They’re talking about “borrowing money,” but that is a misnomer. The idea that insurance companies buying bonds using credit or the looting of pension funds is something other than a roundabout way to create new money is dumb, a product created to feed boomers who think overly complicated explanations of things are always true.
Most of this money isn’t even being created through that weird scheme, it’s just being printed outright through “quantitative easing.”
At some point, all of this new money is going to cause a problem. Namely, third world style hyper-inflation.
A fight over funding for state and local governments is emerging as an early flashpoint in talks over another coronavirus relief bill.
The clash — which pits Senate Majority Leader Mitch McConnell (R-Ky.) against House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles Schumer (D-N.Y.) — is raising fresh questions about the ability to keep Congress’s response to the coronavirus bipartisan.
Congress has already appropriated nearly $2.8 trillion to combat the severe economic and health impact of the coronavirus, as 26 million people have filed for unemployment and nearly 51,000 people have died in the United States, according to Johns Hopkins University.
It’s a lot more than $2.8 trillion.
But Democrats are pledging to get more help for state and local governments in the phase four coronavirus relief bill that could pass Congress as soon as next month.
“There will not be a bill without state and local, OK?” Pelosi said when asked about the potential that it will be left out.
Pelosi has characterized it as the “centerpiece” of the next bill but declined to say how much Democrats will push for. She told reporters during a press conference that the number is probably “equivalent to what we’ve done for small businesses.” Congress has provided nearly $660 billion in loans to businesses through the Paycheck Protection Program.
That puts Democrats squarely at odds with McConnell, who set off alarm bells among governors and lawmakers from hard-hit states when he said this week that states should be allowed to declare bankruptcy as they seek more money from the federal government to deal with the economic fallout from the coronavirus.
“I would certainly be in favor of allowing states to use the bankruptcy route,” McConnell told radio host Hugh Hewitt.
“My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them now so they don’t have to do that. That’s not something I’m going to be in favor of,” he added.
McConnell has positioned Republicans as wary of additional funds for state and local governments, saying the idea would have to be “thoroughly evaluated” within his conference.
The issue is just the latest point of tension between McConnell and Pelosi, who clashed earlier this month over whether another coronavirus relief bill was even needed.
Pelosi, on Friday, asked reporters, “Speaking of Mitch, what’s gotten into him?”
“The president is asking people to inject Lysol into their lungs, and Mitch is saying that states should go bankrupt. It’s a clear, visible within 24 hours of how the Republicans reject science and reject governance,” she said.
McConnell is a scumbag politician, whatever, but he is saying something basically true. Not the borrowing part. But the general point that this is impossible.
But, they’ll do it anyway, I’m sure.
We’re probably all going to starve to death, lol.