In-Depth: Biden’s $1.9 Trillion Stimulus Bill, How BTC Might React
The federal government incurred tremendous damage to its citizens to fight off the pandemic. Relief packages act as a small measure of compensation. Find out what Biden’s first stimulus bill contains and how to take advantage of it.
Stimulus Packages – Serving as Both Plundering and Relief
Whenever there is a large-scale distribution of money from central bodies, one can count on significant fraud and abuse. After all, there is no reason for those with institutional ties not to leverage them. This is what happened with the first $2.2 trillion stimulus bill last March.
Within a section carved out for small business relief (PPP) worth $349 billion, about $60 billion was reserved for hundreds of non-profit organizations close to the establishment. In the end, much of the money ended up in the deep pockets of public companies, hedge funds, and those who earn over $1 million annually.
Considering how Washington crafts regular budgets, which largely serve as launching pads for special interests, it would’ve been a miracle if that hadn’t transpired. Alongside the institutional hijacking of the relief funds, their delivery highlighted the outdated system of centralized finance – banks tailoring their own rules, platform crashes, asset cap restrictions, stimulus checks themselves delivered to non-US citizens, etc.
Subsequent stimulus bills didn’t fare any better. To add salt to injury, all of this transpired as a federal response to a virus that has less than half a percent mortality rate, dangerous to those with comorbidities or close to average life-expectancy age. Now, it has become much clearer that economy-wrecking lockdowns were unnecessary, as the mainstream media starts to admit.
In the end, the “pandemic crisis” had the practical effect of historic wealth transfer from workers ($3.7 trillion lost) to billionaires ($3.9 trillion gained).
Now, with the large shadow of multi-layered falsehoods looming over us, another relief offering is at hand. Let’s see what is inside the latest stimulus package, the first one under the Biden administration.
Biden’s $1.9 Trillion Stimulus Package Explained
Last Saturday, the US Senate finally passed a stimulus package bill under President Biden, worth $1.9 trillion. Passed by a very tight margin of 50-49, it will have to approved by the U.S. House and finalized next week, most likely on Tuesday. Here is what the bill contains:
- One-time $1,400 stimulus checks for those who reported earning below $75,000 annually, and for married couples (registered as such) earning under $150,000. This is a direct payment for each individual, in addition to another $1,400 for a dependent person.
- The $80,000 for individuals and $160,000 for couples represent hard caps above which no stimulus checks can be received.
- Federal unemployment benefits include $300 per week. Additionally, federal income tax will be waived for $10,200 unemployment benefits received in 2020 but only for those households with below the $150k earning range.
- The bill extends two federal unemployment programs until September: Pandemic Emergency Unemployment Compensation (extra 13 weeks of benefits) and the Pandemic Unemployment Assistance program, mostly in use by freelancers and the self-employed.
- The moratorium on evictions will NOT be renewed.. It will expire on March 31. However, given that President Biden already issued an executive order extending the eviction moratorium in January, another one might be forthcoming.
- Likewise, student loan payments were paused until the end of September, but this is not a part of Biden’s new stimulus bill.
- $75 billion provided for activities related to vaccination.
- $45 billion for rental and mortgage assistance.
- $350 billion in aid for states, cities and tribal governments.
- $130 billion for primary and secondary public schools for the next three years, to help with reopening and recovering from lost timetables.
- $40 billion for universities and colleges.
- Added $7.25 billion for continued Paycheck Protection Program (PPP), to be used as forgivable loans. So far, PPP has distributed about $662 billion over the last 11 months. The PPP will NOT be extended, ending on March 31 with remaining funding of about $142 billion.
- $25 billion for the foodservice industry – restaurants, bars, etc.
- $1.25 billion for shutdown venue operators.
- $15 billion for aiding the airline industry, out of which $14 billion is for eligible air carriers and $1 billion for contractors.
If all goes according to schedule, the stimulus checks should go out by the end of the month, the week of March 29. If you are late in filing your tax returns before the bill passes Congress, in order to be assed for eligibility, the IRS will use your tax report from the previous year.
The Case for Putting $1400 Stimulus Checks into Bitcoin
Following the stimulus bill passage, Bitcoin gained 4% in value on Sunday (March 7th). Although the stimulus bill represents a relief, it also marks a continuation of the astronomic debt increase. Currently at unpayable $28 trillion, the national debt is likely to double in the next 30 years. Bitcoin is widely positioned as a hedge against inflation, which the weekend’s price bump seemingly fortifies.
Furthermore, if it seems that Bitcoin’s current price is too high as an entry into the market, let us not forget that multiple indicators point to Bitcoin’s continued bullrun. Other cryptocurrencies, serving different roles in the decentralized finance ecosystem, are also benefiting. No doubt, Bitcoin serves as the rising tide lifting all boats.
For the first time, UNI of the pioneering Uniswap protocol broke into the top 10 cryptocurrencies by market cap, up by 14% within a day.
Likewise, Ethereum continues to rise as almost all dApps are hosted on its blockchain. This is especially relevant now as NFTs – non-fungible tokens – have exploded in volume trading, by over 400%.
Although NFTs are highly speculative crypto-collectibles, they once again pave the wave for the increased usage of decentralized finance, of which NFT marketplaces are a small slice. The sensational and astronomic NFT bids, such as $2.5 million for Jack Dorsey’s first tweet, may be a social-signaling playground for the ultra-rich but it brings more people into DeFi.
As each token’s utility increases, led by Bitcoin as an on-ramp into DeFi, it is difficult to imagine a scenario in which Bitcoin, Ethereum, and other tokens will not see a rise in value. Invest accordingly.
$1400 is not much to invest in real assets resistant to inflation. However, DeFi has never existed before to be tested. Will you take the plunge?