I used to wonder why prices in the United States are so cheap. Now I have some direction. Write it down and read it later.

Source: Internet
Author: User

After reading the old blog, I understand it as follows:

The dollar is the world currency.

The United States can use its global resources by printing banknotes (whether it is appropriate to reserve it first.

Why does the dollar have this function? Why can I snatch resources by printing money?

Fed.

The United States has unilaterally increased the supply of currency while other countries have not changed. As a result, the total amount of currency has increased, and the currency pair of goods in the commodity market has actually depreciated. When other countries realize that they have purchased goods at the exchange rate before printing banknotes, when other countries realize that the currency has depreciated, it is too late. This completes exploitation. In fact, they take advantage of information asymmetry.

Other countries cannot leave their currencies out of the commodity market in order to keep the total amount of currency unchanged, but in this way, the US currency printing itself can only become cheaper and cheaper, so it is also printed on its own. Therefore, currencies of all countries involved with the dollar are depreciated together.

That is to say, the time when the United States can take advantage of other countries to take advantage of the cheap is only: Lead to the dollar --> the dollar is still traded with other countries at the original exchange rate, this gap.

 

However, this is not the case. There are still many questions. It is estimated that the current understanding is also far away.

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