Wednesday, March 25, 2020

Larry Kudlow: Coronavirus Stimulus Package to Exceed $6 Trillion

An emergency stimulus package to bailout the U.S. economy amid the coronavirus panic will total $6 trillion — a quarter of the entire country’s GDP, the White House said Tuesday, reports the New York Post.

Yup, you read that right, $6 trillion!

Trump administration economist Larry Kudlow said the package would include $4 trillion in lending power for the Federal Reserve as well as a $2 trillion aid package.

“This package will be the single largest main street assistance program in the history of the United States,” Kudlow said at the White House coronavirus task force briefing on Tuesday evening.

Included in the package is Congress’ almost $2 trillion emergency bill which, when passed, will issue direct checks for American families, bailouts for the airline industry and a $350 billion loan program for struggling small businesses.

The other $4 trillion will allow the Federal Reserve to make huge emergency bailouts to whatever entity it chooses.

Some of the Fed stuff may just be a paper shuffle but we are talking $2 trillion-plus hitting the real economy.

Then is no way this doesn't turn into accelerating price inflation on the other side of the panic.

We may see the inflation kick in slowly based on indexes such as the consumer price index as there will be early discounts in, for example, the airline and hospitality sectors but prices are going to be climbing where people are actually spending their money.



  1. At this rate, soon we will be using dollar bills for toilet paper.

    Is this some sort of sick repeat of Weimar Germany from 100 years ago from 1919 to 1933?

    So here we go ....hyperinflation from now until 2033? Then we all know what happened next in Germany...Adolf Hitler came to power.

    American Republic = Weimar Republic

  2. Why stop at $6T? The economy will be twice as secure at $12T.

  3. What happens if no one will buy Treasuries/gov bonds?

  4. "A billion here, a billion there and pretty soon it starts to add up to real money"

    --Senator Everett Dirksen

  5. Cuomo's mad NY's entire budget shortfall ($15B) isn't covered, only $3B. That's really what his whole virus performance is about. Bailing out NY's failed totalitarian socialism.

    1. Actually, it's worse than that. He's running for President.

    2. Maybe if there is an election... Two entitled Noo Yawk legacy ne'er do wells who've probably hated each other for decades arguing over the degree to which the entire U.S. should become a totalitarian socialist hellhole like NY. Count me out.

    3. Time to rewatch Escape from New York (1981) (