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The Senate's Coronavirus Relief Package Must be Stopped!
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The Senate’s $2 Trillion Coronavirus Relief Package is not fiscal stimulus and it’s not a lifeline for the tens of millions of working people who have suddenly lost their jobs. It’s a fundamental restructuring of the US economy designed to strengthen the grip of the corrupt corporate-banking oligarchy while creating a permanent underclass that will be forced to work for slave wages. This isn’t stimulus, it’s shock therapy.

Who can survive on $1,200 for one, two or three months time? And what happens to the millions of people who paid no taxes last year? Are they supposed to scrape by on nothing? Congress knows that most households live paycheck to paycheck. With no savings how will they pay the rent, the electric bill, the phone and the cable? Congress is quibbling over an extra $600 per month unemployment for those who are lucky enough to get it, when most people are just trying to figure out how they’re going to survive, how they’re going to pay the mortgage, when they’ll be able to go back to work, and whether their job will still be there when this nightmare is finally over?

Did you know that “if you don’t already have direct-deposit information on file with the IRS from previous tax returns, you won’t get the emergency funds for up to 4 months”? That means millions of people will have zero income for 4 months! What will become of them? Where will they go? Who will provide them with shelter and food? Shouldn’t congress be asking these questions?

And what happens to the 50% of the American people who had less than $400 saved before the crisis hit? What happens to them when they fall between the cracks and lose their apartments, lose their jobs, and lose their ability to maintain their tenuous standard of living? These people will never regain their financial footing. Never. It’s a death sentence. We’re going to see an explosion of homelessness, drug addiction, depression, alcoholism, suicide and crime unlike anything this country has ever seen before. Are the imbeciles in congress so blind that they can’t see that they’re condemning a large part of the population to permanent, inescapable, grinding poverty and desperation? Can’t they see that?

Do you understand why this bill is being rushed through congress?

It has alot to do with the falling stock market but more precisely with the hundreds of corporations that have been hawking bonds to gullible investors who thought they were buying the debt of responsible, well-managed companies that used the money to improve their product-line, train workers, or build new factories. But instead, greedy CEOs have been using the money to buy shares in their own companies to boost executive compensation and reward shareholders. It’s a multi-trillion dollar scam that blew up in their faces causing a complete freeze-over in the corporate bond market. That’s what’s really going on, there’s a massive credit crunch that has a stranglehold on the bond market and there are only two ways to fix the problem:

  1. Let the failing corporations default and pick up the pieces after the dust settles or…
  2. Launch a major $4.5 trillion bailout for busted corporations that drove their companies off a cliff.

Those are the two choices. Naturally Treasury Secretary Mnuchin chose the latter which suggests that the real motive for giving working people the $1,200 checks was simply to divert attention from the massive trillion dollar bailout to teetering corporations. That’s the real objective of the so-called fiscal stimulus bill. It’s another giant welfare check for the plutocrats.

The centerpiece of the new legislation is a provision for $425 billion giveaway to big business. The New York Times explains what is going on in a recent article. Here’s an excerpt:

“Republican senators have suggested creating a fund of $425 billion at the Treasury Department that the Fed could use to back emergency lending facilities — which would enable such programs to grow far beyond that scale.

Because the Fed cannot take on substantial credit risk itself, the Treasury Department backs its emergency lending, using money from a fund that contains just $95 billion. Treasury Secretary Steven Mnuchin on Sunday suggested that the new money in the Republican bill could be leveraged by the Fed to back some $4 trillion in financing.

“We do have limited amounts of money we’re using before Congress passes this bill, so we’re not waiting on Congress,” Mr. Mnuchin said in an interview on CNBC on Monday. “As Congress gives us the authority, we’ll be increasing the facilities substantially.” (“The Fed Goes All In With Unlimited Bond-Buying Plan”, New York Times)

What does it mean?

It means that Mnuchin is transforming the US Treasury into a hedge fund. That’s what it means. It means that the Treasury is going to use the $450 billion that is obliquely allocated in the emergency bill, to create a Special Purpose Vehicle (SPV)–which is a sleazy, off-balance sheet operation that is used to conceal underhanded bookkeeping, that will leverage up by 10x (which means that the Fed will use the $450 billion to borrow tens times more than the original amount or $4.5 trillion) that will be stealthily used to bail out underwater corporations, financial institutions and, yes, banks. (Note–The fairy-tale about “well capitalized banks” is pure bunkum. These guys have serious exposure through “sponsored repo” which is lending to hedge funds via the repo market.) The Fed has already created one SPV for the Commercial Paper market under the Treasury’s Exchange Stabilization Fund (ESF) which is supposed to be used to mitigate volatility in global currency markets, not for bailing out failing corporations. It’s a complete misuse of funds. Unfortunately, targeted suspension of the Sunshine Act will prevent the public from figuring out who is getting money in what amount and for what purpose. This whole scam has been carefully worked out right down to legal provisions preventing transparency.

By the way, Mnuchin’s personal bio is worth reviewing. According to Senator Ron Wyden:

“Mr. Mnuchin’s career began in trading the financial products that brought on the housing crash and the Great Recession. After nearly two decades at Goldman Sachs, he left in 2002 and joined a hedge fund….

“In early 2009, Mr. Mnuchin led a group of investors that purchased a bank called IndyMac, renaming it OneWest. OneWest was truly unique. While Mr. Mnuchin was CEO, the bank proved it could put more vulnerable people on the street faster than just about anybody else around.

“While he was CEO, a OneWest vice president admitted in a court proceeding to ‘robo-signing’ upward of 750 foreclosure documents a week…between 2009 and 2014, a period during which the bank foreclosed on more than 35,000 homes. ‘Widow foreclosures’ on reverse mortgages – OneWest did more of those than anybody else. The bank defends its record on loan modifications, but it was found guilty of an illegal practice known as ‘dual tracking.’ One bank department tells homeowners to stop making payments so they can pursue modification, while another department presses on and hurtles them into foreclosure anyway.” (“Stimulus Bill: The Fed and Treasury’s Slush Fund Is Actually $4 Trillion”, Wall Street on Parade)

Does that sound like someone who can be trusted in the distribution of $4.5 trillion in government funds?

The media is not even trying to hide the sordid details of what’s going on behind the scenes. Take a look at this excerpt from an article at Bloomberg:

“The Federal Reserve could now have as much as $4.5 trillion to keep credit flowing and make direct loans to U.S. businesses through the massive coronavirus stimulus bill being considered by U.S. lawmakers. The bipartisan agreement, which still needs to be passed by the Senate and House and signed into law by President Donald Trump, will include $454 billion in funds for the Treasury to backstop emergency actions by the Fed to support the U.S. economy, Senator Patrick Toomey said on Wednesday.

The central bank will work with the U.S. Treasury to use that money as a backstop against credit risk as it supports markets for corporate and short-term state and local debt, while also loaning directly to large and medium-sized businesses….

“It is a very, very big thing; it is unprecedented,” the Pennsylvania Republican told reporters Wednesday on a conference call, adding it was an opportunity to lever up “the unlimited balance sheet of the Fed.”

Toomey’s comments suggest Fed facilities could be expanded with the new funds, in effect doubling the Fed’s current $4.7 trillion balance sheet if necessary. On Sunday, Treasury Secretary Steven Mnuchin said the bill would provide up to $4 trillion in liquidity through broad-based lending programs operated by the Fed.” (“Fed’s Anti-Virus Lending Firepower Could Reach $4.5 Trillion”, Bloomberg)

Toomey is an idiot! Can’t he see what’s going on? Why does he say: “This is a very, very big thing.”… “an opportunity to lever up “the unlimited balance sheet of the Fed”??? Doesn’t he know that the US Treasury has now accepted full liability and credit risk for the Fed’s emergency bailout operations. Does he like the idea that the American people will now be on the hook for the CEOs who blew up their own companies to fatten their own bank accounts?? That’s what this means. Readers should parse these articles very carefully, word by word, phrase by phrase. The ugly truth is spelled out in black and white. Here’s the key phrase in the Times article:

“Because the Fed cannot take on substantial credit risk itself, the Treasury Department backs its emergency lending.”

And here’s the key phrase in the Bloomberg article: “The central bank will work with the U.S. Treasury to use that money as a backstop against credit risk as it supports markets for corporate and short-term state and local debt, while also loaning directly to large and medium-sized businesses.”

There it is: Credit risk, credit risk, credit risk. Who assumes the credit risk for this $4.5 trillion dollar giveaway??

The American taxpayer. Look: The Fed has always had the ability to print as much money as it chooses. (Remember: “Unlimited QE”??) So why did the Fed need to link-up with the Treasury for this operation?

Because the Fed is unwilling to accept the credit risk. Who will ultimately be accountable for all the bad bets and worthless bonds that are being downgraded as we speak? Who is going to mop up the trillions in red ink created by crooked, scheming, cutthroat corporations (and their financial counter-party accomplices) who plundered their companies for the sole objective of enriching themselves and their shareholders?

Who?

The US Treasury backed by the American taxpayer.

This is really the endgame. Wall Street has subsumed the US Treasury and turned it into a massively leveraged hedge fund that is controlled by an unscrupulous charlatan who made his bones evicting families from their homes during the worse economic slump since the Great Depression.

We’re truly fu**ed.

NOTE– As this was being written, stocks were shooting higher for a third consecutive day due, in large part, to the easing of credit spreads in the corporate bond market. According to Matt Maley, chief market strategist at Miller Tabak, “They’ve been able to come into the credit markets and stabilize that area; we see credit spreads starting to tighten up a little bit…..The fact that they’re starting to stabilize gives people the kind of confidence they need to be able to dip their toes back into the market at a time when we absolutely need it.”

In other words, the bailout appears to be working for the investor class. Yipee.

 
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  1. fenestol says:

    And what happens to the millions of people who paid no taxes last year?

    Yes, this is a huge issue.

    I would add that government-imposed lockdowns are antithetical to the notion of “stimulus” regardless where the money goes.

  2. John Wear says:

    Steve Mnuchin was also a member of the Skull and Bones club at Yale. He is definitely a New World Order agent.

  3. I thought that spending bills had to originate in the House. The earlier bailout, titled “Emergency Economic Stabilization Act of 2008” originated in the House and failed there, so it was restarted by the Senate, and many writers came out with articles pointing out that this was unconstitutional.

    “The Senate’s $2 Trillion Coronavirus Relief Package” is something that I can only see as a spending bill.

  4. U-turn says:

    Does anyone believe that this massive, 1400 page bill was composed practically overnight in response to a sudden crisis? The same question applies to the Patriot Act.

    • Replies: @srbin
    , @Biff
  5. srbin says:
    @U-turn

    very good questions my friend I think it answers itself

  6. Svevlad says:

    It’s like that funny pic where the fat guy stands under the faucet and the starving kid must instead catch drops from a leaky pipe

  7. Biff says:
    @U-turn

    Does anyone believe that this massive, 1400 page bill was composed practically overnight in response to a sudden crisis?

    When you have 1400 lawyers in your back pocket anything can happen – like pretzel logic that is now legal verbiage.

  8. ANZ says:

    Trillions in “bailout” money will go to those ethnically connected bankers. When asset prices plummet, as they did in the GFC, who will swoop in to buy up distressed assets for pennies on the dollar?

    This isn’t a bailout. It’s a hostile takeover funded with the taxpayers’ own money.

    Weimar here we come. Complete with the same old owners and same old depredations.

  9. Mark G. says:

    I generally agree with the thrust of this article but would point out that the stimulus bill offers $600 a week in additional unemployment benefits rather than $600 per month as the author states. When you consider that close to half of all workers make less than 30 thousand a year, $600 a week is probably about what a lot of them would be making any way. There may be labor shortages as many of them put off going back to work until this benefit runs out. I agree with the author, though, that assistance should be targeted to this segment of the population rather than the wealthy investor class.

    • Replies: @follyofwar
    , @Adam Smith
  10. @Mark G.

    Could you verify your $600 per week figure? And does that apply to everyone?

    • Replies: @Mark G.
  11. Why is the government allowed to put fiat currency into your checking account without checking whether you want it? Is it even legal to do it? My wife and I are retired and don’t need the extra money, yet it seems that a one-time payment payment of $2400 is coming nonetheless. We’d gladly give it away, but I’ve read it will be taxable, so we’d have to pay a third of it back next year.

    That is a big problem with UBI schemes. Too many people will get the money who don’t need it or want it, while those on the bottom, who may work for cash and don’t file tax returns, will do without.

    • Replies: @davidgmillsatty
  12. Mark G. says:
    @follyofwar

    Could you verify your $600 per week figure? And does that apply to everyone?

    It’s been mentioned in several articles. Here is one summary:

    https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html

    It appears the $600 will be on top of any state benefits and will last four months. Many state benefits are fairly low. For example, my niece lost her waitress job here in Indiana when they shut down all the restaurants. She signed up for state unemployment benefits but received only $90 a week. She made good money in her restaurant job and had bought a house and taken out a car loan based on the assumption that her regular income would continue. Needless to say, $90 a week won’t cover that. Right now she is going over to her mother’s house to get meals. It helps that she won’t be kicked out of her house or have her utilities cut off while this is going on but the $600 a week will enable her to continue to pay her bills and put food on the table.

    I don’t see assistance like that as a problem since it is not the fault of her or others like her they lost their jobs. It could be a problem, though, if the epidemic lasts one month and the extra benefits for four months encourage people to take an extended vacation. This is a massively expensive bill that will have to be paid for later so we want to minimize the cost as much as we can.

  13. trelane says:

    This law’s benefits are calculated based on 2018 tax returns. That leaves millions who entered or reentered the labor market in 2019 fresh out of luck. No money for you.

  14. Paul C. says:

    Excellent article and analysis. They’re enriching themselves at our expense as usual. They’re pushing medical tyranny and soon vaccines. They’re rolling out a genocidal military weapon in 5G.

    They’re causing havoc around the world with their wars, plundering and political intervention. This government must come down. The Central Bankers must hang. All those in secret societies jailed for life. What immoral, traitorous leaches. Doing the devil’s work. Sad reflection on humanity.

  15. Latest news….Fauci says Covid is just a bad flu….death rate 0.1%.

    We’ve been had.

    Two trillion wasted.

    350 million for “refugees.”

    Wrecked economy.

    Abused populace.

    Which tiny little group benefits?

  16. The world has been oblivious to the fact that one private bank called the US Federal Reserve has been running the world.

    Not even the heads of banks understand the financial system. I would hate to have been a banker when the collapse comes.

    In order for humanity to succeed it must be made to realize what has happened these last 110 years approx or more with the financial system. The advent of monopoly money, it’s use to control countries, leaders and use of the Swift system. The political systems the world over are rotten too.

    It is therefore important to educate the people about the Ponzi scheme that has been played on them.

    It is important for someone to write in layman’s terms for humanity to understand. And that this be propagated the world over.

    Only then will we end control over us. And we can build the system anew in our control. The last thing we need is the people behind the old system anywhere new the new one.

    • Replies: @onebornfree
    , @Paul C.
  17. And lets also put all this in context. The Fed has already been intervening in markets (ie repo) to tbe tune of trillions for months now.
    And this virus business has a LONG way to play. I don’t think we’ve even seen the tip of this multi trillion $$ hand out iceburg to Elites yet.

  18. @follyofwar

    You could say the same for social security. If you don’t want the money and you don’t want to be additionally taxed, take out enough to pay the tax and give the rest away.

    Your argument is total bullshit. What UBI does very well is get money to places it would never get otherwise, just like social security does. It is great for local economies who would never get currency any other way.

    And when robots/computers/androids completely take over all our jobs, we will have no choice in the matter any way.

  19. onebornfree says: • Website
    @Succeeding for the future

    “It is important for someone to write in layman’s terms for humanity to understand. And that this be propagated the world over.”

    It’s already been done. See : “What Has Government Done to Our Money?” by Murray Rothbard:

    https://mises.org/library/what-has-government-done-our-money

    Regards, onebornfree

  20. onebornfree says: • Website

    “Do you understand why this bill is being rushed through congress?”

    I believe that the ultimate goal is to piss off enough people to cause mass civil unrest across the US, so as to have a halfway “legitimate” excuse for them to enforce a total lockdown via martial law, and to subsequently remove any last vestiges of the Bill of Rights, and then install a “New World Order”/ one government system.

    Massive civil unrest is the key to that one world government system goal.

    “ROCKEFELLER PAPER DETAILS GOVERNMENT PLAN TO IMPOSE A POLICE STATE DUE TO A PANDEMIC”: https://dontspeaknews.com/2020/02/25/rockefeller-paper-details-government-plan-to-impose-a-police-state-due-to-a-pandemic/

    Regards, onebornfree

  21. @Mark G.

    I wouldn’t count your $600 a week until they hatch.

    The lion’s share will be eaten by the wealthy investor class.

  22. Paul C. says:
    @Succeeding for the future

    Agree. The US was probably the most prosperous country in the world in 1913 when the FED began operations to siphon our wealth to them. In 1933, the US declared bankruptcy and pledged every man, woman and child as collateral to the debt, via the birth certificate. We’re only insolvent to the bankers until we throw them out. Unfortunately, they’ve done this all over the world. With money comes power. Through secret societies (freemasonry as an example) they groom the indoctrinated to carry out their agenda to take over the world. Many President’s (including the current one), Prime Ministers, CEO’s are Masonic puppet just carrying out orders.

    https://www.bitchute.com/video/uaOHI89FpjbL/

  23. slorter says:

    Thanks Mike good for reference!

  24. Antiwar7 says:

    Are the imbeciles in congress so blind that they can’t see that they’re condemning a large part of the population to permanent, inescapable, grinding poverty and desperation? Can’t they see that?

    Yes, they can see it. Not all of them are stupid (witness the insider trades by the Congress-critters who profited from their coranavirus briefing). They just don’t care. By their actions, they only care about their wealthy and corporate donors.

    There are roughly 145 million US taxpayers.
    https://taxfoundation.org/summary-of-the-latest-federal-income-tax-data-2020-update/
    Not all will get $1200 stimulus checks (there is an income test, apparently), but let’s overestimate and assume they all get the full amount. $1200 x 145 million = $174 billion. That’s 8.7% of the touted $2 trillion stimulus bill. What of the other 91.3%?

  25. @onebornfree

    Thank you. very much

    While the book is very informative, in my opinion, it cannot be read and understood by a layman.

    There must be a simpler method of explaining to the layman.

    We have to harness the power of the layman to prevent those who will try and continue to control us.

    I welcome your inputs but we must understand whom we are up against.

    Regards
    Succeeding for the Future

  26. If we are going to spend the insane amt (4 trillion) to “help the economy”, instead why not forget about businesses and just give every man, women, and child 50 grand to do as they please. This will add 8 trillion to the debt, but consumers will spend spend spend. Some will modestly invest. Others will shoot up quality dope, buy Lincoln Navigators, pay down their mortgage. This is a consumer driven economy and THIS is what will rebuild from the ground up. As far as the debt goes, after despairing (for years) of our ability to get out of this conundrum..I noticed that nothing happened, even after all the warnings. The sky did not fall… I think it’s all abstract funny money anyway.

    Ah, you say, what about all those welfare queens with 10 kids and no father. Doesn’t matter…Sure the lady would get $500,000, but it would serve the same purpose.

    $1200 won’t do anything.

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