Fourth stimulus check update and what they’re now saying about stimulus checks with some new reports that were just released out of the Federal Reserve. I have all the details and everything you need to know right here on this topic. I’m doing all the research and breaking it all down into these shorts topics so that you can get the latest details.
All right, So first off, I quickly want to talk about these reports that were just released out of the Federal Reserve because it gives us a better glimpse into what is going on with Americans and across the entire United States right now. And I want to talk about another report specifically talking about stimulus checks and what they’re now saying. So let’s jump into these one at a time here. First off, the reports out of the Federal Reserve are showing that in the month of February, which, by the way, these reports are delayed one month. So the most recent information that was just released out of the Federal Reserve is from the month of February. However, here’s what they’re finding.
They are finding that now consumers, as in US consumer debt is at a massively high number. We have just added another $45 billion of consumer debt to the tally, and we are now up to four point $48 trillion of consumer debt. That’s a big number. But let me break this down for you a little bit further, because there are some pretty big numbers within this report that gives us a better glimpse into what is actually going on with Americans right here, right now. Here’s what they also found of that four-point $48 trillion of consumer debt. Over 1 trillion of that is credit card debt. As in a lot of people don’t have the money. Therefore, they float it on a credit card Right? So you can spend a bunch of money on a credit card and you can just hold the balance right there.
I would not advise doing that. But here’s the situation. A lot of us, unfortunately, are in that situation right here, right now. So let me explain this for you. Like I said, over $1 trillion of this four-point $48 trillion is credit card balances.
However, here’s what they found. In the month of February, they went up as in credit card debt went up 27% on an annualized basis. That is huge. Basically, the reports are saying this is really big, as in Americans are spending basically more money right now on the same old things that we’ve always been buying. And unfortunately, a lot of people do not have the money.
Therefore, we are starting to float our balances once again on credit cards. So as a result of buying the same things that we’ve always bought at much higher prices by default, we are spending far more money these days because of the inflation. Right. The same old things that we always buy. Well, as a result of that, incomes are not keeping up with all of this inflation, as we’ve discussed in previous topics.
Therefore, we’re spending more money that we may not have right now. And a lot of people are, unfortunately, floating those balances. And the more money that we’re spending right now just on the same old things on credit cards. So not a good thing. And the reason that I say that is because credit cards charge a huge interest rate.
Right. So it’s anywhere between about 14 and a half to maybe 2023, maybe even 25%, possibly even higher in some instances. So that is a big, big number right there and not the way that we want to see this trend going. We’d like to see it go the other way, going down. Right. But unfortunately, during a time like this where a high inflationary period that we’re in right now and incomes are not keeping up. Well, unfortunately, this is kind of the way that we’re going right now. Not a good thing right, All right.
Let me talk about another report here that’s talking specifically about stimulus checks. It’s kind of interesting as well. Now, again, everybody has their own opinions on this, and this is not my words. These are the words out of this report. Well, the reports are saying that all of this inflation that we’re dealing with right now is coming from the stimulus checks.
Now, again, I’m not going to take sides on this one. I know that the stimulus checks were absolutely vital for many people right here in the United States, as well as many of us right here in this community over the last two years, since those three checks went out. However, now, again, I just want to say this much. We do know that there are varying opinions about stimulus checks, but the deal is this one report is saying stimulus checks are causing all of the inflation. Well, there is actually another side to this story because the report goes on to say because the stimulus checks were so widespread, as in there were over $800 million of stimulus sorry, not 800 billion.
Let me take that back. $800 billion of stimulus checks that went out the door to about 170,000,000 beneficiaries over the last two years. So the same 170,000,000 people in the United States received three rounds of stimulus checks. And that’s what they’re saying is causing all this inflation, because what they’re saying is the vast majority of those people didn’t even need the checks but rather they just took the money and they either invested into the stock market, they saved it, or it just turned into discretionary spending. In other words, they went out and bought things that they didn’t necessarily need, which ultimately caused a bunch of inflation.
But the deal is they also went on in this report saying that some of these people, about 40 to 50 million or so, actually needed the checks, the low income, the fixed income, those people who were maybe out of work at the time and maybe had unemployment benefits, but they also needed an additional stimulus check. These are the people who needed it. But here’s what’s interesting about the report. On one hand, they’re saying, oh, all the stimulus checks caused all of this inflation. And then just a couple of sentences later, they said, well, if these signals checks were highly focused, highly targeted on the low income, the fixed income, the people who were out of work at the time, maybe 40 to 50 million people, the inflationary impacts of those checks would be very minimal compared to what we’re actually dealing with right now.
So kind of interesting how the report comes out and basically says two-sided Right? In one instance, they’re saying the stimulus checks are causing all the inflation. And on the other hand, they say, well, if they just would have been highly focused and actually been thought about a little bit more methodically, rather than just a blanket stimulus check going out to everybody, they basically would have said this inflation that we’re dealing with right now didn’t need to happen. It really didn’t need to happen if they would have actually thought about who they send these checks out to.
Here’s what’s interesting, too. I saw this in a separate report as well. And this is actually a really good point. And I totally love this. What this is saying is basically what they’re saying is with the reports is if these checks would have been highly focused, in other words, sending them out to 40 million to 50 million people who actually need the payments, the low income, the fixed income, those individuals who were out of work at the time and maybe still out of work right now struggling to find a new employment, all of these people, everybody here in the community, in this community right here, if they would have highly focused these checks from the very start, the $1200 check that we received it two years ago, if they would have focused that first check and the second and the third one on these 40 to 50 million people, they would have had enough money there to essentially send out about nine stimulus checks.
Right? So they sent out all the stimulus checks to essentially 170,000,000 people, but the vast majority of them, about 120,000,000 of those people did not need the payments. Right. So if they would have taken those checks and they wouldn’t have sent them out to the 120,000,000 people, but rather they focused them on the 40 to 50 million people. They would have had enough money to take all that money, spread it out, and they could have sent out the same dollar amount checks nine times.
Pretty amazing, right? Yeah. And essentially what they would have done is they would have highly focused this money on the 40 to 50 million people who needed it, the low income, the fixed income, the out of work Americans to focus it on those people. And they could have sent out ongoing checks, maybe on a monthly basis every other month, a bi monthly basis, or maybe every three months, a quarterly basis, something like this. They could have essentially been sending out ongoing checks, nine of them for all of these 40 to 50 million people.
Amazing, right? So I don’t know. I found this in a couple of different reports and I thought, that’s incredible. Well, as we always say, though, hindsight is always 2020, right? Yeah.
Unfortunately, we always know the answers when we look back in history and say, oh, if we just would have done this, we could have avoided that and we could have done this to help out so many more people that actually needed the money. Right. So anyway, with this information at our disposal, though, it’s easy to look into the future and know the answers to the solution Right. Or obviously know the answers to the solution.
Know the answers to the problem. Right. So here we are. We have the solution at hand. We know exactly what we can do to help out the millions of people that are needing all this extra money right now.
Well, who’s going to take some action here, right? I feel like at this point. Hey, Congress. Hey, Biden. Hey, administration.
Hey, everybody. The Ball’s in your court. You know what to do. The reports are landed out very clearly right here. We know what we should do and we know what we probably shouldn’t do.
Right. We know we should send out ongoing checks for the low income and the fixed income. We know we should probably not send out a huge blanket check to 170,000,000 people. We probably shouldn’t do that. A lot of people don’t need it.
But we should focus these checks on the low income and the fixed income. Anyway, these are some pretty interesting reports here that I found for you want to lay it all out for you and share these reports out of the Federal Reserve as well, because right here with these reports out of the Federal Reserve, they’re finding it just as much as all these other reports that Americans are struggling right now. We’re floating balances on credit cards. Now, again, I don’t want to turn this into a financial topic telling you what to do with your money. Of course, I don’t want to ever tell you what to do with your money, but I want to say this much.
If you can avoid floating balances on credit cards, I know it’s not that realistic right now. I know there’s a lot of people that are struggling and that’s something that a lot of people need to do right now. But if you can avoid floating balances on credit cards, I’d highly recommend it. Credit cards can be very dangerous sometimes, especially if you spend a little bit and you can’t get caught up paying those things down. You know the drill, right?
14 and a half percent, 19%, 23 or 25% interest can inflict a lot of pain really fast financially. Right. So anyway, as I do get more information, of course, I’ll be right back here for you breaking it all down to help you out in any way that I can. Credit cards, they’re nice, but at the same time, they can also be very bad. Right.
Been there, done that. And I don’t want to go down that road again. Right. So anyway, just trying to help you out in any way that I possibly can, as well as bringing you all the latest details that I have with any of these updates. And of course, when it comes to a fourth stimulus check.
I just want to let you know that Nancy Pelosi a week ago did mention that Congress is working on direct payments and there’s a lot of these proposals that are still out there right now to focus on the low income and the fixed income for these direct payments. If only Congress would give us another update and let us know what are they working on and what does it look like anyway? I’ll keep you posted as we get more information.
Enjoy your day and I’ll catch you again later in the next update.