The direct result of the continuous printing of money in the United States is domestic inflation. Because the global circulation is USD, in 2020, 20% of the USD circulating in the global market will be printed. Large-scale printing of money, a large amount of money over-issued, the printed dollars will slowly circulate to other countries, thus affecting the monetary policy and economic development of other countries. In other words, the crazy printing of dollars is related to everyone's money bag and the accounts of all investors and citizens. In 20021year, the American economy recovered, but the printing speed did not slow down, and the total amount was close to 25 trillion. In the case that the global epidemic has not yet ended, inflation has become the main monetary policy of all countries. The ultra-strong fiscal stimulus plan and ultra-loose monetary policy adopted by the United States and the crazy printing of money have led to the era of global inflation. According to official reports, the inflation rate in the United States rose again in May, and the price index reached the highest level since the financial crisis. The global economy is closely related to inflation in the United States. It has aroused strong concern from all countries.
At present, the foreign exchange assets of all countries in the world are basically US dollars, and most of the foreign exchange reserves of all countries are mainly US dollars. The crazy printing of money in the United States will lead to an increase in global dollar supply, oversupply and depreciation of the dollar, which will lead to a sharp drop in commodity prices. China's foreign exchange reserve assets depreciated relatively.
Crazy printing of dollars is not conducive to China's commodity exports. As far as China is concerned, the appreciation of the RMB and the depreciation of the US dollar make the exported goods cheaper. China is the largest manufacturer and importer in the world. The rise of raw materials will lead to the rise of prices, which in turn will lead to the rise of workers' wages, then the profits of enterprises will be reduced, then it will be difficult for vicious circle factories to survive and develop, enterprises will be underemployed, the employment rate will be reduced and the unemployment rate will rise, and it will be difficult for small and medium-sized enterprises to maintain. People's living standards are naturally affected. On the import side, imported goods become cheaper. People buy imported goods at lower prices than before.
Dollars circulate all over the world. The United States continues to print money, and the price of raw materials rises, so the price of finished products will inevitably rise, which will eventually lead to the rise of commodity prices in the entire industrial chain, thus triggering new inflation.
Printing money in the United States is not just an American act. Because of the global circulation of US dollars, it has a lot of influence on China. Everything has two sides, so it has an impact on the production development of Chinese enterprises and people's living standards.