Two days ago, US President Joe Biden drew criticism when he claimed that US inflation has not risen in the past few months. In an interview on “60 Minutes” that aired Sunday night, Biden stressed, “I am telling the American people that we are going to control inflation.” Amid Biden’s assertions, the U.S. Dollar Index (DXY) crept to around 110.776 ahead of Wednesday’s next Federal Reserve meeting. Meanwhile, a recent report by the Chinese Communist Party-backed Global Times urged de-dollarization, saying that a rising US dollar “could be the beginning of another nightmare” for “many countries around the world.”
Biden stresses that U.S. gas prices are back to March levels
after his administration drained the U.S. strategic oil reserve by 190 million barrels.
Inflation is terrible in the U.S., but U.S. President Joe Biden tells the American people it will be tamed, his comments in an interview on “60 Minutes” a Federal Reserve meeting that raised the benchmark interest rate 75 or 100 basis points (bps) aired a few days before the meeting.
Biden drew a lot of flak from economists and market strategists for suggesting that the country’s inflation rate has not spiked in months. Furthermore, the U.S. president boasts that U.S. gasoline prices are falling.
Biden tweeted on the 27th, “Folks, gasoline prices are back to early March levels,” he announced on the 28th.” In other words, almost all of the increases since the start of Russia’s war in Ukraine have been written off.”
However, the Biden administration has not explained much about why gas prices have fallen amid the Ukraine-Russia war and the highest inflation in the past 40 years. The U.S. president has not mentioned that U.S. oil prices are falling because the U.S. hastappedthe U.S. Strategic Petroleum Reserve (SPR). While Biden mentions that gas prices are back to early March levels, he forgets to mention that the administration begandraining the SPRon March 31, 2022.
In fact, the SPR is “at its lowest level since 1984,” according to various reports published across the country. The war between Ukraine and Russia is still ongoing and Europe is dealing with a serious energy crisis. While Biden was complaining about carbon emissions, the SPR has shrunk from 640 million barrels to 450 million barrels. Moreover, despite the billions of dollars the U.S. is funneling into Ukraine, Russian President Vladimir Putin detailed this week, declaring that he will not step back and will use “all available means”to win.
While the DXY rises, a CCP-backed editorial argues that U.S. bureaucrats have been “financial plundering” and that a strong dollar is a “nightmare” for other countries
Additionally, the CCP-backed Huangyu Timeseditorialurges foreign countries to lean toward de-dollarization, as a strong dollar may be “the beginning of another nightmare.” The editorial was published the day before the Federal Reserve’s meeting to raise the federal funds rate.” The super-strong U.S. dollar and the fall of other currencies will, to some extent, ease the searing inflation of the U.S. economy, but the world will have to pay the price,” says the Global Times.
Since the end of World War II and the start of the Bretton Woods Agreement, U.S. bureaucrats have engaged in “financial plunder” and exported the crisis to foreign countries, the authors of the Global Times opinion piece argue.57} The Dollar Index (DXY)fell for a third straight day after later, the DXY rose to 110.776 ahead of the Fed meeting on Wednesday.
The DXY is an index against six major fiat currencies, and over the past few months the greenback has been stronger than ever. A Global Times editorial stated that America’s problems will not be solved by the Fed and Washington because these entities refuse to look at the “root causes.”
“When people dig up the root causes, this is the inevitable result of blind and unlimited money printing in the U.S. to temporarily maintain ‘prosperity,'” the opinion editorial noted. “In other words, Washington was powerless and unwilling to solve the deep-seated problems exposed by the 2008 financial crisis.” The author adds.
While the political elite in Washington boast of the “myth of the American system” and take credit for “alleviating the crisis,” thousands of poor families around the world are being trampled upon by them.
What do you think about Biden’s claims about gasoline prices in the US while depleting the SPR? What do you think about the editorial published by Chinese state media claiming that a strong dollar is a nightmare for foreign countries? Let us know your thoughts on this subject in the comments section below.
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