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The raging inflation is difficult to ease, and the "black swan" event is about to emerge

2022-04-19
1201
Russia and Ukraine are about to start a decisive battle?
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The conflict between Russia and Ukraine has been stalemate for nearly two months. Although there have been signals of peace during this period, Zelensky’s attitude has frequently reversed, and he is constantly challenging Russia’s patience. Some Western countries are interfering with it. The decisive battle between Russia and Ukraine seems to be imminent. .
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In the past weekend, the biggest concern of the situation in Russia and Ukraine is the situation of Mariupol. According to the Global Times, on the 16th, the Russian army had almost completely controlled the city, leaving only the remnants of the Ukrainian army stationed at the Azov Steel Plant. Western media said on the 17th that this strategic port is "on the verge of collapse".
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The battle for Mariupol is considered significant because by occupying the area Russia will open up a land passage linking the Udong region to Crimea and could trigger a chain reaction on other fronts. Russia says its troops have captured Mariupol, the first major Ukrainian city captured by Russia.
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Ukrainian President Volodymyr Zelensky said that Russia's elimination of the Mariupol garrison means the end of the negotiations. At the same time, he also said that the result of the negotiations between Ukraine and Russia may be the signing of two documents: one on the security of Ukraine, and the other is a direct agreement between Ukraine and Russia. However, Russia believes that Zelensky is just stalling for time.

The raging inflation is difficult to ease, and the
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Judging from the current situation, the conflict between Russia and Ukraine may indeed be difficult to end in a short period of time. However, with the delay of time, the pressure on Russia is relatively large. In this process, whether Russia will adopt more radical means and more lethal weapons, which will lead to greater variables, we do not know. However, the existence of such variables will affect global investment expectations. Under the circumstance of frequent geopolitical crises, gold prices will be significantly supported.
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Raging inflation pushes up gold prices
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The Fed faces the difficult task of balancing inflation and unemployment. When consumers were recently asked which was the more important issue facing the country, nearly nine in 10 cited inflation, further fueling demand for gold, an inflation-fighting asset.
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When consumers were asked to describe in their own words how their finances had changed recently, the most common complaint was: Rising inflation has led to lower living standards. Soaring gas, food and housing prices have forced nearly all households to go through a painful process of deciding what they need to buy.
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Data released last week showed that CPI growth in Britain and the United States recorded the highest level since the early 1980s in March, and inflation has become the fastest global inflation in decades, starting to put off many consumers, especially those affected by food and fuel. Consumers troubled by rising prices.
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And there is a good chance that the inflationary spiral fueled by rising wages will continue over the next few years. Households have become less resistant to paying higher prices and businesses less resistant to offering higher wages, and prices and wages will continue to spiral upward until the economy collapses in a recession as inflation erodes incomes.
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It's like a game of grabbing chairs: everyone knows the game will be over, but they feel compelled to run around the circle faster and faster, hoping to be in the best possible position—consumers are interested in buying fast ahead of time to get Avoid expected price increases. This situation is called "inflationary psychology".
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The French election may become a "black swan"
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The French presidential election has entered its final week, and the second round of voting will be held on April 24, and the outcome will be at stake. If Marc wins, he will become the first French president since Jacques Chirac in 2002 to be re-elected. And if Marine Le Pen is elected, it will be a political earthquake comparable to Brexit and the election of Trump as US president.
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The far-right party presidential candidate Marine Le Pen pursues populism and opposes immigrants and Muslims. More importantly, she is also very pro-Russian, claiming that she will withdraw from NATO on the first day she takes office.
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Before the first round of elections, some American media quoted senior officials of the Biden administration as saying that Washington is not only worried about Russia's interference in the French election, but also that "Putin supporter" Marine Le Pen, if elected, will shake the Western anti-Russian alliance. It will enable Russia to achieve the "biggest victory" since the Russia-Ukraine conflict.
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According to the polls released on Saturday, Macron will beat Le Pen's 44.5% by 55.5% in the second round, but the poll also shows that a considerable number of left-wing voters are still in doubt, which is the final Showdowns add chance and variability.
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To use an inappropriate analogy, Macron PK Le Pen is like Biden PK Trump. Macron represents the elite, while Le Pen has the bottom line. The fear in the West is that once Le Pen takes office, France will become another France. France is the leader of the European Union. Once France turns, the entire European Union is bound to turn, and the Western landscape will change completely.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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