Serious question: how long can the money printer go “brrr” before it starts going “kkkzzzkzzzzggggkkkkgggggkkkkzzzz”?
This isn’t going to solve any problems.
The House on Thursday voted overwhelmingly to pass legislation providing roughly $484 billion in coronavirus relief for small businesses, hospitals and expanded medical testing, capping weeks of contentious negotiations that had stalled Washington’s latest round of emergency aid.
The vote was 388-5-1, with four conservative Republicans breaking with GOP leaders to oppose the measure, citing its effect on federal deficit. Rep. Alexandria Ocasio-Cortez (D-N.Y.) also voted against the measure, while Rep. Justin Amash (I-Mich.) voted present.
The legislation, which the Senate passed unanimously on Tuesday, now goes to the desk of President Trump, who has promised to sign it quickly into law.
The massive package is the fourth coronavirus bill to move through Congress over the last seven weeks, and brings the federal response to the global pandemic up to a whopping $2.8 trillion — by far the largest emergency relief effort in modern U.S. history.
It came after two weeks of tense talks between the White House, led by Treasury Secretary Steven Mnuchin and the top Democrats in both chambers, Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles Schumer (D-N.Y.), over the scope and direction of the latest infusion of emergency funds.
Passage was never in doubt: The measure was endorsed by leaders in both parties and chambers, as well as Trump from the White House.
Even with the US dollar as the global reserve currency, and the ability to mass-export inflation, there is going to be a limit on how much money can be printed.
I don’t know what the maximum amount of new money the US government can introduce before things go south is, but I do know that number is not infinity.
I also know that we’ve already introduced some number of trillions into the economy – upwards of ten trillion, in fact – and the final number is probably going to be over thirty trillion just to hold the country together.
You can hide a lot of it in debt, but if the insanely inflated value of property were to totally collapse, then you wouldn’t really be able to do that with much efficiency.
Whatever happens, you’re going to want to read my bitcoin beginner’s guide and get on that now.
Mitch McConnell is already advising states to declare bankruptcy.
Unfortunately for insolvent US states, they may be too late to get a piece of the bailout pie because as Senate Majority Leader Mitch McConnell, said Wednesday, he is open to allowing states to declare bankruptcy – rather than sending governors more federal money to deal with their own ballooning deficits. Because after $10 trillion in fiscal and monetary funds was allocated to bailout mostly America’s rich in just the past month, somehow states don’t quite cut it.
McConnell made the comments on “The Hugh Hewitt Show” amid a growing chorus of state governors imploring the federal government for urgent fiscal help and congressional Democrats seeking to work with the Trump administration to provide it. McConnell, instead, said he “would certainly be in favor of allowing states to use the bankruptcy route,” an option that is not currently available to them – as he called for a “pause” in such aid from Washington.
“I mean, we all represent states. We all have governors regardless of party who would love to have free money,” McConnell said in response to a question on what the federal government should do to help states in tricky financial situations. “And that’s why I said yesterday we’re going to push the pause button here, because I think this whole business of additional assistance for state and local governments need[s] to be thoroughly evaluated.”
McConnell also said that many states are struggling with funding pensions or similar programs, saying “[t]here’s not going to be any desire on the Republican side to bail out state pensions by borrowing money from future generations.” And yet, when it comes to corporations, that’s precisely what the Republican side is doing, so who gets to decide where the line is drawn.
After Hewett weighed in, criticizing liberal states that racked up significant liabilities, McConnell said he favored letting states declare bankruptcy, as local governments are allowed to.
“Yeah, I would certainly be in favor of allowing states to use the bankruptcy route. It saves some cities,” McConnell said. “And there’s no good reason for it not to be available.”
McConnell’s comments come one day after the Senate advanced an interim stimulus package to restock funds in the Paycheck Protection Program (PPP) and address a handful of other priorities. He initially sought to have the bill include only funding for the PPP but Democrats held up the legislation until they could extract concessions from the majority leader. Though McConnell ceded to some of their requests, he kept funding for state governments out of the bill, which is expected to see a vote in the House of Representatives on Thursday.
Democrats, predictably, were not happy: “Democrats are disappointed that the Administration has not agreed to more funding for state, tribal, and local governments on the front lines of this crisis who desperately need an infusion of funds to pay the essential workers who keep us safe,” House Speaker Nancy Pelosi, and Senate Minority Leader Chuck Schumer, said in a joint statement Tuesday, quoted by Fox News.
The coming horror aside, it’s kind of fun to watch all of this. The free fall collapse of the entire civilization is happening right in front of us, and the masses of people still think they’re going to die from a flu hoax, and are actually almost completely oblivious to the real apocalypse that is happening.
What a fittingly hilarious end to this most strange chapter of human history.