Another Hard Shutdown Suggested

Here’s an article from Minneapolis Federal Reserve Bank president Kashkari, regarding another hard shutdown to stop the pandemic from spreading further.

https://www.reuters.com/article/us-health-coronavirus-fed/feds-kashkari-suggests-4-6-week-shutdown-says-u-s-congress-can-spend-big-on-coronavirus-relief-idUSKBN24Y0IM

From the article:   WASHINGTON (Reuters) – The U.S. economy could benefit if the nation were to “lock down really hard” for four to six weeks, a top Federal Reserve official said on Sunday, adding that Congress can well afford large sums for coronavirus relief efforts.

The economy, which in the second quarter suffered its biggest blow since the Great Depression, would be able to mount a robust recovery, but only if the virus were brought under control, Neel Kashkari, president of the Minneapolis Federal Reserve Bank, told CBS’ “Face the Nation.”

“If we don’t do that and we just have this raging virus spreading throughout the country with flare-ups and local lockdowns for the next year or two, which is entirely possible, we’re going to see many, many more business bankruptcies,” Kashkari said.

“That’s going to be a much slower recovery for all of us.”

He said Congress is positioned to spend big on coronavirus relief efforts because the nation’s budget gap can be financed without relying on foreign borrowing, given how much Americans are saving. – article

MN’s Fed President says ‘have another shutdown, hard one this time, 4 to 6 weeks, and support people financially, the Fed can handle it.” Congress critters involved in the next economic support package are quibbling about the size and volume, and have now gone on a break unitl September. Unfortunately, unlike those executive orders that Pres. Trump signed a short while ago, unless an economic support package is filed as a separate bill (unlikely right now), you have to wait and see what who does what and to whom. If you think this has nothing to with the coming elections, you aren’t paying attention. They’ve agreed on the dollars and cents, but not on the bottom line, which is the multiperson targeted (e.g., family, dependents) payout. If anyone thinks the delay has nothing to do with the fall elections, I have a nice condo in Antarctica that I’d like to sell you.

Maybe it’s time that the President did what J.P. Morgan did, when his bank officers couldn’t agree on something that required an immediate solution: lock the doors and tell them they can “go home” when they solve the problem, and then sit back and watch them duke it out.

Unfortunately, the economic recession we’re in now, which was forecast in back 2018 with no cause included, is also projected to last until about mid-2024 and then we’ll be out of it by 2025.

 

Category: "The Floggings Will Continue Until Morale Improves", COVID-19