According to US media reports, the supply chain crisis in the United States has been out of control, and the lives of ordinary people have been seriously affected. Due to the break in the supply chain, the price of many raw materials has soared, and the production costs of American companies have increased significantly, and eventually they can only raise customer prices. The way the United States responds to the crisis has always been like this, let consumers pay, whether it is the increased tariffs or increased operating costs, companies in order to protect themselves, put the increased part into the price, let the ordinary people in the United States to bear.
The root cause of this wave of supply chain crisis in the United States is the trade war provoked by the United States itself and the new crown crisis that continues to spiral out of control in the United States. The trade war has dramatically increased the cost of living for ordinary Americans, and the pandemic has made it impossible for American workers to live normally. If it is good to trade between one or the other, now for Americans, it is completely "one trade-off", money is not worth much, daily necessities are more expensive, and wages are lower.
As a result, a large number of workers went on strike, and no one worked in itself, and as more and more people went on strike, the situation became more and more critical. It was predicted that by early 2022, the supply chain crisis would be significantly alleviated. But over time, experts believe the supply chain crisis will continue into 2023.
This enters a dead cycle, workers want high wages, if the enterprise gives, the cost will increase again, and finally passed on to consumers, and then the workers find that the wages are still not enough to live, then they will continue to strike, continue to demand wage increases, and then... It goes on endlessly. In this wave cycle, the inflation crisis in the United States has become irrepressible.
Previously, the Fed has been stressing that inflation is temporary, but with inflation soaring for 11 consecutive months, the Fed itself does not believe that "inflation is temporary" anymore. The Fed has now reached the point where it has to take on huge debts from the U.S. government and fund Biden's trillion-dollar bill, which is said to stimulate the economy, but the Fed can't come up with that much money and will have to face a debt crisis in December.
All the Fed can do now is stick to loose monetary policy, even if the measure is exhausted, but it can't change, because the US stock market is supported by this policy. At present, the US stock market has become a huge bubble, the total market value is more than twice the US GDP, once the loose monetary policy is stopped, the deformed stock market in the United States will be wiped out in an instant.
Here, the Fed has no way to retreat, and over there, Biden's new work has also gone wrong. Previously, Biden ordered workers in the Port of Los Angeles to work 7X24 hours, Biden believed that as long as they kept working, the supply chain crisis could be alleviated, and as a result, this measure drove the workers crazy, not only few people listened to Biden's orders, but also gave many people an excuse to strike.
The United States has set up its own trade barriers, and eventually itself has been trapped in them, and it has been countered by the trade war it launched, coupled with the impact of the new crown epidemic, which has triggered a series of chain reactions. Predictably, the United States will certainly not be able to have a good year this year, the government will have to deal with the debt crisis, and the people may not be able to buy even the most basic bread and milk. And this state of affairs is likely to last until next Christmas.