The world’s bureaucrats have been on a money creation spree and on July 21, the European Union approved an unprecedented $2.1 trillion coronavirus relief budget. Additionally, American leaders are in the midst of approving a new stimulus relief act amid July’s unemployment extension benefits expiring. Reports say that the estimated $3 trillion HEROES Act will pay American taxpayers another payout round similar to the last cash injection, but it adds additional money for individuals who meet certain criteria.
Global politicians and central bank leaders believe that creating money out of thin air will save the economy from pending doom. No one knows how much money is needed to fix the economic problems and mend the financial troubles, but Bloomberg contributor Christopher Condon believes it will take another trillion to help fix the United States.
However, other analysts and economists disagree and in Condon’s report, he notes that the former chief White House economist under President Barack Obama, Jason Furman, thinks it will take $2 trillion to mend the U.S. economy.
The European Union is also having issues with the economy, as a number of financial experts have warned during the last few months that the EU would be in danger of financial calamity. Associated Press columnists Samuel Petrequin and Raf Casert explained on Tuesday that the EU finally approved a stimulus relief bill created to help struggling EU member nations.
Economists have predicted an extreme financial depression in the region, so European Union leaders authorized a 1.82 trillion euro ($2.1 trillion) budget on July 21. It is one of the largest stimulus bills the EU has ever passed, as loans and grants will be distributed to the “[EU] countries hit hardest by the virus.”
The U.S., however, is lagging on creating a second stimulus recovery act for Americans, but the House of Representatives passed the HEROES Act in May. The HEROES Act started as a 3 trillion dollar plan, but top congressional Republicans and the Trump administration may whittle that number down to $1 trillion. The financial publication Forbes even offers a HEROES Act payout calculator, so American taxpayers can visualize how much money they might receive.
A number of American pundits, analysts, and economists think the stimulus bill will be approved by the end of July, in order to combat the $600 extended unemployment benefits that expire for Americans this month. At the very least, a cash injection for American citizens is expected by August according to a number of reports.
Mitch McConnell Jr. (R-Ky), the longest-serving leader of U.S. Senate and Senate Majority Leader, told the media he expects a stimulus bill to be approved soon. McConnell insisted that he will endorse “another round of direct payments.” The American press claims the main reason behind the stimulus move is mainly due to the unemployment insurance expiry.
“The economy needs another shot of adrenaline,” McConnell stressed Tuesday. “If we lose control of the virus…everything else will be window dressing.”
While discussing the situation with President Donald Trump, Senate Majority Leader Mitch McConnell, and Vice President Mike Pence, Treasury Secretary Steven Mnuchin seems to think the magic number is $1 trillion.
Mnuchin’s statements noted that the money is needed so American’s can “focus on kids and jobs.”
“We’re focused on starting with another trillion dollars, we think that will make a big impact,” Mnuchin told the press on July 20.
Of course, many gold bugs and cryptocurrency proponents see the next rounds of stimulus bolstering the counter-economy. The EU stimulus approval seemingly strengthened the precious metals silver and gold on Tuesday and Wednesday, but digital currencies like bitcoin (BTC) also saw a decent price lift both days.
Crypto proponents on Twitter have said, “the coronavirus stimulus packages around the world are good for bitcoin.” On July 6, 2020, the Open Economy Initiative published a video that showed researchers taking to the streets in Denver asking Americans their opinions about bitcoin and the U.S. government’s recent money printing spree.
Most of the participants the Open Economy Initiative (OEI) interviewed believed that money printing was necessary and a few discussed bitcoin. One person said the “coolest thing” he spent his stimulus check on was “cryptocurrency.”
“It actually went up, and it’s still going up,” one person told the interviewer from OEI. “I’m trying to be wise with [the stimulus money] if ya know what I’m saying,” he added. The OEI website says the organization “envisions a future where cryptocurrency transactions are the standard, transfer fees are minimal, and money is uncensorable.”
On Twitter, a number of individuals also viewed the EU stimulus approval as being positive for investments like precious metals and bitcoin, and they expect the pending American stimulus injections to bolster the counter-economies further.
“Expect the market to further rally over the next few weeks as the next round of fiscal stimulus is announced,” explains David C., a keen observer of trends. This time we should see a broad-based market rally in all sectors. S&P500 should break ATH very soon. Bitcoin, gold and silver will continue its ascend as USD continues to weaken.”
Do you think the next round of fiscal stimulus will bolster bitcoin and precious metal markets? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Open Economy Initiative, AP
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