I warned that the first round of “Trump Stacks”, or the payments totaling 40% of national GDP by way of the Families First Coronavirus Stimulus Bill that will send $1200 or more per taxpayer in checks to Americans, is just the beginning. The Federal Reserve does fundamentally only one function, and that is to print money, and as the US economy is in serious trouble, the way that the US will pay her debts will be as what Alan Greenspan said, which is to print money, even if it devalues the dollar to nothing.
This fits into the latest episode of the Washington political drama as Mitch McConnell ‘warns’ Nancy Pelosi not to ask for more money printing, to which she disagrees with.
One week after the Senate unanimously passed a $2 trillion emergency relief bill aimed at limiting the financial trauma from the coronavirus pandemic, Senate Majority Leader Mitch McConnell, R-Ky., said he would move slowly on considering any follow-up legislation and would ignore the latest efforts by House Speaker Nancy Pelosi, D-Calif., to jump-start talks.
Mr. McConnell’s sweeping dismissal of Ms. Pelosi’s urgent call for action underscored the uncertainty and fierce political warfare in Congress as the coronavirus outbreak shuts down much of the nation and throttles the economy, with little consensus on what should follow the biggest rescue package in U.S. history and lingering tensions from those negotiations between McConnell and Pelosi.
“She needs to stand down on the notion that we’re going to go along with taking advantage of the crisis to do things that are unrelated to the crisis,” Mr. McConnell said in an interview with The Washington Post, calling the speaker’s recent comments about a fourth round of virus-related legislation “premature.”
In response, Ms. Pelosi said she would carry on.
“The victims of the coronavirus pandemic cannot wait,” she said in a statement. “It is moving faster than the leader may have suspected, and even he has said that some things should wait for the next bill. I hope that we can work in a four corners manner for the common good.” (“Four corners” is a reference to the four leaders of Congress: the speaker, the Senate majority leader and the two minority leaders.) (source)
At this point, Washington should just be one giant Spanish language telenovela because it is as ridiculous as those shows are, and I say this because the fact is that the future is obvious.
The government is going to print money. They will print money until the currency is completely devalued. They do not care because they already have their money, and lots of it stored into tangible assets- something that I have been warning all readers about would be critical for the future.
The citizen is the biggest loser. Printing money does not make you wealthier. It just robs value from the money you already have, and if you are poor, you will have a temporary rise in your purchasing power followed by an immediate loss. It is like eating a lot of sugar for a short-term “energy” boost while coming at the long-term expense of one’s health and fitness.
This is not an issue of political parties. The fact that Trump so eagerly signed the recent bill and his noted comfortableness with Pelosi should not be considered a surprise. Ultimately, the Democrats and the Republicans are both friends, they largely don’t care about the people, and they will rob and destroy the country at your expense if they are able to, and that is what is happening.
This is why I say not only will there be more “stimulus” coming, but now is not the time to save. To the contrary, it is the time to spend money either investing into tangible (“hard”) assets of any type, or to purchase the goods that one will need for the future while there is still money to do so and they can be purchased for a reasonable price.
The future is the past, and unfortunately, the 2020 are looking more the the 1920s not in America, but in Europe.