US government is injecting billions of dollars every day

[Flopper]

What is this I'm reading the US government is injecting billions of dollars every day into the system.

Where is this money going and is it even legal?

The government will soon be dumping billions of dollars into the economy to simulate consumption and thus the economy. The problem of course is people sitting at home avoiding work, crowds, public events, and stores encourages people to stop spending much money. In fact when people really get scare they stop buying all but the necessities.

If government really wants to stimulate the economy, they will have to get control of the virus and the only fast way to do that is to stop the normal day to day interactions of people and that is not going to be very popular in an election year, so expect the number of cases to grow and grow at least till after the election.

 

[Flopper]

What is this I'm reading the US government is injecting billions of dollars every day into the system.

Where is this money going and is it even legal?

It’s really hard to reply to what you’re reading when you don’t post a link to what you read.

The Federal Reserve is pumping money into the system every day and until recently it was going into the stock market and real estate. Now it is going into bonds and gold.

Not surprised. I think the government is keeping it's mouth shut about where the virus and the country is headed.

IMHO, we have passed the point of controlling the virus. The goverment would have had to move rapidly in February. The primary weapon we had then seem to be Trump trying tweet it away. Today the number of cases are doubling every 3 to 6 days. If this growth rate prevails we will have more than a million cases in 2 months and over 30 million by the end of the summer. However, if the virus transmission decreases during summer months similarly to the flu, then we may only have only a couple of million cases by the end summer with a death toll of only 200 to 400 thousand. A mandatory lock-down of all major cities would of course reduce those numbers significantly. That would of course mean no Trump rallies so I'm not sure that would happen. Obviously the toll on the economy would be far greater than anyone would imagine so the administration is working on pulling out all the stops in anticipation of an unparalleled economic as well as human disaster in the US. But then again, things could change.