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30 years ago, it was very cheap to buy a twist flower in China, and now it has doubled several times, and it was close to 10 yuan a piece when it was expensive, but at this time, China's economy has also developed greatly, and people's income has also increased many times.
Now that prices in the United States are also high, and the CPI index has repeatedly hit record highs, is the United States richer than before?
Wrong, no. More than half of United States believe the United States economy is now in recession. Economies of all countries are affected by the consumer economy, but the consumer economy of United States accounts for a larger share of GDP.
Consumption in the United States is now very weak, partly because of rising prices and partly because incomes are falling.
Since the economic and trade war between China and the United States in 2018, United States prices have begun to rise, but since a year and a half ago, prices in United States have risen even more sharply, and United States incomes have become more bleak, so the recession has begun to accelerate.
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Most United States are unable to balance their income and expenditure, so many families are trying to control consumption.
This is also the reason why there are fewer and fewer United States in China in recent years. The United States who came to China this year, except for some wealthy people looking for investment opportunities, are some people who work in self-media who come to China to film. This time the recession is worse than in 2020.
Before 2020, although the United States economy was affected by the economic and trade war with China, there was no Russia-Ukraine conflict at that time, and the energy prices of United States did not rise, such as natural gas prices were normal.
There has also been no coronavirus, production in United States has not shrunk, business activity has not declined, the number of people going abroad has not decreased, but now a series of problems have arisen.
If it weren't for the fact that the United States military industry provided arms to Ukraine, which led to a rise in some employment, the situation in the United States could have been even worse.
Many people have depleted their savings, and those in United States who have never saved money are even worse off, and even overdrawing credit cards has become difficult.
Of course, not everyone will become bad, and some people have a better life, such as those who flip houses and those who are corporate executives. United States real estate has come out of the bubble, of course, the proportion of people who speculate is very low, in fact, some of the rich people have a hard time.
For example, people who used to work in the banking industry may encounter a cold winter. Just some time ago two banks collapsed in the United States, and a large number of people lost their jobs in the banking sector. The income of those engaged in chip production, importer and exporter in the United States has also declined, as the United States now tightly controls the export of chips to prevent these chips from flowing into China.
Previously, most of the chips went to China, adding a lot of revenue to the United States. United States control chip flow into China, allegedly to rebuild manufacturing centers in United States and curb China's development, the result is not achieved, but it has ruined United States related industries and their practitioners.
Prices are too high and the economic recession is too fierce, which may lead to a surge in social contradictions and affect the stability of the regime, so the United States is now constantly raising interest rates to control prices, but the power is very limited.
On the one hand, many people are reluctant to put their deposits in the bank in order to cope with high prices, and on the other hand, many people are also afraid that the United States economy will completely collapse and the deposits will not be recovered.
In fact, a lot of dollars are concentrated in the hands of a small number of people, and most people don't have much dollars in their hands, and these concentrated wealth owners take their money and invest it everywhere, hoping to find new opportunities, and will not put their money in the bank. They know that they know that raising interest rates is only a short-term policy, and it is better to invest and get long-term benefits.
Even if it is used to speculate in stocks, it is better than putting it in the bank to earn interest, let alone using it to speculate in futures. Those ordinary people's credit cards are at the point where they can't repay them on time, let alone put money in the bank. Some United States banks issue credit cards that are insolvent as close to 10 percent.
Therefore, although United States' GDP grew by nearly 3% in the second quarter of this year, people think that this data is of little significance, and the growth rate is not high.
China's economy grew by 5 percent in the first half of this year, or 1.4 percent in dollar terms. United States GDP grew by only 1.3% in the first quarter, and as a result, the first half of the year was very unimpressive.
What's more, this GDP growth figure is still supported by high prices. The United States debt crisis is also getting worse, many bonds are due to be repaid, many countries are selling US bonds, and the United States fiscal deficit is also very terrible.
Currently, in the United States, in addition to very high energy prices, food prices are also very high, and then housing consumption is not low.
This has exacerbated the hardships of United States consumers, as food and housing are two essential consumption items.
For companies, the biggest fear is rising energy prices, which will lead to lower corporate earnings, fewer jobs, and rising unemployment in the United States, which has exceeded the level that the United States economy can accept. Even more frightening is that the United States economy may face more crises.
For example, commercial real estate may collapse again, because economic activity has slowed down, and commercial real estate may not have the possibility of making a profit, resulting in a situation where it cannot be sold and there is a loss of investment.
If the United States government abandons trade protectionism, no longer wags an economic and trade war against China, does not worsen the Russian-Ukrainian conflict, and does not provide support to Israel, the situation may be eased.
It is unrealistic to want to recover quickly, and how to avoid a crisis in the 34 trillion dollar national debt is a very headache for the United States government.
More and more of these bonds need to be repaid, and the more time passes, the more interest accumulates, and the more compensation needs to be paid. United States cannot afford to default, it is absolutely a credit collapse, absolutely complete destruction. There are too many holes in the United States now, press the gourd up and scoop.
If Biden hadn't printed more dollars since he took office, the situation might have been better, but the most frightening situation now is that in the face of rising inflation in the United States, he may have to continue to print more dollars to pay off debts.
It is true that the number of dollars exceeds the total value of commodities in United States current inflation, but in fact, compared with the same period in history, the total value of commodities and the total number of dollars are relatively small, which is a kind of inflation in a relative sense.
Because United States's income has been declining in recent years, and the impact of the economic and trade war on China is the greatest, United States inflation does not mean that there is excess money to use to repay the maturing US debt. Why does United States continue to issue U.S. bonds?
It is because of the fact that the total amount of funds is actually scarce, and it is necessary to borrow money from foreign countries, and the main way is to issue US bonds.
If Trump had come to power, would things have been better for United States? Trump said that he would launch a fiercer economic and trade war against China when he came to power, and then let United States' manufacturing revive, quickly increase the income of Americans, and quickly revive the United States economy, but it is unclear whether his idea can be realized.
After all, if a 60 percent tariff on all Chinese goods were imposed, United States would be left without goods available, and inflation would be even worse, not to mention the reshoring of manufacturing centers. Inflation is more intense, the production costs of enterprises are rising, how can United States companies want to come back?
If trade with China is decoupled, who will the products produced by companies returning to the United States be sold? Is it possible not to let Chinese goods be sold to United States, and United States goods want to be sold to China? This is the simplest truth. Would that change if Harris had won?
I'm afraid it will be difficult for Harris to achieve her wish, it's hard to say whether she can win now, she has not yet obtained the official presidential candidacy, and Trump is very strong, and now the support rating of the two is not bad. Trump's assassination on July 13 directly boosted Trump's magnetism.
Recently, Trump has been supporting bitcoin again, changing his previous attitude towards bitcoin, which will also increase his votes, but now Harris has no measures to canvass for votes. Even if she wins, how smart is she from Trump?
If it is higher than Trump, then following Biden for the past few years, he has already come up with a good move. Therefore, the United States economy is really in recession, and I am afraid it will be difficult to change the current situation.
What do you think about United States, which is really in decline? Welcome to discuss in the comment area!
Resources:
Trump praises Bitcoin, US media: canvassing-Global Times
Harris: We are the underdog - reference news
International Observation|Three Hidden Worries Behind United States Economic Data-Xinhua News Agency New Media