Massie’s final point that was the punchline:
Here the Kentucky Representative hit the bullseye, as this is precisely the endgame. However, since one can’t unleash the full $350 trillion overnight without classical economists admitting the truth about what the real nature of this bailout is, it will be done piecemeal with other crises, and other “unprecedented” emergencies emerging in the near future and unlocking the path to what is the real goal of this unprecedented reflationary bailout of the world’s most indebted nation. It also indirectly addresses Massie’s final point:
All foreign investment in
Australia will now require approval in a Federal Government move
designed to prevent international raids on struggling companies hit by
the coronavirus pandemic.
Prime Minister Scott Morrison says the number of people present at public gatherings will be limited to a maximum of two people.
The previous limit was 10 people… “I should stress that 10-person limit is enforceable now in most states and territories and can carry very significant on-the-spot fines,” Mr Morrison said.
Mr Morrison made the announcement following a National Cabinet meeting with state and territory leaders on Sunday.
He also said states and territories would move to temporarily ban the eviction of people facing financial distress from rental properties.
Measures to address rental stress for both businesses and residents have been considered by the National Cabinet for days.
Mr Morrison said the Government was relying on landlords and tenants to
come up with arrangements to help them get through the crisis.
In addition to the new gathering restrictions, outside gyms and skate parks will be closed from Monday.
Boot camps will also be reduced to two people.
Five of the nation’s largest banks have agreed to temporarily suspend residential mortgage payments for people whose jobs have been affected by the CCP virus, California Gov. Gavin Newsom said on March 25.
The announcement came as Newsom provided yet another grim statistic about the economic devastation from the virus: 1 million Californians have filed for unemployment benefits since March 13 as businesses shut down or dramatically scaled back because of a statewide “stay-at-home” order to prevent virus spread.
The repo market underpins much of the U.S. financial system, helping to ensure banks have the liquidity to meet their daily operational needs and maintain sufficient reserves.
In a repo trade, Wall Street
firms and banks offer U.S. Treasuries and other high-quality securities as collateral to raise cash, often overnight, to finance their trading and lending activities. The next day, borrowers repay their loans plus what is typically a nominal rate of interest and get their bonds back.
In other words, they repurchase, or repo, the bonds.
An Australian senator is warning that Australia must guard itself against foreign buyers amid an economic recession triggered by the CCP virus pandemic.
The Epoch Times refers to the novel coronavirus, which causes the disease COVID-19, as the CCP virus because the Chinese Communist Party’s coverup and mismanagement allowed the virus to spread throughout China before it was transmitted worldwide.
Senator Pauline Hanson, who leads the nationalist One Nation Party, wrote a letter to Prime Minister Scott Morrison warning against “international vultures” and asked that he immediately suspend any sale approvals by the country’s foreign investment regulator, the Foreign Investment Review Board (FIRB).
“Given unemployment numbers are surging, our stocks have been knee-capped, housing prices are set to fall, and our dollar is weakened, I will not allow foreign nations to fight over the carcass of Australia’s misfortune,” Hanson wrote.
The senator said she had alerted parliament “on numerous occasions the unforgivable volume of FIRB approvals.”
Early voting? Student loan forgiveness? Offsetting carbon emissions? Bailing out the post office? Policing “corporate board diversity”? These have nothing to do with preventing further economic ruin or COVID-19-related deaths. They are merely items on the Democratic Party’s wish list — issues that excite their left-wing base.
It’s certainly good news that the fiscal stimulus of more than $2 trillion is on the verge of getting passed in Congress. But the stimulus and various Fed actions are necessary but insufficient conditions for the market to bottom, and worse still, the dollar funding crisis is rapidly re-accelerating as month-end looms… having erased all of the ‘improvement’ offered by The Fed…
And don’t forget – tomorrow is jobless claims and it’s going to be a doozy!
If all of that doesn’t scare you – this should – the sovereign credit risk of the USA is surging higher since helicopter money began to creep into reality…
The most fiscally responsible way for Congress to support the economy now is with higher deficit spending until it is no longer needed. Why? Because private demand could be weak for the next 18 months or more. In such a case, it’s crucial to prevent premature attempts to make deficits smaller.
As the economy recovers and consumers and businesses get back in the game, Congress can safely withdraw support, handing the reins back to the private sector.
The degree to which Congress’ relief efforts actually reach working families depends upon how effectively lawmakers of good will can fend off the various industry interest groups who will attempt to eat up as much of the allotments as they can.
Congress shouldn’t just settle for short-term band-aids to patch holes in our health care infrastructure and our social safety nets. It can and should use this opportunity to make ambitious, lasting improvements.
Here’s the situation. Mitch McConnell, Chuck Schumer, and the Trump
administration is negotiating a bailout package to address the coronavirus crisis. There’s been a lot of chatter about the need to support workers as the economy goes into a freeze. This is happening around the world; the British government, for instance, is willing to pay 80% of worker wages during this downturn for those affected by the crisis.
But in the U.S., our leaders seem to be falling prey to what can only be called a corporate frenzy of favor-seeking. “Any time there is a
crisis and Washington is in the middle of it is an opportunity for guys like me,” said one lobbyist.
… And there’s a precedent.
In 2008, when Congress was on the brink of passing a $700 billion bailout to Wall Street, something astonishing happened. A motley bipartisan group of roughly a hundred members, as well as outside experts, formed what was called the “Skeptic’s Caucus,” and organized enough votes to take down the package. Congressional leaders then attached some minor tweaks, and forced the package through after the stock market crashed. Ultimately, the skeptics failed, and the bailouts ended up shifting power and wealth to an unaccountable elite class.
But for that brief moment, it became clear that opposition to Congressional leadership on corporate subsidies is possible. We will need another Skeptic’s caucus, and quickly. And this time, it can succeed. Because this time, no one is fooled by what is happening. We can see it plainly.