How the pandemic affecting the national finance/Carlos Pueblo

How the pandemic affecting the national finance/Carlos Pueblo

The Federal government is pumping more money to save the national economic after the out break of the Chinese Wuhan Novel Corona Virus pandemic. I count the first three waves of the pandemic impact funds including the $1,200 for me with Donald Trump's name on it which is the third one with 2.2 trillions, the first two waves are 70 millions and 80 millions each. Additional 3.5 trillions is coming with the first approval of the House with the support of Trump's White House. I am puzzled with the huge amount of such quantitative funds generated by a government without any savings at all. I don't think any one like me up to any of an individual State government, or any of the nations of the world can practice like that. How the pandemic is affecting the national finance? I, therefore, ask Paul Krugman via a Google search on the internet.

Someone does ask him about this issue. He points it out as long as keeping at the range of 40% of the gross domestic product, GDP, and we'll be alright. Finally, I am confirmed that after leaving the gold standard in 1973, the Federal finance authority has been based on the GDP to maneuver the circulation of the Dollars. He says 6 trillions for the time being to save the American economic life is alright. I think that 7.2 trillions numbers mentioned above with 1.2 trillions deficit is not a big issue upon talking. He is a hawk of the government spending to stimulate economic scholar.

We don't have that luxury, if we need the money, we have to dig into our regular savings or we must borrow the money. Borrowing money must pay the loan back on time. That is why a normal person builds a saving habit to manage his own home economic. It doesn't look like the U.S. Federal is practicing that way ever since the establishment of the Republic. The Treasury does pay the interest of the Bill, the Note, and the bond regularly and borrow a new bond to replace the old. The National debt is accumulating until I loss interest to remember it. Of course, there is a legislation the balance budget and there is always ways to make an exception every times. We all assume that our GDP will keep on growing and the U.S. Dollars can maintains the value to purchase power forever.

When I save my money and invest it on my retirement funds, I trust the market will go up eventually. No body in the whole world would like to see the collapse of the U.S. Market. No body like to see the collapse of the U.S. Dollars. I only  have a limited time of my life and I almost have passed it. Krugman does point it out that the U.S. political situation is basically stable with tax revenue; therefore, the U.S. Dollar is reliable. I believe that the U.S. has taken advantage of a low interest of the treasury and free loan of people keeping their cash in the U.S. currency. The National Finance is complicated during the Pandemic and this is only what I can remember to mention about it.