from Zero Hedge
Last Friday, to bipartisan cheers – and one sole, rational dissenter who was promptly silenced after asking “if $6 trillion is fine, why not $350 trillion” – Trump signed into law a $2.2 trillion
corporate, hedge fund and bank bailout fiscal spending package, which quickly became the main topic of the current new cycle. What was not at all discussed, purposefully so due to the complexity of the underlying math, is that in parallel to the Treasury’s 2 trillion package, the Fed received a green light to lend up to $4.5 trillion in new credit (which is where Kudlow’s misconstrued “$6 trillion stimulus” comment came from).
And as usually happens with matters Fed related, the fact that the Fed received permission from the Treasury to “stimulate” by more than twice the full amount of the CARES act, flew right over America’s head. Which, if to be expected, is lamentable, because by giving the Fed a green light to inject money at will, the US government officially launched helicopter money.