Hi Everybody,
Covid-19 = Print, Print, Print....and Print.
Morgan Stanley estimates the US deficit to $3.7 trillion in 2020 and an additional $3T in 2021, all financed by the Fed. With the economic slowdown the fiscal deficit relative to GDP could even approach 15% to 20% (Like in WWII).
On top of all those deficits, President Trump on Tuesday called for a new infrastructure spending bill worth $2T, while the Fed launched a temporary lending facility allowing foreign central banks to convert their Treasury holdings to dollars.
But the most impactful measure by far is the $500 billion in business loans. The federal government will use this funding to capitalize an SPV (special purpose vehicle) that they can lever up to 10:1. The net result is a $5 T injection of liquidity into the economy on top of the $2+2T of additional fiscal relief. The Fed’s balance sheet should spring from $5.25T to over
11T in only a few months.
EU:
The crisis has shown the impotency of the EU and more and more voice are rising asking what the point to finance a so expensive and inefficient institution ? On top of that Countries like Italy have seen their GDP stagnate if not regress since the start of the Euro. Here we have a very dangerous cocktail.
Covid-19
Something sound very fishy about the Hydoxychloroquine, it seems to have been very efficient especially in Japan and Turkey and still France, the state of New York and California ban it's usage (the most affected states). Either it's harmful so why won't they openly say it or it's efficient why would they ban it ?
The United Nations is seeking the power to IMPOSE a 10% global tax on everyone for what they are describing as a “global health crisis unlike any in the 75-year history of the United Nations.”
The-Shadow-War-Playing-Out-Behind-The-COVID-19-Crisis
oilprice.com/Energy/Energy-General/The-Shadow-War-Playing-Out-Behind-The-COVID-19-Crisis.html
Oil:
We learn that Russian sanitary equipment were sent to the US, it means that Trump may have promised to alleviate Russians sanctions in exchange for Oil production cuts to alleviate the burden on US shale producers. Next week Opec meeting should be revealing. In any case on the long term the low Oil prices today are paving the way for higher prices in the future.
Conclusion: The Covid Crisis is far more lethal in the western world that in Asia, whatever the reasons, Asia will get out stronger and the West especially Europe will be far weaker.
So Gold, US and Asian stocks, Oil should be our long term view.
Covid-19 = Print, Print, Print....and Print.
Morgan Stanley estimates the US deficit to $3.7 trillion in 2020 and an additional $3T in 2021, all financed by the Fed. With the economic slowdown the fiscal deficit relative to GDP could even approach 15% to 20% (Like in WWII).
On top of all those deficits, President Trump on Tuesday called for a new infrastructure spending bill worth $2T, while the Fed launched a temporary lending facility allowing foreign central banks to convert their Treasury holdings to dollars.
But the most impactful measure by far is the $500 billion in business loans. The federal government will use this funding to capitalize an SPV (special purpose vehicle) that they can lever up to 10:1. The net result is a $5 T injection of liquidity into the economy on top of the $2+2T of additional fiscal relief. The Fed’s balance sheet should spring from $5.25T to over
11T in only a few months.EU:
The crisis has shown the impotency of the EU and more and more voice are rising asking what the point to finance a so expensive and inefficient institution ? On top of that Countries like Italy have seen their GDP stagnate if not regress since the start of the Euro. Here we have a very dangerous cocktail.
Covid-19
Something sound very fishy about the Hydoxychloroquine, it seems to have been very efficient especially in Japan and Turkey and still France, the state of New York and California ban it's usage (the most affected states). Either it's harmful so why won't they openly say it or it's efficient why would they ban it ?
The United Nations is seeking the power to IMPOSE a 10% global tax on everyone for what they are describing as a “global health crisis unlike any in the 75-year history of the United Nations.”
The-Shadow-War-Playing-Out-Behind-The-COVID-19-Crisis
oilprice.com/Energy/Energy-General/The-Shadow-War-Playing-Out-Behind-The-COVID-19-Crisis.html
Oil:
We learn that Russian sanitary equipment were sent to the US, it means that Trump may have promised to alleviate Russians sanctions in exchange for Oil production cuts to alleviate the burden on US shale producers. Next week Opec meeting should be revealing. In any case on the long term the low Oil prices today are paving the way for higher prices in the future.
Conclusion: The Covid Crisis is far more lethal in the western world that in Asia, whatever the reasons, Asia will get out stronger and the West especially Europe will be far weaker.
So Gold, US and Asian stocks, Oil should be our long term view.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.