One week ago, Zerohedge published a remarkable interview with two former Fed economists – Simon Potter and Julia Coronado – who have tremendous impact and influence on prevailing thinking at the Federal Reserve, and who hinted at the Fed’s last ditch reflationary strategy: wiring digital money into the bank accounts of Americans, bypassing the reserve system entirely, and sparking an inflationary conflagration. As we said last Monday, “the two propose creating a monetary tool that they call recession insurance bonds, which draw on some of the advances in digital payments, which will be wired instantly to Americans.“
“One of the issues Congress had in passing the Cares Act is identifying who’s got mainly tip income, who doesn’t have sick days. If society wanted, you could use large datasets to direct fiscal transfers to those people.” – Bloomberg Interview with Coronado And Potter
Full scale helicopter money is coming…..of that we are almost certain Read more…..
Chart of the Day
Federal Reserve Bank of Boston President Eric Rosengren discusses the outlook for U.S. inflation, the economic impact of a possible Covid-19 resurgence, and the performance of the Fed’s stimulus measures. He speaks with Bloomberg’s Mike McKee on “Balance of Power.”