US is now living off the Printing Press: Billionaires and millionaires will be printed, especially if they’re well-connected

US is now living off the Printing Press: Billionaires and millionaires will be printed, especially if they’re well-connected. By Wolf Richter.

I’ve been lamenting and lambasting the stupendous growth of the US national debt since 2011, the beginning of my illustrious career as a gnat in the big world of financial media. And through all these years, I’d never imagined that I’d ever see this sort of spike in the US debt, though in recent years I’ve been adding an upward arrow and the green label “Debt out the wazoo” to these charts, not realizing just how factually accurate this technical term would become. …

The government has now signed into law a series of stimulus packages totaling $2.8 trillion or thereabouts. …

At first, there was a mad scramble of lobbying to get all the favorite provisions into the bills. Now a mad scramble has ensued to siphon out this money. Billionaires and millionaires will be printed, especially if they’re well-connected.

And lobbyists are highly motivated to get even more stimulus packages through Congress. This is a once-in-a-life-time opportunity.

And while these trillions sally forth into the wild yonder, tax revenues are collapsing. The difference has to be made up with borrowing. …

From March 11 through… last Thursday, the Fed added $1.39 trillion in Treasury securities to its assets. Over the same period, the Treasury Department added $1.54 trillion to the outstanding debt. In other words, the Fed has – indirectly, as is the iron rule in the US – monetized 90% of this additional debt.

We’re living off printed money, pure and simple.