The first part is done for Biden’s massive spending program. The first package of $1 trillion has been approved and is now on the president’s desk for signature. This package is an infrastructure package that involves the renovation of roads, bridges, airports, 5G expansion, and the power grid, among other things.
The second part, the so-called “Build Back Better” package, which includes $1.75 trillion, is still up in the air. This package will include social plans and climate change.
Both mean that even more U.S. dollars will have to be printed and we will see a further devaluation of the currency.
Many experts now agree that we are probably entering the final stage of the U.S. dollar as we know it today. The constant increase in the money supply has caused the value of the dollar to fall further and further. For example, the value of $1 from 1913 is worth over $27 today. This represents a price increase of more than 2,700%. Whether this is really the beginning or the end of the dollar can only be guessed at the moment, but inflation is already rising above the planned 2% mark, which is certainly not a good sign. Time will tell where the journey of the dollar goes. But one thing is certain: currencies are designed to die at some point.
The price of gold went up a decent amount on Friday and back above the $1,800 mark. At the moment the price is $1,819.95 per ounce. In the next week, the CPI numbers are pending. Here we might already see whether the gold price will continue to move upwards or back towards the $1,800 mark. What we can currently also observe is that the U.S. dollar, bond yields, and gold are all moving in the same direction. This is certainly unusual but also shows the uncertainty in the population.