Biden decided to toss dollars

By 06/09/2021News
morning-news

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While the unemployment figures are surprising investors and stumping the Fed, we should consider where the money, which was approved by the Democrats at the end of August and will go into the US economy very soon, will go.


DXY

DXY

The aim of the new support package from Biden is social. The USD 3.5 trillion will already be on the way. The package will consist of several parts. The first is a $1.2 trillion infrastructure package, which will focus on roads, bridges, electricity and water. The second package will focus on social support for the population. This package is also called human infrastructure. Literally, the money is to be spent on the development of human goods. And in particular, for the development of pre-school education, free colleges and other grants. About $300 billion will be used to provide affordable housing. That’s down payments and rental assistance. About $130 billion will be spent on agriculture. Which includes firefighting and environmental conservation.
This package will be financed by higher taxes. And primarily a tax on the rich. The Democrats are going to raise taxes on all sectors of the economy to add revenue to the budget.
Almost all sectors of the US economy are likely to suffer from such changes. The only sectors that are likely to benefit are the green energy industries, for which certain exemptions have been designed.
The next stage of these projects will be approval in the Senate. It is very likely that this package will be approved, as the Democrats have a majority in the Senate.
Thus, Biden’s bills will add quite a serious burden to the US budget and higher taxes are likely to have a negative impact on development of American companies. Also for the financial market, the dollar may have to be weakened once again, even though this package is for 10 years. We have a very interesting autumn ahead, which will bring enough surprises to the market.

8.00 German factory orders for July


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