It’s a fiscal firehose.
On the same day as Europe’s “Watershed Moment” saw the European Commission propose a €750BN virus recovery fund, funded by joint debt, and which would offer €500BN in grants to struggling European nations, Japanese Prime Minister Shinzo Abe’s cabinet approved a new $1.1 trillion stimulus package…(which) followed another 117 trillion yen package rolled out last month. The new package takes Japan’s total spending to combat the virus fallout to 234 trillion yen ($2.18 trillion), or about 40% of gross domestic product, and will send its already world-record debt load into the stratosphere.
