THE MONSTER THAT DISCIPLINES HUMANITY: COVID-19
In Europe, governments only provide 1 trillion euro public guarantees for the Euro Area. (eg Germany 500 billion EUR, France 300 billion EUR, Spain 100 billion EUR) all of this is to prevent a sudden increase in corporate bankruptcies. There is an increase in budget expenditures exceeding 250 billion EUR in total. Measures taken include deferred debts, partial unemployment and support provided by national public banks. The ECB (European Central Bank) added an additional purchase measure of EUR 120 billion to the monthly purchases made under the monetary expansion of EUR 20 billion and last year for a year. In addition, the ECB launched a new Pandemic Emergency Purchase Program (PEPP) worth EUR 750 billion (about 6% of the Eur Region’s GDP).
In the US, the White House announced a $ 2 trillion (10% of GDP) financial package. The package includes guaranteed paid sick leave, food aid, corporate loan guarantees, loan allowances, income tax items, and infrastructure and health spending, as well as cash benefits to households. The Fed lowered the interest rates to 0-0.25 base point range and for liquidity problems; It announced $ 1.5 trillion in liquidity injections through new $ 700 billion of securities purchases and Repo operations.