When I called it a day yesterday, the Americans (or so I thought) were churning through proposals for a trillion dollar stimulus spending initiative.
That was soooo yesterday.
In this morning's New York Times that stimulus proposal is now at $1.8 trillion.
Senators and senior Trump administration officials were scrambling on Monday to strike a deal on a $1.8 trillion measure to bolster the economy, after Democrats blocked action on the package on Sunday, demanding stronger protections for workers and restrictions for bailed-out businesses.To put that in perspective, Obama's Great Recession stimulus programme came in at $831 billion and that ran from 2009 to 2019.
Remember, this 1.8 trillion relief package comes atop a trillion dollar operating deficit run up by Trump and Congress.
7 comments:
You expect Trump to give up an opportunity to loot the Treasury for personal gain? Not happening. Plus, he's got campaign donors to satisfy - I'm sure Sheldon Adelson is feeling the pain with Vegas shuttered...
Cap
Odd that hotels are on the list of those needing bailout monies!
Can someone say Trump?
Another of note is Boeing a company that survives off government defence contracts.
Many of those that will be applying for bailout are the ones that had share by backs when times were good.
The 1% will soon be the 1/2 %
TB
Hey, kids. Guess what's back?
Quantitative Easing, that's what. Inflate that money supply and they'll have to do a lot of pumping for this one.
It has worked in the past but never on this scale. At first they feared it might trigger Weimar-style inflation. This time, who knows?
If they get it wrong a lot of Trump voters could see their retirement funds deflated, those who haven't already seen their mutual funds savaged.
I got out of mutual funds just over a year ago, Mound. Am I ever glad I finally "cut the cord" as they say. Up-down-up-down and the world goes round and round. Figured with all the crises that have occurred over the last 20 years, my original investment was on the plus side by a couple of % so even if the banksters are only offering 2.2% (at last count) or much less with all the financial shenanigans going on now.
Lulymay, I know a couple of people who have seen their portfolios shattered over the past month. Unlike you, they didn't make the right call.
Be safe.
Any inflationary pressures, which are greatly over stated to begin with, will be more then countered by Deflationary pressures such as the huge drop in the price of oil and the massive drop in consumer spending.
Gyor, you could be right. There are many other theories that could also be the right prediction. At this point we're along for the ride. I am far more concerned about a fracturing of the last bonds of social cohesion than runaway inflation although, I suppose, one usually springs from or follows the other.
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