What impact will the restart of the US dollar printing press have on the people of China?
The restart of the dollar printing machine means that investors who hold dollars will be levied seigniorage. Secondly, if the dollar printing machine is operated repeatedly, China's foreign exchange reserves will be further lost. Finally, the export and return of dollars will cause losses to our foreign trade enterprises. For example, when we sell goods to the United States, we will feel that things are cheaper, and when we return to China to exchange RMB, we will obviously feel that our income has decreased.
Of course, in every crisis, because the dollar is a safe-haven currency, it will appreciate because of the tight liquidity, so the newly issued banknotes in the United States will be offset. Then, when the global economy is in a downturn and the dollar appreciates, asset prices generally fall. High dollar and low assets give Wall Street a chance to harvest cheap and high-quality assets around the world. However, it should be noted that the restart of the US dollar printing machine will have limited impact on us in the early stage and will lead to imported inflation in the later stage.
To sum up, this is the impact of the restart of the US dollar printing machine on the people of China.