The $3 trillion, 1,815 page pandemic relief proposal by Nancy Pelosi is frightening.
A trillion is a thousand billion that is one followed by 12 zeros. Her proposal follows the $2 trillion relief package passed in March. Nancy’s action reminds me of a quip ascribed to Rahn’ Emanuel, Obama’s chief of staff, never let a crises go to waste.
In March, Treasury Secretary Steven Mnuchin said I will authorize the Federal Reserve to create any amount of money needed and it can be done because it’s electronic money. This is the first year the federal debt has exceeded the Gross National Product of the entire nation. The cost to service our federal debt will become so large that interest rates will be kept near zero for the rest of my life. That means a person would lose money in a bank account. Money managers have little choice but to risk retirement funds during a down stock market since interest rates are near zero. Speculators are rewarded and frugal savers are punished.
Apparently the government assumed we can’t take of ourselves for one or two months without helicopter money. What has happened to American self-sufficiency and indpendence? We have been reprogrammed by the government to borrow and spend our way to prosperity. The public is on a credit binge Many students have cars, computers, cell phones, internet contractA and enough college debt to last a life time. Credit card companies enjoy 24% APIt usury fees.
It seems like an alternative to shutting down the entire economy would have been to declare a three week national vacation paid by the employer coupled with state unemployment benefits.
Earl Lhamon, Lima