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The United States passes law for public spending of more than 1 trillion dollars

The Infrastructure Act ( Infrastructure Bill ) of the United States was finally approved by the House of Representatives, after a couple of months of disagreement between legislators.

The approval of this law that allows the spending of up to 1.3 billion dollars in various projects occurred in the instance legislature of the North American country during the night of this Friday, November 5.

The approval of this law took place with a majority of 228 votes in favor and 206 against, according to various media reports. local. Now, the Act rests on the office of the president of the United States, Joe Biden, awaiting the final signature, almost three months after the Senate approved the document in the first instance , as outlined by CriptoNoticias.

The resources approved in this Infrastructure Law would be invested in transportation projects, such as roads, bridges, airports or vehicles with zero polluting emissions. It also includes budgets for broadband internet, drinking water and energy.

However, there are those who wonder where the money will come from to pay for all that monetary issue, one of the largest in the world. American history. The wing of the Democratic Party, to which President Biden and the main promoter of the Law belongs, considers among the revenues to pay off the public debt the tax collection of the bitcoin and cryptocurrency industry .

The taxes on this industry were included in this Infrastructure, despite an amendment proposal that sought to exclude bitcoin and cryptocurrencies from this tax proposal. This proposal was rejected in the Senate, before the Infrastructure Bill was sent to the House of Representatives, where it has just been finally approved.

Year-on-year inflation in the United States exceeded 5% this year. Source: ycharts.com.

Inflation on the prowl

While its promoters celebrate the approval of this law , which allows Biden a massive public spending with a focus on social and infrastructure benefits to Americans, there are those who see an imminent danger: new highs of inflation and an increasingly weak dollar.

The concern is not unfounded. Data from the Department of Labor and the Consumer Price Index confirm this. As we reported in this media last month, the interannual inflation indices of the North American country reached levels of the economic crisis of 2008 , with an inflation of 5.4 % between September 2020 and 2021.

If we compare it with the percentage of September of the previous year, year-on-year inflation has tripled in just 12 months in the United States.

Meanwhile , personalities of the financial world consider that this phenomenon will continue in the long term. Peter Thiel, co-founder of PayPal, recently warned about the need to hedge against sustained inflation. For this reason, he regretted not having bought more bitcoin in the past, since the increase in the price of the cryptocurrency is one of the consequences of that inflation, in his opinion.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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