Biden’s First Covid Spending Plan To Include $1400 Stimulus Checks: Top Offer Or Starting Bid…?!?

The incoming Biden Administration is set to unveil its first fiscal spending plan, which appears to carry a price tag of…

(by Half Dollar) As we approach the 20th of January, reports are coming in about the Biden Administration’s first round of fiscal stimulus.

In fact, Biden is set to unveil some sort of plan tonight, Thursday, January 14, 2021.

In the meantime, here’s some of what is being discussed in the mainstream media because this is “free money” that we’re talking about, and this money printing has direct, major impacts on Main Street.

First, Bloomberg is throwing around a $2 trillion price tag (bold added for emphasis and commentary):

Treasury yields rose with stocks on Thursday after a report suggested President-elect Joe Biden plans Covid-19 relief of about $2 trillion.

There are two important things in the first sentence of that article: Treasury yields rose and the $2 trillion price tag.

When Treasury yields rise, that’s a problem in so many ways, and our debt-based financial system is utterly dependent on falling interest rates, not rising interest rates, so therefore, the Fed will be forced to whip up some funny money and buy up bonds to keep rates from rising.

That, is pure debt monetization, and it is the path of least resistance, which is exactly why hyperinflation is in our near-term future.

That said, the Fed does not totally have to keep interest rates where they are right now, but all the Fed really needs to do is make sure consumer price inflation (and other forms of inflation, like asset price inflation) is climbing faster than interest rates, and I do think the Fed will try to micro-manage the “markets” in that sense.

Remember all of that “we’re letting inflation run hot” talk from the Fed?

I’m pretty sure that some people are already feeling the burn.

Side Note: Because of all this Fed and US Government tinkering in the markets and with the economy, prepare for more extreme market distortions and market disconnects.

Secondly, here’s a point about that $2,000,000,000,000 price tag: President Trump just signed a stimulus bill of slightly less than one trillion in December, as in, just a few weeks ago, and this month we’re already about to see another stimulus bill, with more than double the price tag?

Yikes!

Follow up question: Does this mean that in February, we will be talking about a $4 trillion round of stimulus?

Now, this next round of fiscal stimulus may, or may not, take some time to work its way through Congress, and recall that the stimulus bill President Trump signed in December was being “negotiated” since last July!

This is where the whole concept of the “blue wave” comes in, whereas, according to the mainstream, spending will not be held up like it was under the Trump Administration because the Federal Government will be “democrat-controlled”, meaning, theoretically, we will not have a “divided government” bickering much while accomplishing little.

Reuters is reporting on $1400 stimulus checks (bold added for emphasis and commentary):

The stimulus package has a price tag above $1.5 trillion and includes a commitment for $1,400 stimulus checks, according to a source familiar with the proposal, and Biden is expected to commit to partner with private companies to increase the number of Americans getting vaccinated.

Additionally, that same Reuters article mentions things like targeting minority communities for fiscal relief, focusing on vaccine distribution, and other forms of spending.

The curveball with all of this is the second Impeachment, which analysts are saying could consume the Senate during Biden’s first days in office.

So it basically comes down to this: Will the next round of fiscal stimulus be rubber stamped, possibly even this very month, or will there be much “debate” and other “issues” that Congress must deal with, essentially bogging down the next round of fiscal stimulus?

Finally, well, this:

Developing…