December 3, 2023

Two days ago, US President Joe Biden was criticized for claiming that inflation in the US has not risen during the past few months. “I’m telling the American people that we’re going to get inflation under control,” Biden insisted during his “60 Minutes” interview that aired Sunday night. Amid Biden’s claims, ahead of the next Federal Reserve meeting on Wednesday, the US dollar index (DXY) rallied to 110.776 zone. Meanwhile, a recent report published by the CCP-backed Global Times is pressing for a lower dollar as the rise of the US dollar could be “the start of another nightmare” for “many countries in the world”.

Biden highlights that US gas prices are back to March levels after his administration reduced US Strategic Petroleum Reserves by 190 million barrels

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Inflation in the United States has been terrible but US President Joe Biden has told the American people that it will be controlled. His remarks were broadcast during a “60 Minutes” interview, days before the Federal Reserve met to raise the benchmark interest rate by 75 or 100 basis points (bps).

As Biden lowers SPR to 1984 levels, Chinese state media claims US dollar is 'once again the world's problem'
As Bloomberg’s Jennifer Jacobs, Saleha Mohsin and Annemarie Hordern report, “the US may begin to replenish its emergency oil reserves when crude oil prices fall below $80 a barrel.”

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Biden drew much criticism from economists and market strategists when he said he believed the country’s inflation rate had not risen for months. In addition, the US President continues to take pride in the fact that US gas prices have plummeted.

“Guys, gas prices are now back to the level they were in early March,” Biden tweeted on Tuesday. “This means that almost all escalation since the start of Russia’s war in Ukraine has been wiped out.”

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However, the Biden administration hasn’t explained exactly why gas prices have plummeted amid the Ukraine-Russia war and the highest inflation in 40 years. The US President has failed to mention that petroleum prices in the US have fallen because he has been harness In the US Strategic Petroleum Reserve (SPR). While Biden noted that gas prices have returned to that level in early March, he forgets to mention that the administration began SPR. to remove on 31 March 2022.

As Biden lowers SPR to 1984 levels, Chinese state media claims US dollar is 'once again the world's problem'

In fact, according to various reports published across the country, the SPR is at its “lowest level since 1984”. The Ukraine-Russia war is still on and Europe is still grappling with a significant energy crisis. While Biden has complained about carbon emissions, the SPR has dropped from 640 million barrels of oil to 450 million barrels. Furthermore, despite US funding of billions to Ukraine, Russian President Vladimir Putin Detailed This week that he is not holding back, vowing to use “all available means” to win.

While DXY creeps higher, CCP-backed editorial claims US bureaucrats have committed ‘financial loot’ and a strong dollar is a ‘nightmare’ for other nations

In addition, a CCP-backed Global Times opinion editorial Is urging foreign nations to lean towards de-dollarization as a rising dollar could be the “beginning of another nightmare”. The editorial was published a day before the US Federal Reserve’s meeting to raise the federal funds rate. “A super strong US dollar and the fall of other currencies will somewhat ease scorching inflation in the US economy, but the world will have to pay for it,” the Global Times says.

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As Biden lowers SPR to 1984 levels, Chinese state media claims US dollar is 'once again the world's problem'

Since the end of World War II and the start of the Bretton Woods Agreement, the Global Times opinion piece author claims that American bureaucrats have committed “financial plunder” and exported crises to foreign countries. After US Dollar Index (DXY) Dropped for three consecutive days, the DXY rose to 110.776 ahead of the Fed’s meeting on Wednesday.

The DXY is a gauge against six major fiat currencies and during the past few months, the greenback has turned stronger than ever. The Global Times editorial said the Fed and Washington will not solve America’s problems because these institutions are unwilling to look at the “root cause”.

“If people dig up the root cause, it is an inevitable consequence of America’s blind and unlimited money printing to temporarily maintain ‘prosperity’,” the opinion editorial notes. “In other words, in the face of the deep problems highlighted by the 2008 financial crisis, Washington has been powerless and even unwilling to solve them.” The author adds:

While the political elite in Washington claim the ‘myth of the American system’ and take credit for ‘mitigating the crisis’, thousands of poor families around the world are being trampled upon by them.

What do you think about Biden’s claim about gas prices in the US while he lowered the SPR? What do you think about editorials published by Chinese state media that argue that a stronger dollar would be a nightmare for foreign nations? Tell us your thoughts about this topic in the comment section below.

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