Because even Biden’s large aid risks not reviving the economy, but speculation

19 March 20213 years ago babelfish

The aid package passed through the US parliament and then signed by the president almost terrified the Germans for its dimensions considered "Extraordinary" and "Excessive", with risks for inflation.

In reality, the predictions of how Americans will spend this money does not make us think that this big economic or inflationary push will come.

Research shows how Americans will spend the $ 1,400 checks that will reach almost all US citizens:

Saving will account for 34% of these figures, then, after essential expenses, such as food and housing, 18% will go to repay credit card debts which are another form of saving, in the form of debt relief. .

So more than 52% of this figure will not go to fuel consumption, so it will not have an immediate effect on inflation. At least there will be a problem at the level of excessive growth in the values of certain financial assets, given that this tide of savings will have to be invested somewhere.

So little push from an inflationary point of view, but we will probably see some nice bubbles grow. Note that some of it will go into virtual currencies, so let's expect a boom in that sector as well

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The article Why even Biden's large aid risks not reviving the economy, but the speculation comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/perche-anche-i-grandi-aiuti-di-biden-rischiano-di-non-rilanciare-leconomia-ma-la-speculazione/ on Fri, 19 Mar 2021 08:51:20 +0000.