After nine months of stalling the issuance of another stimulus package, yesterday Congress passed a $900 billion bill, and soon many Americans will collect a one-time check of $600 that will be sent out directly into their Fed accounts. For married couples and families with kids, the payments can sum up to $3000 dollars. Although it may help ease the financial burden brought by the consequences of the health crisis and the collateral economic recession, the short-term advantages will be derisive compared to the massive inflation it will cause by early 2021.
That is to say, apart from the outrageous proposal of a single round of aid for families, and considering the largest part of that money will be directed to costly, non-urgent, and ineffective programs, the side effects of this staggering amount of printed money won’t actually help to boost consumer spending, let alone to promote some sort of economic recovery. In fact, it will trigger an unprecedented hyperinflation that is bound to push prices substantially higher, which means by the beginning of next year our dollars will have less purchasing power, and several services and supplies will be out of our reach. That’s what we talk about in this video.
Ever since the Federal Reserve has established an inflation target of 2% and decided to keep interest rates ate record-lows to support the markets with “whatever it takes”, every stimulus package has failed to track its way down to those who needed the most: low-income consumers and households at the very bottom of the economic ladder. Several experts are already expressing their discontent regarding the details of how the government decided to spend this money. While families will receive an amount that barely keeps them above poverty lines, a considerable part of the $900 billion figure is being directed to foreign handouts.
According to a ZeroHedge analysis of the project, extravagant quantities of money will be granted to other countries right at this stage of the economic crisis. Yes, that is just as absurd as it sounds. Approximately, $3.3 billion will be sent to Israel, $453 million to Ukraine, $10 million for Pakistan, $1.3 billion to Egypt, and $700 million to Sudan, and this is just the start. The bill was 5,593 pages long and it is being said that representatives were only given a few hours to read it. A Breitbart report featured complaints of numerous members of Congress about the mere six hours given to read the full bill before signing.
The truth is, at this point of the economic downturn, the passing of further federal aid has more to do with political affairs than with a real intention of protecting the public from food and housing insecurity. It is just unbelievable that they consider $600 stimulus checks and $300 unemployment benefits a satisfactory solution for the many problems they have created with lockdown orders and business shutdowns. Analysts say that the convenient timing in which the bill was approved is solely an attempt to control people’s reactions to what is coming next. Mounting social turbulence and a rise in registered felonies due to months of inaction are likely to keep growing as we enter January. However, they will use their patronizing shoot of cash as a scapegoat to try to suppress our dissatisfaction by saying that at least they have done “something”.
The money-printing policy literally implies that this cash is being fabricated out of thin air. It destroys the value of our currency by inflating the money supply at an exponential rate. And the results of it will be clearly seen in the cost of living over the next months. On the other hand, our paychecks won’t keep up the pace of the climbing inflation, consequently pushing our standards of living further down. Most Americans are failing to realize that this irrational spending will jeopardize the future of the next generations. In real terms, examining our staggering budget deficit and national debt, we don’t have 900 billion dollars hanging around to handout as we please.
Although some may argue that this stimulus money could strengthen the economy during the first half of next year, there is no real chance of providing a self-sustaining recovery. Quite the opposite, it might as well motivate policymakers to become even more aggressive in their money printing frenzy and result in hyperinflation way quicker than expected. In summary, our financial system is sentenced to an epic meltdown. The political game is played so well that it defends the destruction of our currency at the expense of $600 checks that will probably wear off in a week or two. Now, we’re on a highway to hyperinflation, and our imprudent free-spending politicians are behind the wheel.

Epic Economist

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