Who Is Paying for the Government’s Largesse?

 

Emma Walsh

Aug. 9, 2020

 

The feds’ generosity knows no bounds…

The “transfer” payments’ total for the year is looking likely to hit $12 trillion. That’s a lot of zeros.

But with a shrinking economy and record unemployment, the entire U.S. labor force will only earn $8.6 trillion this year. So who’s paying for the government’s largesse?

Regards,
Emma Walsh
Managing Editor, Bill Bonner’s Diary

 


image America, Move Over… There’s a New #1
America’s reign at the top of the pile is at an end. What went wrong? Is COVID-19 to blame? Not according to our editor, who says the train left the station long before the virus appeared on the horizon.

image Not Robbing Peter to Pay Paul
Today, our editor takes a closer look at the transfer payments keeping the system afloat. Where is the money coming from? And where, exactly, is it going?

image $12 Trillion in “Transfers” in 2020
The feds will dole out about $12 trillion in transfers this year. There’s no real wealth behind this printing-press money. It’s essentially worthless. But it can still be used to buy real stuff. So it is something and nothing at the same time. How can this be?

image From the Sacred to the Profane
Bill attends an ancient religious ritual in the Calchaquí Valley… But the matter of the rocketing U.S. government transfer payments is never far from his mind. Donald Trump has an election to win. So the knives – and the zeros – are coming out.

image Another Moon Pie Is On Its Way
Some of the government’s transfer payments are due to dry up soon. But never fear, more help is on the way. You can expect another dose of fake money soon. It’s an election year, after all.

image Dan Denning and Tom Dyson Talk Gold
Recently, Postcards From the Fringe editor Tom Dyson visited Bonner-Denning Letter coauthor Dan Denning at his family home in Colorado. When they sat down for a chat, the recent spike in the gold price was the first thing these two goldbugs got to talking about…

Like what you’re reading? Send your thoughts to feedback@rogueeconomics.com.