Billionaire Expedia and IAC Chairman Barry Diller appeared on CNBC this morning and said, "everyone needs to be bailed out" in the face of the COVID-19 panic.
Of course, if you just give everyone more money, one question becomes: Where do you get it?
The only answer is that the Federal Reserve Board prints the money up and that is just like telling everyone to add a zero or two to bank accounts and paper bills. How thus that help anyone?
It just creates a very rapid price inflation.
The only way you can remedy an economy damaged by lockdowns is to open upon the economy and those most vulnerable to serious reactions to COVID-19 infection should be extremely careful or complete self-quarantine. Locking down the entire country and printing money to solve the problem makes no sense.
-RW
A bailout is essentially debt forgiveness.
ReplyDeleteThat bailouts are being done in a partial manner is criminal corrupt crony kleptocratic BS.
Nope. A bailout is theft from holders of cash (such as savings accounts) and dollar-denominated fixed income - i.e. the middle class, and particularly pensioners and parents saving for their kids education, - by the rich and politically connected elite.
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