fbpx

2021 Bailout Spree Starting Soon

by | Jan 19, 2021 | Economy

Biden announced his stimulus plan, dubbed the “American Rescue Plan”, in the weeks prior to his inauguration. In addition, the President-to-be announced his administration’s intention of forgiving $10,000 for every borrower with federal student loan debt. This 2021 bailout of student debt borrowers is just the first of several groups that will ultimately seek relief from the government.

Sure, this will appeal to many former students. However, while this announcement may appear to be generous, it’s actually just the beginning of what will become some very expensive negotiations that will expand to all sorts of other borrowers.

Borrowers will ask for more than the 2021 bailout proposes

Many former students owe a moderately substantial amount of student loans, and will ridicule Biden’s stingy 2021 bailout proposal. We will see articles popping up with headlines such as “Mary Jones has $300,000 in student debt for her business degree. $10,000 isn’t even a drop in the bucket.

Biden’s incoming administration – while acknowledging the voting capacity of underemployed college grads with mountains of debt – will promptly reply with a larger number. This higher amount of student loan forgiveness will also be dismissed by the masses as an inadequate solution to the matter.

Perhaps once the 2021 bailout figure surpasses the trillion dollar mark will the grumbling die down. Then, the United States Treasury will issue the checks, the Fed will finance any borrowing necessary, and the convoy will proceed on to the next crowd of those in need of relief. Undoubtedly, this will be the local and state level governments with feloniously fumbled pension funds that are chicken feed compared to the student loan debt.

Other industries bound to seek relief

Beyond that, there are many companies that borrowed exorbitant amounts of money to buy back their own stocks and are now essentially broke, frackers that used junk bonds to finance their operations that aren’t producing adequate cash flow to cover the interest accruing, colleges that blew their grants on sleek new stadiums, and foreign organizations that borrowed more than they can handle and are now at risk of defaulting. All of these entities are bound to seek their own 2021 bailouts from the federal government. Down the line, Washington will wind up getting ready to finally help the truly victimized entities of government policies – such as restaurants and landlords – but by then society will have stopped paying attention to large numbers at all.

Eventually in the course of time, some will pose questions regarding the consequences of adding another 10 trillion dollars or more to what is exceedingly resembling a balance sheet at a banana republic. However, with everyone concentrating on their own individual bailouts in progress, the cynics will be censored for frightening delicate Robin-Hood day traders.

“American Rescue Plan” Announced

President-elect Biden revealed his stimulus plan, dubbed the “American Rescue Plan.” Jerome Powell assured Americans the Fed will keep up with its current monetary policy. He claims the central bank won’t be increasing interest rates any time in the near future. Powell somehow seems to believe the Fed can create jobs and actually stimulate real economic growth by continuing to print money.

The US government is spending an unprecedented amount of money, setting an all-time high budget deficit in December 2020 of $143.6 billion dollars for that month. The first quarter of ‘21 will see spending of $1.3 trillion by the federal government. And that spending is only likely to increase from there.

Where the stimulus money will be disbursed

Biden unveiled plans for a $1.9 trillion stimulus bill in the weeks prior to his inauguration, the “American Rescue Plan”. In brief, the incoming president intends to stimulate the economy by bolstering government spending, which of course will be made possible by the Fed printing even more money. Some of the main points of the stimulus plan include:

  • Stimulus payments of $1,400 paid directly to American citizens
  • Federal unemployment benefits increasing to $400 per week
  • Federal unemployment benefits extended through September 2021
  • $170 billion for both public K-12 schools as well as colleges and universities
  • $350 billion for local and state level governments
  • $50 billion for increased coronavirus testing
  • $20 billion for a national vaccination initiative

Why gold is a good investment option

Of course, a huge majority of the 2021 bailout money will ultimately find its way to the off-shore bank accounts and vaults of the 1%. That part’s obvious. How is all of this going to affect you? Minimally, if you take action now by diversifying your assets with precious metals like gold and silver.

At the moment, gold comprises less than 1% of invest-able capital world-wide. However, as fear of things like the dollar collapse, the incoming Biden administration, and on-going issues stemming from the pandemic, that 1% will grow dramatically. Even reaching 5% would be a huge jump, resulting in an explosion on its pricing.

If you’re interested in investing in precious metals, give us a call at (888) 260-4749. Oakhurst Metals is known for its great pricing, fast shipping, and excellent customer service.

3 Ways To Survive Devastating Dollar Collapse

The U.S. economy is unstable, as is the future. Learn how to protect your wealth from the dollar collapse and discover viable ways to grow your wealth as well. Introduction The period of the U.S. greenback’s “exorbitant privilege” because the world’s major reserve...

Business economists expect high inflation through 2023

Business economists expect inflation to increase in the fourth quarter and stay elevated for years, according to a new survey.

Could omicron be the trigger that bursts asset price and credit bubbles?

The new omicron variant might induce renewed widespread economic lockdowns and further disrupt already damaged global supply chains.

Joe Biden was involved in a deal with a Chinese giant — and was expecting a 10 percent cut

Hunter Biden and his Uncle Jim were already waiting for Tony Bobulinski in the lobby bar of the Beverly Hilton when he arrived at 10 p.m. on May 2, 2017.

House spending bill increases deficit $800 billion over next five years

President Joe Biden and House Democrats have said their $2.4 trillion tax and spending bill is fully paid for. The cost is zero, the White House claims.

Pension Cash Dwindles, Risking Liquidity Crunch

Bigger private-market bets, inflation fears and a surge of retirees are putting public retirement funds at risk of a cash crunch that would force them to sell assets at losses to pay pension checks.

The Congressional Budget Office kills the fantasy of Biden’s spending bill

The Biden administration has contended that its “Build Back Better” agenda would cost nothing. The Congressional Budget Office now says that’s at least a few hundred billion dollars off.

House tax bill would do long-term damage to IRAs and retirement savings

The Biden administration and House Democrats are working to pass the largest social spending and tax increase bill in our nation’s history. Buried deep within the bill’s 2,135 pages are provisions that would do long-term damage to individual retirement accounts, 401(k)s, and our retirement savings…

Biden’s ‘Build Back Better’ Tax-and-Spend Scheme Risks Higher Inflation

The proposed tax increases in Biden’s Build Back Better bill would be the largest since 1968 and would likely fuel higher inflation.

Paul Tudor Jones calls inflation ‘biggest threat’ to markets and ‘society in general’

Inflation won’t be “transitory,” the Federal Reserve is on the wrong page, and trouble lies ahead for traditional portfolios split 60%/40% between stocks and…

Gas Prices Rise Every Day for Past 27 Days — Highest Since 2014

Gasoline prices in the United States have risen for 27 days in a row to an average of $3.38 per gallon across the country.


Live Gold Price

Live Silver Price

Free
Silver
Enter Now

Join our SMS list for a chance to win $500 worth of FREE Silver!

Skip to content