Bitcoin & Stimulus Checks — a Perfect Storm for Record Investment?
… or zero impact?
It’s finally here. The giant $1.9 TRILLION stimulus package, also known as the “America Rescue Plan,” has been signed off and, to paraphrase a now outdated expression, the first “checks are in the post.”
Indeed, at the time of writing this article, a handful of Americans may already have received their money.
For once, I am going to resist providing my usual commentary on whether creating this much money is good for the economy or the value of the dollar in the long term and focus instead on where that money might go.
This is the third round of stimulus to hit the American people and although this provides us with some data to look at, it should be noted that the macro landscape has changed significantly since they were issued at various points over the last 12 months.
It is also the single biggest package to date, with $411 Billion set aside for direct injection to individuals and families, compared to $292 Billion under the CARES Act (March 2020) and $164 Billion under the Consolidated Appropriations Act (December 2020) (Source: Peter G Peterson Foundation.) That's a huge amount of money to dispose of.
