What would Everett McKinley Dirksen say if he were alive today? Considering the size, scope, and costs of the Biden Administration’s spending plans, I can only imagine, asserts Mike Larson, editor of Safe Money Report.

Dirksen, of course, was the colorful Senator from Illinois who famously opined on his era’s flood of federal spending. The quote? “A billion here, a billion there, and pretty soon you’re talking about real money.” But what Dirksen witnessed during his Senate career in the 1950s and 1960s pales in comparison to what Washington is talking about now.

Consider: Less than two weeks after President Biden signed the broad-based $1.9 trillion stimulus bill, the New York Times reported another round of big-bucks legislation is planned. Like $3 TRILLION big!

Among the components on the table in the Biden “Build Back Better Recovery Plan”? A trillion dollars in spending on infrastructure like bridges, roads, rail lines, ports, 5G networks, and more. Additional funding for free community college, pre-kindergarten expansion, and paid leave programs are also in the mix.

Clean energy and climate change initiatives? Job-training programs? Money to fund construction of up to a million less-expensive, yet energy efficient, housing units? Yep, yep, and yep.

The plan is so huge, in fact, that the administration may have to break it up into more-digestible legislative pieces for an increasingly skeptical Congress. And depending on how you account for its associated costs, the ultimate price tag could actually close in on FOUR trillion dollars.

The administration is hoping to offset at least some of the costs through various revenue-raising moves. An increase in corporate taxes is one option on the table. Hiking taxes on high-income Americans is another.

But they won’t come anywhere close to offsetting the enormous costs. We all know what that means: Even bigger budget deficits piling up and even more government debt being sold to fund them.

February’s budget deficit alone came to $311 billion—a record for the month. The Congressional Budget Office (CBO) also recently hiked its full-year 2021 deficit forecast to $2.3 trillion. But that was BEFORE the $1.9 trillion stimulus plan passed.

Add those costs to the tally...mix in a couple trillion more in spending...and even Dirksen would find himself speechless! It’s a “Money Flood” unlike anything in our nation’s long and storied history.

I’ve shared what this mega-shift means for investors and traders many times. Hopefully, you’ve profited as a result. But just in case, my recommended approach boils down to another famous Washington expression: “Follow the money”...

  • Buy sectors, stocks, and assets that benefit from Washington’s extraordinary largesse.
  • Sell sectors, stocks, and assets that suffer from them.
  • And never forget that the future, long-term consequences of all of this spending are growing...fast.

Safe Money Report focuses on these kinds of stocks, which include names in the consumer staples, food and beverage, retail, and healthcare sectors. Visit Safe Money Report here.