USA/China-US Inflation/Experts

Shotlist

FILE: Washington D.C., USA – May 12, 2020 (CCTV – No access Chinese mainland)
1. Various of White House

Beijing, China – Aug 3, 2022 (CGTN – No access Chinese mainland)
2. SOUNDBITE (English) Michael R. Powers, professor, School of Economics and Management, Tsinghua University (partially overlaid with shots 3-4):
“I think that the major impact that it is strengthened the U.S. dollar, this makes it very difficult for nations around the world. So they have this inflationary economy. I do believe much of the inflation around the world was exported from the U.S. that is, U.S. consumers were buying goods, are taking the money the government gave them, buying goods, raising the prices for everyone around the world. Now and the Fed was slow to react so that inflation had time to spread everywhere. And now, the Fed is acting. It’s raising interest rates which strengthens the U.S. dollar, although that is going to have a decreasing effect, it’s going to mitigate some of the demand for these goods that the Americans have. At the same time, it’s going to make them able to buy more with their reduced demands. So they’re still going to be pushing other people out of the markets for competing very effectively and keeping prices up for people in countries around the world.”

++SHOTS OVERLAYING SOUNDBITE++
Salt Lake City, Utah, USA – July 14, 2022 (CCTV – No access Chinese mainland)
3. Various of products sold in supermarket, customers

Beijing, China – Aug 3, 2022 (CGTN – No access Chinese mainland)
4. Studio
++SHOTS OVERLAYING SOUNDBITE++

Washington D.C., USA – Recent (CGTN – No access Chinese mainland)
5. Various of man withdrawing money from ATM

Beijing, China – Aug 3, 2022 (CGTN – No access Chinese mainland)
6. SOUNDBITE (English) Michael R. Powers, professor, School of Economics and Management, Tsinghua University (partially overlaid with shots 7-8):
“Other countries won’t have that long term benefit and long term position that they can rely on. They can try. So some will probably raise interest rates that may be a solution. They will try to reduce their dependence on dollar denominated goods and debt as well. There are a variety of things they can do, but it’s very, very difficult and a very delicate period of time.”

++SHOTS OVERLAYING SOUNDBITE++
Washington D.C., USA – Recent (CGTN – No access Chinese mainland)
7. Pedestrians, traffic

Beijing, China – Aug 3, 2022 (CGTN – No access Chinese mainland)
8. Studio
++SHOTS OVERLAYING SOUNDBITE++

FILE: USA – Exact Location and Date Unknown (CCTV – No access Chinese mainland)
9. Various of U.S. dollar notes being counted by machine, bank clerk

Beijing, China – Aug 3, 2022 (CGTN – No access Chinese mainland)
10. Studio

New York City, USA – Aug 3, 2022 (CGTN – No access Chinese mainland)
11. SOUNDBITE (English) Jeffrey Sachs, director, Center for Sustainable Development, Columbia University (starting with shot 10/partially overlaid with shots 12-13):
“We have probably 20 to 30 low income, and especially middle income countries that borrowed heavily on the euro bond market or other bond markets that are in some serious distress right now. And we’re going to see a cascade of problems coming from that, especially as the downturn continues, and many of these countries are also food and energy importers. So I would expect that we’re going to see hardships and a hard landing for many countries. We already have a number of developing countries in quite a lot of financial distress with high inflation rates and the beginnings of either defaults or very difficult financial negotiations with the creditors. So it’s going to be a big problem in the coming months.”

++SHOTS OVERLAYING SOUNDBITE++
FILE: Los Angeles, California, USA – May 18, 2022 (CGTN – No access Chinese mainland)
12. Various of people using gasoline pump at gas station

Beijing, China – Aug 3, 2022 (CGTN – No access Chinese mainland)
13. Studio
++SHOTS OVERLAYING SOUNDBITE++

FILE: New York City, New York, USA – Date Unknown (CGTN – No access Chinese mainland)
14. Times Square

FILE: New York City, New York, USA – June 15, 2021 (CCTV – No access Chinese mainland)
15. Various of U.S. national flags, traffic on street

Storyline

The interest rate hikes initiated by the Federal Reserve of the United States will create a cascade of problems including global inflation, said experts in an interview with China Global Television Network (CGTN).

The U.S. Federal Reserve on July 27 raised its benchmark interest rate by 75 basis points, the second in a row of that magnitude, as elevated inflation showed no clear sign of easing.

The Fed has made clear tackling inflation will be the top priority, while the policies complicated other countries efforts to tame runaway prices amid economic downturn.

Michael R. Powers, professor at the School of Economics and Management of Tsinghua University, said the global inflation is spreading from the U.S.

“I think that the major impact that it is strengthened the U.S. dollar, this makes it very difficult for nations around the world. So they have this inflationary economy. I do believe much of the inflation around the world was exported from the U.S. that is, U.S. consumers were buying goods, are taking the money the government gave them, buying goods, raising the prices for everyone around the world. Now and the Fed was slow to react so that inflation had time to spread everywhere. And now, the Fed is acting. It’s raising interest rates which strengthens the U.S. dollar, although that is going to have a decreasing effect, it’s going to mitigate some of the demand for these goods that the Americans have. At the same time, it’s going to make them able to buy more with their reduced demands. So they’re still going to be pushing other people out of the markets for competing very effectively and keeping prices up for people in countries around the world,” said Powers.

“Other countries won’t have that long term benefit and long term position that they can rely on. They can try. So some will probably raise interest rates that may be a solution. They will try to reduce their dependence on dollar denominated goods and debt as well. There are a variety of things they can do, but it’s very, very difficult and a very delicate period of time,” Powers added.

Jeffrey Sachs, director of the Center for Sustainable Development of Columbia University, said many low income countries have already seen financial distress due to high inflation rates.

“We have probably 20 to 30 low income, and especially middle income countries that borrowed heavily on the euro bond market or other bond markets that are in some serious distress right now. And we’re going to see a cascade of problems coming from that, especially as the downturn continues, and many of these countries are also food and energy importers. So I would expect that we’re going to see hardships and a hard landing for many countries. We already have a number of developing countries in quite a lot of financial distress with high inflation rates and the beginnings of either defaults or very difficult financial negotiations with the creditors. So it’s going to be a big problem in the coming months,” said Sachs.