If you want to cry about inflation, then you should go to America. | How did China become America's headache?

 

If you want to cry about inflation, then you should go to America:

 

You must have always heard that inflation is at its peak in the country, inflation has broken all the records till now. Today we will talk about how much the inflation of small things is harming people. We will try to find out how many rupees the same product is available in India and for how much rupees the same product is available in America. 

Many of us dream of going abroad and if possible living the same life and settling in that country. But before fulfilling this dream, it would be better if we do some calculations. The whole world is going through all kinds of challenges at this time. Somewhere inflation is at a record level of 40 years, somewhere there is a crisis of oil and gas, somewhere devastation is being seen in the supply chain, and somewhere people are forced to live under the shadow of lockdown due to new forms of Coronavirus. 

But do you know that the essential things in America are four times more expensive than in India. If you buy a product for $50 in the US i.e. in Indian Rupees, you buy it for around ₹ 4,000. For that, you have to pay around ₹ 1,150 in India only. If you compare it with the cost of overall lifestyle, then you will find a huge difference in this too. 

According to a report, for the lifestyle with which you can live well in ₹ 30 lakhs in India, you will have to spend ₹ 80 lakhs in America. Compare the cities of America and India as well. There is a huge difference between the lifestyle of America's New York and India's Mumbai and food and drink. The cost of coffee in America was double as compared to Mumbai. 

The same rice is about eight times more expensive. The average cost of a coffee in Mumbai is ₹203. On the other hand, the price of bean coffee in New York is ₹ 439. Coffee is getting 116% more expensive in New York than in Mumbai. The price of a bowl of rice in India is ₹31. Same in America the cost of 1 bowl of rice is around ₹ 294. Even in terms of entertainment and traveling, America is a more expensive country than India.

 

It costs ₹ 244 for a taxi to travel one mile in New York. Whereas in India, you would have to pay only ₹ 40 for a limited distance. That is, the taxi fare in America is 508% more than in India. And in New York, the cost of a cinema hall is ₹ 1,470. While the cost in India sits around ₹350. That is, 320% more has to be spent to watch the cinema in our country than in India.

 

Now know what is the reason for such inflation. Inflation in America has reached a record level of 40 years. For this, America is continuously increasing the interest rates of the central bank. But this step taken by the central banks is not taking the name of reducing inflation in America. 

Though there has been some decline in recent months, it is proving insufficient to provide immediate relief to the public. The inflation rate in the US was 8.2% in September. After this, it declined slightly due to the Fed's move. In the next month i.e. October, the inflation rate fell from 8.2% to 7.7%. Although the inflation figure is still very high. 

India is also working on the inflation front. But even in India, the rate of inflation is above the fixed figure of the central bank. Tomorrow also the GDP figures for Quarter-3 are going to come in America. Now it has to be seen whether the situation in America improves or remains the same.

 
China became America's headache, how will the US handle this crisis?

 

The situation is bad in China, but its effect is visible in America. Protests against sanctions continue in China, but the damage is being done to America. You will say why is this happening. How is the ongoing tension in Asian countries hurting America? Let us try to understand how the problem of one country can trouble another country in today's time.

 

In recent times, you must have heard a lot of news that the Chinese government has implemented the zero covid policy in many parts of the country. Under this policy, restrictions were imposed in many places in China and people took to the streets against these restrictions. People are protesting from cities like Beijing and Shanghai to industrial areas like Xinjiang and Zhengzhou. But the side effects of this war going on in China are putting America in trouble.

 

Because China is a part of the world. At the same time, such situations are increasing the difficulties of America's giant tech companies. Zhengzhou city is the city in China where Apple's business runs. Meaning Foxconn's factory is in Zhengzhou where the iPhone is manufactured. The problems started in this factory at the beginning of November. 

Maximum restrictions were imposed on this factory, after which the workers there escaped by jumping over the wall. Because the fear spread among the workers there that the Chinese government is going to convert this factory area into a covid experiment camp, so that it can be seen whether the workers live or die there. 

Due to this, the matter kept getting worse and today due to all these circumstances the movement of people in the industrial area has been restricted and the work in the factories has come to a standstill. Due to this oil consumption has also been reduced. What is happening with this? 

In fact, due to the decrease in demand for crude oil in China, there has been a big decline in West Texas Intermediate i.e. WTI crude. The pressure is visible on the shares of companies with large production capacities in China. Bloomberg reports that Apple's stock fell 2.6%. Due to this situation, the production of this iPhone pro will decrease to 6 million units in a year.

 

Apple is no longer able to complete its iPhone models due to the closed factory in China. This clearly shows how one thing can affect another. Concerns about the supply chain being affected have also increased amid the protests. The protests have increased the supply uncertainty for the companies operating there and obviously, this can become a big hurdle in the way of controlling inflation.

 

The shutdown of a big economy like China will have a deep impact on the global economy. The situation in China has made the US markets very nervous and distressed. As you can see, the Dow Jones fell 497 points to 33,839. The S&P 500 closed at 3,963, down 1.54%.

 

Similarly, in countries watching the Nasdaq Composite, the market closed at 11049 after three days of decline. At the same time, the sluggishness of the Asian market and the weak global market can also affect the Indian stock market. That is, the problem of one country can become a disaster for other countries.