The new “Save America” $1.9T spending bill is also a $1.9T tax (as in an immediate tax). Why? One, the U.S. government is already over budget so it must “borrow” money from Federal Reserve. Two, Federal Reserve does not have any funds, as I’ve stated, and Federal Reserve only creates money for loans. The value of the new $1.9T dollars comes from the dollars everyone has in their bank accounts. It’s as if you own stock in a company, and the company issues more stock. Your stock is worth less.
So the government, in essence, just passed a $1.9 Trillion tax. You’ll notice the impact gradually over the next months as prices rise because your dollars — your paycheck — are now worth less.
Is it a “Save America” bill? Well maybe for part of America, the unions with squandered pension funds, over-budget blue states that shut down their economies to increase the change of ousting Trump, and less-needed transit systems, that will get most of the money.
Note, this tax is not like others you can see on paper when you pay them. This tax is pulled out of the money you have in your bank account — a much more effective and stealth system. You have the same amount of money, but it’s worth less.