$1.9 Trillion Created From Thin Air
US Senate Votes Yes To Covid-19 Relief Bill
Summary
The US Senate Passed the $1.9 Trillion Dollar Covid-19 Relief Bill
The US National Debt is Increasing Faster Than Ever in History
Bullish Signal for Bitcoin as Money Continues to Flood the System
Background
Bitcoiner,
On March 6th, 2021, The United States Senate voted to pass President Joe Biden’s $1.9 trillion dollar Covid-19 relief bill.
The House will be debating the bill and could vote in favor of passing the bill later tonight, March 9th. Once the House approves the bill, Joe Biden will quickly sign it into action.
The $1.9 trillion Covid-19 relief plan includes $1,400 stimulus checks, billions for vaccines, and money to reopen schools.Â
This short article will not be about politics. What is being highlighted is that the United States government created $1,900,000,000,000 US dollars out of thin air. It was hard for me to type out all of those zeroes without having to double check I put the correct amount.
Readers, I ask you to ponder the question: How can the US government create money out of nowhere?
Below is a chart showing the US National Debt from 1981 until March 1st, 2021:
I am not an economist, historian, politician, or whatever. I am an average US citizen. When I heard about the new stimulus package and the amount of money attached to it, I was curious to see how $1.9 trillion dollars of debt would compare to debt based money creation in recent years.
Below is a graph showing the US M2 Money Stock Percent Change over the past 61 years. Money stock is the same as money supply, which is the total value of money available in an economy at a point of time. Each vertical gray line represents a recession period.
The M2 Money Stock graph does not account for the new $1.9 trillion dollar stimulus package that is about to pass. The steep percentage change line will be even higher on this graph when it is updated.
Something on that graph does not sit well with me.
Quick Story
I received both the original $1,200 and $600 dollar stimulus checks this past year. I had the fortunate ability to invest each check into Bitcoin at the time. My $1,800 investment into Bitcoin is now worth over $10,000 at the time of writing this article.
Why is this Important?
You might be wondering how Bitcoin and Crypto relates to the new stimulus bill.
Stimulus bill: $1,900,000,000,000
Bitcoin market: $1,010,000,000,000
Bitcoin began running in 2009. It took over a decade for Bitcoin to reach a market capitalization of $1 trillion dollars, as I explained in this article.
The United States government created nearly double the value of Bitcoins market in a matter of a few months.
At this point, I ponder the question: What is the point of going to work everyday if the government can keep printing money out of nowhere?
I believe our money system is fundamentally broken. I believe the solution to our money system is a new money system. I believe Bitcoin is the answer and is why I continue to buy Bitcoin even today near it’s all time high price.
Happy Tuesday,
-Pod
If you find any value in The Bitcoin Letter, please subscribe and tell a friend. By subscribing, you will be sent easy to understand information about Bitcoin along with any relevant news daily. That’s it. IT IS FREE AND I WILL NOT SPAM YOU!
Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz