Larry Kudlow, who serves as a prominent economic advisor at the prestigious White House, United States of America, has opined that the stimulus package of the United States Government will sum up to roughly $6 trillion, during a press conference on March 24, 2020. The ‘not-so-usual’ stimulus package of the U.S is a response to the scary, weary circumstances that have popped up due to the spread of the deadly COVID-19 in and around the country.
According to the reports, out of the whopping $6 trillion amount (if sanctioned), $2trillion will involve direct cash payments to business entities and individuals suffering under the plight of the coronavirus pandemic. The remaining $4trillion shall be for the Federal Reserve. The huge sum of $6 trillion is equivalent to one-third of America’s GDP and 130% of the Federal Reserve’s balance sheet. It is sufficient money for every person on this earth if each of us gets $850 or enough money to buy 900 million Bitcoin for the current prices. The staggering amount laid by the government has raised some serious concerns and chaos in the country.
Amid this, the stimulus package released by the U.S has put the world in a puzzle as the amount seems “too big” to a majority of people. Ever since the release of the report, Twitter has been flooded with tweets revealing the reactions, some being really hilarious, by some of the most prominent names and renowned personalities hailing from varied industrial domains, including crypto.
Co-founder of Blockstack mockingly gave his take on the news addressing it to be a ‘random decision.’ He quoted:
I like the idea of computer algorithms defining the supply of a currency.
They don’t randomly decide to inject a 6 trillion stimulus package.#Bitcoin
— Muneeb (@muneeb) March 25, 2020
It’s a comment on quantitative easing and bailouts, not COVID response.
Financial markets could’ve crashed for one reason or the other, the stimulus playbook remains the same.
For COVID, the gov failed miserably at early action. Let’s see if they can have better policies now.
— Muneeb (@muneeb) March 25, 2020
Binance, the leading cryptocurrency exchange tweeted that the amount if 49x more than Bitcoin’s current market cap value.
6 Trillion dollars.
That's over 49x #Bitcoins current Market Cap.
— Binance (@binance) March 25, 2020
Pompliano, the co-founder and a prominent partner at the renowned Morgan Creek Digital firm, called the claims of doubling the Fed balance sheet overnight, as an unbelievable task. He stated that he was mocked by people when he speculated a sum of more than $5 trillion to meet the current crisis needs, however now, he is happy that the present scenarios are reflecting the same picture.
They are talking about $6 trillion in stimulus.
I was saying $5+ trillion was going to be needed.
People laughed. Not anymore.
Now they're considering doubling the Fed balance sheet almost overnight.
This is unbelievable.
— Pomp 🌪 (@APompliano) March 24, 2020
The world has been reeling under the plight of coronavirus since December 2019 when the first cases were recorded in Wuhan, China. In no time, the disease crippled China drastically, taking the death toll to a mind-boggling number. The pandemic soon enveloped a majority of countries and regions across the globe while making situations worse for the global population. Governments worldwide are struggling to take the necessary precautionary measures for the safety of their citizens and are flowing money like water to fight the battle against COVID-19 successfully.
It is not just the United States, but a majority of countries have announced stimulus packages to cater to the requirements of the natives in such a dire crisis. Canada has announced a stimulus package of CAD$82 billion, while Hong Kong has decided to render financial assistance of HK$10,000 each to its citizens. The European Central Bank has increased its large-scale asset purchase operations to aid the relief operations.