Two days ago, US President Joe Biden was criticized for stating that inflation in America hasn’t increased in recent months. “I am telling the American people that we will have control of inflation,” Biden pointed out during his “60 Minutes” interview that aired Sunday night. Amid Biden’s statements, ahead of the next Federal Reserve meeting on Wednesday, the US dollar index (DXY) rose in the region of 110.776. Meanwhile, a recent report released by the CCP-backed Global Times pushes for de-dollarization as the rise of the US dollar “could be the beginning of another nightmare” for “many countries of the world”.
Biden points out that U.S. gas prices have returned to March levels after his administration drained the U.S. strategic oil reserve of 190 million barrels.
Inflation has been terrible in the United States, but US President Joe Biden has told the American people it will be tamed. His comment in a “60 Minutes” interview was aired just days before the Federal Reserve met to raise the benchmark interest rate by 75 or 100 basis points (bps).
Biden has received a lot of criticism from economists and market strategists after noting that he believes the country’s inflation rate hasn’t increased for months. Furthermore, the president of the United States was proud that gas prices in America have fallen.
“Folks, gas prices are now back to their early March levels,” Biden tweeted Tuesday. “This means that almost all the increases since the beginning of the Russian war in Ukraine have been wiped out.”
However, the Biden administration has not really explained why gas prices have fallen due to the Ukraine-Russia war and higher inflation in the past 40 years. The US president did not mention that US oil prices fell because he tapped into the US Strategic Petroleum Reserve (SPR). While Biden says gas prices have returned to the levels they were at in early March, he forgets to mention that the administration began draining the SPR on March 31, 2022.
In fact, the SPR is at its “lowest level since 1984,” according to various reports published nationwide. The Ukraine-Russia war is still ongoing and Europe is still facing a severe energy crisis. While Biden complained about carbon emissions, the SPR went from 640 million barrels of oil to 450 million barrels. Also, despite the US channeling billions into Ukraine, Russian President Vladimir Putin explained this week that he will not back down, vowing to use “all means available” to win.
As DXY crawls higher, the CCP-backed editorial claims that US bureaucrats have committed “financial plundering” and a strong dollar is a “nightmare” for other nations.
Additionally, a CCP-backed Global Times op-ed is urging foreign nations to lean towards de-dollarization as the dollar’s rise could become “the beginning of another nightmare.” The editorial was published the day before the US Federal Reserve meeting to raise the federal funds rate. “A super strong US dollar and the fall of other currencies will, to some extent, ease the scorching inflation in the US economy, but the world will have to pay for it,” says the Global Times.
Since the end of World War II and the start of the Bretton Woods Agreement, the author of the Global Times opinion piece claims that US bureaucrats have committed “financial plundering” and exported crises to foreign nations. After the US dollar index (DXY) fell for three consecutive days, the DXY rose to 110.776 on Wednesday before the Fed meeting.
The DXY is an indicator against the six major fiat currencies, and the greenback has been stronger than ever in recent months. The Global Times editorial says America’s problems will not be solved by the Fed and Washington because these entities are unwilling to see the “root cause.”
“If people are looking for the root cause, this is an inevitable consequence of the United States’ blind and unlimited money printing to temporarily maintain ‘prosperity’,” notes the opinion’s editorial. “In other words, faced with the profound problems exposed by the 2008 financial crisis, Washington has been powerless, and even reluctant, to solve them.” The author adds:
While Washington’s political elites brag about the ‘myth of the American system’ and take credit for ‘easing the crisis’, thousands of poor families around the world are trampled on.
What do you think of Biden’s claim on gas prices in the US as it runs out of SPR? What do you think of the Chinese state media editorial that a strong dollar will be a nightmare for foreign nations? Let us know your thoughts on this topic in the comment section below.
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