$1400 fourth stimulus check update and why a fourth stimulus checks may be even more likely considering the information that was just released. I have all the details and what you need to know right here on this topic. All right, so some new updates were just released that we need to watch very closely, as this will likely indicate the future, as in what the administration and the President, as well as what Congress does going forward. I do have those details for you on this topic, which I want to talk about.
as I am your one and only daily advocate, and I am very much dedicated to you and this community to do all the research and to break it all down into these short topics so that you can stay updated every single day with all of these changes and these new updates that are hitting the wire each and every day. I know it’s a busy time out there, but I’m right here, right by your side every single day to help you out in any way that I possibly can. All right, so a few key pieces of information were released so far today. And I want to talk you through this because this is actually some very important details that we need to pay attention to because it’s something that hasn’t happened in quite a few years here and again, it’s going to indicate the future.
However, I do quickly want to talk about an announcement out of the President just a short time ago as well. President Biden is now calling on Congress to approve an additional $33 billion of relief for Ukraine. Now, this is the biggest amount of money that he has asked for so far, and it is now in the hands of Congress. So we will have to see what they actually do going forward. So tens of billions of dollars have already been approved.
And now the President is asking for an additional $33 billion of relief for Ukraine. So we will see what actually happens going forward on that. And again, this is in the hands of Congress as of right now. And, of course, I will keep you posted. All right, so another key indicator and another key report that was released a short time ago today was the GDP number.
All right, now stick with me. I’ll try to make this relatively short and sweet on this. I’m not going to go into a ton of detail about this, but I do want to walk through the details of this report because this is actually very important. Now, this number is released once every quarter. It’s not every month, just once every quarter.
Now, the number was released today in reference to Q one. As in January, February, and March of 2022, analysts and experts were anticipating growth of the economy and GDP of 1%. Here’s what it came in at, negative 1.4%. So a lot of people are really shocked right now that GDP actually shrank by 1.4% in Q one of 2022. That is not a good situation.
Okay. So basically what this indicates is GDP shows the amount of output here in the United States as far as basically everything that we are producing here in the United States. Well, production actually shrank by 1.4% in the first quarter of 2022. And actually, the last time that we saw this type of performance was the second quarter of 2020. So basically right as we were coming out of the lockdowns from two years ago was the last time that we saw GDP like this.
So this is not a good sign. Here’s the thing. Now, we got to watch this closely because here’s the thing. Like I said, going forward, we’ll have to continue watching the rest of 2022 and see what actually happens. Now, this is actually falling perfectly in line with some of the other estimates that are out there right now saying the likelihood of a recession globally, as well as right here in the United States is getting very high.
So in fact, this number that was just released today, the GDP number again, also pointing toward all the signs of a recession, are increasing even more, even more, prevalent right now. So the likelihood of a recession is becoming even higher considering this GDP growth is actually shrinking right now. So here’s the thing. What it basically all comes down to is basically the power and the speed and basically the efficiency of the economy in the United States right now. So we already know the economy is slowing, and once again, it is showing pretty dramatically here in the GDP numbers.
Basically in this country right now. In the United States, we are producing less, significantly less than what the analysts and experts are actually anticipating. It’s basically about a 2.4% swing from where analysts were anticipating GDP to be and where it actually showed up. They were showing 1% positive and it came in 1.4% negative, right about 2.4% spread from where they were actually talking. So the point behind this is the economy is slowing down whether we want to it or not.
This is just the fact of the matter. According to these numbers right here, everything is slowing. Production in this economy is slowing, and everything that’s going on right now. And inflation is also not that great of a situation right now, considering that is also really kind of hammering down on consumers. And ultimately, as inflation continues to go up, we’re probably going to be spending less and less because there’s not as much money to go around right.
Well, for the people anyway. So, therefore, we’re probably going to hold back on some of our spending. Therefore, it’s going to have either greater contractions in the economy as well, going forward. Right. Kind of makes sense.
It’s all highly correlated, just like I’ve said so many times in previous topics. Now I want to throw this out there as well. This is interesting because we have not seen this before. However, now stick with me. I’m going to talk about China for a second.
So China is currently locked down. Well, not the entire country, but there are multiple cities within China that are locked down, locking down tens of millions of people. In fact, they’re even putting up fences. Yes. Believe it or not, they are putting up fences around different areas so that people literally cannot get out.
I don’t know. It seems really weird to me. But again, this is a real thing that is happening in China. However, there are now calls in China for the government to start distributing money to the citizens, just like they did here in the United States. In other words, stimulus checks in China.
So I know we’re not in China. This doesn’t have anything to do with us. But the simple fact of the matter is we’ve got another massive country, right? China has about 1.3 billion people. There’s a huge country.
Right. A lot of people anyway, they are now talking and they’ve never issued stimulus checks before throughout this entire COVID situation. And now China is talking about issuing stimulus checks to the residents simply because there are tens of millions of people locked down. They’re using up all their money, they don’t have any food, all kinds of things like this. So there’s talk on the table right now of issuing them over there.
Now you might be wondering, OK, that’s China. But what about us here in the United States? What about stimulus checks for us? Here’s the thing. It all comes first, full circle, because we know China is locked down with them being locked down.
It is impacting the economy and their exports. And remember, here in the United States, we import a ton of stuff from China all the time, right? A ton of stuff that we import is from China. Therefore, it’s going to snag up the supply chain issues once again here in the United States. So this is just going to actually add to more of the supply chain issues that we are dealing with right here in the United States, possibly even fueling inflation even higher because less products to go around.
Therefore, equal or more demand equals higher prices. Right. Because it’s more people or the equal amount of people basically going toward the same amount or less, I should say, of supply, therefore driving prices higher. So again, you might be wondering, how is this all going to come full circle? Well, here’s the thing.
With an economy that is slowing down. Is this something that the administration wants? No. Is this something that Congress wants? No.
Is this something that the Federal Reserve wants? No, not necessarily. They don’t want to slow the economy. They want to slow inflation, but they don’t necessarily want to slow the economy. However, slowing inflation also does come hand in hand with slowing the economy, which that’s another side note that I guess I could throw it right now as well.
Next week, the Federal Reserve will be meeting for their next meeting, the FOMC meeting, the Free Open Market Committee meeting, and they’ll be determining how much more to raise interest rates. Again, not a good thing, right? So here’s the fact of the matter. Economy is slowing down.
When the economy slows down, what do they do? They typically open up the spigot. In other words, like the big old spicket on the faucet, the hose, the kitchen sink faucet, whatever you want to call it. They basically open the spigot when the economy starts going down and they start flooding it with cash. This is exactly what we saw back in 2008, 2009.
They sent out stimulus checks at the time. It was not because we had COVID back then. No, it was not that. It was because the economy was going down. They needed to pump it back up.
So they sent out money to everybody and asked us to go out and spend it exactly like what we saw back in early 2020, late 2020, and early 2021. They gave us some money and told us, please go out and spend the money and stimulate the economy. So that was the whole purpose behind it. So with all these numbers coming in right now looking like the economy is contracting pretty big here and GDP growth is slowing down,
there are all kinds of things that are going on right now.
Once again, COVID is spiking back up once again. We’re averaging about 500 cases a day. As you can see here. As I said in so many of my videos, everything is highly correlated. And you can see that right here in this topic as well with everything that I laid out for you.
So with all this going forward, if this trajectory continues at this rate, and as things continue to go on, they’re going to be looking for ways to prop up the economy once again to get money back rolling into the economy. Because as the economy starts to contract, that means people losing their jobs, businesses closing down, employment dropping, bankruptcy is increasing foreclosures, increasing interest rates increasing. Not a good recipe, right? It’s like a recipe that eventually makes really bad brownies, you know what I mean? Things that don’t taste good.
Well, you kind of want to ditch that recipe and you want to go for a recipe that tastes good, right? Well, that may be just what they’re doing here. Anyway, I want to keep you posted with everything going on here. I know that sometimes we have to come back and talk about things that are related to the economy and GDP growth and all kinds of stuff like inflation. I know that a lot of you here in the community probably don’t care about a lot of this stuff when it comes to economics and stuff like that.
But the fact of the matter is, I try to brush against it kind of a little bit like a little bit briefly but either way, we still got to cover it Simply because this is what’s going on. This is what’s going to indicate our future potential money, Potential benefits, Potential stimulus, Potential for stimulus checks, Potential ongoing monthly payments, anything like this. It’s basically all going to be predicated on what happens to the economy. That’s why we’ve got to watch it. What’s going on with the economy, what’s going on with employment?
What’s going on with inflation? It’s all highly correlated. So I kind of hope that makes sense, right? So anyway, as I do get more information on any of these details, of course, I’ll be right back here for you breaking it all down. But one more thing that I want to throw really quickly Is the reason that I called this $1,400 stimulus check update Is simply because we do know that a few months ago the senior citizens League was out calling on Congress to issue a highly focused $1,500 stimulus check.
Now, here’s the thing. In the event they do offer another stimulus check, whether it’s $1,400, $2,000, anything like that, if I had to put bets on it And I had to put any dollar amount on how much it would actually be, I would put money on one $400. That’s just the number I’m going with. The reason for it is they sent it out a year ago. They found success with it.
It was easy to get by. They got it through Congress and this is exactly what the senior citizens League is calling on as well. Again, that’s just my prediction. I could be totally wrong with it. I have no clue.
But I would just say in the event that they actually do send out a fourth stimulus check, I would say it’s probably going to be $1,400 again. That’s just my assessment. Anyway, as I do get more information. Of course. I’ll be right back here for you breaking it down in any way that I possibly can be I truly want to help you out in any way that I can.
Please enjoy your day. I’m here for you. Please stay safe out there and I’ll catch you later on the next topic.