Friday, December 18, 2020

Trump Wants to Send $2,000 Checks to Every Adult American

White House aides intervened Thursday to prevent President Trump from issuing a statement calling for substantially larger stimulus payments for millions of Americans, according to two people granted anonymity to share details of the private exchange, The Washington Post reports.

On a phone call Thursday afternoon, Trump told allies that he believes stimulus payments in the next relief package should be “at least” $1,200 per person and possibly as big as $2,000 per person, the officials said. Congressional leadership is currently preparing a stimulus package that would provide checks of $600 per person.

Trump was in the middle of formally drafting his demand for the larger payments when White House officials told him that doing so could imperil delicate negotiations over the economic relief package, the officials said.

“The aides were really frantic, saying: ‘We can’t do this; it will blow up negotiations,’ ” said one person who heard the exchange and was granted anonymity to describe private conversations, according to the Post.

Trump ultimately did not call for the larger stimulus payments. His only public comments on the matter came in the morning when he wrote that “stimulus talks [are] looking very good.” But the big checks have been on his mind.

“Right now, I want to see checks — for more money than they’re talking about — going to people,” Trump told Fox News on Sunday. 

Look, when it comes to economics Trump is an ignoramus. He has always been a shallow thinking inflationist. He never thinks beyond the first step: "Let's give everyone $2,000." 

Oh yeah, step 2, where is the money going to come from?

The government does not have the money to make such payments. It would require more money printing by the Federal Reserve (scarily, it appears the Fed would be willing to print such money). Thank the heavens where Paul Volcker resides that there are some officials around Trump that see the madness in the $2,000 per person check. 

Step 3: What would happen if the Fed just printed the money out of thin air?

It would blow price inflation through the roof. As if the trillions already printed by the Fed this year and the trillion-plus that is about to be printed isn't going to cause, on its own, a big enough price inflationary problem in 2021.

I am providing specific inflation-hedge investment positions in the EPJ Daily Alert that subscribers should load up on now in preparation for the accelerating price inflation of 2021.

Mark it down: The economic theme of 2021 is going to be accelerating price inflation.

Fed members are totally clueless about what is developing. In their view price inflation will do little more than climb to the 2.50% annualized range. 

The latest Fed member forecasts, released Wednesday, show no Fed members forecasting price inflation above 2.50% through 2023 and then after 2023 they think it will drop back to 2.0%!

My forecast is that 3% price inflation is extremely likely in 2021and most likely even 5%. I am now forecasting that by the end of 2022, price inflation could be at 10% as measured by government price indexes. 

Trump didn't have to go in the direction of mad handouts to individuals and businesses. In the end, the money printing that the Fed has done because of the handouts will do severe damage to those on fixed incomes and bond holders. And, the price inflation could eventually result in the government putting price controls on, which will lead to an entire additional set of economic problems including shrinking production and supply shortages. 



  1. If the point of the checks is the quell the masses then $600 isn't going to cut it. It almost seems insulting, like leaving an inappropriately small tip at a restaurant. All I know is that my check is going straight into gold stocks.

  2. Congress throwing the serfs a bone. Let them eat stale dog treats.

  3. My wife and I never got a check in the Spring, and we won't be getting one now.

  4. They are going to keep printing money and I want as much of it as I can get. Trump should give everyone at least $50,000, declassify everything and pardon everyone on his way out of office.