Why is the Federal Government the One to Pay for This?

Heating up is the issue of whether the next COVID-19 bill to be considered by Congress will include massive assistance from the federal to state and local governments, especially those most strapped. If enacted, this will involve the federal government borrowing even more in the credit market to be able to achieve the transfer. Why, … Continue reading Why is the Federal Government the One to Pay for This?

Are We Drowning in Fed Liquidity?

The Federal Reserve—the Fed—is the only institution in our economy that is authorized to create money, essentially out of thin air. This can take the form of cash, those greenbacks in your wallet, or electronic credits to bank accounts. Since early March, the Fed has ramped up liquidity roughly $2-1/2 trillion—yes, trillion. This has been … Continue reading Are We Drowning in Fed Liquidity?

Who Pays the Bill?

You may be wondering how all the losses being incurred during the COVID-19 crisis are going to covered. Many households and businesses are experiencing staggering shortfalls of income from their outlays. These shortfalls are being dealt with in various ways: Drawing down assets;Borrowing from banks and others;Receiving assistance from the Treasury and others; and/orFalling behind … Continue reading Who Pays the Bill?

Defining My Terms

Capitalism An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.“Capitalism.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/capitalism. Accessed 27 Apr. 2020. This definition captures some of the properties … Continue reading Defining My Terms