Tags

, , , ,

It’s not the virus. It’s the economy, the same one we were assured last night was in great shape. Economies in great shape do not require $1,500,000,000,000 in overnight banking giveaways in order to survive.

The Fed announced a bold new initiative in an effort to calm market tumult amid the coronavirus meltdown. In all, the new moves pump in up to $1.5 trillion into the financial system in an effort to combat potential freezes brought on by the coronavirus. This was the second day in a row and the third time this week the Fed has stepped in.

Heretofore, it’s been paltry daily sums, like $165 Billion per day. $1.5 Trillion is…

  • About what the government collects in income taxes in five or six months;
  • About what the federal budget was during Bill Clinton’s tenure;
  • The total amount of federal debt late in Reagan’s first term;
  • The GDP of the entire US economy as recently as 1974;
  • Enough money to pay off ALL students loans (right now, *poof*, gone);
  • Enough to buy 100 new Ford Class aircraft carriers; and,
  • If 1,500,000,000,000 6.14″ dollar bills were laid end-to-end, fashioned into a giant fiat ribbon, the ribbon would be almost long enough to stretch from the Earth to Mars, or from the Earth to Venus and back.

The last one was a ridiculous way to measure money, but these are ridiculous times. There’s no way to be sure, but let’s assume this grafting is split between today and tomorrow – $750 Bn per day. If they keep that up, then they are generating $270,000,000,000,000 per year in fake money, or $.27 Quadrillion. All with the push of a button on a computer. Or with the incantations over a crystal ball. This is financial sorcery and it brings to mind Zimbabwe or the Weimar Republic. And, they’re talking about doing even more “to help.”

Remember to wash your hands.