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Chapter 349 Grain prices plummet

Recently, several major events have occurred internationally.

One, the international food price that had been firm for more than half a year suddenly collapsed.

The grain price index plummeted from more than 2,000 points to more than 800 points, and there is still a downward trend.

Many Western speculative institutions and capital that speculate on grain prices have suffered heavy losses during this plunge, and many investors have lost all their money.

In fact, affected by various natural disasters such as locust plagues and droughts, overall, the demand for food is still very strong. Many countries are still in a state of food shortage and famine, and there is no possibility of getting out of the predicament in the short term.

Logically speaking, grain prices should not fall so seriously.

What really forces grain prices to plummet are these two factors:

On the one hand, grain prices cannot continue to rise, and prices cannot rise any further, and they have encountered an invisible ceiling.

This is undoubtedly fatal to capital, especially speculative capital. If the price cannot rise, it means there is no room for profit. For example, real estate speculators speculate on housing prices. Your housing prices remain unchanged, which means there is no room for arbitrage, and you have to pay bank loans and pay loan interest. This makes people who want to make a fortune and leave may not be able to hold on for even three months... Most speculators are not so-called billionaires and cannot fight a protracted war.

Some speculators even think that they can't go long, so they will short it backhand, which has become a factor that lowers the grain prices.

On the other hand, grain is not gold, nor is it a house that can be lived in for decades. If hundreds of millions of tons of grain are stored in the warehouse for a long time, the quality will change and the nutritional value will decrease. If it is not managed properly, it cannot even be eaten.

If it is stored for more than one year, it is considered "old grain". After more than two years, no matter how well managed it is, it tastes boring and most of it can only be used as feed.

These international investment capitals have been stockpiling grain for more than half a year, and many warehouses cannot hold it. After the price reaches three to five times higher, except for a few economically developed countries, they can digest some of them and cut some high-quality leeks. Those poor and backward countries cannot afford much. They would rather starve a little to death than import them in large quantities.

Especially the high-quality and vigorous leek in Xia Kingdom, there was no hair cut.

It completely disappointed them.

What’s even more abnormal is that it would be fine if Xia did not import much grain, but instead took advantage of the opportunity of high grain prices and exported a large amount of flour, corn and meat to the outside world.

In addition, multiple railway transportation channels have been opened, and a large amount of cheap dry feed has been exported to several friendly countries around, a large number of breeding farms have been opened, local employment has been increased, and local people are encouraged to raise sheep and cattle, and cheap feed is sufficient.

There is also a special "fish meal" with a huge output and is used to develop freshwater fish farming and seafood farming, and the price is also cheap.

This has led to the international market's feed prices not only not rising, but have fallen significantly.

A few extremely poor and backward countries even import this kind of feed that is cheap but has a low protein content. They are placed in a pot and boiled into a paste, and then add some potatoes, sweet potatoes and condiments. People can eat it even, and they will not starve to death. The taste is not very bad.

If you spend no more than 1 yuan per meal, you can get enough food.

This has further impacted the sales of normal grains.

Under such many factors, international grain prices finally plummeted, and the losses of speculative capital were conserved at more than 1 trillion yuan... Many speculators who had liquidated their positions walked onto the rooftop.

Another thing is that Xia Kingdom’s GDP this year seems to be trending over the Lighthouse Kingdom, with the probability of ranking first in the world being more than 70%.

This trend occurred last year. Due to the plunge in the Daoyuan exchange rate, the GDP of the Lighthouse Country did not shrink much, but other countries generally increased by more than 10%.

The Xia Kingdom soared by 20%... The gap between the total GDP of the Lighthouse Kingdom narrowed to less than 10%.

This year, the economic growth rate of Lighthouse Country was 0.1%, but the exchange rate of Daoyuan fell by 5%, while the economic growth rate of Xia Country was about 5%...

Therefore, as long as the economy of Xia Kingdom sprints forward slightly in December, the global GDP ranking will undergo earth-shaking changes.

This change is undoubtedly impactful and shocking. Not only is the Lighthouse Kingdom not mentally prepared, but the Xia Kingdom is also not prepared.

As for the negative consequences, even more crazier suppression is undoubtedly the Lighthouse Kingdom cannot bear this stimulus at all. Its online keyboard warriors have already thought of many solutions, and all those who shout "died together".

Therefore, in recent times, various parts of the Xia Kingdom have been focusing on the problem of fraud in GDP data, which has cut hundreds of billions of dollars in this place and hundreds of billions of dollars in that place.

Many production activities originally included in GDP were suddenly ruled out.

And after modifying the GDP algorithm, it can reduce the false GDP by about 20 trillion and make a "big weight loss".

Many netizens even commented:

"The GDP of our country is really too fake. Even buying cigarettes at small shops is counted as GDP. This really cannot be counted."

"What value can the financial industry create? It's just a gambling activity. It's really ridiculous to say that it is a big industry that contributes 10 trillion GDP."

"We really can't be eager for quick success and instant benefits. We will have at least ten years to surpass the Lighthouse Kingdom, or even twenty or thirty years. This is a long process."

"Our per capita income is only one-fifth of the Lighthouse Country. If we have only one-third per capita, we have nothing, so we are still very poor."

"Yes, we are always a developing country, with a bright and beautiful appearance, but in fact they are still very poor. I hope foreign friends will not be confused by the gorgeousness of the surface."

"The Lighthouse Kingdom will always be the world's number one!"

The majority of netizens are very modest and cautious. Some of them are willing to complain about themselves and are brave enough to reveal their own shortcomings and give foreign netizens a reassurance, hoping that they can feel at ease.

As for the effect, it seems to be pretty good, and most Western netizens breathed a sigh of relief.

"The per capita income is only one-fifth of ours, and we make more money alone than Xia Guo's family."

"I knew that their GDP data was seriously injected, and it had no reference value. I didn't expect that it was so false that it was so exaggerated. It was simply a super scandal and not honest at all."

"Don't even think about surpassing us if you give them another hundred years!"

"This competition was destined from the beginning. Their development model was unsustainable. It would completely stagnate in two years and a huge internal crisis broke out. We are the sons of destiny. Victory will definitely belong to us! Because we have the most precious freedom, but they do not."

"That's right, even their ordinary netizens know that Xia Kingdom cannot surpass us. They still live in poverty and inequality. It can be imagined that the problem was discovered by the most ordinary Xia people, and their brainwashing policy has failed. This is a very surprising discovery."

"I also noticed that there were always Xia Guo's keyboard warriors before, saying that we were brainwashed, but the Xia Guo netizens I met these days have begun to admit that they were indeed brainwashed, but now they have figured it out, I think we can make friends with them."

"I have made several such friends in Xia Kingdom. I plan to travel to Xia Kingdom, see their Great Wall and taste their food, but he strongly does not recommend me to Xia Kingdom, for fear that I will be hit and hurt. My poor Xia Kingdom friends, I began to think that they are really good, very kind, but live in a bad country..."
Chapter completed!
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