Since last March, politicians have somehow managed to shut down heavily indebted economies and then borrow and print money to replace them. Now many are determined to ignore almost all of human history prior to 2008 and conclude that there really is no limit to a treasury’s ability to issue debt. Much of it is later bought by another branch of government with money made out of thin air.
Speaking of the latter, the Fed chairman still isn’t worried about inflation, and neither is the Treasury Secretary, even if their Washington political counterparts wage a historic bidding war over discretionary items not even related to the US Central bank face Covid crisis.
After the recent adoption of a $ 1.9 trillion spending plan, a small portion of which goes directly to medical issues, the Democrats who rule Washington are now drafting a new package of left-wingers with no direct link to Covid. And this legislation could be bigger than any of the emergency bills.
Andrew Duehren and Richard Rubin from the Journal report that “White House officials have come up with a preliminary plan that would cost about $ 3 trillion.”
“The total price of the package could approach $ 4 trillion.” saysJim Tankersley of the New York Times.