Borrowed from the whole world: the United States is ready to spend $ 2 trillion on the fight against the virus

The United States has long been indebted to the whole world, so it’s not surprising that Washington decided with economic the consequences of the spread of coronavirus infection 2019-nCov (COVID-19) fight at the expense of others. For example, Lawrence Alan Cadlow, American conservative economist and TV presenter, director of the National Economic Council, did not rule out that the COVID-19 “mitigation” program in the country could exceed $ 2 trillion. Even the USA does not have such a free volume of funds, therefore, they will be forced to borrow them in foreign markets.

It should be noted that the aforementioned National Economic Council is a government agency that is part of the US Presidential Administration (established in 1993). The functions of this structure include the coordination of all internal and external economic policy USA.

Kadlow emphasized that the US authorities are ready to send about 10% of the country's GDP to eliminate the consequences of the epidemic. He stated this in an interview with Fox News.

Let's not forget that the package size will be at least $ 1,4 trillion. At the same time, we can increase it to provide assistance to individual industries, and then this amount will exceed $ 2 trillion

- said Cadlow.

We remind you that before this, President Donald Trump introduced the United States emergency mode (ES) because of the epidemic. Then he asked the US Congress for $ 1.3 trillion to fight COVID-19. At the same time, the US Federal Reserve System (FRS) has reset the base rate, and the US Treasury has offered to distribute $ 500 billion to citizens.

It should be added that according to the report of the experts of the American hedge fund Bridgewater, only losses ("a possible reduction in income") of US corporations due to the epidemic can amount to $ 4 trillion, and on a global scale, losses can reach $ 12 trillion.

This is an extremely dangerous reduction, if it is not compensated, it will have long-term consequences. Since the decline in revenue will affect everyone, globally, losses will be about three times greater - about 12 trillion

- emphasized in the report.

Experts warn that the failure to take “major financial initiatives” to overcome the economic consequences of the epidemic will lead to a decrease in US GDP by more than 2020% in 6. The energy, transport and entertainment industries will be hit hardest. Capital investments will decrease by $ 900 billion, and the cost of mergers, acquisitions and work with shares will decrease by $ 600 billion. And all this will be accompanied by "optimization of company personnel", i.e. layoffs. They believe that the consequences can be much more serious than during the financial crisis of 2007-2008.

For clarity, at present, US government debt exceeds $ 23 trillion. So the Americans will simply print “a little more money”, because they are still in deep debt.
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  1. Bakht Offline Bakht
    Bakht (Bakhtiyar) 21 March 2020 10: 54
    A few dry statistics reports. Especially for those who like to calculate GDP. Never before have the economies of states been counted in money. The production volumes mattered: steel, cast iron, electricity, oil, coal and others. But with the coming to power of the "Chicago boys", the economy began to be measured by the amount of cut, beautiful paper.

    According to the latest data, the US GDP structure of about 75-80% is in the service sector (hello to the huge salaries of lawyers and managers. Well, doctors too), 10% is the military-industrial complex, 1% is agriculture. For everything else, what remains.

    The service sector is blown away rapidly (restaurants, shops, small businesses). Boeing has requested 60 billion for the rescue. The US auto industry is undergoing massive cuts. The slates are deflated. Texas has already announced production cuts. If we remember that the US dollar is actually a "petrodollar", then a halving of the oil price automatically halves the revenues to the treasury. Hence the panic pumping of the stock exchange with fresh dollars.

    Two days were an interesting discovery. I do not follow stock quotes. No need. By the way, in this damned crisis, I already lost 8 thousand evergreens on stocks. But the dynamics are interesting. Someone is playing powerfully against stock markets, oil and gold. Some analysts have noticed this too. As gold approaches 1500 bucks per ounce, oil to $ 30 per barrel, cheap futures immediately appear and the price crashes. Stock indices, like oil, are growing right up to the opening of the New York Stock Exchange. After that comes the collapse.
    Two days is a very short interval for generalizations. Monday will have to monitor trends online. At least a week.

    There are no answers yet. Is there a game against Trump? Or Trump wants to bankrupt the States? In 2016, I said that Trump is a bankruptcy specialist. He sees nothing wrong with the default. He himself went through three or seven defaults and became a billionaire. To outbid the depreciated stocks and restart the economy and "America will be great again." I cannot answer unequivocally yet.

    But for Russia at this stage, I see only one way out so far. Immediate nationalization of large industries and the abolition of the conversion of the ruble. The standard of living will fall. But it was this site that recently discussed "Can Russia Repeat"? This will be the answer to that article.
    It is inside the country. On the outer front, this is Venezuela (the most important issue and the most difficult) and the sweeping of all of Syria. Then Iraq (but this is a task for Iran).
    1. Alexzn Offline Alexzn
      Alexzn (Alexander) 21 March 2020 11: 55
      Quote: Bakht
      If we remember that the US dollar is actually a "petrodollar", then a decrease in the price of oil by half automatically reduces revenue to the treasury. Hence the panic pumping of the stock exchange with fresh dollars.

      Have fun. In the US budget, taxes on oil are about 2%, a drop in oil prices is more profitable for the US economy than growth, it is diversified. Gold, surprisingly, in this situation ... fell, and the dollar rose, so much so that the Americans had to drop the discount rate.
      Venezuela also smiled. Apparently, the initiation of the oil war, which finally buried the Venezuelan oil industry, was saved.
      1. Bakht Offline Bakht
        Bakht (Bakhtiyar) 21 March 2020 12: 01
        I am not going to argue. Amused, so you have a good mood in the morning.

        When you wrote about 2% of the budget, that also smiled at me. I wrote that not everything is measured by pieces of paper. Including the budget and GDP. The reality is:

        When Nixon canceled the gold security of the dollar, he transferred it to oil security. He concluded an agreement with Saudi Arabia that all energy contracts would be denominated in dollars. Therefore, petrodollar is a sphere of demand, for the calculation of contracts it is necessary to buy dollars, petrodollar is the standard on which the strength of the US dollar is based.

        This is from Wikipedia.
        I did not explain in detail about Venezuela. But I'm not going to do it. Just an assumption based on the interest of the US Treasury Secretary.
        1. Alexzn Offline Alexzn
          Alexzn (Alexander) 21 March 2020 12: 06
          And again they cheered. There was no gold security under Nixon for a long time. There was an obligation, and there was no guarantee and exchange for a long time. The dollar was never provided with oil, oil trade began for dollars - this is not the same thing.
          1. Bakht Offline Bakht
            Bakht (Bakhtiyar) 21 March 2020 12: 09
            As you wish. The general opinion is not consistent with your statements.
    2. EXPrompt Offline EXPrompt
      EXPrompt (EXPrompt) 21 March 2020 17: 00
      One year and a half ago, I was digging with a Russian American in a statistic on US GDP.
      We studied only one question. How much is the real sector in US GDP. They got reports from government agencies and even dug out a stat by industry.
      We got 4,3 trillion by 2018.
      I think the digital figure has not changed much.
      And even I consider this figure to be a pout.

      Then one American blogger posted his bill for the kitchen, he got wet chipboard kitchen and he had to change it. I’ve been dealing with furniture in life, therefore, in the subject .. He had an account for cheap kitchen, as we sell in IKEA for $ 18,200, such in the Russian Federation costs $ 2.000-2.500 - well $ 3.000 - depending on the details. and facades.
      And so it turns out, they have turnover on the same shit, 6 times more, the tax base is 6 times more, etc. etc ... And in GDP it goes and is written 6 times more.
      Something like that.

      So, they are not even blown away strongly, but catastrophically. There, their standard of living will fall.
      1. cmonman Offline cmonman
        cmonman (Garik Mokin) 22 March 2020 00: 07
        He had an account for cheap kitchen, as in IKEA they sell for $ 18,200, such in the Russian Federation costs from strength 2.000-2.500 - well, $ 3.000 from strength .. Depending on the details and facades.

        I advise you to google “IKEA kitchen”, prices are the same as in Russia. Maybe dear, of course, if work is included, the area of ​​the kitchen is 60-80 m2, granite top, etc.
        I remodeled a couple of kitchens (40 m2) with IKEA cabinets, granite, but changed the refrigerator, stove, sinks and everything. It cost about $ 18 thousand. with work.
  2. boriz Offline boriz
    boriz (boriz) 21 March 2020 12: 14
    If the United States is going to spend that kind of money, then you need to understand that they will not spend their money. And then, as in 2014, Nabiullina will take a visor to the IMF and we will understand that 100 rubles promised by Gref. for the dollar is not the limit. In 2015, the ruble became the worst currency in the world in terms of volatility. But Nabiullina, for this heroic feat, received a medal from the IMF on her chest from the IMF. In the current year, the ruble, so far, is in second place from the end. Leadership (again, from the rear) holds the Mexican peso. Nabiullina has something to strive for.
  3. gorenina91 Offline gorenina91
    gorenina91 (Irina) 22 March 2020 03: 44
    - When you read "Bakhtiyar's fabrications" ..., willy-nilly, an associative picture appears ...:
    - "An illiterate peasant, a small farmer or some day laborer who wandered into a bank where his not very" successful savings "lie, in order to find out" his balance for today ", was suddenly instructed to take part in the recalculation of" bank proceeds "for yesterday (or maybe they just decided to be funny) ... - Well, he could have refused ... is it his business ... - But I wanted a momentary instant" Batiyar glory "... - they say," I so brave, so clever ... - nada will be ... - and I will become a banker "... - Well, and ... -" he immediately became "...
    - Well, of course ... smiled ...
    - As for the article ..., then ... then, when in the hands of one state is the world bundle of "dollar virtuality" with "material reality"; then some pitiful statistical reports, some stock exchange quotes, some fluctuations in the Dow-Jones index, and so on ... - for this state become similar to the results of the game of its many teams (baseball, hockey, rugby, etc.); which this state maintains and pays ... - Well, one team played another; and the other won over the third ... - The whole result and delight from these games remains "on the balance sheet" of this state ...
    - And other states are also trying to play; but they are accompanied only by a harsh "objective reality" ... - but "virtuality" is not given to them ... - only one state owns virtuality ... - Therefore, when those states lose or win, then they, in addition to their own wills ... - all the same virtually replenish the "material component" of the same state ... - Therefore, this state cannot lose ...
    - China, too, suddenly wanted to have "virtuality"; but it could end very badly for him ...
    And the fact that supposedly "the United States has long been living in debt from the whole world" ... - Well, yes ... - that's how they live ... - but this debt consists of American dollars ...