The Trump administration is preparing a nearly $1 trillion infrastructure plan, reports Bloomberg.
A preliminary version being prepared by the Department of Transportation would reserve most of the money for traditional infrastructure work, like roads and bridges, but would also set aside funds for 5G wireless infrastructure and rural broadband.
“Since he took office, President Trump has been serious about a bipartisan infrastructure package that rebuilds our crumbling roads and bridges, invests in future industries, and promotes permitting efficiency,” White House spokesman Judd Deere said in a statement.
Of course, this is mad. The government has no money for such a plan and would require monetization of the spending by the Federal Reserve.
The Fed has already monetized trillions as a result of the lockdown-related bailouts.
There is just no way we come out of all this without serious price inflation.
Hug your gold coins.
-RW
More insanity. I know I'm stating the obvious, but this is simply government central-planners substituting their judgement (such as it is) in place of the private-sector actors, about where capital investment should go. I.e., sucking away yet more vitality from the private sector, and directing it towards less efficient projects.
ReplyDeleteFiat currency. The USD does meet the definition of money.
ReplyDelete