Source: jingsiyouwo666 (id:jingsiyouwo666)
Biden began to cheat people these two days, but he cheated American people, so we’ll watch the excitement next to him, don’t be emotional, lest we hurt ourselves.
How did he cheat?
On July 3, he issued a document on social media, shouting at American natural gas businesses in an imperative tone, asking them to “reduce energy prices and sell at cost”, and also strongly requiring them to “act now”.
His deceptive background is, of course, that inflation in the United States is now serious, that is, prices are rising too fast, especially energy prices, such as oil.
As president of the United States, of course, he should find a way to solve this problem. In particular, the U.S. mid-term election will be held in November this year. If he fails to solve this problem, Biden’s Democratic Party is likely to lose this mid-term election, which may lose the majority advantage of the Democratic Party in the U.S. Congress.
If such a result is achieved in the mid-term election, it will be difficult for Biden, the president of the Democratic Party, to pass anything in the U.S. Congress in the future, so his next two-year term of office will most likely be consumed in the wrangling between him and Congress.
Because we all know that the current political situation in the United States is that the Republicans will support whatever the Democrats oppose; The Republicans oppose whatever the Democrats support. As Biden is a Democrat, if the Democratic Party fails in this year’s mid-term election, that is to say, let the Republican party become the majority in Congress, then the next two years will be, if Biden is supported by the president, Congress will oppose it; Congress will support whatever Biden opposes.
Therefore, Biden is very anxious now. He wants to solve this problem, but so far he has not seen obvious results.
So far, he has played a card, that is, he has successfully persuaded the Federal Reserve to raise interest rates, and the rate increase is still relatively large. The Federal Reserve announced a 75 basis point increase in interest rates on June 15, the largest single rate increase since 1994.
It can be expected that such a large increase in interest rates will have some effects, but the specific effect is still to be seen step by step. Because the current inflation rate in the United States has increased since December 1981, and when the United States solved the inflation in 1981, the benchmark interest rate in the United States was as high as 20%. At present, the benchmark interest rate after the Federal Reserve raises interest rates is between 1.5% and 1.75%.
More importantly, the side effects of raising interest rates are too great, which is likely to lead to economic recession.
Why is raising interest rates easy to lead to economic recession? The general logic is that such an interest rate increase will inevitably lead to less money in society. Why? Because the interest rate is high, people dare not borrow money from the bank – whether it is personal consumption or business.
Then we can infer that if individuals borrow less money from banks for personal consumption, they will buy less things. When enterprises do business, they borrow less money from banks, and they produce less things.
In a word, less things are produced and less things are bought, which naturally means that the economy is in recession.
If the Fed’s interest rate hike leads to a significant recession in the U.S. economy, Americans’ anger at President Biden may exceed inflation.
Therefore, Biden’s current situation is indeed very difficult. It’s really not easy to be so worried and difficult at such an old age.
In fact, Biden has a good card in his hand, which is to cancel the tariffs imposed on China by trump when he was president.
If the tariffs imposed on China are eliminated, that is, the tariffs on Chinese goods sold to the United States are reduced, it can not only solve the problem of inflation, but also promote economic prosperity, or avoid economic recession, which should be said to have the best of both worlds.
Why do you say so?
First of all, by reducing the tariffs on Chinese goods sold to the United States, the cost of American enterprises buying Chinese goods will be reduced when Chinese goods arrive in the American market.
For example, if you charge a tariff of 1 yuan for something that was originally 10 yuan, the cost of American enterprises selling Chinese goods is 11 yuan. Since trump imposed another two yuan tariff on this basis, the cost became 13 yuan. Now, if Biden cancels the two yuan tariff, the cost will return to 11 yuan, which will reduce the cost by two yuan compared with the last two years.
It is common sense that if costs are reduced, prices may fall. But I want to remind my friends that this is only a possibility.
I say it’s just a possibility, which means it’s not necessarily. Why? You think, if you are the boss of an American enterprise, the comprehensive cost of the goods you import from China has been reduced from 13 yuan to 11 yuan. Will you sell them for 11 yuan? not always! If you can sell 20 yuan, you will definitely buy 20 yuan. If you can sell 100 yuan, you will also sell 100 yuan. If you can sell 1000 yuan, you will still sell 1000 yuan Therefore, the cost reduction only brings the possibility of price reduction, not absolutely.
However, if there are other factors, this may become a reality.
For example, the United States is now raising interest rates, which leads to less money in people’s pockets. If people have less money in their pockets, they will be more stingy and care more about the price. If the price is high, they will not buy, so businesses may reduce prices.
When the cost of the original business is high, for example, when the cost is 13 yuan, if it is lower than 13 yuan, he will not sell, because he loses money, so the price must remain above 13 yuan. Now, the cost has become 11 yuan. If someone still thinks that 13 yuan is expensive and is only willing to pay 12 yuan, the merchant will still sell things for 12 yuan, and the price will be 12 yuan.
This is the logic that the elimination of the tariffs imposed by the United States on Chinese goods will eventually lead to the fall of prices in the United States. Prices have fallen, that is, inflation has fallen.
At the same time, this move is different from the Fed’s interest rate hike. It can not only solve the problem of inflation, but also will not lead to economic recession, but will promote economic prosperity. Why?
Because the price is cheaper, people buy more things, which is originally the performance of economic prosperity. At the same time, when some Chinese goods arrive in the United States, they are not sold directly to consumers, but as raw materials or parts of enterprises. Then the comprehensive cost of American enterprises importing goods from China is reduced, which means that the cost of American enterprises is reduced, and the lowest price it can bear when it finally sells goods is also reduced. Then its things will sell better, and then it is possible to make money and maintain production, Then the economy can prosper.
So I say that for Biden, the elimination of tariffs on Chinese goods is the best solution to his current dilemma. Of course, this move alone is not enough. It’s like people are ill. It’s not good to take only one medicine. However, this medicine is indeed a medicine with good curative effect and no side effects.
Do Americans see such a good thing? Naturally, I can see it. This is a common sense topic, not an unfathomable theory.
Now that he has seen it, why doesn’t he hurry up?
There is only one reason. This is beneficial to the United States, but it is also beneficial to China. Because the United States has abolished the tariffs imposed on Chinese goods, Chinese goods will sell better in the United States, and it will also promote China’s economic prosperity!
Americans must be reluctant to let the Chinese live a good life.
Therefore, Biden is still hesitant about this matter. Some time ago, it was said that it would be carried out, but some of the following officials were in favor of it, and some were against it, which caused a lot of trouble. For example, finance minister Yellen supported it, but trade representative Dai Qi opposed it. Anyway, no matter what happens in the United States, there are people who support and oppose it. Finally, the biggest official is not easy to be a man. They call this democracy. Democracy is just wrangling. No wrangling, no democracy. They call this freedom, because everyone can do whatever he wants. This is freedom. But everyone has their own ideas, so they don’t know how to do it. They call this human rights, because if you don’t let the wrangling, you will deprive human rights; If you don’t let quarrels, there will be no human rights.
Therefore, many things in the United States have been dragging on, dragging on, because of constant quarrels, it is really difficult to be president.
At the same time, we can also see that the current policy of the United States is to kill itself rather than its opponents as much as possible. This is a typical double lose.
This is completely opposite to the win-win situation that China has always advocated. According to the Chinese way, since it is good for the United States and China, then Hello, I am good, everyone is good, how good!
This is the starting point of all current policies of the United States and the fundamental difference between China.
I speak this truth so easily that friends must not think it is a trivial matter because I speak it easily. In fact, this is the fundamental difference between the basic national policies of China and the United States at present, and it will certainly be the fundamental reason for determining who wins and who loses in the future game between China and the United States.
It’s a little far away. Let’s go back to our topic today.
Biden is currently struggling to contain inflation and prevent economic recession. At present, it may be able to curb inflation, but at the same time, the move of raising interest rates, which may lead to economic recession, has been implemented. It can contain inflation without causing economic recession. We are still hesitating to abolish the tariffs imposed on Chinese goods.
So far, Biden has not found a practical way to solve the problem of inflation.
We can imagine how anxious Biden is now.
So there was what he said at the beginning of today. He began to cheat. He asked the energy company to sell goods at cost price. In other words, you guys should not be too unscrupulous. Don’t make so much money, make less money, or don’t make money, and bring down prices in the United States.
Why did I say he was lying?
Because according to the universal basic principle of economics, that is, the principle that the relationship between supply and demand affects prices, which we talked about in high school politics class, the root cause of high prices is that more people buy things or less people sell things.
Just like we buy cabbages on the street, if there are fewer people selling cabbages and more people buying cabbages, the price of cabbages must rise. The same is true of pork. The prices of all commodities follow this law.
Therefore, the root cause of serious inflation in the United States is that there are few things, but there is more money on hand.
Why are there so few things? On the one hand, its manufacturing industry is underdeveloped. On the other hand, COVID-19 has led to problems in the supply chain, resulting in less production. Coupled with the conflict between Russia and Ukraine, many things are in short supply, such as oil and natural gas.
At the same time, in the past two years, because of the COVID-19, the United States has issued money indiscriminately, and there is too much money circulating in the United States.
This is like, when we buy cabbages on the street, there are a large group of people carrying a lot of money everywhere to look for cabbages, but few people sell cabbages, and there are few cabbages on the stall of the people who sell cabbages. Can you say that the price of cabbages does not rise?
At this time, Biden said that those of you who sell cabbages are not allowed to sell at a high price, but only at cost.
His practice is not impossible. In fact, during the epidemic period, China also imposed similar restrictions on those businesses that raised prices indiscriminately. This is the invisible hand of the government to intervene in the market.
But there are two problems with this method:
The first question is, in American terms, the practice of socialism. For example, when China was short of electricity last winter, according to the market law, if there was less electricity and more people used electricity, the price could be increased, but in China, it was not allowed to increase the price when power plants sold electricity. At the same time, the price of enterprises that supply coal to power plants is also limited. For state-owned enterprises that sell coal, you have to sell coal to power plants at a loss, and then power plants have to generate and sell electricity at a loss. In this way, the price can be controlled.
In this way, the power supply can be guaranteed, and the electricity price will not rise too much.
But this is Chinese and socialist. Americans are very critical of this thing. They say that we are not engaged in a market economy. They do not give our country the status of a market economy, which makes us suffer a lot in the economy. This is the case.
We won’t discuss whether this method is good or not today, but in a word, it’s a Chinese method and it won’t work in the United States. Because the United States is a capitalist society and pursues the so-called free market economy. Since the economy wants freedom, your president can’t do that. In the United States, this is not allowed in law, nor can it be accepted by Americans in ideology.
As for those capitalists who have made more profits because of the rise in the price of oil and other commodities, they will not take Biden’s words seriously, because if they listen to Biden’s words, it is equivalent to taking money out of their own pockets.
Therefore, in the United States, Biden’s statement is illogical and unworkable.
At the same time, we should also see that even in China, such practices can only be short-term, not long-term. This involves the second question: what is the final outcome of making state-owned enterprises lose money for a long time? All state-owned assets have been lost. That’s definitely not a thing.
Therefore, whether it is China or the United States, whether it is the socialist system or the capitalist system, the fundamental solution to the rise in prices is to solve the relationship between supply and demand, in short, to produce more things. That is what the Chinese say, we should organize production well. For example, we should establish a smooth supply chain. At the same time, do not distribute money indiscriminately.
In this sense, Biden’s practice, regardless of socialism and capitalism, makes no sense in economic principles. This economic principle is that the relationship between supply and demand affects prices.
In particular, I would like to point out that the economic principle that the relationship between supply and demand affects prices is the most basic and fundamental principle in economics, not something enigmatic.
Don’t you think it’s “basic” to use the analogy of Chinese cabbage to make clear the truth in a few words? If you don’t think it’s very basic, let’s think about the economic principles that can be talked about in high school political science textbooks. It’s not basic. Can it be advanced economic principles?
As the president of the United States, how can Biden not understand this basic economic principle? Even if he doesn’t know, don’t the think tanks around him know? Don’t those economic professionals around him know? Isn’t it claimed that there are so many people in the United States who have won the Nobel Prize in economics? Don’t you even understand this basic truth?
So it’s obvious that Biden said so with a sense of understanding and pretending to be confused. Then this is not a lie. What is it?
So when Biden issued such instructions on social media, someone asked Biden in the comment area: “God, don’t you even understand the basic relationship between supply and demand?” This is a rhetorical question from Americans, not Chinese, let alone me. Although this is consistent with my point of view, I just hide it in my heart. Today, I’m here to say that I didn’t leave a message in English under Biden’s social media. I deliberately showed the screenshot of this rhetorical question today. It’s in pure English. Friends can have a look.
From this, we can summarize the routine of the U.S. government in solving the most urgent domestic inflation problem.
The first is the conventional routine, which I call the drinking poison to quench thirst method, and it came on immediately. I mean interest rate hike here, because interest rate hike is a cup of poisonous wine. Although it can curb inflation, it is very likely to bring about economic recession at the same time.
The second is the best way. I call it the four perfect four beautiful method, but it is not used yet. Why is it called the best of four, not the best of both? Because the elimination of tariffs on Chinese goods is conducive to curbing American inflation, avoiding American economic recession, and benefiting both the United States and China.
Third, the most despicable method, that is, the method of cheating, has been used now. In a sense, he can’t help it. In Chinese idioms, it’s called qianlvjiqiong.
I especially emphasized at the beginning that Biden lied this time, not to the Chinese, but to their own people. This is very important. Why?
The reason is very simple. He even deceives himself. Isn’t it normal for him to deceive others? So we can understand through this matter that it is a habitual behavior for the United States to spread rumors and discredit China in front of the world, so we Chinese don’t need to be too angry, as long as we deal with it well.
When I think of American politicians lying, I think of the man named Luan Ping in “outwit Weihu mountain”. This man said such a sentence before he died. He said, “I Luan Ping lied all my life, talking to people when I saw them, talking nonsense when I saw them, getting promoted and getting rich.”
I have always believed that this sentence is the most appropriate way to describe American politicians, including the president of the United States. To be a politician in the United States, I’m afraid it’s habitual and universal. You need to lie all your life, talk to others and talk to ghosts, and then you can get promoted and get rich safely.
For example, they said that there was so-called forced labor in Xinjiang, and they also issued a special law to restrict the products in Xinjiang. The name of this law is the Uygur forced labor prevention law, which was officially implemented on June 21, more than ten days ago.
Is there any so-called forced labor in Xinjiang? We can tell by looking at what Americans say.
In early June, more than 20 days before the formal implementation of the Uygur forced labor prevention act in the United States, a sports brand supplier in the United States broke the news that GE Mingxi and Andrew Sheila, heads of the economic and Political Department of the U.S. consulate in Guangzhou and consuls, admitted to guests at a reception last year that the U.S. government hoped that the U.S. business community could “understand” the hype about the existence of so-called forced labor and genocide in Xinjiang, It is a means of the United States to disrupt China.
See, they talked together and told the truth. Officials asked businessmen to “understand” the government’s nonsense, because the U.S. government wanted to mess up China.
When Pompeo, the US Secretary of state under President trump, made a speech at Texas A & M University on April 15, 2019, he simply said this:
“We lie, we cheat, we steal, and we have a course specifically to teach these. This is the glory of America’s continuous exploration and progress.”
This is what Pompeo said when he spoke to the students in public. This is what he said when he was educating the next generation. I haven’t even changed the punctuation marks.
So what I want to say to my friends today is that the United States, especially American politicians, lie and talk nonsense, which is their normal state. This is normal America. So we Chinese people should maintain a peaceful state of mind. We just need to focus on how to deal with it without too much emotional fluctuation.
If one day they don’t lie and talk nonsense, I think they should be vigilant. Or it may be at its end and have to tell the truth. Or, it may be a more hidden lie, which we need to be highly vigilant and carefully screened.
As for why American politicians are like this, there is no time for a detailed analysis today. However, I can provide my friends with an abstract logic, that is, when everyone tells lies, the basic principle of survival and even development is to continue to tell lies. If someone dares to tell the truth, the end may be very ugly.
This reminds me of Luan Ping in “outwit Weihu mountain” again. As I said before, Luan Ping described himself like this before he died:
“Luan Ping has lied all my life, talking to others and talking to ghosts. I am safe, promoted and rich.”
However, Luan Ping died after saying this. His next sentence was:
“I didn’t expect to die at the hands of you liar when I told the truth for the first time today.”
The liar he mentioned here refers to Yang Zirong, a PLA scout who broke into the enemy.
At that time, Yang Zirong was ordered by the mountain carving to shoot Luan Ping.
The reason why Zuoshan Diao wanted to shoot Luan Ping was that Luan Ping and Yang Zirong had a verbal contest in front of Zuoshan Diao.
In that verbal contest, Luan Ping said the truth when he spoke of conscience, because the situation of the people’s Liberation Army bandit suppression team he introduced was true and accurate. And Yang Zirong, because it is to break into the enemy, it must not tell the truth, can only tell lies, what he says is to deceive the enemy, so Luan Ping is called a liar.
As a result, the bandit leader Zuoshan believed Yang Zirong and did not believe Luan Ping.
So Luan Ping said before he died:
“Luan Ping has lied all my life, talking to people when I see them, talking to the devil, and getting promoted and rich. I didn’t expect to die at the hands of a liar like you when I told the truth for the first time in my life.”
Luan Ping, who cheated people all his life, died only because he told the truth once. Yang Zirong, an investigator of the people’s Liberation Army, obviously sneaked into the bandits to eliminate the bandits, but by lying, he wanted wind and rain in the bandit’s nest. Finally, he successfully completed the task and ended the bandit’s nest.
This ridiculous logic is probably the fundamental reason why American politicians lie all their lives.