Why not pay back the 2 trillion bailout funds?

The United States will respond to the economic crisis in 2020!

2. The second is why I think this technique has limited effect!

Just over a month ago, the US stock market was at an all-time high. Trump also likes to watch China's jokes.

Unexpectedly, as a result, US stocks fell slightly in February 19. No one realized at that time that this was the beginning of an avalanche. Then it fell continuously in late February, and the government began to find that the situation was wrong. So on March 3rd, the Federal Reserve made its first response. Cutting interest rates by 0.5% is the most common economic stimulus measure. It becomes uneconomical to deposit interest in the bank, forcing capital to find investment targets with better returns, and some funds will enter the stock market.

On March 9th, 12, 16, American stocks blew out three times in a row, and the building was about to collapse. Seeing that the situation was out of control, the Federal Reserve cut interest rates to zero at one time on June 16. At the same time, a wave of quantitative easing of $700 billion was launched.

Quantitative easing is the unique skill of the Federal Reserve. If the U.S. government is regarded as a person, his left hand is that the Federal Reserve can continuously print money, and his right hand is the Ministry of Finance, which is responsible for spending money.

Quantitative easing means that the left hand lends money to the right hand, and the Fed takes out a lot of cash. By buying government bonds, it is the Ministry of Finance that gives the market money to save the economy.

Of course, the Fed's money is all temporary overtime, freshly printed overnight, and the ink on it is still not dry, which shows that it is still a pile of castles in the air and artificial currency without the support of physical wealth.

What impressed me most here is the art of naming the American government. If I choose this name, this move may be called "borrowing Dafa", which is more accurate, but it doesn't sound serious. Look at the name given by the American government, it sounds very advanced and loose, and it also sounds very positive. Although no one can understand what it means, it always feels like a subtle operation.

But in the final analysis, this is printing money with the left hand and spending money with the right hand, but even 700 billion dollars is not enough. Let's review the starting time. On the first day of February, 19 began to decline. On March 3rd and 9th, 12 and 16, 16 were blown three times. On March 16, the Fed couldn't take it anymore and launched seven.