For meeting with the domestic demands and infrastructure requirements, US Administration under Biden is looking for issuing yet another 3 Trillion Dollar stimulus package. For this purpose Biden Administration is working tirelessly on drafting further legislation while there is an apparent discord amongst Parliamentarians who feel that the economy will be worsened further. Yet crypto community is convinced that the crypto economy will be boosted as a result of this stimulus package.
It seems that the US President and his administration are in consensus with each other as they are agreeable on issuing more dollars. According to latest US news, there is a talk that a further stimulus package worth US$ 3 Trillion will be issued by the Government. Already there was a relief package issued very recently which comprised over US$ 1.9 Trillion.
The Government is for sure ignoring the fact that an average US citizen is below the average purchasing power. In addition, an average American also cannot bear the burden of inflation. But issuance of stimulus package, definitely results in high inflation rates. But the US is issuing stimulus packages one after the other which would further worsen the situation for an average American citizen. Unfortunately, US politicians as well as officials of central banks seem to have run out of options except for creating more money artificially.
Luckily there is a moment of joy within the global crypto community and it should be. It is believed in crypto economy that when there is inflation, then there is boost in crypto economy. Similarly, if are stimulus packages being issued, then there is surge in overall crypto assets.
President Biden was reportedly met with some of the Democrats virtually and discussed the possibility of issuing further relief package. He wanted to ensure that the domestic demands as well as infrastructure requirements should be fulfilled through the package. During the meeting majority of the Democrats agreed with Biden’s idea and showed him their support.
It was not officially revealed how much funds will be issued in the package. But according to a columnist of New York Times, the package will comprise of US$ 3 Trillion. The columnist further told that the funds will be utilized for establishing public purpose buildings such as hospitals and schools.
However there are further news in the US media suggesting that the package would not comprise of US$ 3 Trillion.
Janet Yellen who has been entrusted by Biden to look after US Treasury in the capacity of Secretary also commented on the package. She said that if the package is announced then the repayment will be collected in the form of taxes. This means that taxpayers would be subjected to higher rates of taxes i.e. 20% to 30%, said Yellen.