Topic: $1.9 trillion stimulus passes senate (Read 445 times)

Buy the rumour sell the news, when the law is actually passed and in effect is not when the market moves but in anticipation is when you must decide how this will influence price and asset quality under this change.   Its kinda universal rule that acting now would be after the fact really, the market can still be surprised or unaware of an outcome but most of the time any free market works always in anticipation of effects.

My take on 1.9tn is it makes the dollar weaker, most actions by government work to consume more then they produce where as people and private business is a producer and government is the tax on that productive capacity.  1.9tn represents something of a tax, the market likes weaker dollar as it provides cheaper currency at this time under easy monetary policy.  The overall effect on economies is negative as it detracts from capitalist enterprise in favor of cheaper money and centralised government spending, that influence makes the individual weaker though some might gain from its benefits obviously those not able to work for one reason or another.
   This is politics unfortunately many will disagree but DXY or dollar index generally gets weaker and the point Im making is this bill was on the cards for months hence dollar already fell; now it might rise possibly confusing as that is.

Most of them are broke, and they needed this money personally. Maybe for some they'll be able to think out of the box and invest, but

for most them, they'll going to keep the money as reserves and for paying bills.


Likewise, there are some that will bring their received  money into investment, and with Bitcoin's popularity it will one of those options for them.


If does, then it's not impossible to see the growth up to this level as flowing money coming from those who are hopeful to succeed

will help this industry to prosper.

Spending sound USD fiat money on unsound crashing bitcoin would be a bad idea for anyone getting a stimulus check. The best thing to do is put the check into a safe, insured, low yield savings account. Over the long term it will do better than bitcoin.

This is already happening, I remember seeing a graph that monitored how many purchases have been made with the same amount of dollars that was given as stimulus to the US population and as you may guess there was a tremendous spike every time the US government gave those stimulus check to their population, which means that bitcoin has been benefiting from those policies in a very direct way.

And not only that as governments keep printing money this benefits bitcoin over the long term as well as inflation begins to impact the country and the price of everything begins to go up and only hard assets like bitcoin keep up with the inflation causing even more people to come to this market to protect whatever wealth they have left.

Right, but you can still manage to make some money investing on bitcoin.


But it's more volatile than bitcoin I would say, hard to say what the price will be in the future as investors might shift to bitcoin when they saw that it is on a super fast rally. Just look at the previous stimulus package and what it should be worth by today if you invested on bitcoin.

I think Americans in general have a tendency to hate any policies that could be labelled as socialist such as this but like I said in the above post, if you look at the Scandinavian countries that follow the Nordic model of high taxes to subsidize world class social welfare programs, it's actually resulted in their citizens enjoying a fantastic standard of living...


Social Welfare spending as % of GDP:

Finland: 30.8%
Denmark: 27.8%
Sweden: 27.1%
Norway: 25.1%
UK: 21.5%
USA: 19.3%

https://en.wikipedia.org/wiki/List_of_countries_by_social_welfare_spending

Quality of life index:

Denmark: 1st
Finland: 3rd
Sweden: 10th
Norway: 11th
USA: 13th
UK: 18th

https://www.numbeo.com/quality-of-life/rankings_by_country.jsp


World happiness report:

Finland: 1st
Denmark: 2nd
Norway: 3rd
Sweden: 7th
UK: 15th
USA: 19th

https://en.wikipedia.org/wiki/World_Happiness_Report

GDP per capita:

Norway: 6th
USA: 10th
Sweden: 15th
Denmark: 19th
Finland: 24th
UK: 26th

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

Poverty:

Norway: 0.2%
Finland: 0.2%
Denmark: 0.5%
UK: 0.7%
Sweden: 1%
USA: 2%

https://en.wikipedia.org/wiki/List_of_countries_by_percentage_of_population_living_in_poverty

Income inequality:

Finland: 3.9
Denmark: 4.0
Norway: 4.1
Sweden: 4.6
UK: 5.4
USA: 9.4

https://en.wikipedia.org/wiki/List_of_countries_by_income_equality

Life expectancy:

Sweden: 82.7
Norway: 82.4
Finland: 81.7
UK: 81.2
Denmark: 80.8
USA: 78.9

https://en.wikipedia.org/wiki/List_of_countries_by_life_expectancy


World education rankings:

Finland: 3rd
Norway: 12th
USA: 17th
Sweden: 19th
Denmark: 24th
UK: 25th

https://www.theguardian.com/news/datablog/2010/dec/07/world-education-rankings-maths-science-reading


World ranking of countries by IQ:

Norway: 100
UK: 100
Finland: 99
Sweden: 99
Denmark: 98
USA: 98

https://iq-research.info/en/page/average-iq-by-country

Crime rate:

Finland: 22.75
Denmark: 24.72
Norway: 33.51
UK: 43.64
USA: 46.73
Sweden: 47.21

https://www.numbeo.com/crime/rankings_by_country.jsp


World Health organisation ranking of health systems:

Norway: 11th
UK: 18th
Sweden: 23rd
Finland: 31st
Denmark: 34th
USA: 37th (Privatised healthcare system)

https://en.wikipedia.org/wiki/World_Health_Organization_ranking_of_health_systems_in_2000


Unemployment rate:

USA: 3.5
UK: 3.8
Norway: 4.0
Denmark:  4.8
Sweden:  6.3
Finland: 7.2

https://en.wikipedia.org/wiki/List_of_countries_by_unemployment_rate


Homicide rate per 100,000:

Norway: 0.5
Sweden: 1.15
Denmark: 1.2
UK: 1.2
USA: 5.3

https://en.wikipedia.org/wiki/List_of_countries_by_intentional_homicide_rate

Incarceration rate per 100,000:

Finland: 51
Sweden: 59
Denmark: 63
Norway: 63
UK: 140
USA: 655

https://en.wikipedia.org/wiki/List_of_countries_by_incarceration_rate

Infant mortality rates per 1000:

Finland: 2.3
Norway: 2.6
Sweden: 2.9
UK: 4.3
Denmark: 4.4
United States: 6.5

https://en.wikipedia.org/wiki/List_of_countries_by_infant_mortality_rate

I believe that it is wrong to distribute money for free to the entire population of the country. For residents of the United States, $ 1000 will not give much benefit, and for the economy, $ 1.9 trillion is a very high cost indicator. This money could be directed to better goals, which would lead to any positive consequences.

To be fair, I thought the 2009 stimulus would be terrible for the economy and that actually managed to stimulate the economy and get people back to work. At least this time the money is going directly to the people who will spend it within the economy rather than the banks who just hodled it for profit.

The Nordic countries in Scandinavia have a lot of similar policies and they have some of the strongest economies in the world.

I don't think this will be as terrible as people think it is, particularly not if you're invested in crypto 

having this much funds thrown into circulation is just for temporals, it will greatly have a counter effect on the economy. and the impact it can have is for those who will see the future from now and hedge some funds in bitcoin as safe heaven, this will  cause some price increase when it has a combined effect.

The inflation that you are anticipating will not take hold all of a sudden, if you look at the past recessions it is basically happening because of continued bad policies and we might go into recession in a few years and we are yet to know how these will impact the economy. The stimulus will have an impact in the market and if they do not check these things then it might go out of control and no one can save the country but they need to come up with policies that will balance them.

With a stimulus bill this high, I have no doubt at least a few recipients of those checks are going to be buying bitcoin and probably overpriced GPU's to mine ETH with as well.  Nobody that I know of is starving in the states, so it isn't as though most people need that money just to eat.  There is going to be a lot of purchasing of nonessential goods and services and bitcoin is going to be just one of those things.

I can't say I'm ecstatic about the bill even though it would benefit me personally.  Handing out this much money is going to put the country further into debt and contribute to inflation directly by pumping more money into people's hands.  That's sure to drive up prices of everything.  Let's hope bitcoin is one of those things that gets inflated.  Nobody around here would mind that much I'm sure.

Well... 3 January 2009 The Times: "Chancellor on brink of second bailout for banks" version 2.0 is here.

That's a huge amount, if portion of that will go to BTC for investment, then that would move the market a bit. However, since that is a help from the government, I don't think most people would invest it, they'll spend it instead for their needs. For the economic stand point, the fiat will continue to inflate as they continue to print but then, we can't still expect that people will adopt in bitcoin as I believe the main reason why the market is bullish is because of the big players, they dominated the market.

Inflation means big spending as well. Inflation occurs when people have too much money and they can afford to pay for assets that are not essential. So there is a real chance that some people who were initially hostile to the idea of cryptocurrency may go for it. I believe large number of individuals in the United States are about to get their stimulus cheques very soon. It will be having an immediate impact on the cryptocurrency market in the form of increased purchases of BTC.

Of course, we are talking about investing in BTC and correlating with stimulus checks, the whole point is to try to conclude whether this helicopter money will affect the price as has been the case in the past. When you mention real gains, I know you're referring to the fact that it's better to invest in some altcoins that may increase three or four times in the same period - but even if you double your investment in the next 6 months, wouldn't that be a real gain?

Compared to investing in a bank account or putting it under a mattress, I wouldn’t agree that x3.3 falls into the category of worthless gains...

Definitely if every other financial institutions breakdown believe me that Bitcoin won't do likewise becasue it has proven this several times on this financial institutions. Well, this news came in good time when we all needed it, hope those with the formal experience; those who miss out of the last Trump paid learn their lesson this time to hold their stimulus claque pay in bitcoin.

I don't think the effect would be seen now. Besides even if they spending power increases, it would lead to inflation, and less money to spend on crypto trades, methinks

At this point disaster is inevitable so I have stopped worrying about what governments do and worry about what I can do to protect myself when the crisis finally looms on the horizon and politicians cannot kick the can anymore, even if we do not see an immediate effect this is going to help the price of bitcoin over the long term and even more importantly this is going to help its credibility among the rest of the population.

When inflation cannot be disguised anymore and we see unemployment and an important decrease on the purchasing power of their fiat currencies people will try to use bitcoin as a safe haven, at that point we may even see governments trying to make it illegal to hold bitcoin, but it will be too late to have any meaningful effect on the actions of the population at that point.

Every reply here has been about investing in "bitcoin"...

Even $1200/$1400 in BTC now is not going to get you any real gains? CMON.. BTC would have to hit say $300,000 to get anything that would at least support you for at least 6 months.. forget "life changing money".

Let's say BTC is $60,000 end of March... It hit's $200,00 end of year maybe... That's only 3.3x or something. Turning your $1000 into $3000 or so.?

Much better in a lower cap or mid cap like Eth, Ada, UNN

I cann't say how $1.9 trillion will affect btc in the coming days and weeks, but I suppose that in the long term, it will affect positively. The Senate will give this money to the population not at one time and not in one day, right. When this money is in the hands of people, then most of them are likely to invest in the stock market and more likely in btc too. I think that the bubble that arose in the stock market because of the printed money without collateral will spill over to the crypto market. Actually, this has already partially happened over the past year. But if there is more money, the bubble in the crypto market should grow even more. I am inclined to think that the current price of btc was partly shaped by the money that was handed out during the pandemic and the lockdown. Without that money, the current rate would be lower.