Because Congress suspended the “debt ceiling” for two years in 2019, the government can go into as much debt as it wishes

3-25-20    Because Congress suspended the “debt ceiling” for two years in 2019, the government can go into as much debt as it wishes….

  Secretary Steven Mnuchin said this week “In different times we’ll fix the deficit. This is not the time to worry about it.”…On our current course the CBO said, debt will grow by $13.8 trillion--from $17.5 trillion today to $31.3 trillion--by 2030.  https://www.poynter.org/reporting-editing/2020/where-does-the-government-get-2-trillion-for-a-coronavirus-bailout/

………….................................................

  Given that this is Trump, details on the “Infrastructure Bill” are unsurprisingly sketchy.  Still, spending on infrastructure usually involves directing government funding towards large-scale development projects. Basically, the U.S. government would pay corporations and thousands of workers to build roads, bridges, power plants or whatever else….

  Up until now Trump’s role model as president has been Ronald Reagan. But having signed a $2 trillion stimulus package on Friday, and now promising another $2 trillion for “jobs and rebuilding,” it seems Trump is now gunning to become the next FDR.

 Since the beginning of this bailout shebang three weeks ago, the Fed created $1.5 trillion and handed it to Wall Street either as loans or to purchase financial instruments.  If the Fed had sent that $1.5 Trillion to the 130 million households in the US, each household would have received $11,538.  But no.  That $1.5 trillion was helicopter money for Wall Street.

The Fed is propping up nearly every asset class directly or indirectly, to make sure that investors, from stockholders of overleveraged airlines to highly leveraged speculators in Commercial Mortgage-Backed Securities, don’t get their faces ripped off after having run up the Fed’s handiwork, the greatest Everything Bubble there ever was.  https://wolfstreet.com/2020/04/02/helicopter-money-for-wall-street-1-5-trillion-in-3-weeks-of-fed-bailouts/

……….  But the question remains: will spending $2 trillion on “infrastructure” actually work?  That depends.  Critics have already complained that last week’s stimulus package is basically a giant handout to Wall Street and multinationals.

   it’s possible that a trillion-dollar infrastructure bill could see most of its value go to the coffers of “Wall Street” and “large monopolists.”  So rather than helping people get back to work, it could mostly do what quantitative easing and previous stimulus measures have done:  inflate the stock market.        https://www.ccn.com/trump-promises-another-2-trillion-to-revive-collapsing-u-s-economy/

............................................