Inflation is a negative term of the economy being downed, the inflation comes from the domestic economy slows, and the world market, or the global financial influence. It directly affects the national economy, the cost living, the job, and currency devalued, the investment, stock market, and other consequences. Certainly, inflation can fetch the tourism industry and export when the products including agricultural products sell cheap prices. Therefore, inflation can bring dire consequences if a country can not control the economic problem. Almost, the economists, governments obsess inflation, so when the economy plunged, and inflation often follows, so the governments often apply the solution to hold or stop inflation as the basic economic theory.
Commonly, Western countries could apply economic stimulation by the financial rescue package, the government helps the low-income earners and pension by some payments to excite the consumption and keeping the economy to run. Therefore, communist countries often prevent inflation by the propaganda, the communist government helps nothing its people, instead, the totalitarian regimes tie the security to curb the people standing up while the cost living hikes. The slogan propagates” to overcome obstacles and difficulties” that can not stop the inflation, but it proves the deadlock of the communist regimes to deal with the depression, recession, and economic crisis. The verbal slogan can not replace the food and the cost of living.
Every country must accept inflation, in the routine, the annual inflation is a few percent. The trade plus economic relations also brace the multiple nations to share inflation. The democratic and Western countries witnessed much inflation, sometimes the countries faced economic depression, recession, even crisis. However, democratic countries responded to the bad or worst time and recovered. While communist countries like China, Vietnam, and others have not much experience in economic management when the economy is dealt with a problem, the communist countries perplex to respond to inflation. Nevertheless, the socialism and the ugly economy pattern” the free market is led by socialism” that is like apart of Toyota installed Mercedes so after China stole the capitalist’s economic method, socialism falls into the allergy with the free market.
The US has handed many times of economic depressions and some recessions including the economic crisis in 1929. Therefore, the strong and solid foundation of the economy overtook the difficulties and grew again. Inflation is the routine incident in the US, the currency dollar is reliable, the industry, national sources plus the inventions are the keys to keep the US economic strength and recovery. The US and Western’s economy are like a healthy and strong body, after the illness, the body recovers quickly. But a weak body must take a long time to get well.
The US and Western countries have the democratic backbone and solid economic foundation, so the economic storms couldn’t wipe out but the weak nations and communist states could collapse or receive the potential damages in the economic downturn. The strong buildings can stand in the hurricane, moreover, the wealthy owners have the insurance. Instead, the poor and communists countries are like the cottages, so those couldn’t exist with the typhoon, nevertheless, the damages without insurance are the tragedy.
President Donald Trump used inflation to solve the economy and inflation being affected by the Chinese virus as a medical concern of Asian physicians” using the toxic stuff to treat the poison”. The Western doctors use cannabis, opium into some treatments. The medical research discovered snake venom protein can paralyze the cancer cells. President Donald Trump reforms the economic theory, and he drives the country taking over the hard time. The reciprocal practice of President Donald Trump opens the new theory to deal with inflation. The government and economists can apply flexible solutions to respond to inflation. To curb inflation temporarily applies, but it risks when the national economy has no strong foundation plus the economic cancer of socialism that aggravates the situation. Mostly, the poor and communist countries have no solution to stop inflation, it is the dangerous form. The bloody lesson of Zimbabwe ruled by dictator Robert Mugabe, the inflation has started in December 2009, the cost of living rose, including the fuel, Zimbabwe’s currency issued banknote values one trillion of Zimbabwe dollars. After the coup to take down Robert Mugabe in 2017, the inflation continues to rise without control, annual inflation rate soared to 840%. In Australia, after winning the election in 1983, the Australian Labor Party’s government ruled by Prime Minister Bob Hawke and Treasurer Paul Keating ( later, he became prime minister), the Australia dollar floating, the inflation has continued to rise and the debt increased to $AU 96 billion from 1983 to 1996, the valuation of Australia currency is uncertain and the debt adding up. Australia’s economy recovered after Liberals won the federal election in 1996, the Coalition government ruled by Prime Minister John Howard and Treasurer Peter Costello paid the Labor’s debt and left $AU 42 billion’s surplus. Therefore, Labor Prime Minister Kevin Rudd, Julia Gillard, Treasurer Wayne Swan, and Finance Minister Penny Wong spent all the surpluses, and the country started to sink into the debt. Nevertheless, Treasurer Wayne Swan and Finance Minister Penny Wong seemed not to understand the economy, the economic illiteracy’s management causes the long term’s damages. Every time the Reserve Bank of Australia cuts the interest rate, Wayne Swan and Penny Wong concerned the economic growth, instead, the economy was slow down. The Australia economy based on national sources, agricultural products, so the Down Under fell into the trap of China. Nevertheless, under the financial management of Finance Minister Penny Wong, in 2012, the Reserve Bank of Australia signed the currency swamp’s agreement with the People’s Reserve Bank of China. So the Australia dollar was affected when Yuan devalued. The innocent, corrupt politicians and the Australian Labor Party created an opportunity for China to colonize Australia. The debt trap causes Australia to decline the sovereignty and China’s Communist Party has carried out the silent invasion by the soft army.
The US can apply inflation to control inflation, the old theory to curb the inflation that creates pressure on the economy, so President Donald Trump released the pressure and also developed the economic strength plus the strong currency to overtake inflation. The reciprocal theory won over inflation while the Coronavirus pandemic threatening. However, China has sunk into uncontrolled inflation when the economy disabled, the financial system is on the brink to collapse. Nevertheless, China’s economy was built on stolen technology, cunning businesses, and malicious tactics. Moreover, China’s growth belongs to the global market. Unfortunately, the tariff battles and the toughest law to punish by the US that crippled the rogue regime. China’s economy has no foundation, the economic parasite eradicated after Hillary Clinton lost the presidential election in 2016. China has faced inflation without control, Chinese people living in the mainland have suffered the cost of the living hike, Chinese currency devalued to alert, it conducts Chinese people including the communist members rush to buy gold and exchange the US dollar. China’s businesses and investors are nervous, the stock market plunged without braking, so Xi Jinping just curbs the inflation by force and propaganda. Therefore, the inflation worsens, it is among the death vulnerability of the world’s largest communist country. China’s Communist Party couldn’t lie about the economic growth after the Coronavirus pandemic, everyone can recognize the giant with the foot of clay to plays the phony propaganda game. Inflation is the common term of the global economy, it belongs to the situation of a nation to respond to the economy downs. Normally, when the economy slows, the depression, recession, and crisis, the solutions could apply to deal with the inappropriate situation:
1-The reserve bank can cut interest to help the borrowers, businesses reduce the pressure. Therefore, the cutting interest can not prevent inflation while the national economy down.
1-The stimulation: the Western and democratic countries often apply the stimulation to its citizens and business while the communist government just stimulate the rescue packet to the state-owned companies and the banking system, so the people suffered the hardship and the domestic consumption declined because the low-income earners and pensioners have no money to buy. It worsens and the inflation rises
3- Curbing inflation by stopping the spending, therefore, inflation’s pressure overload that can burst the economic system, the disaster is immeasurable. President Donald Trump used inflation to fight inflation and succeeded when inflation’s pressure was released, it avoided the risk. The solid economic foundation plus the reliable US currency that helped the country recovered and reduced inflation. Moreover, after more than three years, President Donald Trump led economic growth, the wage rose and a tax cut, so the US people can deal with inflation.
4-Borrowing the world bank or IMF (International Monetary Fund): It is the last solution, but every country must consider the GDP when borrows the money. The World Bank rejected China to borrow more while the pandemic outbreak. Nowadays, China is the debt champion, in 2019, the debt was $US 40 trillion, or 303% of GDP. After the pandemic, China’s debt skyrockets.
All solution failed, the economy has the trouble that conducts the inflation increases without control, the national economy risks. China, Vietnam, and the communist countries fell into inflation without existing from the Coronavirus pandemic outbreak, the situation aggravates while the US and Western are underway to recover and the lock-down eases, and when the vaccine is available. China’s economy disabled, the currency Yuan is uncertain, moreover, the US can disqualify China from Wall Street’s Stock Market any time, so the countries deeply involved the trade with China will face the peril when Yuan crippled, now the time to escape the trade with China as soon as possible./.
Notes: Writer Hoa Minh Truong, author of 5 books published in the US, graduated from the Political Warfare Academy at Dalat (Vietnam) in 1973. The graduate thesis” The Economic Development of the Poor Countries” with 100 pages. The tutor was Professor Trần Long (Dalat University in Vietnam). The graduate grade 25 among 165 cadets.
(thedawnmedia.com)