A fourth stimulus check specifically focused on the low income what they’re currently doing to make it happen. I have all the details and what you need to know right here on this topic. As I am your one and only daily advocate, and I’m very much dedicated to you and this community to do all the research and to break it all down into these short topics so that you can stay updated each and every day with everything going on as it is being released. It’s a busy time out there.
All right, So in this topic, I quickly want to talk about what they are currently doing to make additional stimulus checks happen. I think many of us in this community are wondering when will Congress finally do something in the form of additional checks for the low income, whether it happens to be a $2,000 check, a $1,400 check, a $1,000 check, a $600 check, monthly ongoing payments, whatever it happens to be. I think all of us continue to wonder and wait patiently, as we’ve been doing for over a year now.
When will they finally do something? As all the reports are pointing toward, additional checks are needed specifically focused on the low income. So I do have a few different moving parts here that I want to talk about, and we’re going to get into this in a little bit more detail here. So let’s get into this right now. So first off, I want to talk about a few things that are going on right now and what they’re currently doing that will actually prompt those additional checks.
All right, So first off, we all completely recognize the inflation situation, right? I don’t need to go into a ton of detail about this. We all know about this. We’ve talked about it many times before.
And honestly, we’re all living it right here, right now. Just like they always say, if you ever want to learn something really well, just go full immersion. Well, Unfortunately, I think all of us are fully emerged in this inflation. Not a good thing. We don’t want to be get us out of this thing.
Right. So anyway, we’re all experiencing the whole inflation situation. We completely understand prices are rising on everything. You get it right. Well, as a way to actually reduce all of this inflation out there right now, the Federal Reserve is stepping in and they’re raising interest rates.
We’ve talked about this a little bit, but not a whole lot you’ve possibly heard about it. So here’s what’s happening. A few weeks ago, the Federal Reserve came out and they raised interest rates by 00:25% or 25 basis points. It’s virtually nothing. Well, there’s actually anticipation here.
Within the next couple of weeks, they’re probably going to be coming out once again, raising interest rates another half of a percent or 50 basis points once again to once again get ahead of all of this inflation and to slow down inflation. So the whole logic behind this is simply this they come in because right now money is essentially easy. That’s what they say. It’s easy money. In other words, you can go out, you can borrow money, you can get a mortgage, you can get an auto loan, a personal loan.
You can get money relatively easy these days by borrowing it. I’m not saying you can go out and just like grab a bunch of money for free. I’m not saying that. I’m simply saying that borrowing money personally and on a business from the business front, it’s relatively easy right now. That’s why they say it’s called easy money.
So the whole idea behind raising interest rates is to lower the appetite for actually taking money. Right. So for people to go out and get mortgages, for businesses to actually get loans, for people to go out and get personal loans, auto loans, all kinds of different things. So the whole idea behind it is to make it less appetizing and less appealing for people and businesses to go get credit, new credit, more money that they can go out and spend. Basically, the whole idea is to get less spending out there in the economy.
Right. They want to kind of control the spending a little bit because inflation is basically being driven by supply and demand. Right. There’s a lot of easy money out there. People are grabbing money and they’re going out and spending it driving prices higher because more demand, less supply equals higher prices.
Right. So basically what the Federal Reserve is doing is they’re coming in, they’re raising interest rates, making it, like I said, less appealing to borrow money, therefore less appealing to spend money, therefore less money, as in less demand following and chasing equal or less supply. You know what I mean? It’s going to kind of level out prices. That’s the whole logic behind it.
So with that being said, at the same time, as they continue to kind of tighten up on this, they raise rates and it makes it a little more difficult to get credit. And fewer people want to do that. It’s also going to start to pinch the economy. So whether we believe it or not, this will pinch the economy in a pretty big way. There are fewer people out there buying real estate.
There are fewer people buying cars. There are fewer people going out in business and taking loans out for their business, all kinds of different things less money going out into the economy. Therefore, the economy is going to start to contract a little bit as a result of this. Now, it totally depends on how much the Federal Reserve comes in and raises interest rates. Well, as of right now, they’re already raising and according to the next FOMC meetings, the Free Open Market Committee, that’s what FOMC stands for.
They have a bunch more meetings throughout the rest of this year. Five or six more meetings this year well, according to the statistics and what the experts are saying right now, it’s anticipated that they’re going to be continuing to raise interest rates every single meeting through the rest of this year. Well, the benchmark is to be sitting around two and a half, 3%, or even three and a half percent rates by the end of this year. That’s going to do a lot to the economy. In other words, the economy is not going to like that and the economy is going to contract quite a bit as a result of this.
All right. So you might be wondering, who cares? What does all this matter? What does all this have to do with stimulus checks? I’m getting to that.
I know, I apologize. I know some of this is really boring. Talking about economics, talking about all this stuff can get very boring. But at the same time, you got to understand this stuff because it’s all highly correlated and it all results in what they’re actually doing that could prompt those additional checks.
So here’s what it comes down to. As the economy starts to contract, less money out there all of a sudden, if they overshoot, which they have a history of doing on the upside and the downside, just like the market happens to do, the market always goes up way too much and the market always goes down way too much. Well, in these types of events, just like what we saw back in 2007, 2008, and when the market bottomed in early 2009, what happened then? Well, again, they overshot the situation. Therefore, the market plunged by about 80% across the indices as well as the housing market.
The real estate market was way down. The unemployment rate went way up. Businesses were contracting, going out of business, and bankruptcies all over the place. It was not a good situation. You probably remember that 2009.
It was not a good thing. Right, So anyway, that’s basically what could happen once again, because they tighten way too fast. The economy contracts and it takes a long time. It’s like a big freighter out on the ocean.
It’s cruising at whatever speed freighters move at. Honestly, I don’t even know. I’m not a captain of a ship. I don’t know that. But my point is it’s like a big freighter out on the ocean moving pretty quick, and all of a sudden it overshoots the Port and they got to turn that thing around.
It takes a long time to turn that big thing around to slow it down, turn it around and bring it back. It takes a long time. Just like a train cruising on the tracks at 60, cruising at 60. It’s going to take a very long time to slow that thing down, to stop it, and then turn it around and get going the other way. It’s the same thing with the economy, right.
So as they continue to start pinching on the economy with raising interest rates, all of a sudden the thing might turn around and start to collapse. Right? The economy. Well, according to what they’re actually anticipating, a recession is very likely here over the rest of this year, possibly into next year. But sometime over the coming months here, it’s very highly likely that a recession will be hitting again, very slow down in the economy contracting economy.
All right, so now how does this relate to stimulus checks? I apologize sometimes I nerd out on all this stuff, just starting to geek out on all this, and I get a little bit carried away. I apologize. But either way, you kind of got to understand this stuff a little bit because it all is highly correlated and it actually relates to additional checks. So here’s what it comes down to.
Remember, back in 2008, what was going on? Was there covet? No, there was no COVID back in 2008. Was there covet in 2009? No, there was not covet in 2009.
But did we get stimulus checks in 2008? 2009? Yup. The answer is yes. Were they called stimulus checks?
No, they weren’t called stimulus checks. But my point is, as the economy contracts way too much and all of a sudden they say, oh, red alert, we got to get this economy pumped back up. What can we do? Gee, I don’t know. Maybe let’s print up, I don’t know, $100 billion, $200 billion, $500 billion, $800 billion.
And let’s send it out to the people in the form of economic impact payments, otherwise known as stimulus checks. And then basically what we’re instructed to do is take that money and go out and spend it just like what they did back in 2020 with the $1200 check, the $600 check at the end of 2020. And in early 2021, the economy wasn’t doing that great. They printed up a whole bunch of money, $844,000,000,000. And they sent it out to the people in the form of stimulus checks and said, please, here, take this one, $200, please take this $600, please take this one, $400 and go out and spend it in the economy.
In other words, hashtag pump up the economy. That’s exactly what they want us to do. So as they over tighten here with rates and as they start to kind of collapse the economy quietly behind the scenes right now, before things really hit the fan here over the coming months, that’s basically what’s happening is they’re tightening on all this. They’re essentially choking off the economy.
And in a matter of months, this thing will roll over, collapse like it always does. It’s just a matter of time until this actually happens. And then once again, they’re going to say, what should we do? Hit the panic button. Let’s print a bunch of money and let’s send it out to the people in the form of checks.
And we’ll call them a really cool name here called stimulus checks. Same thing happened back in 20 08, 20 09. Same thing happened back in 2000 and 22,021, same old thing, different day. Right? So it’s basically what is going to be happening once again.
So long story short, basically, it’s all in the hands of the Federal Reserve now when it comes down to this now, again, don’t get me wrong. If another wave of cobweb comes through or if Congress decides to send out another stimulus check in regards to the midterm elections coming up here in a matter of just months, and they want to secure some more votes, make some people happy. You never know. Things could happen really fast here if the global conflict continues to spread a little bit further here and hopefully we don’t happen to get carried into this thing. But if that happens, we could see some major things turn around really fast in the United States.
As well as across the entire globe and it all points toward the economy is going down. What do you have to do? You’ve got to patch the hole by sending out some money kind of get what I’m saying here. So anyway, I know totally off the hinge on this topic totally geeking out in this video. Yes, I like economics.
Yes, I like following all this stuff very closely and yes, I try to break this down into ways that is easily understood by pretty much everybody Even if you’re not a huge nerd like me and wanting to geek out on some economics. Right. So anyway, I hope this better understand. Sorry. Better explains what is actually going on out there and how this could actually relate to another stimulus check especially focused on the low income just like we’ve seen previously, multiple times previously.
When the economy goes down, they print money and they spend it. Sorry. They push it out into the economy as in give it to the consumers and they instruct us to spend it. That’s exactly what stimulus checks are. Anyway.
Hope this kind of better explains it. And again, what’s going on right now but there are many catalysts out there right now that could actually point toward additional stimulus checks going forward. Anyway, as we get more details, of course, I’ll be right back here for you breaking it down, helping you out in any way that I possibly can as that is my dedication and I’m doing all kinds of research every single day, watching everything. I should be having family time but honestly, I’m usually just looking at some kind of device doing research. So anyway, that’s kind of my life and I like it.
That’s what I’m here for and I want to help you out in any way that I can. Enjoy your day and I’ll catch you again later in the next topic.
Thanks again. Bye.