Regretfully, America is made up of a few "savers" and a vast majority of "consumers". Therefore, the vast majority of Americans will have those checks spent before the full moon.
Given the law of economics, believe it or not we will see an expansion of about five additional dollars for each dollar of stimulus spent. Given that the numbers indicate at least $58Billion will be
"consumed" you can expect an additional $300Billion in economic expansion for this little stimulus package.
The question: is the retraction gaining speed and, if it is, will $350Billion of expansion outweigh $1Trillion in real property valuation shrinkage and economic countercycular shrinkage in the vice of energy hyper-inflation.
The real question is, can the braintrust in government (pardon the misnomer) implement enough change and build enough dams to offset the erosion. One thing is certain, if they do not do something, and very quickly, to stem the rise in oil and energy costs, we will transfer so much wealth overseas in energy taxes that we will eventually collapse under the energy inflation pressures. Energy costs are up over 22% over last summer at the same time and no sign of leveling off, let alone falling backwards.
So, we pop the energy bubble or bust the economic bubble!!!
Gailon Arthur Joy
Author
Topic: Stimulus check from the IRS in America (Read 10808 times)
