Biden prepares to print $13 billion amid inflationary crisis

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U.S. President Joe Biden appears to have everything in place to deal with the frigid winter ahead for his country, and he will do so with a $13 billion package.

The goal is to reduce energy costs and improve household efficiency. Of low-income Americans, according to reported CNBC.

“We know that winter heating bills account for most of the energy needs of low-income households. Therefore, it is imperative that funds reach households in the most efficient and effective way possible,” a White House official told the U.S. news agency.

The energy crisis affecting much of the world will also affect U.S. households. It appears that Every household will have to pay 17 percent more for heating this winter.And bills could be as high as $1,200, according to a report by data Of the National Association of Energy Assistance Directors.

Electricity will also increase and is expected to housing prices in the United States will increase by about 7.5 percent..

More heating and more money printing

Faced with this scenario, Biden has decided to grant these benefits and in doing so will try to alleviate the effects of winter among the poorest people.

But on the other hand, there are the consequences of this decision on the U.S. economy, which will is experiencing the highest inflation in 40 years.as reported by reported CryptoNews. Inflation was largely a consequence of the inorganic printing of dollars that took place during the COVID-19 pandemic.

Thus, the government will inject liquidity again to help a group of people by increasing the money supply, which causes – in the short and medium term – each dollar to be worth less in the market. This, as predicted by the economic theory called Cantillon effect.

Just in an attempt to curb inflation, the U.S. Federal Reserve announced on November 2 a further increase interest rates by 0.75 percent, breaking the record for the North American country.