Why is the US experiencing severe inflation?
Since the outbreak of the epidemic in 2020, the US government has only one way to deal with the economic crisis, and that is to print money. Within a year, the Fed’s balance sheet expanded by more than 50%, and approximately $10 trillion was printed.
It is not uncommon to overprint US dollars. What is surprising is that the United States has not produced serious inflation, which means that the printing of 10 trillion US dollars has no side effects. Since the 2008 financial crisis, the United States has been printing money, and inflation has always been controlled within a moderate 2% range. In 2020, money printing has been madly accelerated, and inflation is still very moderate.
Is the hegemony of the US dollar really invincible? After entering 2021, Biden continued to print banknotes at full capacity, printing several trillion dollars into the market in just a few months.
Severe inflation has finally come to the United States. Beginning in March, prices in the United States began to rise rapidly, and the situation became more serious in April. The inflation rate has reached a serious level of 4.2%, far exceeding the 2% warning line.
The big price increases occurred in just one or two months, and the general public in the United States perceives this very clearly. The most popular comment on American websites at present is that everything goes up, but wages do not go up.
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