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Why does the devaluation of the US dollar lead to price increases in developing countries when the US issues paper money?
The reason is that China's economic growth is too dependent on exports, and jobs and employment opportunities are provided by export enterprises. In order to keep the export stable, the central bank can only control the exchange rate of RMB against the US dollar at a stable level by regulating the circulation of RMB. However, the purchasing power of RMB should appreciate with the development of China's economy, because other countries have to buy RMB to buy goods made in China, and the demand for RMB in the international market is increasing. Therefore, in order to curb this appreciation, the central bank can only issue more RMB, so that supply exceeds demand and the price of RMB is depressed. More issued RMB will enter the market by increasing loans or repurchasing government bonds. Too low loan interest rate leads to overheated investment, and a large amount of funds flood into real estate, which should be caused by real estate speculators, not developers. According to the original, the more developers there should be, the lower the price, because there are many sources of goods. But demand is growing faster than supply. But why was inflation particularly obvious last year? Because of the slow economic recovery in the United States, the Federal Reserve introduced the Q2 quantitative easing policy, which aims to stimulate people's consumption by raising inflation (unlike the China administration, which knew that inflation would happen but didn't warn people for fear of panic), because if people don't spend now, it will be more expensive in the future, so they are encouraged to spend more. Is to give people a panic. People are afraid that they will buy less things with the same money in the future, so they will buy them first. However, the negative effect of this policy is that people, especially investors, invest heavily in anti-inflation items such as rare metals (such as gold and silver), corn and oil because they are worried that future asset depreciation will lead to an increase in global raw material prices, because the current raw material markets are all global markets. When the price of raw materials rises, it is when people can really feel inflation. Because the price of chemical fertilizer raw materials has increased, the price of vegetables has increased, the feed for pigs has increased, and the price of pork has increased. In addition, in order to keep the exchange rate stable, China has no choice but to follow the Q2 policy of the United States, which will further aggravate the inflation in China. So prices all over the world have gone up, and the ultimate murderer is the United States.

The suggestion is to shift more exports to Europe, Africa, South America and so on. Stay away from the United States, stay away from the dollar, and settle overseas in euros, bypassing the dollar, or it is best to settle directly with trading countries in RMB and replace the dollar with RMB.

In addition, it also encourages the development of agriculture and renewable energy, and minimizes dependence on raw material imports. America is still a good exporter of agricultural products. Therefore, China should develop agriculture. Accelerate the consumption of foreign exchange reserves and buy more assets abroad with dollars. You can't be hanged by the United States and the dollars in your hand.