frayne
Thinks s/he gets paid by the post
Probably not the time to ask the question but how is the US going to pay for this six trillion dollar CVD-19 stimulus package ?
Probably not the time to ask the question but how is the US going to pay for this six trillion dollar CVD-19 stimulus package ?
How? It's obvious. Bake Sales. Lots, and lots and lots of Bake Sales.
I worry about it but unfortunately it’s our kids burden.
It is some seriously cheap debt that's being issued.
30 year treasury yields are 1.4% right now. $2T is nothing to sneeze at, but its essentially free money. Its $28B of annual interest. Inside of of a $4.8T federal budget. Very small price to pay for putting the shock paddles on the chest of the world's largest economy.
I'm not saying this is good or smart, but this would be a very different situation if rates were 5-6%.
But what happens when interest rates go up? It seems like we just keep propping up the economy and the problem/bubble keeps getting bigger. At some point the music is going to stop.
But what happens when interest rates go up? It seems like we just keep propping up the economy and the problem/bubble keeps getting bigger. At some point the music is going to stop.
EU countries don't have sovereign currencies so they can't just print their way out of it like we can. Or maybe it will be attempt to print our way out of it for us. Individual EU countries face the problem Greece did during the financial crisis - they rely on the actions of bureaucrats in Brussels and the inclinations of Merkle and a few others with outsize influence.For comparison, Italy which has 60 million people against the US's 330 million is talking about a 2nd 25 billion euro (US$28B) relief package. That's only US$933 per person.
Here, we are doing US$6,700 per person. Something to think about.
6T..?? Thought I had read 2.2T
But what happens when interest rates go up? It seems like we just keep propping up the economy and the problem/bubble keeps getting bigger. At some point the music is going to stop.
6T..?? Thought I had read 2.2T