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Trump injects $ 30 billion for Coronavirus

6


The US stock market 🇺🇸 has shown one of its worst faces. All due to the effect of the new Coronavirus pandemic. For this reason, President Donald Trump has devised a plan of a $ 1 trillion daily lifeguard injected into the financial system of the largest economy in the world.

The largest US stock exchanges woke up on Friday with unclear signals. Most of the brokers in them were trying to take advantage of the modest gains of the previous day.

The market rebounded from a three-year low on Thursday, buoyed by a rebound in company stocks in the energy and technology sector. The Dow Index ended almost 1% higher, while the S&P 500 was up 0.5% and the Nasdaq had a higher performance of 2.3%.

But, they have all been more than attentive to the new “Relief package” from President Trump. Many of the Status Quo lovers worldwide are waiting for a positive end to a week that has marked history regarding trading volatility.

However, even by the standards of the most powerful economy of all, a trillion a day is too much money. So it’s no surprise that alarms go off when President Trump is heard to inject $ 30 billion into the economy for the Coronavirus.

We are talking about $ 1 billion a day to avoid further impacts in the future of this world crisis that started with the Coronavirus.

What can be done with that amount of money?

$ 1 trillion will be injected for 30 days, representing a $ 30 billion money creation. Believe it or not this amount of money is similar to many of the GDP of the Latin American region, and much higher than in other parts of the world. Bolivia 🇧🇴, for example, has 40 billion dollars in GDP and Uruguay 🇺🇾 60 billion.

In addition, 20 walls could be made on the border with Mexico 🇲🇽. I could buy 1 iPhone 11 from every adult in the world. So monstrous is the amount of money that will be injected daily into the main economy of the world to avoid further damage by the Coronavirus.

History repeats

These kinds of phenomena are not unusual for large stock exchanges around the world. Perhaps for many of us, but for them who have been in the business for hundreds of years, this is not the first time. And the American state seems to have learned all the lessons of the past.

The last time the indexes approached a behavior similar to this, it was not because of the Coronavirus, it was in 2008 with the global financial crisis.

At that time, Speaker of the House of Representatives Nancy Pelosi warned then-President-elect Barack Obama’s team that if he wanted to pass a stimulus bill, he shouldn’t even bother proposing anything close to $ 1 trillion.

But President Donald Trump will do something that was never on paper with the global economic crisis. Suddenly, 12 years later, a 13-digit request no longer seems so impossible. And headlines about Trump injecting $ 30 billion into the economy for the Coronavirus flood the networks.

What does this stimulus proposal propose?

The Trump administration has released the guidelines for a $ 1 trillion stimulus proposal, half to send checks to individuals, half to rescue businesses in crisis.

The bill includes direct cash payments of up to $ 1,200 to struggling Americans and $ 300 billion in loans for small businesses with fewer than 500 employees.

In addition, it requires up to $ 50 billion in federal aid for airlines and $ 150 billion for other struggling companies, such as in the travel and tourism industry.

“Let’s go big. We don’t want airlines to close or people to lose their jobs and have no money to live. ”

President Trump expressed.

The memorandum even raised the idea of ​​limits on executive compensation increases until loans are repaid. Measures that were also applied in 2008.

Meanwhile on the cryptoverse

Meanwhile, in our ecosystem the dust raised by the Coronavirus effect seems to be settling. With no help from billions of dollars, the crypto market has recovered.

But, the worrying thing is that it is not only the United States 🇺🇸 that will print an impressive amount of money without any kind of support. The European Union 🇪🇺 will also increase the amount of money like never before.

Not really as a solution, but as a way to appease all the demons behind the world economic and financial system, which since 2008 have been asleep. But rest assured, we have Bitcoin to help us.





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