If You Get A Stimulus Check?

It doesn't really matter at this point in all honesty. The difference with Germany and now is that Germany was basically the only country doing it. There's also a difference when world reserve currencies do it and when other countries do it.

Every major country right now is doing it because you have to when you shut down your country or you end up with a revolution when people are staring to death, becoming homeless, and losing everything because they aren't allowed to be open. UK, Europe, Australia, basically you name it and they're all doing the same thing in developed westernized countries. It cancels each other out when all the major currencies are doing the same thing. Europe just did another 2 trillion or something like that a week or two ago.

There's only two choices you open everything up completely so people can make a living or you dish out money while you have them shut down, there's really no choice but to do it as long as things are closed.

 

Log in or Sign up to hide this ad.

It still has an effect on the economy because you’re putting money into circulation and that always weakens a currency.

I think this is going to have big implications down the road. Many countries are even talking about dropping the US Dollar as the reserve currency and replacing it with the Euro, or worse, the Chinese Yuan/Renmibi.

 

Not when everyone else is doing the same thing.

They won't. China and Euro has massive massive debt as well and no one is going to trust China, well the west won't anyways. At the end of the day a countries moneys strength is backed by the military. There's only one superpower in the world and its the USA, there's only a couple reserve currencies and the USA is not only one of them but the leading one.

Don't buy all the sky is falling hype, no sane country is going to be dropping the USD/Pound/Euro to switch to China. It makes even less sense since Chinas economy collapses without the USA as does many other countries since the USA is basically the biggest importer of everything on earth.

 

Im not saying the sky is falling I’m just saying we will see the dollar weaken compared to right now.

Even if other countries are doing the same thing that just means they’ll have inflation too.

If a gallon of milk costs $5 or £3 now then after the influx of cash it might cost $6 or £4 for a gallon of milk. Both countries will have inflation domestically even if their exchange rate to each other is the same.

 

We already have inflation, we always have inflation, there's never not inflation.

If all the "quantitative easing" didn't cause hyper inflation, and the trillion dollar a year tax cuts for the past 4 years didn't cause hyperinflation, a $600 check for every American (130 billion dollars to do that) isn't gonna do it and neither is 3.33x that (433 Billion dollars instead)

The rest of the 2.4 trillion dollars in the spending bill, and the rest of the 900 billion dollars in the current covid relief portion, goes other places besides hurting American's pockets.

In the end, that $600 check for every America is $130 billion of the $900 billion for "covid relief"...... where's the other $770 billion going and why are people only concerned about inflation or hyper inflation when it comes to helping out struggling people, taxpaying people, the consumers that make the consumer economy actually function????

"let them eat cake"?

As long as countries and people want the U.S. dollar and want to buy U.S. debt hand over fist, and the U.S. pay off as promised, honoring their obligations as usual, nothing at all changes. It's when you are printing money and got nobody buying the debt to do it, that's when hyperinflation ensues just like in Germany or Zimbabwe as a more recent example..... you need money, you can't just print it, you take a bond, you sell the bond to back the new currency with debt, it's a loan really, the bond matures, people get paid back, the currency is stable.

I'll "worry" when nobody will take U.S. dollars and when nobody will buy U.S. debt and the government THEN continues to print money.

 

It goes in the bank account. With two teens, my grocery bill is like 300 a week.

 

Truest statement ever spoken! Gold to the moon!!!!¸.•'´¯)¸.•'´¯)¸.•'´¯)‹(•¿•)›

 

I'm going against the grain - If I get a stimulus deposit I would rather donate it to a charity to use where it is really needed.

 

I read in the WSJ this morning that the passed OMNIBUS bill says that if you are single making less than $75k, you get a $600 check. Married filing jointly making less than $150K, you get two $600 checks.

My only quandary is: "Do I tell my wife this?"

 

That one's outdated, its going to be 2 and 4k

 

Hopefully with zero international, zero for the special interest 'arts', and zero for illegals.

 

My guess would be unless they do the payments as a standalone thing the bill will likely just increase in size

 

Were you asleep in March? They already pumped 2.3 trillion into this. Now they're trying to cram a massive omnibus bill filled with pork and a desperately needed stimulus bill filled with pork attached to it. lol I heard about 500 billion is still left over from the Cares act that that's already been appropriated but not used and can be part of this bill. And it looks like the republicans in the House have rejected the $2k checks today so it'll probably be another month before anything is done.

 

Germany printed money. The US borrows it. Big difference.

Based on how the last stimulus was spent, I wouldn't worry about inflation from it.
It's estimated that 27% of the money was saved and 31% was used to pay down debt. The remaining 42% was used to purchase items. About half was used for durable items (cars, major appliances) and medical care. It's highly likely that much of those durable item purchases were just accelerated and any uptick in prices now will be offset in the near future when prices drop to reflect lower future demand.

The remaining half used for food and essentials likely didn't cause any meaningful uptick in demand. You don't buy an extra loaf of bread just because you have extra cash. You also probably had the money to buy the first loaf without the stimulus.

And all things considered, it's just not that much money to move the needle on inflation. Besides, what goes in must come out. Unlike the newly printed Germany money, the money the US borrows needs to be paid back by the taxpayers (consumers). This will reduce future consumption and reduce inflation.

 

The US "borrows" money that the privately owned Fed has the Treasury "print", no?

 

The US does borrow money but they also print it. Over time banknotes become worn and eventually destroyed so the Fed has to keep issuing new notes. The problem is when they issue far more than notes than are being lost.

Think about it? What can stop the Treasury from just printing up $1 billion in hundred dollar bills? Nothing. They have the ability to print as much as they want.

$900 Billion is a HUGE amount of money. It would definitely impact inflation.

That’s 6x as much money as Jeff Bezos has.

That’s 5% of the entire US GDP!

It’s a little bit more than enough money to pay the annual budget of the entire Department of Defense. The Army, Navy, Air Force, Marines and Coastguard all combined.

However that can cause too much inflation when done often or in large amounts which is why many countries borrow money.

 

But the fundamental problem is that not enough money IS circulating, because so many people aren't getting paid at all, and so many places where people would normally spend money are shut down.

I wish there were some way to pay aid only to people who have lost jobs or had their hours cut, but apparently "paying people not to work" is a terrible thing. Unless, of course, you're talking about dividends or inheritances.

 

There is a MASSIVE difference between welfare being so lucrative that it pays more than many jobs and giving assistance to people who were shut down by the government and not even allowed to fight for their businesses or laid off because their work was shut down. No one is against helping people and small businesses who have been impacted by all this

 

Your Damned if you do or Damned if you don’t....
I say do what makes you happy...

Unfortunately you can’t start an innocent conversation without political
Consequences. I won’t say anymore....

 

Guess my opinion is it's your money as soon as you receive it. You can do with it what you want. Also, don't forget, coin dealers have families to feed too, and several states have probably had them locked down. A lot of people need help now! How about we take it out on the politicians who decided to only give $600 while they continue to get paid their full salary! Then they act like they are wonderful! Time for me to shut up now!!! LOL