by David Brady
It seems like there isn’t a day that goes by without more stimulus from either the Fed or the government. The Fed’s balance sheet is spiking higher to new record levels, with no signs of stopping any time soon. Fiscal stimulus already in place or planned is $7 trillion and counting. This is equivalent to over 200% of Federal Tax Revenues and a whopping 32% of GDP, and we’re not done yet!
Much of the monetary stimulus is being deployed to buy U.S. and corporate debt. The same goes for the fiscal stimulus to support businesses. That said, an increasing amount is being earmarked for the economy to avoid total collapse as unemployment soars. The U.S. is a consumption economy, and without the consumer, it is toast. With this in mind, I expect even more of the coming stimulus to go directly into the hands of the people, financed by the Fed.