In the process of continuous appreciation of the US dollar, the renminbi has also depreciated significantly, and the current exchange rate of the renminbi has hit a new low in the past two years. In the first two days, the dollar even broke through 6.93 against the renminbi, and the onshore market also broke through 6.92, in many people's cognition, inflation is like a "flood beast", once inflation comes, it means that the cash in hand will depreciate. As the saying goes: the poor are afraid of inflation, the rich are afraid of deflation. Especially for ordinary people, higher inflation will have a stronger lethal effect on low-income people, because such people have relatively single incomes, often only simple wage income, wages will be eroded by inflation, and there is no other source of income to resist inflation. But for the wealthy, many of their assets are leveraged, and when inflation comes, it can help them dilute their liabilities.
The continuous hike of the US dollar is actually a continuous appreciation of the US dollar
The dollar continues to raise interest rates, seemingly to cope with the current high inflation, but in fact it is to let the dollar continue to appreciate, resulting in the depreciation of other countries' currencies, so that funds continue to flow into the United States. It is not difficult to find that since the second half of 2020, "inflation" has almost become a high-frequency word in the international economic situation, many countries have a certain degree of inflation, according to CCTV financial reports, in 2021, the inflation rate of more than 80 countries and regions in the world hit a new high in the past 5 years, such as Turkey's price increase hit a new high in 20 years, many students are homeless because they can't afford to rent a house. In Brazil, almost all commodities have seen sustained increases over the past year.
Venezuelan residents take to the streets to buy bread, potatoes and other food
According to media reports, Venezuelan residents took to the streets to buy bread, potatoes and other food, and even needed to pay with trolleys of paper money filled with bundles. Moreover, what "energy inventory shortage in the United States" is simply an excuse for the Biden administration, the United States is the world's largest energy inventory, one of the countries with the greatest influence in the energy field, where is the "energy shortage"? The Biden administration does not sell energy to Europe because it wants to forcibly stabilize gasoline and diesel prices within the United States and prevent energy prices from rising so that the angry populace in the upcoming midterm elections will not vote for the Democrats. In the final analysis, Biden's little calculation is entirely for himself, and he has never considered the life and death of his European allies.
In order to make the money flow into the United States faster, the United States even secretly promoted the conflict in Europe and the sanctions that followed, and it was in this context that a large amount of eurozone funds flowed to the United States out of the need for safe haven. In Germany's export commodity channels, the United States occupies the first position. In July, Germany exported 12.3 billion euros of goods to the United States, accounting for about 9.4 percent. At the same time, Germany imports 7.9 billion euros of goods from the United States, and the total bilateral trade between the two countries is around 20.2 billion euros.
The United States sits on the world's fifth-largest proven reserve of natural gas
The United States sits on the world's fifth largest proven reserves of natural gas, and also has one of the world's largest natural gas production facilities, coupled with the existence of "oil hegemony", the United States can be called the "giant" in the energy field. At the same time, however, Europe is already mired in an energy crisis – according to Dutch TTF market data, the price of natural gas in Europe has soared to $3,100/1,000 cubic meters in mid-August, more than six times the same period last year, and this price will only continue to rise considering that Russia continues to restrict natural gas exports; Affected by the energy shortage, Europe's electricity generation has rapidly declined, while electricity bills have risen with the water, which has soared by as much as 300%. UK Department of Energy forecast.
This year, the whole UK and even the whole of Europe will face "energy poverty", and daily power supply will become a common phenomenon. I don't know how tens of millions of European people should survive this winter of lack of heating and electricity? In July 2022, Germany exported 8.9 billion euros of goods to China, which was superimposed with 15.1 billion euros of imports, and the amount of bilateral trade between China and Germany was around 24 billion euros. This means that the mainland once again surpasses the United States and continues to be Germany's largest trading partner.