Goodbye, Americans middle class

Half of the Americans made less than $34% last year, 248.45 i.e .2 per $per month before taxation, 854.05 10/15/20 The United States Bureau of Social Security (Social Security Administration) issued new wage statistics for 2019, This is shocking. 2019, Half of American workers earn less than $34248.45. That's not a lot of money. Actually, And when you $34, 248.45 divided by 12 hours, All you get is $2, 854.05. Not to mention, If you want to survive in the U.S.$2% a month, 854.05 income is not easy. At least one $a month, It is impossible to live in a major city. Water and electricity, Telephone and other fares $an average of 250$ a month. If you have to pay an average of 300 per month, even by public transport, you have to $120 per month, Apart from corporate support, private individuals pay a minimum $of $100 to $100. Because there are different insurance schemes. At least 200 to 300 yuan per person per month $diet expenditure. This does not count in restaurants and other restaurants. And you never even $2, 854.05 starts, Because all kinds of taxes have been deducted from your salary before you get them. For example, the treaty deducts the Union, State government, and Social Security, And medical insurance, After retirement services provided by the government) the actual income is $27% per annum, 644 yuan, $2 per month, 303 yuan. This year, We've seen more than 63 million Americans make new claims for unemployment, Because the US economy has collapsed during this pandemic, So the final wage figures for 2020 may be much worse than those for 2019. One important new data HBO a Axios program on wired television, The real unemployment rate in the United States reached 26.1 percent of the total number of foreigners. -32.26 per cent of American workers earned less than 20 per cent last year, $1,000. -44.79% of American workers earned less than 30% last year, $1,000. 56.46% of American workers earned less than 40% last year, $1,000. -65.91% of American workers earned less than 50% last year, $1,000.

give Cnmoulding a comment if it is true when you stay in US

If the RMB becomes an international currency, what will happen?

 In recent times, the RMB exchange rate seems to be a bit "fierce ", as of September 1, the onshore RMB against the dollar temporarily reported 6.81, this is what concept, for a long time the exchange rate is above 7.0, a short period of three or four months from 7.19 to 6.81. In other words, this may not be felt, if converted, the gap will come out. If you hold $100000 at the high of the dollar, you may lose about 40,000 yuan by now!

It is precise because the yuan is "singing" that many people have put forward conjectures, such as some saying that the yuan may become an international currency and others that the yuan's status may surpass that of the dollar. Of course, this is just a conjecture, not yet a fact. However, there is a question worth thinking about. If the RMB is really "internationalized ", what changes will it bring to our lives? I think there are the following points.

 First of all, when Chinese residents travel abroad or work, they do not need to exchange the RMB into other currencies, and they also save the trouble of calculating the exchange rate. That is to say, it is more convenient for our residents to leave Congress. Secondly, if the RMB becomes international currency, then foreign trade transactions will also use RMB, and the RMB will circulate all over the world. Just like the current dollar, more foreign-funded enterprises will cooperate with us because of the status of the currency. There will also be foreign-funded enterprises in China to increase employment in China.

In addition, once the RMB becomes the mainstream currency, the reference standard of the exchange rate will also change, which used to be the reference dollar, so when the RMB becomes the international currency, the RMB will become the reference standard. To put it simply, China's foreign trade will not be affected by the exchange rate as it is now. We can't guarantee that all kinds of import and export costs will be reduced, but we can be sure that they will be more stable than before, which is what we want to see.

 For those who do business, they would rather make less money than make business stable, so this is of great help to our foreign trade industry , For example, cnmoulding is a professional export plastic moulding company, which is also big monetary welfare. Finally, the problem of inflation, in fact, although the United States is overissued currency, but the dollar index has not declined, which means that the United States has no major inflation problem if the renminbi becomes the mainstream currency, In fact, like the current dollar, it will not depreciate because of something.

This should be the most desired thing for the common people of our country, after all, prices have been rising, and inflation has a great relationship. If this environment can be stabilized, it is really great good news. So is there any harm in turning the yuan into an international currency

Up! Up! Up! Why is the appreciation of the RMB so fast?

 A few months ago, people who traded yuan for dollars, The intestines may be green these days. Because the yuan is rising, And the dollar is falling. The median exchange rate of the yuan against the dollar on 29 May was 7.1316, On 2 September it was 6.8376. From 7.1316 to 6.8376, If we exchange $50,000, It was 356 thousand and 58 yuan, It's only 341880 RMB today, Can save 14700 yuan. Visible, How much the yuan has risen recently.

Data show The yuan's median exchange rate against the dollar has risen to a high for more than a year. The People's Bank of China authorized the China Foreign Exchange Trading Center to announce, On September 2,2020, the intermediate exchange rate of RMB in the interbank foreign exchange market was 6.8376 yuan, Up 122 basis points from the previous trading day. The yuan's median exchange rate against the dollar has risen for seven consecutive days, Set a new high since May 14,2019. The offshore and onshore RMB exchange rate against the US dollar is also "a rise ". 1 September, Both offshore and onshore yuan rose to the 6.82 marks, Among them, The offshore renminbi was once set to a record high of 6.8134 since May 2019, The day rose more than 400 points. For a moment, Why is the RMB exchange rate strong, Whether the RMB appreciation trend can continue, Become the topic of market concern and hot discussion.

According to the experts interviewed, The main reasons for the yuan's strength are three aspects: 

one is the weakening of the dollar index.

 In general, The strength of the dollar index is inversely related to non-dollar currencies such as the renminbi, You're strong, I'm weak, If you're weak, I'm strong. Data show, Since late May, The dollar index started falling, More recently, it fell below 92, Set a new low since early May 2018. Wen Bin, the chief researcher at Minsheng Bank of China, told Xinhua, Because of the Fed's sky currency, In anticipation of a weaker dollar, The dollar index continues to fall, Non-American currencies, including the renminbi, have appreciated. In the view of CITIC Securities fixed income chief analyst Mingming, The Fed has launched an unprecedented massive monetary easing since the outbreak, And the Fed has adjusted its monetary policy framework, the introduction of "average inflation system ". July, U.S. bond yields that have been held down further, At the same time, the dollar index is basically from late July opened the "dollar shortage" after the end of the second phase of a significant decline. 

Second, China's economic fundamentals continue to improve. 

"China's epidemic prevention and control have achieved remarkable results, China's economy continues to improve, Major economic indicators are improving, China was the only major economy with positive growth in the second quarter, This is strong support for the yuan ." Wen Bin said. According to the NSO, China's economy continued to recover steadily in July, Among them, For the first time in July, retail sales grew from negative to positive, Export growth reached double digits. And the latest announcement of the August manufacturing purchasing manager index, non-manufacturing business activity index and comprehensive PMI output index, the three indexes have been kept above the critical point for six consecutive months. And clearly, The stronger yuan is also a reflection of China's economic fundamentals. From the performance of the manufacturing PMI index, After a precipitous fall in February, China's economy continues to recover, Both the World Bank and the International Monetary Organization predict that China will be the few countries to achieve positive economic growth this year, Therefore, after the outbreak of domestic fundamentals to provide important support for the RMB exchange rate.

 Third, RMB assets are popular. 

Wen Bin points out, China is continuing to open up financial markets, International investors are bullish on China's economic prospects and renminbi assets, Foreign capital continues to flow into China's capital markets, It is conducive to the appreciation of the RMB. According to data recently released by the State Administration of Foreign Exchange, July, The net increase in foreign capital holdings of domestic listed stocks and bonds increased by 1.4 times over the same period last year, The balance of foreign exchange reserves is growing for four consecutive months. Mingming said, In the context of global central bank easing, The People's Bank of China's monetary policy remained cautious and determined during the outbreak, The spread between China and the United States remained high, The attractiveness of the yuan's assets has increased significantly, This also promoted the strength of the RMB exchange rate. As of 28 August, A representative spread of more than 230 basis points on China-US 10-year bonds, The wider spread between China and the United States and the higher returns on the renminbi's assets inflows of foreign capital, The appreciation of the RMB exchange rate plays a role in promoting. 

What is the future trend of the RMB exchange rate?

 In general, Appreciation is conducive to import, travel abroad, consumption and study abroad, But it will have a negative impact on exports. Actually, our mold manufacturing business already slows down. the more bad news is injection molding business will worse even because of the exchange rate dow.

 So, For the currency, The outside world is also very concerned. For the next phase of the RMB exchange rate, Wen Bin's analysis, In the short term, Because China's economy continues to pick up, International investors are bullish on capital markets, Continued inflows of foreign capital, These factors are expected to further boost the appreciation of the renminbi. But, uh, In the medium to long term, With the further marketization of the RMB formation mechanism, The RMB exchange rate will maintain two-way fluctuations at a reasonable equilibrium level.  Clearly, analysis, the yuan exchange rate strength or will continue, but in view of the possible risks in the future, including global risk aversion, Sino-US relations and asymmetric capital controls, the yuan exchange rate may show a slow slope appreciation trend, short-term RMB exchange rate range or 6.7~6.8. At the same time, it should be noted that the continued appreciation of the exchange rate may have a certain impact on Chinese exports and manufacturing. China's monetary policy implementation report for the second quarter of 2020, issued by the central bank in August, proposes to deepen the market-oriented reform of the exchange rate, improve the floating exchange rate system based on market supply and demand, with reference to a basket of currencies, maintain the flexibility of the RMB exchange rate, and give full play to the role of the exchange rate as an automatic stabilizer for macroeconomic and balance of payments adjustment. Stable market expectations, maintain the RMB exchange rate in a reasonable equilibrium level of basic stability.

Why is the China RMB suddenly falling sharply

What happened? The rapid devaluation of the RMB

Yesterday, the exchange rate market appeared obvious fluctuations, offshore yuan trading time fell below 7.15,7.16,7.17 points, the evening decline further expanded,7.18 and 7.19 were also broken, the highest depreciation within the day of 500 basis points. 7.19 This position, basically the lowest in recent years, before the appreciation of the yuan from 8 to 6, and then from 6 now devalued to 7.19, the yuan has been a roller coaster ride in the past decade.

 So why is the rapid depreciation of the RMB?

First of all, we do not set growth targets this year, which has an impact on confidence in international capital, and it is normal for the economy to depreciate its bad exchange rate.

 Second, the growing voice of external disharmony, which makes imports and exports also increased obvious uncertainty, the continued surplus is conducive to currency stability, if the basis of the surplus does not exist, then the value of the currency will also fluctuate.

 Third, the issuance of special treasury bonds, government debt will certainly rise sharply this year, coupled with the central bank's continued easing, and the possibility of a cut in interest rates in the future will reduce the value of the local currency.

 Fourth, strong U.S. stock markets, a restart of the economy, and persistent deflationary pressures have not eased, leaving capital still in demand for safe havens, so the reverse flow of global capital is not conducive to the stability of the renminbi.

 Fifth, we may also subjectively intend to let him depreciate, depreciation will be more conducive to exports. which is beneficial for us to digest domestic stock. Stable economy.

 So, all countries are playing games now, and the exchange rate is an important game, but Lao Qi believes that the RMB is a little undervalued now, because although we are loose, but the speed of printing money, obviously still can not compare with the United States, so there may be a lot of uncertainty in the short term, but in the medium and long term, at least the RMB against the dollar is undervalued. Nor can we let the yuan depreciate forever. Because a continued devaluation would do so much harm.

 First, the continued depreciation of the renminbi will accelerate the withdrawal of foreign capital and drain foreign exchange reserves. Foreign exchange is the central bank's assets, foreign exchange decline, the central bank's balance sheet is bound to shrink. will also affect domestic monetary policy.

 Secondly, depreciation is not conducive to asset prices, we have said before, the rapid depreciation of the RMB process must be the stock market down, indicating that funds are going out, market funds are reduced, will certainly fall. The same is true of the bond market, capital decline must be interest rates rise, prices fall, so the market bond market pain is inevitable. Moreover, higher interest rates are not conducive to economic recovery. The outflow will also put pressure on the housing market.

Third, the depreciation is too large, the status of RMB internationalization will have a huge impact, you are now a reserve currency, can not easily fluctuate so much. Otherwise, people lose faith in you, they don't need you.

 Fourth, although it is good for exports, it is not good for imports, and depreciation means that we will purchase raw materials more expensive. And many of our manufacturing are processing materials, the beginning to go to inventory when very cool, but wait until to fill the inventory, found carrying side sink.

 Fifth, the depreciation of the RMB is also greatly unfavorable to the wealth of the people and studying abroad, traveling, and purchasing overseas will all be affected.

 Exchange rate issue is very sensitive to each of our foreign trade plastic injection companies, share to you, hope to help you.