What Causes Rising Inflation in the US? How China Exports Its ‘Inflation’ Around the World

Pinnacle View, a new television program launched by The Epoch Times and NTD, has just launched its first episode.

A premium television program bringing together experts and intellectuals from different industries and countries of the world, Pinnacle View focuses on the most pressing current issues and breaking stories, analyzing major trends and providing audiences with in-depth observations on current affairs and historical truth.

The first episode of Pinnacle View focuses on the energy crisis and rising inflation, featuring three experts: Jerry Simmons, CEO and president of the Domestic Energy Producers Alliance (DEPA); Milton Ezrati, a renowned U.S. economist and chief economist at Vested, a New York-based communications firm; and Shi Shan, an expert on China issues and senior editor at The Epoch Times.

High inflation is sweeping through the United States and major economies around the world, with energy prices soaring. Both international crude oil price indexes have exceeded $80 per barrel since 2021, and gasoline prices in the United States have risen 63 percent this year, hitting a seven-year high. But what has caused such high inflation in the United States?

Simmons says one of the main reasons for high inflation is supply chain issues. He noted that current administrative policies have distorted demand and supply equilibrium, with the United States currently losing 2 million barrels per day of oil production relative to 2019, which has led to higher U.S. oil prices.

Milton believes that the Fed’s careless printing of money over the past 15 years has led to inflation—which has had a more lasting impact than supply chain issues. Milton also pointed out that because pay increases have not kept pace with inflation, workers have demanded continued wage increases. Companies raise prices to cover the wage increases, causing what economists describe as a “wage-price spiral,” which can keep inflation going for some time.

Shi explained how inflation in China is being passed on to U.S. consumers in the context of the U.S.-China trade relationship. Citing data released by the Chinese regime, he said that China exported about $300 billion of goods to the United States from January to July this past year, up 26 percent from the same period the previous year, but more than 60 percent of that 26-percent rise actually came from the higher prices of the goods. Currently, Chinese goods account for nearly 20 percent of U.S. imports, which means that for every $10 of U.S. imports, $2 come from China, and hence the rise in Chinese goods prices will naturally be passed on to the United States.

The United States is the world’s largest oil producer and the largest oil consumer. How long will the current energy crisis last? How will the White House’s energy policy affect the global energy market? Stay tuned for Pinnacle View’s first episode: Energy Crisis and High Inflation.