In a proposal addressed to the Democratic Members, House of Representatives; U.S. House Committee on Financial Services Chairwoman - Maxine Waters proposes among others a $2000 monthly support fund for Adults and $1000 for children to support families against financial crisis caused by the Covid-19 pandemic.

"...families must come first. That is why I am proposing a bold fiscal stimulus package and public policy response that will benefit hardworking and vulnerable Americans who may face financial hardship or even eviction or foreclosure as a result of the coronavirus crisis.” ~Waters.

The proposals also include:

• Suspension of all consumer and small business credit payments such as mortgages,  car notes,  student loans, credit cards, small business loans, and personal loans.
• Establishment of a Facility by the federal reserve or treasury to reimburse financial institutions for lost revenues and expenses to ensure that financial institutions remain solvent as a result of millions of consumers not paying their bills.
• Suspension of all negative consumer credit reporting during the pandemic and 120 days after the crisis is over. More so, consumer credit reporting agencies would be prohibited from lowering a consumer’s credit score.
• Ban on the collection of all consumer debts, evictions and foreclosures, and repossession of assets during the pandemic and for 120 days after the pandemic ends.

These and a host of other proposals were put forward by Waters as an emergency response to the financial crisis being caused by the Corona Virus pandemic and goes to show how desperate the financial situation is and a sign of a pending recession that might be worse than what we experienced in 2008.

Experts Opinion on this Proposal

The founder of Quantum Economics -Mati Greenspan expressed surprise by the $2000 a month proposal, saying:

"Basically it would cause massive inflation because you get more money competing for the same amount of goods," he told Cointelegraph.

According to Greenspan, this proposal is more or less a Universal Basic Income in disguise and doubts if the President -Donald Trump will append his seal of approval and sign it into law.

Bitcoin Solves This

"In the long term Bitcoin could certainly benefit, I don't know about the rest of the crypto market. Basically, anything that would hold its value in the face of a depreciating currency —  especially if the reason is poor judgment by the government and banks — that certainly strengthens the case for Bitcoin." Greenspan.

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