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As Biden Drains the SPR Down to 1984 Levels, Chinese State Media Claims US Dollar ‘Is Once Again the World’s Problem’ – Economics Bitcoin News


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

Biden highlights that US gas prices have returned to March levels after his administration withdrew 190 million barrels of US strategic oil reserves

Inflation has been terrible in the United States but US president Joe Biden has told the American people it will be tame. His commentary on the “60 Minutes” interview was broadcast a few days before the Federal Reserve met to raise its benchmark interest rate by 75 or 100 basis points (bps).

As Biden pulls SPR down to 1984, Chinese state media declare US dollar 'once again the world's problem'
Reported by Jennifer Jacobs, Saleha Mohsin and Annmarie Hordern of Bloomberg: “The US may start to replenish emergency oil reserves when oil prices fall below $80 per barrel.

Biden lost a lot of pieces from economists and market strategists after he noted that he believes the country’s inflation rate has not spiked in months. Moreover, the President of the United States was proud of the fact that the price of American gas has dropped.

“Everyone, gas prices are now back to where they were in early March,” Biden tweeted on Tuesday. “That means almost all of the increases since the beginning of Russia’s war in Ukraine have been wiped out.”

However, the Biden administration has yet to really explain why gas prices have fallen amid the Ukraine-Russia war and highest inflation in 40 years. The President of the United States did not mention that the price of gasoline in the United States has fallen because of him exploit to the US Strategic Petroleum Reserve (SPR). While Biden mentioned gas prices are back to where they were in early March, he forgot to mention that the administration has started exit SPR on March 31, 2022.

As Biden pulls SPR down to 1984, Chinese state media declare US dollar 'once again the world's problem'

In fact, the SPR is at “the lowest level since 1984,” according to various reports published across the country. The Ukraine-Russia war is still ongoing and Europe is still dealing with a significant energy crisis. While Biden complained about carbon emissions, the SPR fell from 640 million barrels of oil to 450 million barrels. Moreover, despite the US spending billions of dollars on Ukraine, Russian President Vladimir Putin detail this week that he didn’t back down, vowing to use “all available means” to win.

While DXY edged higher, CCP-backed editorial claims US officials pledged ‘Financial looting’ and strong dollar a ‘nightmare’ for other countries

Furthermore, the Global Times is backed by the CCP opinion editor is urging foreign countries to move towards de-dollarization as a rising dollar could become “the beginning of another nightmare”. The editorial was published the day before the US Federal Reserve met to raise the federal funds rate. The Global Times said: “A super-strong US dollar and a fall in other currencies will, to a certain extent, alleviate the appalling inflation in the US economy, but the world will pay the price for it. that”.

As Biden pulls SPR down to 1984, Chinese state media declare US dollar 'once again the world's problem'

Since the end of World War II and the beginning of the Bretton Woods accord, the Global Times opinion article author claims US officials have committed “financial robbery” and crisis exports. go abroad. After US Dollar Index (DXY) down for three consecutive days, DXY rose on Wednesday to 110,776 ago Fed meeting.

The DXY is a measure against the six major fiat currencies, and over the past few months the greenback has been stronger than ever. The Global Times editorial said that America’s problems will not be solved by the Fed and Washington because these entities are unwilling to see the “root cause”.

“If people dig into the root cause, this is an inevitable consequence of the US ‘blindly and unlimitedly printing money to temporarily maintain ‘prosperity’,” the editorial notes. In other words, when faced with the profound problems presented by the 2008 financial crisis, Washington was powerless and unwilling to address them. The author adds:

While the political elite in Washington pride themselves on the ‘myth of the American system’ and credit it with ‘relief in crisis’, thousands of poor families around the world are being trampled on by them.

Cards in this story

Financial Crisis 2008, 450 million barrels, Biden Administration, Backed by CCP, China, DXY, Economics, Economy, Energy crisis, Gas reserves, Global Times, Green silver coin, inflationary, Joe Biden, Print money, Russia, President of Russia, SPR, US officials, US Dollar Index (DXY), Ukraine-Russia War, WE, U.S. dollar, US economy, Vladimir Putin, Washington

What do you think of Biden’s statement regarding gas prices in the US while he runs out of SPR? What do you think of the editorial published by Chinese state media that a strong dollar would be a nightmare for foreign countries? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the crypto community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the groundbreaking protocols emerging today.




Image credits: Shutterstock, Pixabay, Wiki Commons, Bloomberg, Tradingview DXY

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