Inflation | Will The New Stimulus Bill Cause A CRASH? In the year 2020, 22% of all dollars in circulation were printed, most of the money printed went towards stimulus bills and programs during the major events of 2020. Now, with a new stimulus bill looking like it will be passed and signed into law, the US debt will be looking closer to $7 Trillion. But considering the inflation rate has been pretty modest for the past 10 years, this may be a positive towards our economy. So in this video I'll be addressing whether or not this new stimulus bill will have any major effects on inflation! 0:00 Intro 1:15 What is inflation? 1:49 What is hyperinflation? 2:11 Zimbabwe & Venezuela's inflation problem 2:53 Will that happen here in the US? 4:23 My outlook on inflation in the US 5:12 Other factors to consider for inflation 6:36 Summary of inflation and stimulus packages So as I mentioned in the intro, we are going to talk about whether or not the new stimulus package will cause major inflation or not...But I also want to get into if inflation would be helpful to our economy or not? But just to be clear inflation is a general increase in prices and fall in the purchasing value of money. So in a nutshell, inflation really is the difference between the price of goods and the value of the US dollar. Now there has been recent examples of hyperinflation that we have seen in other countires like Zimbabwe and Venezuela. Hyperinflation is moer than a 50% increase in purchasing power towards goods and services. Now there is a large amount of fear about inflation and hyperinflation that we saw in countries like Zimbabwe and Venezuela but what makes the US different? This will most likely NOT happen in the US. Because the biggest downfall of Venezuela's inflation problem was that the printing of money did not go towards the means of production within their domestic economy. All of the money that was printed was sucked dry due to social programs and co-op ownership initiatives. In other words, they ran a democratic socialist economy in which it was great for the people but horrible for the economy, which in return, horrible for the people. And the inflation problem got so bad that they had to borrow money from other countires to continue their social programs. So overall, the answer to the question if the new stimulus bill will cause inflation, I don't think it'll cause major inflation. But considering the trend of our political climate, we might be heading towards that direction of inflation or hyperinflation. So in order for our economy to stay healthy we must monitor inflation by adjusting our money supply accordingly. If inflation continues to rise with no sign of stopping, my opinoin is that the fed should raise rates, increase reserve requirements and slow down the purchasing of bonds and treasuries. 😃 Thanks for Subscribing & Liking our Video! 📧 ⌨️ FREE 7 Day Trial To PropStream Real Estate Investing Software: http://reisoftware.thekwakbrothers.com 📊 Pay Off Your Mortgage In 5-7 Years (On Average): https://www.youtube.com/watch?v=eGVn9iq1e6c 💻 JOIN OUR FREE FACEBOOK GROUP FOR LANDLORDS & PASSIVE INCOME: https://www.facebook.com/groups/bestreigroup 📡 PROTECT YOUR ONLINE DATA AND ACTIVITY WHILE CLOSING DEALS AND GENERATING NEW LEADS WITH NORDVPN: https://go.nordvpn.net/aff_c?offer_id=15&aff_id=40858 🔊 Our Podcast: 🔹Spotify: https://open.spotify.com/show/7pnHJSNl7vPVFzq69IzC6B 🔹iTunes: https://podcasts.apple.com/us/podcast/first-deal-experience/id1282240923 📧 Hire the Kwak Brothers to Speak: info@thekwakbrothers.com #inflationrate #stimulus #inflation ======================== ---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.