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Title: "The Price Will Be High": Biden Calls For "Trillions" In Fiscal Stimulus
Source: [None]
URL Source: https://www.zerohedge.com/markets/b ... americans-entitled-15-min-wage
Published: Jan 8, 2021
Author: Tyler Durden
Post Date: 2021-01-08 18:38:38 by Horse
Keywords: None
Views: 119
Comments: 10

Having swooned earlier on the whole Joe Manchin "insert foot in mouth", stocks jerked back higher and closed near record highs after Joe Biden on Friday called for trillions of dollars in immediate further fiscal support, including increased direct payments, to kickstart the economy from the Covid shutdowns which will expand under his administration.

“The price tag will be high,” Biden said of his planned package in Wilmington, Delaware. He promised to lay out his proposals next Thursday, before taking office on Jan. 20. “It will be in the trillions of dollars.”

As reported by Bloomberg, "Biden invoked images of the unemployed waiting in long food lines" and added a dire warning: “If we don’t act now, things are going to get much worse and harder to get out of a hole later.”

What he didn't say is that even if he acts now, and he will, is that things will still get much worse later, at which point it won't be trillions but quadrillions as the final race to the debasement bottom begins.

“People are lined up for miles in their automobiles waiting to get a meal to put on the table for their family,” Biden said at the news conference on Friday. The president-elect also called for a federal minimum wage of $15 an hour, another measure that’s likely to run into a challenging political calculus.

Biden demand for much more stimulus - which will include $2,000 stimulus checks and hundreds of billions in state and local funds to bail out insolvent democrat cities and their pensions - came after an dismal December jobs report that reflected a plunge in restaurant employment, driven largely by mayors like Bill de Blasio killing their local restaurant industry.

Biden's request will come as a surprise to Wall Street economists who see new stimulus package falling short of multiple trillions of dollars. Goldman, for example, expects about $750BN in new stimulus.

That said, the 50-50 partisan split in the Senate will make a more ambitious proposal challenging to pass, testing the new president’s sway over lawmakers from his party and his ability to influence Republicans. Earlier today markets swooned after the WaPo reported Dem Senator Joe Manchin said he would not agree to a $2,000 check only for him to backtrack shortly after following a widespread anger at his position.

Of course, since only stocks really benefit from such profligate fiscal generosity, equities started recovering after news spread that Manchin was backtracking on his WaPo comments, and then extended gains following Biden’s call. S&P futures closed up 0.7%.

Finally, just in case there is any question who will end up buying all the trillions that the US government is about to spend..


Poster Comment:

The M1 Money Supply increased 90% over the past year. If we are to increase that by trillions, then we are talking about doubling the Money Supply every year until things bet better.

What school of economics is proposing this nonsense? Was this plan taken from the Weimar Republic of 1923?

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#2. To: Horse (#0)

I truly half expected Trump to file bankruptcy on the national debt but I guess that won’t happen until Biden gets a chance to run up the tab. Trillions and Trillions of dollars. You could reach Pluto with the dollars we’ve spent enriching that upper crust one percent. The money paid to the Rothschild family should keep them in power until their clones are ready to accept their newfound and restored consciousnesses.

While I may not see the day this country collapses completely under the weight it has in debt, I can certainly enjoy that handout and prepare to make sure me and mine are shielded from the coming shitstorm. You will own nothing isn’t just a catch phrase, nobody will be able to afford to own anything not even themselves.

TommyTheMadArtist  posted on  2021-01-08   19:01:20 ET  Reply   Untrace   Trace   Private Reply  


#3. To: TommyTheMadArtist, 4um (#2)

I can certainly enjoy that handout and prepare to make sure me and mine are shielded from the coming shitstorm.

Try to spend it while it's still worth something.

Esso  posted on  2021-01-08   19:13:18 ET  Reply   Untrace   Trace   Private Reply  


#4. To: Esso (#3)

With the rate Crypto is tanking I imagine by the time I withdraw the paper from the bank I should be able to use it as kindling.

TommyTheMadArtist  posted on  2021-01-08   20:29:07 ET  Reply   Untrace   Trace   Private Reply  


#7. To: TommyTheMadArtist (#4)

Crypto is tanking

I put $1,000 into Bitcoin a couple of years ago and it has doubled. ;)

BTP Holdings  posted on  2021-01-09   9:20:52 ET  Reply   Untrace   Trace   Private Reply  


#9. To: BTP Holdings (#7)

It has been really fluctuating lately and it’s tied to the stock market. Once this stimulus crap is done, you are going to see that money plugged into Crypto and when it hits a peak, the harvesters are going to come in and strip the profit and wealth of it like they do everything else. I don’t have enough crypto to make myself rich or even put me on the grid, but it is definitely growing due to the fact people are taking their stimulus and throwing it into Crypto.

Faith in the dollar is waning and I think in the next 6 months we are likely going to be surrendering to China.

TommyTheMadArtist  posted on  2021-01-09   9:44:58 ET  Reply   Untrace   Trace   Private Reply  


#10. To: TommyTheMadArtist (#9)

Once this stimulus crap is done, you are going to see that money plugged into Crypto and when it hits a peak, the harvesters are going to come in and strip the profit and wealth of it like they do everything else.

You need a specific event to affect the value of crypto, such as when China and Brazil put controls on it. Then it took a 20% plunge. ;)

BTP Holdings  posted on  2021-01-09   10:13:40 ET  Reply   Untrace   Trace   Private Reply  


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