“I think there is a high likelihood that we will need another bailout package,” said Treasury Secretary Steven Mnuchin, who supports additional fiscal stimulus to address the economic impact of the corona virus – within reason. He made this statement after the government adopted a record-breaking $ 3 trillion bailout package. Senate majority chairman Mitch McConnell made it clear that the next COVID package “must not exceed $ 1 trillion,” said Axios.
US government has big problems
Nonetheless, the response from the US government is already massive and outshines everything that has gone before. The British government is also spending money overseas like crazy. The UK budget deficit rose to a record-breaking £ 62.1 billion ($ 76 billion) in April, Bloomberg said. With this in mind, the thought of having a national currency backed by a real asset like gold seems less and less crazy for some people. This is believed to force lawmakers to exercise fiscal discipline, curb inflation and normalize international trade.
Judy Shelton, the Federal Reserve Board of Governors nominee for the President, has long advocated a return to the gold standard that officially ended in 1971. In an interview with the Investment News Network last week, Shelton said she liked “the idea of a gold-backed currency,” adding that “it might be used like a cryptocurrency.”