Where Has All of this Money Come From? Where Will it Go? By James Reed
This is quoted from Rite-On as at March 19, 2020, and no doubt there have been a few increases since that date. Question: where did the money come from? Did they borrow from the World bank; the IMF or other Banks? Which of these or any other sources had such amounts available? Can anyone help? Or is it all going to be just put on the tab, of endless growing debt? The economic impact as at 19 March 2020 in USD;
• The United States, announced a $1 trillion economic package that will include $500 billion in direct payments to taxpayers. The U.S. is also planning $500 billion in loans for businesses. The Federal Reserve announced it will create an emergency lending facility to help the country’s short-term credit market.
• Canada will spend an initial $18.6 billion in support to families and businesses affected by the outbreak. The country also pledged about $37 billion in tax deferrals to help Canadians and businesses survive the economic trouble.
• The European Union said it would use up to $41 billion for measures to counteract the economic consequences of the coronavirus crisis. Meanwhile, the European Central Bank announced it will buy up to $830 billion government and corporate bonds and other assets in a bid to calm the continent’s financial markets.
• In the United Kingdom, the government announced $398 billion for loans and guarantees. Smaller businesses will be granted access to cash grants of more than $28,000 to tackle the coronavirus pandemic.
• German Chancellor Angela Merkel announced that her country is facing the worst crisis since the end of World War II and said her government will do “whatever it takes” to keep its businesses afloat. The country pledged unlimited cash to businesses hit by the crisis.
• In France, a country severely affected by the coronavirus outbreak, lawmakers pledged around $50 billion in immediate aid for businesses and employees hit by the pandemic which is expected to shrink the French gross domestic product by 1% in 2020.
• In Austria, the government announced it will spend up to $42 billion to secure jobs and support businesses. The government will provide up to $10 billion in guarantees and warranties, more than $16 billion in emergency aid and more than $10 billion in tax deferrals.
• Spain said it will support its economy with a 200 billion euro (about $219 billion) aid package. The country will pay benefits to workers temporarily laid off and will suspend mortgage payments for those affected by the crisis.
• The Netherlands will provide up to $22 billion to businesses as part of an emergency package in an effort to help workers and lower the impact of the COVID-19 crisis.
• Italy, the country most severely affected by the coronavirus pandemic in Europe so far, has adopted an emergency plan of $28 billion to support its economy. The measure is necessary in order to soften the blow taken by a society forced to shut down in a national quarantine.
• Portugal will also spend $10 billion on an emergency package. About $5.6 billion will be used as fiscal stimulus, $3.2 billion for state-backed credit guarantees and about $1 billion for social security payments.
• Norway will offer companies at least $9.7 billion in funding in order to guarantee loans and bond issues to support business and the economy. Also, payments of payroll taxes can be postponed.
• While no specific measures have yet been announced for Ireland, the country pledged more than $3 billion earlier this month to fight against the health crisis and support sick pay and business affected by COVID-19.
• Sweden also launched a coronavirus crisis package of more than $30 billion. The country is looking at paying for sick leave through the months of April and May and supporting the cost for temporary redundancies during the crisis.
• Denmark also released $30 billion for banks to lend to businesses during the pandemic.
• Australia’s government announced it is lowering interest rates while also injecting about $56 billion (this has since been increased) into the economy, Reuters reported.
• In Japan, the government passed a $10 billion package earlier in March for small and medium-sized businesses, as well as self-employed workers affected by the coronavirus. The government on Thursday formed a panel of ministers to examine a broader package to help the economy.
It is amazing that all of this money can suddenly be found now, but governments have cried poor on other issues, such as helping the crippled rural sector, in Australia and elsewhere.