How does the depreciation of the dollar increase the price of global raw materials

1.When you talk about the depreciation of the dollar, you should be talking about the dollar index, as a country's banknote, whether the dollar depreciates or appreciates, is relative to the currency of another country, or the dollar index.

3.What you mean is that in the case of a certain amount of money, if the purchasing power of money decreases, the corresponding social demand decreases, resulting in oversupply, so according to the theory of the relationship between supply and demand and **, commodities** should be reduced.

But in fact, on the one hand, with the development of financial products, the amount of money is not a limit, almost unlimited. On the other hand, many commodities now not only have the attributes of commodities, that is, they are used for consumption when they are bought, but more have financial attributes, and they are not used for consumption after buying, but want to sell them after the appreciation of the commodity, or as a reserve.

So the market thinks that the price of oil will rise, or the dollar will continue to depreciate, and the demand in the market will be high. You will also find a way to borrow more money and buy a few more barrels of oil through loans, or other methods, hehe.

Money is a commodity, and it is a special commodity that acts as a general equivalent. Currency depreciation means that the quality of the special commodity is poor (fineness is poor) or the quantity is less. It's like a standard-length ruler that becomes shorter after the "depreciation".

In the same way, if you measure the length with a shorter standard ruler, the new "length" will definitely be larger than the old "length". That is, in mathematics, the numerator does not change, the denominator becomes smaller, and the result becomes larger. The depreciation of the dollar is the rise of commodities corresponding to him one by one, and the remaining 5 barrels of oil in your example are precisely the resources of the United States printing more currency, and the United States has the money to take advantage of the resources in vain.

Holders of dollars outside the United States have to face a decrease in the purchasing power of their dollars, and they can get fewer products.

The depreciation of the dollar does not mean that things denominated in dollars are cheaper, so it increases US exports, but the depreciation of the US dollar, obviously things are expensive, how can the dollar depreciate, does it mean that things denominated in US dollars are cheaper, so the US exports increase, but the depreciation of the US dollar bureau is obviously expensive, how to increase US exports?

However, the depreciation of the US dollar, it is clear that the US export increase is as follows: when the US dollar depreciates, it will promote exports and curb imports, and when the dollar appreciates, it will promote imports and suppress exports.

Summary. Hello, the details are as follows, the value of the currency depends on supply and demand. When the quantity of something increases (or the demand decreases), its value decreases.

When a country's currency fluctuates due to ** or partial intervention by the central bank, it is called depreciation. Currency can achieve this change by issuing additional banknotes or generating electronic bank credit and entering the market for circulation. In the beginning, the new money has the same value as the current currency, but the value of all the money in circulation will eventually decrease due to changes in supply and demand.

Similarly, the demand for money is largely determined by the amount of local currency required by a foreign country** or organization. If the amount of entities decreases, the result of the decrease in demand will also lead to the depreciation of the currency. Depreciation can be manifested by the prevailing exchange rate between different currencies.

Individual consumers, on the other hand, can feel it through the decline in purchasing power and ****.

Hello, the details are as follows, the value of the currency depends on supply and demand. When the quantity of something increases (or the demand decreases), its value decreases. When a country's currency fluctuates due to ** or partial intervention by the central bank, it is called depreciation.

Currency can achieve this change by issuing additional banknotes or generating electronic bank credit and entering the market for circulation. In the beginning, the new money has the same value as the current currency, but the value of all the money in circulation will eventually decrease due to changes in supply and demand. Similarly, the demand for money is largely determined by the amount of local currency required by a foreign country** or organization.

If the amount of entities decreases, the result of the decrease in demand will also lead to the depreciation of the currency. Depreciation can be manifested by the prevailing exchange rate between different currencies. Individual consumers, on the other hand, can feel it through the decline in purchasing power and ****.

This is the oversupply.

While a weaker dollar may in some cases bring benefits to areas such as exporters and tourism, a large-scale, uncontrolled depreciation cannot be allowed to devalue the dollar in the long run because it will have a negative impact on the economy.

First, the U.S. dollar is the world's reserve currency, and its value stability is critical to the world economy. As one of the largest economies in the world, the stability of the value of the U.S. dollar is closely related to the stability of the world economy. If the dollar depreciates on a large scale, it will trigger chaos in the international trade gods and financial markets, leading to a global recession.

Second, the depreciation of the dollar leads to inflation and asset bubbles. Depreciation means a surplus of currency, which will lead to inflation, which will reduce people's purchasing power and increase the cost of living. At the same time, assets** will also soar due to currency depreciation, thus triggering bubbles, such a wealth effect is short-lived, and will lead to economic depression later.

Finally, a weaker dollar would reduce the influence and international standing of the United States in global financial markets. As one of the world's largest economies, the monetary and financial policies of the United States have an important influence on the global financial market. If the dollar depreciates, it will reduce the United States' voice in the international financial market, and at the same time, it will also damage the international image and status of the United States.

In summary, while a depreciation of the dollar may bring short-term benefits in some circumstances, in the long run, a large-scale and uncontrolled depreciation will have a negative impact on the economy, so the dollar cannot be allowed to depreciate.

The reasons are as follows: 1. The money printed in the United States circulates all over the world. After the U.S. dollar circulates to various countries around the world, the amount of U.S. dollar currency will form a diversion, which will not have much impact on the world, let alone hyperinflation in the United States.

2. Because the dollar is not circulating in the market. The United States printed trillions of dollars in a month. However, the printed dollars are only used for cash flow.

The U.S. may take the U.S. dollar to the market, and then the U.S. dollar will be the same as the U.S. dollar, so that the U.S. currency circulating in the market will remain unchanged. 3. Consumer inflation is one of the types of inflation. When the total amount of money in the economic system greatly exceeds the system's ability to produce goods, there will be consumer inflation.

4. ** or hyperinflation. The Federal Reserve printed money, the bulk of which flowed into M3, has been a result of the hyperinflation that many people consider inevitable in the U.S. economy.

Letting the dollar depreciate can lead to the following problems:

International credibility: If the U.S. keeps devaluing the dollar, other countries may lose confidence in the U.S. and no longer want to hold the U.S. dollar as a reserve. This will lead to instability in global financial markets.

Domestic economy: If the dollar depreciates too quickly or too much, it can affect the domestic economy and job market. This could lead to inflation and asset** volatility, as well as a downward trend in the competitiveness of the manufacturing and export sectors.

So, while there may be some benefits to letting the dollar depreciate, there are also a lot of risks and downsides that need to be approached with caution.

The U.S. dollar is the world's currency, and the U.S. is a superpower with high credit. If the dollar depreciates, it will inevitably cause inflation or deflation in many countries.

Relatively speaking, the U.S. economy is already in a particularly sluggish state, and if it is in the first place, it will cause great confusion to some citizens in the United States, so there is no **.

Because prices in the United States are relatively stable, and the state has a regulatory system for prices, prices in the United States cannot rise.

What can you buy for a dollar in the United States? A loaf of bread, a big bucket of milk, a McDonald's burger, a KFC snack, these things are only a dollar or two in the United States, and even cents have been used all the time. In terms of single prices, the price level in the United States is really not high, and the salary of ordinary workers is generally about 2,000-3,000 US dollars per month.

Even if the dollar depreciates, the price changes in the United States are not large, and the level of prices is closely related to inflation. Core inflation in the U.S. is low, how low? For a long time, the Fed set an inflation target of 2%, and even then, it did not meet the target for many years.

In 2019, the U.S. economic growth slowed down, and the Federal Reserve began to style monetary policy, and this year, affected by the epidemic, the Federal Reserve restarted QE and lowered long-term interest rates directly to around 0, even in such an accommodative environment, core inflation is just close to the 2% inflation target.

The depreciation of the dollar is not positively related to prices, not that the depreciation of the dollar will lead to prices, or that the currency will appreciate and prices will fall, which is a misunderstanding. From the economic point of view, prices mainly depend on market supply and demand and inflation.

The decisive factor lies in the market supply and demand, very simply, the market is oversupplied, ** is cheap, and vice versa**. On the other hand, there is the money supply, if there are too many dollars, the purchasing power will decrease, and the price will be **, on the contrary, the purchasing power will increase, and the price level will not be high.

Many people's impression of the dollar is that the Federal Reserve starts the money printing machine, and the dollar should fly all over the sky, but in fact, the reality is just the opposite, the dollar ** volume is not flooded, and even since September last year, there has been a dollar shortage in the market, so the Federal Reserve implements daily bond purchases of up to tens of billions of dollars to avoid overnight interest rates**, affecting the cost of capital use.

The less the dollar, the more valuable it is, the more things you buy, the stronger the purchasing power, reflected in the price, naturally does not feel that it does not rise, many people feel that the dollar ** is a lot, the Federal Reserve keeps printing dollars, this is just an illusion, in fact, the number of US currency growth is far below the market demand, the inflation level is not high, the price is naturally not high, and the purchasing power is full.

For a long time, the U.S. economy has dominated the world, and the U.S. dollar has become a relatively stable international currency, and the U.S. can pass on the economic crisis by devaluating the U.S. dollar.

For example, one dollar used to be exchanged for one yuan, but now the exchange rate has fallen, and one dollar is worth 7 yuan. If the United States had issued $100 million in U.S. Treasury bonds in the past, and China bought it, it was equivalent to 100 million yuan at that time, what about now?

Due to the depreciation of the US dollar, one US dollar can only be exchanged for 7 yuan, and the 100 million national bonds are now only worth 700 million yuan. For the United States, there is relatively little money owed.

Another part is that the United States was affected by the subprime mortgage crisis, which led to the depreciation of the dollar, and many countries used the dollar as their national foreign exchange reserves;

The depreciation of the US dollar has affected the imports and exports of these countries with US dollar-based foreign exchange reserves to varying degrees.

A sustained decline in the US dollar would exacerbate global inflationary pressures and adversely affect the stability of the international financial system and global economic growth.

What will be the impact of the depreciation of the US dollar and the appreciation of the RMB?

A war of financial plunder, this is what the United States deliberates, go to my space to see, this is not 1 or 2 sentences can be said clearly, this is the exhibition of the rising developing countries. A financial war, when it takes the money away, the United States will accelerate economic growth, which is very hateful.

That will exacerbate the further rise in the price of oil**, the global inflation will continue to increase, and the financial crisis will break out at any time