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October 2, 2022
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Traders await US Senate approval of $ 2000 -Webitcoin aid

Senator Bernie Sanders has publicly threatened to obstruct the Senate vote to override Trump’s defense bill until they allow a vote on raising direct stimulus payments from $ 600 to $ 2,000. While the change will undoubtedly win the support of the American working class, more money printing means more problems for the dollar and more pressure for Bitcoin.

United States President Donald Trump signed the $ 900 billion pandemic relief bill on Sunday night, guaranteeing $ 600 in direct payments to working-class Americans and an additional pile of debt to the Federal Reserve. Trump, who originally rejected the stimulus package, citing the low value of direct payment, found support in an unlikely ally – Democrat and former presidential candidate Bernie Sanders.

According reported by the Politician on December 28, Senator Bernie Sanders will obstruct the overriding of the veto of President Donald Trump’s defense bill, unless the Senate takes a vote on providing $ 2,000 in direct payments to Americans.

Sanders also shared the news on Twitter just hours ago. The senator said:

This week, on the Senate floor, Mitch McConnell wants to vote to overturn Trump’s veto of the $ 740 billion defense financing bill and then return home in the New Year. I will object until we get a vote on legislation that provides a direct payment of $ 2,000 for the working class.

Senate majority leader Mitch McConnell has given no indication of how the pay increase bill will be handled. In a rare twist, both Trump and Democrats support the $ 2,000 payments, while most Republican senators are opposed. At least 13 Republicans would need to cross the corridor for the bill to pass.

Bitcoin and stimulus

After President Trump signed the stimulus legislation on Sunday, the markets started the new week on a positive note, with slight gains seen in the S&P 500 futures.

Bitcoin also started to rise immediately from its daily low of $ 26,450 to around $ 27,339. The price of traditional safe-haven gold also skyrocketed and is expected to record its biggest gain in a year in the past ten years.

While the potential vote on direct payments being increased from $ 600 to $ 2,000 is likely to be welcomed by the American public and will provide additional momentum to markets, stimulus efforts and seemingly unlimited restrictions on printing money to pay for them continue. to exert paralyzing pressure on the US dollar for the long term.

Bitcoin’s price may suffer a further rise as institutional and retail investors seek to store their assets in secure port assets. Bitcoin has enjoyed closer comparisons to gold as a store of value this year and institutions are betting that Bitcoin’s scarcity in its supply of 21 million coins may be an effective protection against the loss of purchasing power in the fiat currency more dominant in the world.

As part of the first round of coronavirus stimulation measures, people received direct payment checks worth about $ 1,200. That stimulus money, if it had been used to buy Bitcoin, would now be worth almost $ 5,000. And according to Coinbase data, many Americans took the leap to Bitcoin to store their wealth at the time.

Anthony Pompliano, founder of Morgan Creek Digital and defender of Bitcoin told Forbes:

It’s not surprising that people want to take US dollars and convert them into solid money […] The US dollars that are being used to pay stimulus checks are sure to lose their purchasing power over time, while the bitcoin structure is built to protect and increase purchasing power over time.

Bitcoin’s price has risen more than 250% over the past 12 months, helped by the support of payments giant PayPal and institutional investors like Microstrategy and MassMutual Insurance warming up for the cryptocurrency’s potential safe haven.

A jump in direct payments from $ 600 to $ 2,000 would likely provide more opportunities for Main Street to invest in Bitcoin, while the current bill has been criticized primarily for providing more support for Wall Street.

Can the $ 2,000 direct payment happen?

Senator Bernie Sanders is trying to delay the Senate until a vote on raising direct payments to $ 2,000 is allowed, but how likely is that plan to succeed?

According to Research Service of Congress, although the annulment of the veto can be obstructed, it is a rare procedural move because the annulment of the veto already requires 67 votes and the obstruction is simply a postponement tactic.

Sanders remains hopeful that the Senate majority leader, McConnell, will allow a vote on increasing the stimulus check on Wednesday. Sanders argued:

The American people are desperate, and the Senate has to do its job before leaving the city […] It would be unfair, especially after the House did the right thing, for the Senate to simply leave Washington without voting for it.

The potential vote also appears to be creating a rare split in the Republican Party, as Republican Senator Marco Rubio also endorses the $ 2,000 sum with the additional support of other House Republicans, despite many conservatives opposing this level of spending. and additional debt to the Treasury.

It is not yet clear whether there are enough votes in the Senate supporting the $ 2,000 checks, which would require at least 12 Republicans to cross the political divide and vote with the 48 members of the Caucus Democrat of the House.

Source: BlockchainNews

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