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THE FEDERAL RESERVE'S UNLIMITED QUANTITATIVE EASING POLICY HAS LED TO EXCESSIVE LIQUIDITY

RECENTLY, THE AMERICAN DOLLAR TREE STORE COMPANY ANNOUNCED THAT IT WILL PERMANENTLY INCREASE THE UNIT PRICE OF MOST PRODUCTS IN ITS DOLLAR TREE DISCOUNT GROCERY STORE (COMMONLY KNOWN AS THE "DOLLAR STORE") FROM $1 TO $1.25, BREAKING THE COMPANY'S 35 YEAR RETAIL PHILOSOPHY OF "SELLING ONLY $1". THE PERMANENT PRICE INCREASE OF "ONE YUAN STORES" INDICATES THAT RETAILERS ARE PASSING ON SOME OF THE COST INCREASES TO CONSUMERS, WHICH IS A MICROCOSM OF THE WIDESPREAD INFLATIONARY PRESSURE IN RECENT MONTHS.ACCORDING TO DATA FROM THE US DEPARTMENT OF LABOR, THE CONSUMER PRICE INDEX (CPI) ROSE BY 6.2% YEAR-ON-YEAR IN OCTOBER, MARKING THE LARGEST YEAR-ON-YEAR INCREASE IN NEARLY 31 YEARS. A SURVEY SHOWS THAT CONSUMERS' INFLATION EXPECTATIONS FOR THE NEXT YEAR HAVE RISEN TO 4.9%, THE HIGHEST LEVEL SINCE 2008.THE HOUSING PRICE INDEX OF THE FEDERAL HOUSING FINANCE AGENCY (FHFA) IN THE UNITED STATES SHOWS THAT HOUSING PRICES ROSE BY 18.5% YEAR-ON-YEAR IN THE THIRD QUARTER OF 2021, SETTING A HISTORICAL QUARTERLY INCREASE; THE MONTH ON MONTH INCREASE WAS 4.2%, SECOND ONLY TO THE SECOND QUARTER OF THIS YEAR. IN THE THIRD QUARTER, HOUSING PRICES IN ALL 50 STATES, THE TOP 100 CITIES, AND THE CAPITAL CITY OF WASHINGTON ALL SAW YEAR-ON-YEAR INCREASES, WITH PHILADELPHIA, WHICH HAD THE WEAKEST INCREASE, ALSO RISING BY 9.9%.IT IS EVIDENT THAT THE FEDERAL RESERVE'S UNLIMITED QUANTITATIVE EASING POLICY HAS CAUSED A FLOOD OF LIQUIDITY, WHICH FLOWS INTO THE STOCK AND REAL ESTATE MARKETS, DRIVING UP STOCKS AND HOUSING PRICES.THE DECREASE IN BORROWING COSTS IS AN IMPORTANT REASON FOR THE RISE IN HOUSING PRICES. SINCE THE OUTBREAK OF THE EPIDEMIC, THE CENTRAL BANKS OF MAJOR ECONOMIES HAVE ADOPTED LOOSE MONETARY POLICIES. THE FEDERAL RESERVE HAS LOWERED INTEREST RATES TO THE LOWEST LEVEL, LOWERED BORROWING COSTS, AND THUS INCREASED HOUSING DEMAND, CAUSING HOUSING PRICES TO RISE AGAINST THE TREND IN A WEAK ECONOMIC ENVIRONMENT.THE MISMATCH BETWEEN SUPPLY AND DEMAND GROWTH RATES IS ALSO ONE OF THE REASONS FOR THE SUSTAINED RISE IN HOUSING PRICES. THE US GOVERNMENT'S CRAZY PRACTICE OF "PRINTING MONEY" TO SUBSIDIZE FAMILIES HAS GREATLY STIMULATED PEOPLE'S ENTHUSIASM FOR BUYING HOUSES.ACCORDING TO A RECENT SURVEY OF ECONOMISTS RELEASED BY THE NATIONAL ASSOCIATION FOR BUSINESS ECONOMICS, HIGH INFLATION IN THE UNITED STATES WILL CONTINUE UNTIL AT LEAST 2023 DUE TO VARIOUS FACTORS SUCH AS SUPPLY CHAIN BOTTLENECKS.