known iconic company in US was partly owned by a Chinese Company, Qingdao Haier. And the acquisition deal was USD 5.4 Billion.

 

Motorola

One of the early leader in telecommunications space previously now was owned by one of the famous Chinese enterprise, Lenova. This makes Lenevo become the world’s third-largest smartphone maker around the world.

 

Football

Chinese investors are interested in Football as well. Chinese billionaire Tong Xia owned Aston Villa.

 

Infrastructure Business

Chinese Investors and businessesmans own stakes in key infrastructure businesses in the UK such as Heathrow Airport and UK power Networks. Chinese investors have also bought up stakes in Thames Water which is another key infrastructire firms in the UK.

 

Education

Schools in the UK which owned by Chinabacked enterprises:

  • Bournemouth Collegiate School
  • St Michael’s School in Llanelli, Carmarthanshire
  • Bosworth Independent College in Northampton
  • Bedstone College in Shropshire
  • Ipswich High School
  • Kingsley School in Bideford, Devon,
  • Heathfield Knoll School
  • Thetford Grammar School in Norfolk
  • Wisbech Grammar in Cambridgeshire
  • Riddlesworth Hall Preparatory School in Norfolk
  • Adcote School for Girls near Shrewsbury, Shropshire 
  • Myddelton College in Denbigh, Wales
  • CATS Colleges – Campuses are in London, Cambridge and Canterbury
  • Chase Grammar School
  • Abbotsholme School, Derbyshire
  • St Bees School, Cumbria 

 

Let me know if you know more.

It is not only fine feathers that make fine birds

After three consecutive rainy days, I look out the window to see trees which look greener. There are always some birds sitting in these trees and I believe they live there.

I always wonder why birds stay in the same place when they can fly anywhere on the earth. Then I ask myself the same question.

I still remember how my boss asked me to stay here two years ago.

“Birds go wherever the food is and stay where the food is.” He spoke to me anxiously. I understood that he was worried about my decision.

“We are birds in flight, searching the skies for dreams.” I told him.

“Not every tree is a home for every bird.” He said.

“Birds born in a cage think flying is an illness.” I told him.

“At some point we all play by the rules, whether it’s the rules of all mankind, the rules of the Father who is time, or the rules of nature who is mother.” He signed and I could feel his sadness. He didn’t want me to leave.

“Anyway, keep in touch, my dear.” He looked at me and looked in my eyes.

“Will do.”

“Protectionism. One day you will understand the rules. This is only one thing more painful than learning from experience and this is not learning from experience.” He said sincerely.

I nodded.

I was not so sure. And I am not so sure.

Is stagflation coming?

“Property market is going bananas around the world.” He says after his morning coffee.

It’s always his show time in the morning at his office.

“How come the housing demand is still strong during the pandemic. Property market should start to cool on its own when unemployment rates is going up and ecomony is hit by lockdowns.” I complain.

“It can be a good sign of ecomony is covering or a sign of something bad.” He said

“bad thing? What would that be?” I doubt

“The thing that every government dosen’t want to see it.” he contiues.

“Stagflation.” He states.

I wait for his explanation.

“Stagflation will happen in the situation which the inflation rate is high, the economic growth rate slows and unemployment remains steadily high. As young as you may not know that stagflation is a catastrophic for countries. It happened at U.S. in 1970 before.”

I google it simutaneously while he is talking.

“But not everybody will lose during stagflation. It will further widen intergenrational inequality.” He explains more.

“What can we do now?”I ask.

“Not WE, just YOU.” he laughs.

“Use your creation to generate more income as fast as you could. Within crisis, are the seeds of opportunity.” He shares.

That is the most difficult part. Everything is easier said than done. Wanting something is easy. Saying something is easy. The challenge and the reward are in the doing.

2021 Republique du Tchad The International Entertainment Series – Mahjong Fortune Copper Coin

This is a one of the interesting items in my collection.

Mahjong Fortune Copper Coin

Mahjong, which has developed in China since many years. And this game is very popular in China, Asia and online. Mahjong is also a game which people believe that it can help elderly people prevent dementia. Care Centres for elderly people in Hong Kong will encourage elderly people to play Mahjong with each other.

I have to declare that I do not play Mahjong and do not know the games rules about Mahjong.

These Mahjong coins are farewell gifts to some of my friends who are going to leave Hong Kong very soon. One of the features of Hong Kong people are playing Mahjong, love to be rich, and love money. The golden Chinese word “發” on the coin is the meaning of “Get Rich and Good Luck”. Wish my friends who will have these Mahjong coins will be rich and always be lucky in other places.

Mahjong Fortune Copper Coin Gift Box
Mahjong Fortune Copper Coin Reverse

Some say: No reason to stay is a good reason to go.

Me: Even if I had a million reasons to leave, I would still look for one to stay. It’s because this place is lovely.

Wish you guys all the best. You will be missed.

Covid-19 will reshape our world

“Covid-19 will reshape our world. We don’t yet know when the crisis will end. But we can be sure that by the time it does, our world will look very different.” one said.

My job duties are totally different when I am back to office. It makes me realize how the current pandemic changes our world in all perspectives.

“Pandemic is a war. It makes people losing their jobs, losing their homes, losing their lives, and losing their minds.” My boss says when he sips his cup of coffee.

“Yup, but it just affects the grass-roots the most. The riches are still rich.” I joke and wipe my working desk up at the meantime.

“Life is really not fair. Deal with it.” he is holding his coffee cup and walking next to me.

“Wealth inequality and social mobility are global issues. I cannot deal with them personally.” I look at him and answer.

“School doesn’t teach you how to be a wolf. It will teach you how to be a sheep. School won’t teach you how to be a leader. It will teach you how to obey to leaders.” He says.

“Don’t give up easily. I believe interruptions generate opportunities.” He gives me a smile.

“Alright.” I smile and then I said, “but please don’t forget keeping social distancing in working environment.”

He giggles and walks away.

#pandemic #covid-19 #tradewar #war #money #passiveincome

The most stupid thing Didi did: Chose US stock market for its USD 4.4
billion IPO.

Just after Didi raised its IPO which valued nearly USD 68 billion in US stock marking on June 30 2021, Chinese government and Chinese Regulators blocked Didi on Chinese App stores and Chinese Market. It made Didi Global Inc. plunged below IPO price.

Didi is a Chinese ride-hailing company in Chinese and bases in Beijing which provide Chinese customers with taxi hailing, private car hailing and social ride-sharing services. Didi currently has around 550 million users and around 10 millions of registered drives over 400 Chinese cities.

Some analysts believe the crackdown of Didi in its home country means that Chinese government wants more control on Chinese big data as well as a new battlegrounds of US-China trade wars.

Didi is now facing scrutiny over its data security by Chinese regulators. This cybersecurity probe by Chinese regulators also bring out a very strong message to other China’s tech giants: Do not even think about listing in stock market outside China and Hong Kong, especially in US stock market.

For those Tech Giants business owners in China, running the whole business not just needs to be given business consideration, but also a nation security consideration and patriotism consideration.

#China #US #Didi #IPO #USstockmarket # Techgiants #money #economy #stockmarket #banking #listing #tradewar #USChinatradewar

The network

My boss is weird. He doesn’t like playing social media very much. As first, I thought it might just because he didn’t know how to use smart phone.

“How do you know what’s happening around the world?” He said.

“Everyone shares news on twitter, Facebook or IG. Technology makes information exchange faster.” I said and kept typing my email.

“So, if there’s no network, there’s nothing.” He said.

Then, I stopped typing.

“We can only source information from one single way, that’s wired.” He kept saying.

“But network is so important now. People are all talking about 5G.” I insisted.

“You source information or you are spoon-fed?” He asked.

I know. I know what he said.

He is absolutely a weird boss.

What did I sell to them?

“Don’t believe what a businessman says as well as a politician.” My boss was standing next to my working desk, holding his cup of espresso and commenting on the recent news of Mr. President.

“You’re a businessman but you’re my boss. And I believe what my boss says.” I smiled and replied.

“Businessmen and politicians are just buying what they want from the poor and benefiting the rich.”

“Then, what did the poor sell to them?” I asked.

“You’ve sold something to them but you don’t know what you’ve sold, do you?” He asked.

“Information and privacy?” I guessed.

“When the rich make war, it’s the poor that die.” He said but he didn’t answer me straight.

“Patriotism?” I guessed again.

He smiled at me and drank his cup of coffee.

What a strange boss.