UNITED STATES (VOP TODAY NEWS) – I started thinking for a while that Trump was a real agent for Russian President Vladimir Putin, because his actions and actions bore the interest of the United States in terms of the economy, but I finally came to the conclusion that Trump is hiding somewhere in a bin Laden belt and trained in a bin Laden camp in the mountains of Afghanistan, and the ultimate goal of the destruction of the United States of America, and finally get the grand prize to enter paradise and enjoy the legitimacy of Hoor Al Ain.
It deserves some explanation and attention, but it will not be the same spirit of fun and humor, so everyone understands that what can destroy the United States is the economy “It’s the economy … – the famous phrase in American politics, which was widely used during the successful election campaign To Bill Clinton against George HW Bush in 1992,” and China!
The laws of economics are the same as the laws of nature, they can not be changed because they are always governing. There is the law of energy conservation in physics, energy is not created from nothingness, and does not destroy without effect. There is also the theory of the pots, and as far as two cups away from each other, a single tube connecting them can make the water surface in the two cups equal.
In economics these physical laws are translated through the supply and demand base, which determines the price.
If both sides of the equation have 10 identical units of goods on one side and 10 dinars on the other, the price of each unit is equal to one dinar. If the value is 20 dinars, the value of each unit is two dinars. If there are 5 units and 10 dinars each unit Also two dinars, that is, in the economy can not change the amount of goods by, without changing the value of money and the price of goods on the other side, this is the law of supply and demand, no amount of goods.
After the collapse of the Soviet Union, and in Zimbabwe a short time ago, in Venezuela now the balanced relationship between the value of money and the quantity of goods has crashed, prompting governments to print more money, while the amount of goods offered, which led to a rapid rise in prices and inflation which Caused the collapse of the economy of these countries.
2008 In the USA Following the collapse of the US stock market, the US Federal Reserve – the Federal Reserve – has poured in huge sums of money in the US economy to counteract the banking crisis and lower consumption, leading to a decline in manufacturing. Now the amount of money in the economy has multiplied by several times as much as in 2008, and the balance between the amount of money and the quantity of goods has been greatly reduced. However, we have not seen inflation, or even a slight rise in prices, why? Does not this mean, in normal circumstances, that the United States turns into Zimbabwe or Venezuela in terms of rising prices?
The reason is simple: the demand for goods has realistic limits. A person can not eat 100 pieces of meat a day. He will not be able to drink 100 liters of milk a day and will not be able to wear five shirts at the same time or drive 3 cars at the same time. The supply of goods required for daily life in the United States of America, which determines the CPI has reached a state of long-overdue, that is, the demand has been fully met. In the sense that even if the average American consumer is given more money, he will eat only 3 pieces of meat as usual, drink a liter of milk, and fill one car with fuel. The supply of cheap goods to the American people does not stop even when the balance between supply and demand collapses. Why? Because those who provide the goods at almost the price is China .
It is clear that China is losing because of the loss of the dollar and the collapse of its value. The more dollars in the world, the less goods that these dollars can buy. This is the law of supply and demand governing all markets. But China, as in the past, is losing its goods, with the US trade deficit at $ 350 billion a year. The money China gets from its trade with the United States is not as a salary for its workers or for the development of its industries, but for the United States to invest There is in US Treasury bonds. In the sense that China supports the United States, by providing cheap goods at half the price without changing the prices, regardless of the value of dollars printed by the Federal Treasury.
The cynical Chinese have allowed that situation because they are thinking for tens and hundreds of years in the future, not for short years to come. They have pushed their people to work for free, and they have gained it and turned it into a reserve for the United States. China’s industrial renaissance, which aims to change all American institutions in China, and to create a broad sector of trained and qualified Chinese manpower, access to advanced technology, and infrastructure development. Goals are becoming close.
Regardless of the great goal and the price that China had to pay for it, the export of cheap Chinese goods to the United States is the only thing that prevents prices in the United States from floundering. Where there is no export of Chinese goods, for example, in real estate, prices are rising to record levels, with new property construction declining. That is, in sectors where there is no Chinese import, inflation continues and production falls.
The United States of America can practically produce all the goods it imports from China, but the prices of those goods will then be more than the Chinese ones.
The United States, the United Kingdom, the European Union, and Japan have printed huge sums of money, but we do not notice a shortage of cheap Chinese goods. Prices in the United States are not rising. I used to think that inflation in the United States is impossible, as long as China is sustained by its continuing loss of support from the US economy. But I did not notice the possibility that a person like President Trump would appear in the United States, who would voluntarily press the blasting button in the explosive belt around his waist, full of explosives.
In conclusion, there is no need to make it clear that those who save their money in US currency, including the reserves of the Gulf States, will also become poor.
Political analyst Alexander Nazarov