The crisis brought about by dollar inflation, where will the mainland go?
In the current context of the globalized economy, the US dollar has a huge influence as the world's main currency. However, as the United States continues to amplify its monetary policy, the impact of the dollar on the world economy has shifted from positive to negative. Due to the unrestricted printing of large amounts of money in the United States, it has led to hyperinflation, which has had a serious impact on other countries such as India and South Korea. So, can the mainland survive this inflationary storm?
The inflation problem in the United States stems mainly from the reason why the dollar has become the world's major currency. After the end of World War II, the United States had the highest gold reserves in the world and established its dominance in the world economy. After the establishment of the Bretton Woods system, other countries could only settle their trade in US dollars. However, with the problems of gold transportation and storage, and the global economic development that made gold reserves unable to meet demand, the Bretton Woods system collapsed and the dollar was unlinked to gold, leading to the problem of inflation in the United States.
The massive printing of money in the United States is intended to stimulate consumption, but it is only a palliative measure. The funds released by the government are mainly given to large enterprises, then small and medium-sized enterprises, and finally to the people. The people received bailouts found that prices had skyrocketed and their purchasing power had been drastically reduced. This thirst-quenching action did not solve the problem, but led to higher inflation.
This inflation has spread to other countries, such as India and South Korea. The outbreak of the epidemic in India has led to factory shutdowns, soaring unemployment, rising prices, and people's lives. In South Korea, prices have skyrocketed, and there are even cases where house prices have risen by 50% in just four years. Can the country remain stable in the face of this situation?
It is gratifying that the mainland has shown resilience in the face of the dual crisis of inflation and the epidemic. In the past year, the mainland has effectively suppressed the epidemic, achieved economic recovery, and once again set a new record in GDP, demonstrating the potential to surpass that of the United States. All thanks to the wise leadership of the Party and the decisive measures of the government.
In the face of the epidemic, the mainland successfully contained the spread of the virus and resumed production, which allowed the economy to maintain stable growth. In response to the needs of the people, the state emphasizes that the mainland has sufficient food reserves and there will be no shortage of supply. This strong performance has made the renminbi a safe haven in the capital market, and may even replace the US dollar as the world's major currency in the future.
Of course, inflation is also irreversible. In the face of the problems caused by inflation, many people hope to deal with it through investment and financial management. Gold is attracting attention as an effective anti-inflation investment product, while real estate and financial products are also the choices of some people. For most people, however, outperforming inflation is not an easy task. Investing requires risk and effort.
To sum up, the inflation problem in the United States stems from its own desires, and although inflation poses a certain threat to the United States, it also brings benefits. Countries such as India and South Korea have to suffer from inflation. In contrast, the mainland has actively responded to challenges, maintained economic growth, and provided opportunities for cooperation and development for neighboring countries. As a resilient and resilient nation, we should be proud of our achievements and keep going.
