As Biden Drains the SPR Down to 1984 Levels, Chinese State Media Claims US Dollar "Is Once Again the World"s Problem"
Two days ago, U.S. president Joe Biden was criticized for claiming inflation in America hasn’t increased during the past few months. “I’m telling the American people that we’re going to get control of inflation,” Biden stressed during his “60 Minutes” interview that aired on Sunday night. Amid Biden’s claims, ahead of the next Federal Reserve meeting on Wednesday, the U.S. Dollar Index (DXY) crept up to the 110.776 region. Meanwhile, a recent report published by CCP-backed Global Times is pressing for de-dollarization as the U.S. dollar’s rise “might be the beginning of another nightmare” for “many countries in the world.” Biden Highlights That US Gas Prices Are Back to March Levels After His Administration Drained the US Strategic Petroleum Reserve by 190 Million Barrels
Inflation has been awful in the United States but U.S. president Joe Biden has told the American people it will be tamed. His commentary during a “60 Minutes” interview was aired a few days before the Federal Reserve meets to hike the benchmark interest rate by 75 or 100 basis points (bps). “The U.S. may begin refilling its emergency oil reserve when crude prices dip below $80 a barrel, according to people familiar with the matter,” Bloomberg’s Jennifer Jacobs, Saleha Mohsin, and Annmarie Hordern report.
Biden took a lot of flak from economists and market strategists after he noted that he believes the country’s inflation rate hasn’t spiked for months. Furthermore, the U.S. president has been taking pride in the fact that America’s gas prices have dipped.
“Folks, gas prices are now back to levels they were at in early March,” Biden tweeted on Tuesday. “That means nearly all of the increases since the beginning of Russia’s war in Ukraine have been wiped out.”
However, the Biden administration hasn’t really explained why gas prices have dropped amid the Ukraine-Russia war and the highest inflation in 40 years. The U.S. president has failed to mention that petroleum prices in the U.S. have dropped because he’s been tapping into the U.S. Strategic Petroleum Reserve (SPR). While Biden mentions gas prices are back to levels they were at in early March, he forgets to mention that the administration started draining the SPR on March 31, 2022.
In fact, the SPR is at its “lowest level since 1984,” according to various reports published nationwide. The Ukraine-Russia war is still ongoing and Europe is still dealing with a significant energy crisis. While Biden has complained about carbon emissions the SPR has shrunk from 640 million barrels of oil to 450 million barrels. Furthermore, despite the U.S. funneling billions to Ukraine, Russian president Vladimir Putin detailed this week that he is not backing down, vowing to use “all means available” to win. While DXY Creeps Higher, CCP-Backed Editorial Claims US Bureaucrats Have Committed ‘Financial Looting’ and a Strong Dollar Is a ‘Nightmare’ for Other Nations
Moreover, a CCP-backed Global Times opinion editorial is urging foreign nations to lean toward de-dollarization as the rising dollar may become “the beginning of another nightmare.” The editorial was published the day before the U.S. Federal Reserve meets to raise the federal funds rate. “A super strong U.S. dollar and the fall of other currencies will, to a certain extent, ease the scorching inflation in the U.S. economy, but the world will have to pay for it,” the Global Times says.
Since the end of World War II and the start of the Bretton Woods agreement, the Global Times opinion piece author claims U.S. bureaucrats have committed “financial looting” and have exported crises to foreign nations. After the U.S. Dollar Index (DXY) dropped for three consecutive days, the DXY has risen on Wednesday to 110.776 ahead of the Fed’s meeting.
The DXY is a gauge against six major fiat currencies and during the past few months, the greenback has been stronger than ever. The Global Times editorial says America’s problems will not be solved by the Fed and Washington because these entities are not willing to see the “root cause.”
“If people dig the root cause, this is an inevitable consequence of U.S.’ blind and unlimited money printing to temporarily maintain ‘prosperity,’” the opinion editorial notes. “In other words, in the face of the deep-seated problems exposed by the 2008 financial crisis, Washington has been powerless, and unwilling as well, to solve them.” The author adds: While the political elites in Washington boast of the ‘myth of the American system’ and take credit for ‘alleviating the crisis,’ thousands of poor families around the world are being trampled by them. Tags in this story 2008 Financial Crisis, 450 million barrels, Biden Administration, CCP-backed, China, DXY, economics, Economy, Energy crisis, Gas Reserves, Global Times, Greenback, inflation, Joe Biden, Money Printing, Russia, Russian president, SPR, U.S. bureaucrats, U.S. Dollar Index (DXY), Ukraine-Russia war, US, US Dollar, US economy, Vladimir Putin, Washington
What do you think about Biden’s claim regarding gas prices in the U.S. while he depletes the SPR? What do you think about the editorial published by Chinese state media that argues a strong dollar will be a nightmare for foreign nations? Let us know your thoughts about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Federal Reserve Hikes Benchmark Bank Rate by 75bps to Battle Elevated Inflation ECONOMICS | 4 hours ago Chinese Currency Breaches 7:1 Exchange Rate Against US Dollar for First Time in Two Years ECONOMICS | 16 hours ago
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