Author: Rong ping source: official account: Rong Ping (ID: rongping898) has been authorized to reprint
Biden has laid a “giant thunder” for the division of the United States!
On August 16, US Eastern time, a package of government appropriations called the inflation reduction act, which is said to have a total value of 740 billion US dollars, officially took effect under the signature of US President Biden
The US transnational financial capital and new energy interest groups with the Democratic Party as the “political puppet” expressed warm welcome to this
——As the initiator of the bill and also the signatory of the bill, US President Biden praised the bill at the signing ceremony held in the state banquet hall, saying that “the inflation reduction bill is one of the most important bills in American history”.
American traditional energy giants and local manufacturing owners who regard the Republican Party as a “political puppet” are furious about this. In public opinion channels, they call the bill signed by Biden into effect “the dog shit bill.”
——As an attitude response, the Republican congressmen who once split their views because of trump, even Liz Cheney, who opposed Trump and himself, voted against the previous resolutions of the two houses.
There is no doubt that there is a profound meaning behind this kind of “clear distinction” rarely seen in American political history.
To paraphrase an American political saying:
A bill without compromise is a flame thrown into the firewood!
In particular, at a time when the former president of the United States, Republican trump, was raided by the FBI to “steal his house”, the Democratic Party, the Republican Party and the supporters of both parties in the United States continued to ferment, and there were fierce confrontations, even personal threats, violent resistance to the law, and shouting civil war, this democratic led war under the guise of “inflation reduction” is of no significance to the current inflation reduction in the United States, Even the negative inflation reduction act, which seems to add fuel to the fire, is more like a firebomb thrown at the firewood!
First of all, it needs to be clear that the “inflation Reduction Act”, which was passed by the Democratic Party and voted by no Republican congressman, although called “inflation reduction”, is almost 1:1 copied from the “energy security and climate change investment act” proposed by Biden during the 2019 presidential election.
In other words, at a time when the US mid-term election is about to open, the so-called “inflation reduction” signed by Biden, which seems to “plead for the people’s life” and requires a one-time US fiscal expenditure of several hundred billion US dollars, is in essence just a public and private use to please the backers and increase chips for the party’s election!
Of course, if you return the money, you should also return the money!
After all, in a country with institutional corruption such as the United States, it is a business to support the president. The three-year-old baby knows this very well.
But obviously, Biden didn’t do the “presidential business.”
——Let’s take a look at this new bill, which Biden praised as “the most important bill in the history of the United States”. What does it say?
1. The largest environmental protection investment project in the history of the United States: the government allocated US $369 billion for energy security and climate investment, and US $4 billion will be used for environmental protection in the western region of the United States;
2. The development of Obamacare: the government allocated 64 billion US dollars for medical insurance and medical subsidies;
3. Tax reform: large enterprises with a revenue of more than US $1 billion will be subject to a Book profit tax of at least 15%, a share repurchase tax of 1%, and US $80 billion will be allocated to strengthen the law enforcement of the US Internal Revenue Service and reduce tax evasion;
4. Subsidies for new energy vehicles: locally assembled vehicles in North America will be eligible for tax relief;
Does it look good?
It is also environmental protection and governance, medical insurance subsidies, tax reform, and local new energy manufacturing to stimulate job creation
To paraphrase the words of Biden’s supporters, the inflation reduction act can not only effectively improve the natural environment, energy security, medical security, national taxation, and employment environment of the United States, but also squeeze and restrict the so-called “overtaking in a curve” of China, the largest strategic rival, under the “lead again” of environmental protection and new energy automobile industry!
But is this really the case? To answer this question, we must first answer another question:
Why did the United States erupt in today’s “epic” inflation?
As we all know, the most intuitive manifestation of inflation is that there is too much money, too few commodities, and supply exceeds demand.
Based on this, the apparent causes of US inflation are the excessive monetary growth caused by the massive quantitative easing to stimulate consumption in the United States since the outbreak of the epidemic, and the destruction of the normal cooperation mechanism of international trade and industrial chain initiated by the world’s major producers and manufacturers of consumer goods, represented by China, based on political considerations;
Of course, this is just a “surface image”.
The capital bloodthirsty and national governance ability involved in the spread and uncontrollable COVID-19 epidemic in the United States are not discussed for the time being. There are two internal reasons for the international trade sanctions initiated by the United States against the world’s major producers and manufacturers of consumer goods represented by China:
1. The United States has long abused the position of the US dollar as the international reserve currency, and the excessive issuance of US dollars has led to serious siltation of the international reservoir, and the purchasing power of US dollar commodities has continued to be weak. The highly “national financial” industrial system created by the US deindustrialization has been unable to return us dollar investment, and the US debt credit is difficult to maintain;
2. The United States is obsessed with the hegemonic idea of “putting its own security interests above other countries in the world”. In international diplomacy, it disregards the objective economic laws and reality and “takes politics as the key”;
The most typical case is the US China Policy
——When the local basic manufacturing industry continues to decline, and after the United States, which has exceeded China in international trade for years, gradually loses its core position in international capital investment, the United States, which is failing in economic competition, has brazenly opened a “national war” of trade sanctions, political pressure and even military threats against China!
In other words, the “epic” inflation in the United States today is purely the work of the United States itself.
So, is there still a way for the United States, which has gone astray?
The answer is obvious: “yes”.
As I mentioned earlier, the most intuitive manifestation of inflation is that there is too much money and too few commodities, and supply exceeds demand.
Based on this, from the literal level, it seems that as long as two conditions are met, all inflation can be cured:
1. To ensure a reasonable amount of money, that is, to ensure the purchasing power of money;
2. Ensure sufficient commodity supply and consumption demand matching with commodity supply;
How can these two conditions be realized?
The basic economic principles tell us that the “monetary tightening” policy of reducing government debts and raising loan interest rates, that is, reducing the amount of money thrown into the market, can effectively ensure that the total amount of money and purchasing power can reach a reasonable level under human intervention
Correspondingly, in order to ensure sufficient commodity supply and consumer demand stimulation, we also need to encourage investment in production and reduce loan interest rates to ensure that both the production side and the consumers have money.
Do you see the problem? The realization of the two major conditions for solving the inflation problem is mutually contradictory but complementary. Neither is indispensable!
——Due to the monetary tightening, the production side tends to be conservative due to the “capital problem”. Affected by this pessimistic sentiment and the unemployment problem, the consumer’s consumption desire and ability decline, which in turn forces the production side to further scale downsizing.
Monetary easing, the production side and consumers are “encouraged” to rapidly expand production scale and improve consumption level, and the society is harmonious and prosperous.
However, although “encouragement” is good, it is necessary to grasp the scale.
When the total amount of money rapidly increased in the short term exceeds the demand bearing value of market circulation and settlement, the rapid rise of production materials and labor costs due to “expensive goods and cheap money” is bound to continuously dilute the actual purchasing power of money, and strike at social consumption and production capacity from the root!
Obviously, although there are many difficulties in the final realization of the two basic conditions of “solving the problem of hyperinflation”, as long as the United States can soberly understand itself (the fact that American daily consumer goods are highly dependent on imports) and control itself (formulate a good monetary policy and be faithfully implemented), then even if it walks on a tightrope, it will certainly be able to avoid risks
However, is it really possible to “avoid danger and danger”?
According to the latest public data of Forbes:
From March 18, 2020 to April 5, 2022, Tesla CEO Elon Musk’s net capital increased by $266 billion, or 1080%.
It is such a coincidence that Musk’s wealth growth has faithfully followed the epic “coin throwing” of the United States since the covid-19 epidemic!
What caused all this?
As we all know, in the era of currency trading, the distribution of goods depends on the use of money. In a word, whoever has money can get goods.
Based on this, a theory is imminent:
In the large environment of relatively constant supply in the total commodity cycle, the sooner the money is issued, the more people who have the new money can buy more goods first!
After that, as more and more money continuously poured into the market, the purchasing power of money continued to decrease, and the goods that can be purchased by unit currency began to gradually decrease. People at the end of the exchange chain were more difficult to buy goods, and finally they were forced to accept the outcome of rising prices and lack of materials.
Who was the first to have the new currency? The government has the right to coin! The more closely related to the government, the more priority the interest groups have!
Who can only be forced to accept the outcome of rising prices and material scarcity? Small business owners, ordinary consumers, and the majority who truly constitute the foundation of the United States!
Of course, under the current level of productivity, such “simple objective laws” can not be changed anywhere in the world.
However, since the “coin dropping” of the epidemic, the big capitalists in the United States have really looked too ugly
——Forbes data shows that from March 2020 to April 2022, the total wealth of American billionaires increased by 62% on average. Meanwhile, data from the Bureau of Labor Statistics (BLS) showed that the average hourly wage of American workers increased by only 10% during this period.
So, is the current US predicament just a “development problem”? no This is a “distribution problem”!
Of course, this is also the only way to solve the “inflation problem” faced by the United States, which has been highly financialized under the tide of “de industrialization” since the global trade division system has been continuously promoted for half a century
——Starting from the domestic wealth distribution, cut the development cake well, solve the problem of “money commodity distribution”, and relieve the persistent high inflation in the United States from the root
However, it is obvious that “all the money of the gentry will be returned, and the money of the people will be divided into 30% and 70%.” this is what Mr. Huang is good at.
As for the future?
Biden’s “inflation Reduction Act” is expected to take 10 years to implement, but Biden is only one year away from the next presidential election!
What if the Republican Party, which opposes the bill unanimously, wins the election?
Is such a “national strategy” with an investment scale of hundreds of billions of dollars really a matter of making decisions on the head and knocking on the thigh?
In contrast, the “beacon fire drama Princes” is a gas!
Biden, what is the inflation reduction act?
By kicking aside the shortage of food, clothing, housing and transportation for the American people and China, the largest industrial manufacturing country in the world and the largest trading partner of the United States, and then using the incomplete industrial chain to manufacture more expensive new energy vehicles and build more environmental protection projects in the United States, can we reduce inflation and lower the price of American eggs?
Regardless of the increasingly difficult employment environment of ordinary Americans during the epidemic period, the objective fact of the current energy use structure in the United States and the huge determination and sufficient time required for the major strategic shift in national governance, and then only through the dominance of political parties, a government order will be issued against the local traditional energy giants and manufacturing owners in the United States, and they will open their mouths at all costs for the sake of environmental protection?
Is it really “Bai Zhenhua”?
It’s really “worship Zhenhua”!
At the end of the article, the author has something to say
When benefits intersect, they disperse; When the potential intersects, the potential loses.
Since 2012, when the United States launched the rebalancing strategy of returning to the Asia Pacific and pointed at China, internally, it has linked the scum to stir up the situation in Xinjiang, Tibet and Hong Kong, and externally, it has instigated the lackeys to interrupt the China Japan ROK trade negotiations, the China Myanmar Railway Planning, and the construction of the China Pakistan Economic Corridor
At that time, from the East China Sea to the Taiwan sea to the South China Sea, it can be said that there was smoke everywhere for a time!
However, it is obvious that although the United States, which is dragging its feet with weak countries such as Afghanistan, Iraq and Syria, has a great potential, it is slightly inadequate with respect to China.
The breathless sea confrontation in 2016 was a turning point, which marked that the combat strength support for the United States’ return to the Asia Pacific strategy has actually shrunk and shifted to the traditional garrison area of South Korea, Japan and Australia.
The Sino Indian border dispute in 2017 and beyond was the last military adventure before the United States was unwilling to fail and the South Asian forces withdrew. However, as we can see from the back, under the desperation and rout in the garwan Valley, India, which ran in a panic, can be said to have thrown the failure of the United States squarely before the eyes of the whole world
If you dare not fight, then fight!
As a result, the trade war broke out, the financial war intensified, the cultural war, the network war, and the biological war. Under the hysteria of the United States, all kinds of chaos began to pour in
However, the United States failed to win after all!
I don’t dare to fight, but what should I do? That’s disgusting!
The recent Pelosi’s farce is a typical case
——Knowing that this move will not bring any benefit bonus to the United States, or even be doomed to defeat, the Americans who are really “without cards to play” still have to walk with their necks tied!
It is true that from the perspective of Pelosi’s personal interests, all this can reduce the sentence of her “poisonous ghost” husband and pull the skirt for her own son.
But what about American politics? They acquiesced to this, purely to disgust China!
However, nausea is only nausea.
When the United States, a blood sucking zombie monopolized by bastards, animals, animals and parasites, can no longer suck blood all over the world!
When the United States, such a kneading country that benefits each other, benefits each other when they are exhausted, power each other when they are defeated, starts to dry up because it can no longer get enough external blood supply!
The infighting broke out! The tear is getting worse! The two parties and the interest groups behind them, which once agreed with the outside world, began to turn against each other in the face of great fear and greed, fighting for the last piece of fly meat!
So, for us, is dog biting on the other side of the ocean just a good play?
This has verified the correctness of our current road, incomparable correctness!