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Us infrastructure and Chinese tariffs

By: Aug. 04,2021

There has been a question that has puzzled American economists for many years, and also troubled Chinese students with poor economic performance who have studied from American economists for many years: Why are prices so cheap in the United States after years of crazy money printing?

The teacher who founded the party in America can eat fried chicken until he dies for $1. The teacher Chen Ping bought a big house in Texas, the price is even less than the ordinary two-bedroom in Shanghai.

Why are Americans so happy? Cao Dazuo nu shouted a pass, refused to roll, the results he also did not go to Africa to work on the project.

In fact, I think so, because the United States open supply dollars, americans spend more, the clever use of his imperial status, the shameless white painted with wealth equals $, this leads to the printing press can be used as a weapon, with crazy water and global recycling liquidity, the whole world monetary sovereignty pull them in his pocket, Only the dollar can be considered as real money. This brainwashing has penetrated the hearts of the people. Then all the people in the world want to make money, and if they want to make money, they have to contribute their best things to the United States, and what the United States pays is only a little labor of printing money.

To the productivity of the world to give priority to support the 300 million people in the United States, material abundance, of course, and the cost of the printing press is almost negligible, so through the trade of goods and materials becomes more and cheaper, as long as no change this kind of trading patterns, americans have always can enjoy high income and low consumption of the good life.

Of course, the United States has upgraded to financial capitalism, which is so easy and so greedy that people must be enslaved to finance to make up for their own desires.

Every time the American people develop a new way to make money, the corresponding financial extortionate tactics will rush in again, collecting an extra three or five toats that must go into the pockets of men.

After a bunch of smart workers from all over the world did the math, they managed to set the pattern so that people seemed to have a decent income, but in the end, they were just living on, having a hard time saving.

Because of the great material abundance and the worldwide tribute to the dollar, it has become that the amount of dollars printed has little to do with the domestic prices, and the fear of inflation caused by printing more money does not exist for a long time.

I have never understood trump since he started his trade war. He may be too stupid to understand that the dollar is printed at random, but after all, America is still an elite society. Even if the president is no longer popular with the elites, he should hold his nose and tell him the truth.

It is okay for a president to be crusty, but it is beyond reason to deliberately ignore common sense.

Recently I didn't understand him slowly, the original trade war is not to trade, printed money, as long as can take out and is recognized all over the world, how are good, the old comrade, insisted that think they print money to buy a lot of good things, also called a bad, in fact is not stupid, but a very clever strategy, old, the in the mind again and again to worry about is if one day, China has become a monopoly supplier to the US and the dollar is in trouble. Trump is responsible for the future of the US.

Trump is madly messing with the arms trade in order to force production out of China to India, Vietnam, Southeast Asia, even Mexico, anywhere, as long as it doesn't focus on China.

For a while, he did, until the COVID-19 outbreak put a stop to it.

Supply chains around the world have been disrupted by the virus, and only China has been able to maintain strong productivity by taking advantage of the whole chain.

Now the United States can continue to print money like crazy, but it can no longer use the old model of global distributed procurement, China's share of foreign exports has skyrocketed because of the epidemic.

In order to keep the too-big-to-fail financial institutions healthy and 300 million financial slaves on time to pay their credit card bills, the United States has launched a nationwide money-making program.

For many people, this is a windfall. The American people, who have been brainwashed by consumerism for a long time, see so much money for no reason at all. Why should they still go on a spending spree?

In the second quarter, according to data released by the Federal Reserve, GDP recovery was less than expected, but consumption was strong. Isn't that nonsense? White hair money not to buy things, put mildew in the home?

Not only that, but the money comes too easily and unexpectedly, and America is now playing the upgrade game.

The big challenge for Joe Biden sr. is to stop spending because the economy has not recovered, the pandemic has added to high spending, and Americans are running up even more credit card debt. Failing to do so could threaten a weak banking system.

So this time the two parties came up with another $1 trillion in infrastructure. God knows what will happen to the money, but everyone knows that without the money, immediate spending will go to hell.

As a matter of fact, we all know that infrastructure in the United States is immovable and impossible. The reason for this is that infrastructure is absolutely politically correct, and no one can argue with it. And it must be spent, so that the money can be printed in the name of political correctness and then sent out in a reasonable way.

If the US continues to print money and distribute it to the whole population, it is a naked and indiscriminate robbery on the whole world, because the goods they consume are all the goods that the whole world, under the hegemon of the dollar system, came to trade first.

Because China is the largest producer, it is suffering the most. In the old model of cheap competition, companies raced to export goods to Americans and then fed the inflation produced by Americans.

However, due to the current outbreak crisis, There are no reliable competitors for Chinese manufacturing, which has almost monopolistic export status. Therefore, it is feasible to raise commodity prices to solve the problem of CPI and PPI scissors gap, because no one except us can provide enough production capacity, which is the confidence.

Ocean-shipping industry hard this year in China made a pair of, Shouting to lose money every year to stick a few years ago China ocean rich, this is also indirectly received a commodity tax in the United States, now online show no party teacher $1 Fried chicken, everywhere is gao hua selling anxiety in disguise, supermarket didn't have freedom, prices rose by 60%, And continues to grow at a visible rate.

After the Fed revises the inflation numbers again and again, Powell does a double-talk with coconut milk, pretending that inflation is temporary, pretending that everything is fine, printing money continues to run, and the White House secretly sends negotiators to talk to the number one supplier.

Who aren't stupid, however, this-time-is-different, 08 the grind when the flange, it is because we are the factory of the world's status is not stable, the world economic order is only being gummed up with financial instruments, financial reply all back, do not bow, financial capital to have the time to support other countries when the competition.

Now the epidemic is too severe, The Delta virus raised in India, a new impact on the world, the role of the vaccine is limited, in the short term, no one can see the virus was completely defeated. Except for the benefit of vaccine manufacturers, who can raise prices again and resume pre-pandemic production, no other country except China can do that.

That is to say, for a long time, our dominant position in production will be difficult to break down. At this time, it is more appropriate to appropriately raise export tariffs instead of blindly encouraging exports.

Now the United States is again using the trade war as an issue. There is nothing to be afraid of. China has also started a trade war and has twice adjusted its steel export policy this year.

Before we still have export tax rebate, now also do not refund, the real tax.

Of course, it is said that only 1% of American steel imports directly from China, but remember that Chinese exporters are very skilled at working their way through the mill to get more than 1% into the United States.

In fact, it is not cost-effective to import iron ore at a high price based on China's environment and energy consumption, and then subsidize the whole world to enjoy the low price of Chinese steel. Since there is a problem with global production capacity now, why do you have to import so much iron ore and make cheap for such a garbage country as Australia?

But domestic capacity is there, and exports become unprofitable, so domestic supplies increase, and fewer exports reduce the amount of iron ore needed.

So these days black department plummets!

Given China's size, even a 1% shift in supply and demand would be enough to make a big hit. Actually since may, we have already adjusted the iron and steel products export tariffs and cancelled the part of the export tax rebates, the effect is very obvious, steel export data in May suddenly dropped 2.7 million tons, 33.9% month-on-month drop, look at the iron ore, rebar prices will know, may high later, never been beyond, policy overweight again now, It is logical that the black department should fall sharply.

That means we curb inflation at home, try to throw back the inflation the Americans printed, and stabilize carbon emissions.

The fun would be even greater if the US really started building infrastructure.

Now it will be up to the Americans to play their cards under the sun.

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