The status of the U.S. dollar faces a test

China Daily, September 16 (Dang Chaofeng) The US news media "Newsmax" website published an article on the 15th criticizing the US government for ignoring the interests of ethnic minorities.

The article stated that for most Americans, it is much more difficult to make a living now than before the outbreak of the new coronavirus.

"If you don't start out in a high-paying job, rising commodity prices are reducing the quality of life. That's why many Americans feel that the White House's celebration of the Inflation Cutting Act on the 13th is an insult to their suffering."

According to Wharton’s budget model, this bill could increase inflation in the short term. Meanwhile, in August, food prices rose 13.5% compared with the same period last year, which has not happened in 43 years.

Two and a half years later, black and Hispanic households should have begun to bounce back, but a series of policies to lower inflation, such as Biden's American Rescue Plan, caused real incomes to fall last month 3.4%.

The article pointed out that a recent poll by NPR and Harvard University showed that due to the impact of inflation, black Americans are much more likely to have serious financial problems than white people (55% vs. 38%). They are also much more likely than whites to have a month's worth of emergency savings (58% vs. 36%) and to be unable to buy food (32% vs. 21%). No wonder more than half of nonwhite voters (54%) disapprove of the president's job performance.

These households rely on short-term loans to pay their bills. Now, lawmakers want to eliminate financial institutions that offer such loans by forcing higher interest rate caps. The Senate is considering capping national interest rates at 36%.

In addition, the Better Business Bureau (BBB) ??released a new short-term loan fraud investigation report. The report states that some people are taking advantage of vulnerable groups to engage in fraudulent activities under the guise of legitimate lending financial institutions.

Fraud is indeed illegal and should be prosecuted. Unfortunately, the Better Business Bureau unfairly lumps short-term lenders and scammers together as if they are the same person. To be clear, most microfinance institutions are not rated F by the Better Business Bureau, at least half are rated A, but the Better Business Bureau is pushing for changes in the industry and adopting the rate cap proposal , which makes the provision of these loan services financially unsustainable.

The results would be catastrophic, making the situation worse for vulnerable groups. Inflation isn’t going away, so it’s critical to help unbanked Americans access resources to meet their unexpected needs. This is the message that minority groups want to hear from the president. Related Q&A: What is inflation? “Currency” refers to currency. "Inflation" means that there is too much money, the money supply exceeds the objective needs of economic operation, and the government issues more banknotes, causing the currency to depreciate. This phenomenon is called inflation. Thus the monetary phenomenon of skyrocketing prices. "Inflation" has the following characteristics: (1) Inflation is linked to the circulation of banknotes and is a unique phenomenon under the conditions of banknote circulation. (2) Inflation is linked to prices (3) Inflation is linked to the overall price level (4) Inflation is linked to the continued rise in prices (5) There are two types of inflation: overt and covert inflation. The main measurement indicators include: (1) Consumer price index. It is an indicator used to measure the average change in prices of goods and services consumed by urban households and individuals in various periods. (2) Wholesale price index. It is an economic indicator that reflects the average change in prices of various commodities in the wholesale market in different periods. (3) Gross national product deflator. It is an economic indicator that measures the changes in the overall price level of final products and services produced and provided by a country's economy in different periods. (4) Determination of hidden inflation. The classification of inflation includes (1) According to the causes of inflation, it can be divided into several types: demand-pull type, cost-push type, structural imbalance type and expected inflation. (2) According to the manifestations of inflation, it can be divided into: open inflation and hidden inflation (3) According to the different extent of the increase in the overall price level, inflation is generally divided into crawling inflation, mild inflation, and galloping inflation. Inflation and hyperinflation. Reference: Love to ask knowledgeable people