As John Connery, former US Treasury Secretary, famously said: The dollar is our currency, but this is your problem.
Whenever there is a financial and economic crisis in the United States, the Federal Reserve begins to print money, regardless of the "international dollar credit and monetary stability problems" it should bear, leaving inflation to the world and enjoying the greatest benefits for itself.
The epidemic in COVID-19 is not unexpected. Since March 22, 2020, 4-5 trillion dollars of base currency has been distributed, and another 2.2 trillion dollars will be distributed to continue to wash away its depressed local economy.
However, if the US federal government pays a little attention to the prevention and control of the epidemic, it will not get the only way to stimulate the economy with dollars.
In August, the Federal Reserve issued a promise of "keeping interest rates low for a long time and continuing to overspend the currency", and extended its loose monetary policy until the US economy completely improved.
So, what can the American economy improve?
Philip Marey, an American senior strategist at ABN amro, said: The measures to stimulate the economy by relying solely on the surplus of dollars are a form of extreme capitalism, that is, high-income earners and large enterprises enjoy the benefits, while small enterprises and workers bear the burden.
Philip Marley means: the US stock market has skyrocketed due to the over-issuance of US dollars (most of the over-issuance of US dollars has entered the virtual finance field, idling), and even created a record high; The soaring stock price has made Wall Street and big corporate executives earn a lot of money; However, it has little impact on the real economy. The recovery of the US job market in early September has slowed down to an unbearable level. One of the Fed's own reports also said: More and more American workers are permanently unemployed.
Stephen Gallagher, chief American economist of Societe Generale, pointed out in a research report that the trillion-dollar compulsory stimulus in August was ineffective, and the new fiscal stimulus plan was delayed, which made people doubt the possibility of optimism in the fourth quarter of 2020 and the US GDP of 202 1.
James Knight Ley, chief international economist of ING, said: The uncertainty of the time and effectiveness of large-scale application of COVID-19 vaccine and the threat of a sharp increase of COVID-19 epidemic in the second half of this year mean that the service industry, the largest economic component in the United States, is struggling to recover, so we should be fully vigilant against the idea that the American economy will recover soon.
Reuters's survey of more than 50 top economists in the world shows that most economists believe that the US economy may not enter a new stage of strong growth until 2023, when the Federal Reserve may remember a little international responsibility, which will slightly curb its excesses and low interest rates.