Saturday, May 9, 2020

Another Multi-Trillion Dollar "Stimulus" Package Coming

Steve Mnuchin
Well, you knew this was coming.

All indications are that yet another "stimulus' package is in the early stages of being developed.

 Larry Kudlow, director of the White House National Economic Council, told Fox Business that he and Kevin Hassett, another White House economic aide, were “exchanging ideas” with both parties on Capitol Hill but there was a “pause” in any formal talk until later in the spring.

“There is a deal to be done here, but it will take time. I wouldn’t expect to see anything before Memorial day [on May 25],” said one person briefed on the talks, according to the Financial Times.

Indications are that a new package will be in the area of $2 trillion.

 Congress and the White House have already passed about $3 trillion in "stimulus" for the US economy since March.

Of course, the United States government has no money to finance these packages and current and future packages will be funded through Treasury security debt offerings that will largely be monetized by the Federal Reserve Board.

This will do nothing, as in zero, other than fuel accelerating price inflation. It won't result in an increase in any products produced or services offered.

These are programs that could only be created by economic ignoramuses and encouraged by those who will get the funds first to buy goods and services before prices climb to new higher levels.

This isn't stimulus of the economy, it destruction of the purchasing power of the dollar and societal deterioration that will accompany it.


1 comment:

  1. Next up, negative interest rates.

    I don't think this is going to stop. I think these stimulous checks will keep coming avery month or two and eventually turn into UBI indefinitely.