Golmaal Hai, Bhai, Sab Golmaal Hai

Seedhe raste ki yeh tedhi chaal hai Like we discussed yesterday, Trump signed (no, he didn’t use his angutha) the US $2.2 trillion emergency relief bill to support the U.S. economy crippled by the Covid-19 pandemic. Barring a Republican representative (self-avowed libertarian), Thomas Massie of Kentucky, no one in the House of Representatives had any … Continue reading Golmaal Hai, Bhai, Sab Golmaal Hai

Bada Package and A Conradian Heart of Darkness

When $2 trillion isn’t enough A $ 2 trillion emergency relief package was passed by the U.S. senate yesterday. That’s almost 10% of the size of the economy! What’s more, almost everyone believes there will be more coming. The whole package came about in less than a week with detailed bipartisan discussions in the senate … Continue reading Bada Package and A Conradian Heart of Darkness

We are in a socialist utopia now

Everybody is a socialist during a crisis Bernie Sanders won’t certainly clinch the Democratic nomination, but he’s already won the elections. If politics is contestation for narrative dominance, he’s already home and dry. Free healthcare for all, direct transfer of wealth to the poor, free university education and a huge fiscal stimulus to help the … Continue reading We are in a socialist utopia now

This is different

Fed cuts rate to zero, what next? A key role of any central bank is to provide liquidity to the financial systems. During times of economic distress liquidity dries up – value of assets falls, demand shrinks, and businesses find it difficult to manage everyday operations. Central banks add liquidity into the system through multiple … Continue reading This is different