Thu, 06/04/2020 – 11:57
One day after Merkel’s coalition overcame ideological difference and passed a €130BN stimulus for the foundering German economy, the US is already out contemplating the next fiscal infusion, with Bloomberg reporting that the Trump administration now envisions as much another $1 trillion in the next round of economic stimulus – a number that seems oddly low at a time when some believe the US fiscal deficit may hit $8 trillion in 2020 – though the discussions scheduled for this week have been delayed.
Mitch McConnell told White House officials behind closed doors that “another round of fiscal stimulus from Congress could be just under $1 trillion”, a figure that administration officials are reportedly comfortable with.
Some more details from Bloomberg:
Top aides had planned to meet this week to discuss the next round of pandemic relief as more than 40 million people have lost jobs since states began restricting public activity in March. That meeting has been removed from the calender and has not been rescheduled yet, according to the people, who spoke on condition of anonymity.
The White House has been consumed this week with protests sweeping the nation over police brutality following the death in police custody of a black man in Minneapolis. Senate Republicans had no plans to act on a stimulus bill this month.
Any potential measure will likely not pass until after July 20, which is when a two-week recess scheduled to begin on July 3 begins.
As a reminder, last month the US passed a $3.5 trillion relief measure with nearly $1 trillion in aid for states and local governments facing revenue shortfalls. That bill would also provide a new round of direct stimulus payments to individuals along with money for testing and contact tracing.
Since it is now safe to say that any fiscal prudence or conservatism is dead and buried, and that the next $1 trillion will be followed by many more trillions as the US unleashes the full force of the helicopter army, we will just show the latest chart of Federal spending – a level which is about to explode much, much higher – without commentary.
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Author: Tyler Durden
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