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Stimulus check is just an interest bearing loan

Only the goverment could think it is a good idea to give away money at the same time it is over 9 trillion dollars in debt, with over 400 billion a year deficit. Counting hidden debt, US citizens have a liability of $473,456 per household. The saving grace is ironically, inflation and the declining dollar. […]

Only the goverment could think it is a good idea to give away money at the same time it is over 9 trillion dollars in debt, with over 400 billion a year deficit. Counting hidden debt, US citizens have a liability of $473,456 per household.

The saving grace is ironically, inflation and the declining dollar. Inflation is bad for people who save money, but good for people who owe money, because the amount they owe lessens each year with no other action. Because of double taxation, for example on Inflation Index Bonds the goverment comes out ahead even further. Theoretically, inflation index bonds just preserve the value of your money. However, you are taxed capital gains tax on the numerical increase of the value of your bond, although the value didn’t actually go up. So even bonds that pay inflation lose money, the difference of which goes to the government. The goverment also understates inflation – actual inflation rates may be between 5% to 10%.

The stimulus check is just insanity. Suppose the goverment takes $473,456 from your household, spends it, takes another $2000, and gives it back to you. Are you now $2000 richer, and benefited in some way? In any case it isn’t enough money to do anything worthwhile. Not enough to start a business, not enough to meaningfully invest.

Just out of spite, I am going to cash mine, keep the cash under my mattress, and not spend it. Or better yet, convert it to Euros. I’ll be good as long as federal agents don’t steal it.

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