Dollar Debasement Accelerates with Biden Bailout

As Washington prepares to pump another $1.9 trillion in stimulus into the economy, asset prices are lifting. From food to housing to equities to precious metals, inflationary pressures are being felt in all markets this week.

Investors can thank politicians and their enablers at the Federal Reserve. On Thursday, President Joe Biden signed the massive $1.9 trillion coronavirus relief package into law.

Direct payments of $1,400 will soon be hitting Americans bank accounts. And hundreds of billions of dollars will be deployed to bail out state and local governments. Of course, funding for various other programs unrelated to COVID losses was inserted into the legislation as well. As well as a remarkable federal ban on states enacting net tax cuts.

The bill drew near universal opposition from Republicans, including Kentucky Senator Rand Paul. Last week Senator Paul reintroduced the Audit the Fed bill. It faces opposition from Democrats and in the past has garnered less than enthusiastic support from GOP leadership.

Nevertheless, Senator Paul believes bringing more transparency to the Federal Reserve’s operations is especially important now given its ballooning balance sheet. The Fed’s unprecedented interventions in the aftermath of the COVID lockdowns and its pivot to pursuing a higher inflation target have faced little scrutiny from Congress.

Trillions of dollars in new debt is now set to be issued by the Treasury Department and bought up by the central bank. The ultimate consequences for the value of the currency are unknown but the stakes are high for holders of U.S. dollars….

https://www.activistpost.com/2021/03/dollar-debasement-accelerates-with-biden-bailout.html

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