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The Italian media have treated him little, but those who follow the market are well aware that one of the drivers of recent days, capable of operating effectively compensation in headwinds caused by the English variant Covid, was the agreement for a new congressional stimulus plan, aimed at ensuring income support for American citizens in light of the second wave of the pandemic. In fact, the recalibrated continuation of the CARES Act last spring. After months and months of discussions and face-to-face confrontations between Democrats and Republicans, a compromise was suddenly reached. On the negative side, in fact, when looking at the numbers. But still better than complete oblivion or a breakdown in negotiations. Especially in an extremely delicate market phase such as the current one, in which the movements of central banks in terms of support have to face the appearance of macro-criticalities that begin to appear out of nowhere like jets of water from a broken tap. which is hard to stop.
Well now get ready. Because on an assumption, suddenly, the issue could become worthy of the attention of the so-called authorized media. The reason? Donald trump opposed, calling the agreement reached “a disgrace”, threatening not to sign it and betting heavily on the net increase – more than three times – in the amount related to the allowance for US citizens starting next week: against $ 600 plus 300 unemployment benefits provided for each citizen (up to $ 75,000 in income, only to be reduced by larger amounts), a kind of compensation compared to the $ 900 of the first version of the program, the now former president – but Still formally in office and with the power of ratification, he asks for $ 2,000.
That said, Wall Street futures didn’t like it before lunchtime yesterday. And the news started their litanies. So the scapegoat is ready: Donald Trump wants to poison the wells, before finally packing his bags and leaving Pennsylvania Avenue. Very true? Let’s start from a fact, plastically summarized by Rabobank with this image: what is really inside that arrangement, both general and whimsical that needed 5,593 pages?
Yes, because although it is historically known and real that Italy is the undisputed homeland of the Olympic discipline of including patronage measures in budget laws, the Eden of the Milleproroghe as a way of life, the United States is no exception. Rather. Of the 900 billion available, in fact, the substantial part (325 billion) goes to support small and medium-sized businesses, especially through a refinancing of the vehicle of the Paycheck Protection Program (284 billion) , 20 billion to the Disaster Economic Damage Loan plan dedicated to small businesses and 15 billion for theaters, cinemas and cultural institutions in general. Then there is the second largest amount, 166 billion which includes the famous paychecks, checks intended for citizens as income support. In fact, helicopter money. That the sovereign, republican, liberal and savagely capitalist president wanted to expand dramatically! Here is the liberalism that will kill the world!
In fact, Donald Trump threatens fire and flame against the provision not because it is shamefully condescending and condescending. rain, but because they are not generous: do you think the media, the authoritarian ones, will tell you how they are, in light of this reality? But that is not enough. Because if in Italy the hypothesis of using the Recovery Fund funds is discussed, sensationally unbalanced towards the green transition and gender equality and almost reduced to crumbs for fundamental items such as health and tourism, this table shows plastically where States are United. At the level of bipartisan compromise between the House and Senate, they are wasting taxpayer money.
Net of the increase in military expenditures for additional purchases of weapons compared to the Pentagon budget (8 billion more, of which 4 for the Navy, 2 for air force missiles and another 2 for the new program related to Forces Space), why should the Covid emergency guarantee $ 40 million for the Kennedy Center? Or more than 200 million for federal employees working abroad and HIV / AIDS patients to finance purchases of, among other things, auto or auto insurance? And do we want to talk about aid to foreign countries? What does the “donation” of $ 3.3 billion to Israel have to do with the pandemic emergency? Or the other 453 million from Ukraine, after the 400 already paid by the Trump administration? We want to talk about the 10 million dollars for the gender programs in Pakistan or 700 million for Sudan? And without forgetting, in days of great controversy and media returns of the Legion of Honor, the donation of 1.3 billion dollars to Egypt from Al-Sisi. And the 135 million allocated for Burma or 85.5 for Cambodia or 130 for Nepal or 1.4 billion for the Asia Tranquility Initiative Act, what the hell does that have to do with a congressional measure aimed at supporting the domestic economy against the fall out economic situation of the pandemic?
But that is not enough. Because a few thousand dollars also ended up in the root cause of funding a campaign “aimed at raising consumer awareness about the risks of using open flames near fuel containers.” Don’t you think so? Look, the paper sings.
For God’s sake, the dollars earmarked for this noble mission certainly won’t change the course of the American deficit, but it does give the idea of how, sadly, the entire world is one country. And how, sadly, this pantomime will be used today in all likelihood to further crucify Donald Trump, as his opposition to the frenzied federal support plan will immediately translate into the elites’ willingness to further starve the mythological 99%. of societies. A large portion of whom, bills in hand, will likely spend the $ 600 federal check on online operations at Robinhood. But rest assured that he will think about it Joe biden to get the situation back on track and return America to the leadership of the free world, after four years of exile from humanity due to the unwanted presidency best youth.
Of course, those funds make Ukraine think, given the geographic location of one of his son Hunter’s most talked-about management companies. But you know, it is useless to split the hair in four, when in the end the only priority seems to sweep Donald Trump from the civil forum, almost a collective rubbing of the eyes to quickly forget a bad dream. However, be careful dealing without the host. As this final graph shows us, the chances of a Democratic victory in the Senate supplemental scheduled for Jan. 5 in Georgia are diminishing.
And if by chance it is a situation of Congress divided at the level of political control, the entire structure of great rotation market sparked by Joe Biden’s victory (value beating increase, energy and banking versus technology) could collapse. At that point, only two catalytic forces for indexes and returns would remain in the field: the “optimistic” of the vaccine with its prospect of improving the global macroeconomic outlook and that of Qe to the bitter end, all in the hands of the Fed. Antithetical among them, how intuitive it seems.
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