Monetary and fiscal policy
In order to get out of the epidemic and economic downturn, since Biden took office, the US government has successively introduced stimulus policies, sending money to every American for several months in a row, and directly sending money to the personal accounts of Americans. The money bags of the American people have bulged at once, and Tesla's stock price has been soaring. Obviously, the effect of US fiscal policy at this time is more obvious than that of monetary policy.
2. Indiscriminate issuance of money and inflation
Why does the United States dare to issue money indiscriminately, because of the nature of the dollar world currency, although the dollar will lead to inflation in the dollar area, at that time, when the money is sent to a certain time, in the flow back and forth through interest rate hikes to the dollar, it will lead to a decline in the price level of other regions, and the United States is the world's largest consumer country, the price level of its imported goods continues to decline, and its CPI naturally declines.
The United States is beginning to harvest the globe
The currencies of countries with closer economic ties to the United States will continue to depreciate, the yen will plummet, the renminbi will fall to a two-year low, the Vietnamese dong will fall,,,,, and other countries' currencies will fall endlessly
Iv. How to cross the dollar cycle
First of all, the price of assets will drop sharply, and the house can be sold as soon as possible, and no one knows the end of the dollar's interest rate hike cycle. Secondly, hold cash if you can hold cash, don't resign easily, keep money in the bank as much as possible, and don't add leveraged consumer loans. The US dollar's interest rate hike, whether the renminbi can counter-cyclical success, is the basis for determining the trend of the next hundred years.