Article

2021-02-06 Economy

Chief Economist: The Unprecedented Scale Of US Fiscal Stimulus Will Lead To Epic 2023 Bust

[Zero] Suppose Congress passes something close to Biden's Administration stimulus proposal of $1.9 trillion. In that case, that will lift the cumulative amount of fiscal stimulus in the past 12 months to $5 trillion---three tranches $2.2 trillion, $900 billion, and $1.9 trillion.

In the past year, nominal GDP totaled $21 trillion, so the cumulative injection of fiscal stimulus amounts to almost 25%.

Nothing in modern times comes close, especially during peace times. CBO published a report in 2010 on the military costs of significant wars. The military war costs of World War 1 amounted to 13.6% of GDP and World War 11 35.8%----so the current spending/stimulus is in the middle of the two World Wars.

Posted by Besoeker 2021-02-06 01:09|| || Front Page|| [12 views ] Top

#1 2023 Epic Bust

No

More Like 46 Epic Bust

Posted by Dino Pholusing2325 2021-02-06 14:11|| 2021-02-06 14:11|| Front Page Top

#2 But our epic bust = no milk for our children

Posted by Crese Tingle9199 2021-02-06 14:28|| 2021-02-06 14:28|| Front Page Top

#3 When interests rates go to 5%, the government won't be able to borrow to cover it. Instead it will have to print money and dump it into the economy, causing inflation, causing interest rates to rise, causing printing even more money, etc...

Posted by Angagum Thavirong2137 2021-02-06 15:20|| 2021-02-06 15:20|| Front Page Top

#4 As Designed

Posted by Rex Mundi 2021-02-06 15:33|| 2021-02-06 15:33|| Front Page Top

#5 It's been said that the feds co-opted the Federal Reserve since World War One when it forced the Fed to buy gov't debt. It's also been said that, despite the trillions of dollars being printed, the reason we don't have inflation is because of the lack of velocity of money. People are simply mot spending and why lowering interest rates to near 0% does not stimulate the economy. Just ask Japan & Europe.

Posted by Clem 2021-02-06 17:37|| 2021-02-06 17:37|| Front Page Top

#6 Would this be another reason to raise minimum wage to $15? When the inflation hits , they still just as poor as before.

Posted by Chris 2021-02-06 19:20|| 2021-02-06 19:20|| Front Page Top

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