COVID-19: Pandemic Defense and "Helicopter Money"
How many times can a writer use the word unprecedented to describe what they are experiencing? The response to Covid-19 of my country, the United States of America, as well as apparently much of the rest of the world, is just that ...
Bloomberg, 18 March 2020: "Global Bonds Plunge Ahead of Debt Deluge From Pandemic Defense"
Way, way back on ... wait! 😮 It was *just 4 days ago ... I wrote this:
"Once America's "house of cards" begins to crumble, there is no financial power on earth great enough to stop it ..."
COVID-19: Out of the News, Into our Lives at Home ... - posted on 15 March 2020
While anticipating it, I honestly thought a little more time would pass, before writing this post ...
Manna from Heaven
At a difficult time in the history of their flight from slavery in Egypt, God provided His people manna from heaven to feed them in the desert wasteland they were crossing. Why? They were despairing and without much hope ...
Flash forward to yesterday, as the cries grew louder and louder, in the wake of the unprecdedented disruption flowing from unprecedented governmental interventions over the last several days, to do something!
Specifically, to address the almost immediate financial distress signs popping up all over everywhere.
How about ...
Some "helicopter money!" Yep, just like it sounds, money would rain down from the skies right into our homes.
How much?
*"The first one would be $1,000 per person, $500 per child,” Mnuchin said. “So for a family of four, that’s a $3,000 payment."
"As soon as Congress passes this, we get this out in three weeks. And then, six weeks later, if the president still has a national emergency, we’ll deliver another $3,000,”*
Treasury Secretary Steven Mnuchin on Thursday, 19 March 2020
This is in addition to the trillions already committed by the Federal Reserve, the lowering of interest rates to 0, etc. On Wednesday, March 18th, President Trump signed the "Phase Two" Families First Coronavirus Response Act, at an estimated cost of 350 billion (hard to say, since so few actually read it ...). A "Phase Three" stimulus package, at an additional estimated (for the moment ...) cost of $1 trillion is reported to be in the final stages of "negotiation."
Going to have to "git 'r dun" quickly, if we're going to get our "helicopter money" on April 6th!
Unbelievable ...
Off to War!
As if that wasn't enough, the United States of America is declaring "war" on Covid-19 to "defeat the invisible enemy."
- On Wednesday, March 18th, President Trump invoked the Defense Production Act, originating from World War II, "to control the production and distribution of scarce materials deemed 'essential to the national defense.'"
The National Guard has been called up in 27 states, "to assist in their state’s response to the COVID-19 pandemic"*. Which, in some cases, is enforcing quarantines in "cluster" areas. With all 50 states issuing emergency declarations, there will almost certainly be more to follow ... - How long before we see news reports of the military joining overwhelmed police forces trying to guard ever thinner supply lines?
Stay tuned! And remember, we're just getting started ...
"Too big too
fail
!" Right?
fail
Is there anyone who has not heard this phrase? Here in America, I have heard it a number of times over my long life. It is typically applied to very large companies in financial trouble. And this phrase is used to explain why American taxpayers need to "bail them out" of their financial difficulties, rather than let them declare bankruptcy and ultimately disappear, if they cannot profitably compete in the marketplace.
Like every other business not tagged with the precious "too big to fail" ...
What about applying it to a country? Say ... the United States of America! How many people today would try to argue that's a "no brainer!" The U. S. Dollar is the reserve currency of the planet earth. So ...
Of course
America is "too big to
fail
Of course
America is "too big to
!"
Right? "Everybody knows" that ... You sure about that (when is the last time you looked at the US Debt Clock)?
Source: Creator PublicDomainPictures on Pixabay
I most assuredly am not sure about that! We can play word games and ask for a definition of "fail" when it comes to a country. Especially if it's the United States of America ...
No nation in history has ever resorted to just endlessly printing money, say "trust me, it's real!" and have it end well. As a proud American, I think we have a great county and historical legacy.
But... We will not be the first ...
Whatever "magic" (when is the last time you looked at the World Debt Clock) has held the world's financial system together up until now, you likely are aware every single major county is deeply in the red. Is part of the "magic" the coordinated efforts of all the global banks to take turns devaluing their currency, all while trying to keep up the public illusion all is well?
In response to Covid-19, the United States is proposing spending measures that have never been attempted before now. With much of the world appearing to be following their own version of the same "plan." Note well, dear reader, the "plan" is not to solve the almost insurmountable debt problems we already have, but instead drive them to staggering new heights.
What could possibly go wrong ...
Repeating what I wrote 4 days ago:
"Once America's "house of cards" begins to crumble, there is no financial power on earth great enough to stop it ..."
COVID-19: Out of the News, Into our Lives at Home ... - posted on 15 March 2020
"Financial Distancing"
In a great hurry, we have quickly been inundated with all of the new "rules" we are expected to follow to do our part in stopping the advance of this pandemic. With it, we have a new phrase. We are to practice "social distancing!"
Great ... The focus of this post is the financial impact of the unprecedented steps being taken by the Almighty State, all over the world. As one of many consequences already, stocks markets the world over have experienced huge declines.
On Monday, March 16th, the New York Stock Exchange (NYSE) experienced an unprecedented third circuit breaker stop in one week! Stocks suffered their worst daily decline since 1987. The cumulative effect, so far, has people talking about The Great Depression, when global Gross Domestic Product (GDP) fell by 15% ...
"Financial distancing"
anyone?
"Financial distancing"
anyone?
Sounds good! There is only the small matter of where are you going to go ... So far, the ancient "safe haven, hard money" assets of gold and silver are also declining ...
I am writing this post on a blockchain. Surely these wonderful new digital assets are safe havens in this terrible "storm" right @roleerob? Uhhh ... If so, what happened on March 12th, in BTC and ETH taking the rest of the market with it?
Our Steem Hive blockchain has a very passionate homesteaders community. While I don't know them really, I recently "met" @sustainablyyours, here in America. And I have enjoyed some exchanges with @minismallholding in Australia and @fenngen in Chile. In times like these, being tucked away in a rural part of the world somewhere sounds very appealing.
I hope they are doing well!
Closing
In my typical "minority report" fashion, you now have some idea of how I view these unprecedented steps being taken here in America. Trust me, if you think the ensuing consequences will stop at our borders, I believe you are gravely mistaken.
Against this "perfect storm" scenario, I am well aware of coming across as "cold" and "heartless," since lives are at stake. Would you take exception, dear reader, to me pointing out human suffering and death are nothing new? No question about it, Covid-19 is very serious,but ... Ever read about the Black Death? Are we facing anything even remotely close to that?
In modern history, faced with pandemics before, we have never responded this way. In a financially focused post like this, I am asking a simple "bottom line" question. Why are we doing this now? And what do you think the long-term financial consequences are going to be?
I’d love to hear any feedback you may be inspired to provide.
Until "next time," all the best to you for a better tomorrow, as we all work together to build up our Steem Hive Communities and add increasing value to our Steem Hive blockchain!
Respectfully,
Steemian @roleerob
Posted using SteemPeak and “immutably enshrined in the blockchain” on Thursday, 19 March 2020!
- In my first COVID-19 post, I noted Britain was initially taking a very different approach and asked "Any bets on how long will they hold out against the mounting outcries?" Not long, i.e. the next day ...
- This will be my last post, dear reader, before the big move to the Hive blockchain. I hope to "see" you on "the other side!"👋
Interested in reading more of my related posts?
| Lead Image | Title, Link, & Summary |
|---|---|
| COVID-19: Out of the News, Into our Lives at Home ...
Summary: With alarming speed, COVID-19, the "Coronavirus disease," went from the news in China to a pandemic here at home. What are the implications of the unprecedented response to it? |
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