For those of you that pay attention to traditional news media, this probably will come as no surprise when I say that the current U.S. President Joe Biden, proposed a $6 trillion budget plan, that is unheard of in U.S. history, and this will likely go down in U.S. history as one of the biggest budget proposals ever put forward by a U. S. president. In this video we will go over a recent article I read called “Biden to Propose $6 Trillion Budget to Make U.S. More Competitive” in this video I will be inserting my opinion and commentary, on why I believe that it is becoming increasingly imperative for any citizen of any country that is largely dependent on the U.S. dollar as a reserve currency, to have alternative crypto assets, like EOS. And to be prepared, for what is more and more becoming a certainty, which is the likely coming threat of hyperinflation, link to the source article will be below, OK now let's get started.
To paraphrase the article starts off with, the president's plans to invest in infrastructure, education, health care, and other areas would increase government spending to levels not seen since World War II. As part of a broad economic strategy that includes major new expenditures on education, transportation, and combating climate change, President Biden proposed a $6 trillion budget that would bring the United States to its greatest sustained levels of government expenditure since World War II. According to documents acquired by The New York Times, Mr. Biden's initial budget plan calls for total expenditure to reach $8.2 trillion by 2031, with deficits exceeding $1.3 trillion over the following decade. Mr. Biden's two-part strategy, outlined in his American Jobs Plan and American Families Plan, to rebuild the nation's infrastructure and dramatically extend the social safety net, as well as other expected increases in discretionary spending.
Mr. Biden's plan for the fiscal year 2022 and the next decade demonstrates the breadth of his goals to use government power to assist more Americans achieve the pleasures of a middle-class existence and to improve U.S. industry's worldwide competitiveness. Mr. Biden's proposals for taxing and spending would extend the government's fiscal footprint to levels not seen since the postwar period, in order to support investments that his administration claims are necessary to keep America competitive. Roads, water pipelines, broadband internet, electric car charging stations, and advanced manufacturing research are among the items on the list. However, it includes funds for affordable daycare, universal prekindergarten, and a national paid leave program. Military expenditures would also increase, albeit as a percentage of GDP.
In my opinion, no matter what side of the political spectrum you may stand on, for me it's hard to see this as anything other than a government money grab at the taxpayers’ expense, I understand that there are some lofty and noble things that they intend to do with this budget, but there are always lofty and noble things they intend to do with every budget. In very seldomly is the money ever spent in a forthright manner, that does not include hundreds of millions of dollars often getting lost in the wash, metaphorically speaking. The waste fraud and abuse are always problematic, the bigger the budget is, and I will go out on a limb and say this time will likely be no different as well. This is mind boggling, it's hard to wrap my head around a spending bill that has the potential to exceed $8.2 trillion by 2031, and deficits of 1.3 trillion for over a decade. How will this not potentially bankrupt The United States? Or at the very least usher in a massive wave of U.S. dollar currency inflation, in potentially hyperinflation depending on the often-unforeseen runaway effects. After all human nature is often unpredictable, and there is no telling what people may begin to do when they suspect that their savings are melting like a stack of ice cubes, in a metaphorical heated oven.
To paraphrase the article then continues with, despite recent statistics suggesting a sharp rise in prices as the economy reopens after a year of reduced activity due to the epidemic, the estimates imply his government has no worry of fast inflation breaking out throughout the country. Consumer prices will never grow faster than 2.3 percent per year, according to the budget, and the Federal Reserve will only gradually increase interest rates from record lows in the coming years. Mr. Biden has promoted the concept that now is the moment to make substantial upfront investments that will be repaid over a longer time horizon, given low interest rates and the nation's recovery from recession. For the remainder of the decade, his budget predicts that the federal government's interest expenses will be lower than historical norms.
Even if interest rates remain low, the Biden government believes debt payments will absorb a larger portion of the government budget. From 2022 to 2031, net interest payments as a percentage of GDP would treble. Mr. Biden's proposal would spend more as a proportion of the GDP in each year than all but two years since World War II: 2020 and 2021, which were characterized by billions of dollars in governmental investment to assist individuals and companies to weather the pandemic-induced recession. By 2028, when Mr. Biden may be finishing his second term in office, the government will have collected more tax revenue as a percentage of GDP than at almost any time in the last century; the only other comparable period was the end of President Bill Clinton's second term, when the economy was booming, and the budget was in surplus. According to the materials, Mr. Biden would not use his budget to propose substantial new ideas or flesh out proposals that the administration has yet to define.
You know I find it interesting that they still left open the door for future emergency budget proposals, which is interesting considering that this budget proposed in peacetime represents, arguably the budgets for multiple presidential terms. As well as multiple decades of ongoing commitment, of future Americans, long after the current president will be out of office, committing future generations to a course of action that may turn out to be a boondoggle. I wanted my viewership to be aware of what is going on in the greater world of economics considering, that within the crypto world we can often have, far too narrow of a vision, and not be fully aware of how the outside world can affect the crypto world in negative ways. Most of my viewership resides in the United States according to my YouTube metrics, so I think it is imperative for my U.S. base listeners to be aware of what is happening in their country. As I have always stated on this channel for the longest time, I consider myself a crypto investor not at trader, which means for me, it is to have a proper medium to long term perspective, on what this new crypto asset class can be in future.
As time goes on governments change, and so do current initiatives, which is why it is so crucially important for an individual to take personal responsibility, for their own financial future, the decisions that you make today, could quite literally save you a significant amount a financial pain in future.
To all EOS holders, be wise and be prepared.
Bought EOS around 2-3 weeks ago and i am holding it for long term
Really happy that i bought it for very low price :D
Crypto is little by little becoming something bigger than we thought, I would be surprised if this becomes a reality.