Obligations were undertaken based on the old normal. and it is looking like the new normal will be different, perhaps considerably.
The good news is that fiscal support is much much higher than in meeting the 2008 GFC and aftermath. This will soften the blow, but there is still a lot of uncertainty.
For example, the absolute size of the deficit is one matter and its relative distribution is another. Are the funds flowing were most needed?
Apparently, the distribution dwindles on the way down, repeating an issue that was apparent in the aftermath of the 2008 GFC when the financial and industrial sectors were bailed out but workers left hanging out to dry.
Bond Economics
First Wave Of Disastrous Real Economy Data
Brian Romanchuk
Bond Economics
First Wave Of Disastrous Real Economy Data
Brian Romanchuk
3 comments:
Apparently, the distribution dwindles on the way down, repeating an issue that was apparent in the aftermath of the 2008 GFC when the financial and industrial sectors were bailed out but workers left hanging out to dry. Tom Hickey
Which is why we need a Constitutional Amendment that ALL fiat creation shall be for the GENERAL welfare only, i.e. all fiat creation beyond that created by deficit spending for the general welfare shall be via equal Citizen Dividends.
Will the MMT gang sign on to this obvious moral necessity? Eh, Calgacus?
This is of concern not only to them but to landlords that are leveraged, as well as their lenders. Tom Hickey
Which makes government privileges for private credit creation seem rather stupid now, no?
Then where is the call by the MMT School to abolish those privileges? Hmmm?
"the 2008 GFC when the financial and industrial sectors were bailed out"
govt had to bail them out back then because they bankrupted them by adding excessive reserve assets...
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