There is an absurd phenomenon that makes China people want to cry: the more goods China exports, the more foreign exchange it earns, and the more unfortunate it is for the people. If China does not export goods, but uses them for the lives of domestic people, it will not only improve people's living standards, but also avoid foreign financial subsidies; Or, to take a step back, if China's exports are given to foreign countries for nothing and US dollars are not collected, the domestic RMB will not be issued, the currency will not depreciate, and the losses of ordinary people in China will be small. But now, the goods produced are exported to foreign countries, and the dollars exchanged for the exported goods are also lent abroad, leaving the extra RMB in the domestic market and becoming "pure waste paper" without any goods as the basis. Because these extra "pure waste paper" circulate like the existing currency, it will inevitably lead to a sharp depreciation of the existing currency and a sharp rise in prices, which is called inflation. As a result, China people not only lost the wealth of export commodities, but also suffered the devaluation of monetary wealth.
On the other hand, the United States is just the opposite of China. Money from the American market flows to China, and goods from China flow to the American market. With the decrease of money in the market and the increase of goods, prices will inevitably fall, and the money in the hands of the American people can buy more goods. In addition, the dollars flowing to China returned to the US Treasury through China to buy US Treasury bonds. The US Treasury can use the money from China to increase the supply of public goods, which can further reduce the price and improve the purchasing power of the American people's money.
If we stand in the position of the Chinese and American people-not in the position of the country-we will see this problem more clearly. The goods produced by the people of China were bought by the American people in dollars, and the dollars were taken away by the China administration; The American people got commodities, the China government got dollars, and the only thing the people of China got was the depreciation of the existing currency.
As a result, the United States sends money to China and China sends money to the people; The United States exchanged these banknotes for various commodities needed by the American people, while China exchanged these banknotes for various commodities produced by the people of China. The key link in the formation of this Rubik's Cube is the separation of currency issuance and commodity increase: the newly-added commodities flow to the United States and other western countries, while the newly-issued currency remains in the China market, which continuously dilutes the purchasing power of the currency in the hands of ordinary people.