Kudlow, Mnuchin Hail $4 Trillion Market Bailout through the Fed, as Part of $6 Trillion ‘Stimulus Package’
March 25 (EIRNS)—Speaking at yesterday evening’s White House press briefing on the COVID crisis, Larry Kudlow, the Director of the National Economic Council which advises President Donald Trump, announced that the total size of the “stimulus package” now working its way through Congress is $6 trillion—$2 trillion of which will go to businesses and individuals affected by the coronavirus crisis, and an additional $4 trillion, which will be issued by the Federal Reserve, leveraged with Treasury (i.e., taxpayer) money. Kudlow stated:
“And finally, I want to mention, the Treasury’s Exchange Stabilization Fund. That will be replenished. It’s important, because that fund opens the door for Federal Reserve firepower to deal a broad-based way throughout the economy for distressed industries, for small businesses, for financial turbulence.
“You’ve already seen the Fed take action. They intend to take more action.... It’s very, very important; not everybody understands that.... So, the total package here comes to roughly $6 trillion: $2 trillion direct assistance, roughly $4 trillion in Federal Reserve lending power.”
Kudlow had the chutzpah to then describe this massive, hyperinflationary attempt to bail out Wall Street and the City of London, as “the largest Main Street financial package in the history the United States.”
Treasury Secretary Steven Mnuchin repeated the announcement of $4 trillion coming from the Fed at the March 25 White House press briefing. Mnuchin had discussed this same $4 trillion proposal over the weekend with Senate Banking Committee Chairman Mike Crapo, and others. Mnuchin told Fox News Sunday that “the fourth part” of the package before Congress, is “a significant package working with the Federal Reserve, which will provide up to $4 trillion of liquidity that we can use to support the economy.” The idea is to use some $400-500 billion in direct Treasury funds to be able to leverage ten times that amount through the Fed—for starters. Mnuchin said the plan is meant to deal with a “10- to 12-week scenario,” but that they are prepared to do more if it lasts longer.
Kudlow tried to reassure the nation that the program would have an “oversight board,” and Mnuchin announced that private sector financial firms would be brought in to help administer the program. But, according to press accounts, the lead firm that has already been hired by the Fed for that purpose is none other than BlackRock. Back in August 2019, in a report and then at the Jackson Hole, Wyoming annual meeting of the public and private financial elite of the world, BlackRock proposed the policy of “monetary regime-change” to “go direct” with all-out helicopter money to bail out the bankrupt financial sector—precisely the policy now being implemented.