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Trump Outlines Executive Order On Virus Relief After Stimulus Talks Collapse. Stops Short Of Action
"We are going a different way!", Donald Trump declared, after more than a week of contentious negotiations aimed at striking a bipartisan deal on the next virus relief package finally collapsed on Friday.
Although Steve Mnuchin was able to find common ground with Nancy Pelosi and Chuck Schumer on some issues, disagreements remained on key elements and The White House and Democrats remained miles apart on the final price tag headed into the weekend. Pelosi offered to meet Mnuchin halfway at $2.4
Looks like we are headed into an ultimate test of some of Kelton’s theories here… I for one never believed the hype about how being a reserve currency is an entitlement to print all you want and spend all you can with no consequences…. Smarter minds than mine disagree…LOL
George- I too, worry about the current print and handout strategy-
The US is likely facing medium to longer term high level of unemployment because, as Fauci said on Friday- the chance of getting a highly effective ( defined as 98%) vaccine is slim. Furthermore, he said scientists looking for 60-70% effective and he would settle for 50% effective.
Hard to believe services, travel, entertainment, eating out will come roaring back if we still have a 30-50% chance of getting covid– even with a vaccine.
Therefore, print and hand out (a short term strategy) will have to be replaced with a long term strategy of print, hand out and get something from that which benefits the country.
The list of possible benefits will be long and politicians will have a lot to argue about. How about pay unemployed to learn to code, fix roads, repair/build infrastructure? I guess that first, we have to wait to see how effective the vaccine is before the US government can determine if the short term fix works or if they need something longer term.
Trillions at risk.
Yeah but we are going to get pre-existing condition coverage and I hear an exec order of air to breathe. So there!!!!
Assuming both sides come together on a deal, what are chances this just becomes a sell the news event? After all, markets just grinder higher all week on very light volume during faltering negotiations.
I agree with that idea. Also quite interested in the up-tic in real yields. The combo could be deadly. Oh by the way, why is Congress even meeting. August is holiday month. One can only laud and praise such dedicated servants to the Republic in this time of need.