AOC and 51 of her cohorts are pushing for the $2,000 checks to be a monthly event. Doing this will cost an astounding $10 trillion a year. This would be on top of the already massive $4 trillion Federal budget.
The amount of US dollars in existence is currently about $19 trillion. This would increase that amount by 50%. Having an additional $10 trillion in the system, most of which would be inserted directly into circulation like some kind of ghetto lottery, would be devastating to the dollar.
With the added stressors of rising petroleum prices and the increased minimum wage that is likely to pass within the next few weeks, we are likely to see a LARGE increase in prices across the entire economy. That will quickly be followed by the Fed moving to increase interest rates in an attempt to cool the economy. All of this adds up to bad, bad news for the US economy.
The policies that have already been put in place are bad enough, but increasing the US money supply by 50% means a straight up financial disaster. Even if the monthly checks don’t happen, there is some bad stuff coming down the road.
My wife and I discussed the situation this morning. The best defense at this point is to put your money in any vehicle that will insulate you from a falling US dollar. Stocks and bonds are a no go. In fact, this leaves only hard assets that have intrinsic value. In our minds that means precious metals or real estate.
I would suggest that anyone who is reading this take steps to secure your finances from the inflation that will happen.