The sweep of the new crown epidemic has increased the Fed’s QE “watering” efforts, from its balance sheet, the size has soared from $4.14 trillion at the beginning of 2020 to $7.33 trillion at the end of the year, printing about $3.2 trillion; from the supply of broad money M2, the relevant value at the end of 2020 has risen from From the broad money M2 supply, the relevant value has risen from $15.3 trillion at the beginning of the year to $19.2 trillion, equivalent to one-fifth of the dollars circulating in the global market, all of which were printed in 2020. Today, however, the cost of the U.S. money-printing frenzy is emerging.
Here comes the price of the U.S. money printing frenzy: toilet paper prices rose by more than 15%! China’s position has limited impact
How serious is inflation in the United States? Toilet paper prices have jumped 15.6%!
CCTV News reported on May 8, citing CNN, the past year, the U.S. toilet paper prices rose 15.6%, its raw material pulp prices have risen from $ 606 / ton in September 2020 to $ 907 / ton in April this year, the industry has never seen such a substantial increase in history; some analysts pointed out that, based on the current analysis of market conditions, the U.S. inflation rate will probably rise sharply up, and by the middle of next year, the inflation rate may lift to 3% to 4% – while the U.S. inflation rate in March this year was 2.6%.
Typically, when a country over-issues its currency, more and more money circulates in the market and the currency depreciates, causing prices to rise and creating inflation.
Here comes the price of the U.S. money printing frenzy: toilet paper prices rose by more than 15%! China’s position has a limited impact
The latest data released by the United States also shows that U.S. inflation is significantly higher. According to data from the U.S. Bureau of Labor Statistics on April 13, the U.S. CPI rose 2.6% year-on-year in March, the highest level since August 2018; at the same time, survey data released by the University of Michigan on April 17 showed that consumers’ expectations for inflation in the coming year were 3.7%, up 0.6 percentage points from 3.1% the previous month – -and the last time one-year inflation expectations reached near 3.7% was back in 2012.
Recently, Coca-Cola, Procter & Gamble, Kimberly-Clark and other U.S. giants have announced increases in product prices – they are, of course, just a typical representative of the army of price increases; according to the National Federation of Companies (NFI) survey shows that most companies are now planning to raise prices in response to the current cost pressures faced, and in the economic recovery, demand rebound In the background, price increases actually help to boost the company’s performance. It can be said that U.S. inflation has been the mountain of rain and wind full of air.
The price of crazy money printing in the United States: the price of toilet paper rose more than 15%! China’s position has limited impact
The United States wants to pull the world to pay! Russia and other 3 countries emergency interest rate hikes, the Chinese central bank?
The cost of the United States crazy money printing is much more than that. According to incomplete statistics, since March last year, the United States fiscal stimulus has reached a cumulative scale of 5 trillion U.S. dollars, and the near future will be “released” nearly 4 trillion U.S. dollars, including 2 trillion U.S. dollars in infrastructure plans and 1.8 trillion U.S. dollars in household plans to boost the economy. The U.S. dollar is accelerating its over-issuance and the U.S. is trying to transfer the crisis to the world, which has triggered the discontent of other countries.
Here comes the price of the U.S. money printing frenzy: toilet paper prices rose over 15%! China’s stance has limited impact
The latest statistics show that, as of May 7, Brazil, Russia, Turkey and other three central banks have announced interest rate hikes, of which Brazil, Russia, respectively, raised interest rates for two times; in addition, Norway’s central bank is already expected to strike in the second half of the year to raise interest rates, Australia, New Zealand and Canada may also raise interest rates earlier than the Federal Reserve. Some analysts point out that with the advent of global super inflation and further acceleration of economic recovery, the global central bank’s interest rate hike cycle will gradually start.
In China, the National Development and Reform Commission pointed out on April 19 that, objectively speaking, China’s price trend will still be affected by external factors, but with the support of the huge domestic market, the impact is generally limited and controllable; in terms of domestic, commodities do not have the basis for long-term price increases. Thus, it seems that China’s central bank may not be in a hurry to raise interest rates.
Here comes the price of the U.S. money printing frenzy: toilet paper prices rose by more than 15%! China’s position has limited impact
On the other hand, the United States of America’s crazy money is also “backfiring” on the dollar itself. In the past year, the dollar index fell more than 6% in 2020, the largest annual decline in three years, the dollar in the global foreign exchange reserves also fell sharply to about 59%, a move back to the status level 25 years ago.
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