<p>If it is borrowed and budget deficits become a problem then the Fed will step in anyway.</p>

<p>The USA situation is the same as with the BoJ, which helps fund a Japanese 250% debt-gdp ratio: the Fed's profits are donated to the govt anyway. Purchasing govt debt with printed money <a href="https://richardduncaneconomics.com/qe-is-now-cancelling-half-a-trillion-dollars-of-government-debt-per-quarter/" rel="nofollow noreferrer">essentially cancels the debt</a> as any returns paid on the bonds are donated back to the govt.</p>

<p>The 2t coronavirus package, unless a vaccine is found, will not nearly be enough to stop a depression. Helicopter drops will be needed for at least the next 6 months. However, the US only has about 110% (?) debt-GDP so it can easily afford another 20t stimulus before it even approaches Japanese debt levels.</p>

CC BY-SA 4.0
2020-03-31T07:11:56.980Z
2020-03-31T07:11:56.980Z
Frank
<p>With regard to the recent 2 trillion dollar coronavirus package, is the money just being printed or borrowed? A gentleman from the tax payer union claims the taxpayer will eventually be on the hook.</p>

<debt><covid-19-crisis>
Stimulus (Rescue) Package
user27167
# Stimulus (Rescue) Package

(Asked by: username_0 on 2020-03-30)

With regard to the recent 2 trillion dollar coronavirus package, is the money just being printed or borrowed? A gentleman from the tax payer union claims the taxpayer will eventually be on the hook.

**Tags:** debt, covid-19-crisis


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## 1 answers

### Answer by username_1 on 2020-03-31. Score: -1

If it is borrowed and budget deficits become a problem then the Fed will step in anyway.

The USA situation is the same as with the BoJ, which helps fund a Japanese 250% debt-gdp ratio: the Fed's profits are donated to the govt anyway. Purchasing govt debt with printed money [essentially cancels the debt](https://richardduncaneconomics.com/qe-is-now-cancelling-half-a-trillion-dollars-of-government-debt-per-quarter/) as any returns paid on the bonds are donated back to the govt.

The 2t coronavirus package, unless a vaccine is found, will not nearly be enough to stop a depression. Helicopter drops will be needed for at least the next 6 months. However, the US only has about 110% (?) debt-GDP so it can easily afford another 20t stimulus before it even approaches Japanese debt levels.


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