What's up America! This is Dr. Nitin Chhoda. It's almost like we get a new
stimulus bill or a new stimulus proposal almost every day and this isn't
surprising considering what's going on. In fact I predict that if this shutdown
continues, if this goes on longer and longer, we will see more bills as we
should because individuals need help. We're starting to see some interesting
proposals the first proposal that got a lot of attention was the "Emergency
Money for the People Act" which basically proposed that individuals below a
certain income threshold $130,000 for single filer and $260,000
for married filing jointly would get up to $2,000 per month
during the period of this crisis. That is a significant amount of money that most
Americans would be eligible for and these individuals would also get up to
$500 per dependent child up to $1,500 so if you have 3 or more children under
the proposal you would be getting an additional $1,500 per month for those
children. Now that was one of the bills in fact what I did was I analyzed that
proposed bill so you can look at the look at the other videos in my channel
and you see a video where I closely analyze this $2,000 per month proposed
stimulus. In addition to that there was another proposed stimulus which was the
"Rent and Mortgage Cancellation Act of 2020" this one was quite something.
This bill proposed that Americans would not have to pay their
rent, would not have to pay their mortgage until FEMA called off the
emergency - until a month after FEMA called off the emergency. So we're
talking about several months when an individual would not have to pay their
rent or their mortgage. I went into a lot of detail about this particular proposed
bill and what I'm going to do is I'm going to draw a comparison
between the 2 - between the the "Free Rent and the Free Mortgage" bill as well
as the $2,000 per month proposed stimulus bill. So if you subscribe to the
channel go ahead and subscribe and you will get that notification as soon as
that video is released. The purpose of this training video is to discuss a
3rd bill which is extremely interesting which is going to cost a lot
of money which is actually going to drive us deeper
and deeper into debt but it's been proposed and that's the bill
that essentially gives each American, every single person a $2000
dollar debit card and then that debit card will be loaded with an additional
$1000 a month for a certain period of time. Let's get into the
specifics of the bill. This bill is called the ABC Act or the Automatic
Boost to Communities Act so I'm going to link to the 2 page
description of the bill below so it's a quick read you can check it out but I'm
going to walk you through it now. So the summary of this proposed bill is as
follows - in response to the crisis the Automatic Boost to the Communities Act" could
immediately provide a US debit card preloaded with $2,000 to every person in
America (so every single person). Each card would then be recharged with $1,000
every month until 1 year after the end of the current crisis. So let's just
assume this crisis ends November of 2020 what this proposal is suggesting is that
the $1000 monthly recharges of this US debit card would actually
continue until November of 2021. Now this bill talks about what's called as
"Guaranteeing Universality" so again that's guaranteeing universality - it says
that every person includes dependents so let's say you have a couple with 2
children those individuals would get a total of $8,000 loaded on a US debit
card and then those individuals would then get monthly payments as well this
bill also says that a whole bunch of people would get it you can actually
look at the the bill below I'm linking to the bill below and what the bill
basically says is to make the program as universal and as comprehensive as
possible. The US Treasury will develop a list of
all eligible individuals in coordination with the IRS, the Social Security
Administration, the Federal Election Commission and other agencies so they
literally are guaranteeing universality. The next part of the bill discusses how
the money will be distributed. So the prepaid cards would be would be given as
US debit cards and the these prepaid digital cash cards could also be used
you could use the paid digital cash card under the terms
of this proposal you could use this prepaid digital cash card and go to a
regular ATM or an FDIC-insured bank or credit union and you could make payments
at point-of-sale terminals you could even withdraw cash according to this. The
program would also establish a common database of recipients so an
individual's name and employee identification number if applicable
would be kept on file. Now these cards would be distributed in 3 ways they
really want to make it easy under the terms of this proposed bill for
individuals to get these cards. Number 1 if they have your mailing address on
file, they'll just mail you the cards as
simple as that. Number 2 in person pickup. So individuals who don't have a
permanent address or otherwise cannot receive the US debit card by mail will
be able to obtain one directly from any FDIC insured bank or credit union or a
temporary card distribution station at local post offices. They actually going
to go 1 step further in addition to direct mail and in-person pickup what
this bill proposes is an at-risk outreach program. So what that means is a
dedicated person will reach out to the elderly, to the homeless, to those who are
physically disabled or live in remote areas and not only make sure that they
get this debit card but also check up on them and make sure they're doing okay. So
at this point you're probably thinking where does the money for all this come
from as far as this bill is concerned there's a clear solution to where the
money comes from the bill says the automatic boost to community is that
would be a money-financed fiscal program for which no additional US debt will
be issued. Now how are you going to do this? The way our system is set up is you
have the Treasury Secretary and you have the Federal Reserve in between sits the
US Mint so you have the Treasury secretary the US Mint and the Federal
Reserve. So under the terms of this plan the Treasury secretary would direct the
US Mint to issue 2 coins that are valued at $1 trillion each.
$1 trillion each so the Treasury secretary will direct the US Mint to
issue $2 trillion platinum coins. So imagine if this was a platinum coin
the US Mint mints a coin and a platinum coin and
says this is worth $1 trillion. So under the terms of this proposal they
would create 2 such coins and simply say these are worth $2 trillion
so what would happen is Congress would actually then direct the Federal Reserve
to purchase these newly issued coins at full face value so there would be an act
of Congress which would tell the Federal Reserve "hey you need to buy these 2
coins" so what the Federal Reserve would do is complete the purchase by
crediting the US Mint account with $2 trillion so the Federal Reserve
would say okay I'm going to buy these 2 coins from you that you valued at
$2 trillion and I'm simply going to credit your account
$2 trillion what's going to happen then is the Fed would then own those
$2 trillion coins and that would be added to their balance sheet. The
Treasury secretary would then sweep this newly generated $2 trillion
from the US mint account into the Treasury's general account. So now this
$2 trillion which by the way didn't exist before it exists now and
that money under the terms of this proposal will be swept into the
Treasury's general account. So again you have the Treasury secretary, you have the
US mint and you have the Federal Reserve. So what happens now is these
$2 trillion coins would then generate that money which would then be
swept into the Treasury's general account and then it would go down the
chain and it would then be distributed to Americans via the US debit
cards that we talked about earlier. So this essentially is a proposal
that suggests that this is again you know this is the automatic boost to
communities act and I'd love to hear your thoughts on this below. Go ahead and
please comment below I'd love to to hear your thoughts. Keep in mind that we've
had the emergency money for the people Act we've had the rent and mortgage
cancellation act of 2020 and we have the automatic boost to communities that all
these are just proposals nothing is you know nothing is going to be signed into
law anytime soon and my prediction is the longer this crisis continues
the more likely we will see an evolution of these ideas. The more likely we are to
see compromise between these ideas between the Republicans and the
Democrats to do something that is agreeable to both parties, agreeable to
both sides of the table, agreeable to both ideologies and probably most likely
beneficial to most Americans. Remember no system is going to be perfect the idea
is to do the best you can under the given circumstances and these are
challenging circumstances for all of us. I appreciate you watching, I hope you I
hope you were able to understand the terms of the Automatic Boost to
Community act. If you want to learn more about the emergency money for the
people Act check out the other videos on my channel
if you want to learn more about the Rent and Mortgage Cancellation Act of 2020
I've summarized there as well. In fact I've actually compared both of them so
you can check out that video training as well. As always I appreciate your
feedback please go ahead and click comment below I also want you to please
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all watching. Thank you so much!