EU has joined in with 826bn. Globally over 10tn has been printed

[suzanne5223]

EU is trying to do thier best to save the situation

I understand that they are trying their best to save the situation cause the countries like Spain and Italy which are hit hard by the pandemic will run into recession if the loan is not provided but they are not doing it right because the printing of much fiat currency will only cause inflation and this was the exact mistake they have done back then before the existence of bitcoin and i wonder why they are recruiting the same mistake.

[exstasie]

Austerity - in the UK at least - is not really an option, services have been trimmed back so far over the last decade that there is nothing more to cut.

Not only that but UK austerity policies have obviously hindered growth. Some estimates say the economy is £100 billion smaller now than it would otherwise be. https://www.theguardian.com/business/2019/feb/21/uk-economy-100bn-smaller-because-of-austerity-thinktank

With the worst recession in 300 years setting in, they can't afford to hinder growth like that.

EU is trying to do thier best to save the situation

By devaluing their own currency?

They aren't printing money. They are issuing bonds on the financial markets. The Euro rallied on this news, up 2.5% against the USD.

Italy's economy (at 10x the size of Greece's economy) has the weight to crush the Euro if it collapses. That's a much bigger concern than a marginal increase to the the EU's debt ceiling. At least that is what the forex markets are suggesting.

[MCobian]

I see the European Union has done the right thing, because in a crisis situation like now there is no other choice. Printed money must
be done to recover from the economic crisis, the amount of $ 850 billion is indeed a huge number. But I am sure that the $ 850 billion
has been calculated by the European Union, although the effect will occur tax increases and inflation in Europe. Even countries like Japan
and the United States do the same thing. And this will take place at least until the vaccine is found.

[davis196]

The European Union has revealed its intention to raise up to $ 850 billion to its members to fund their recovery from the economic meltdown.
Before this package, the European Union approved a stimulus package worth 540 billion euros.
The new packages will give the European Union the ability to raise taxes directly, potentially causing inflation in Europe and beyond.

Countries like Japan, which released the $ 2.2 trillion package, and the United States, which passed $ 2.3 trillion, made a refund package.

Buy Bitcoin https://beincrypto.com/eu-unveils-new-750bn-euro-covid-19-recovery-plan/

I don't think that the 750 billion euro EU plan is approved by all countries yet.The northern countries(Netherlands,Germany,Sweden) don't want to increase their spending,while the southern countries want more help coming from the EU budget.The idea of Euro obligations is a problem,and the rich northern countries refuse to pay the debts of the poor south.
Anyway,the EU stimulus plan is way smaller than the US and Japan stimulus plans,so the euro will keep it's value and will continue to be one of the world's most expensive fiat currencies,which is bad for the EU export.

[Cnut237]

Italy's economy (at 10x the size of Greece's economy) has the weight to crush the Euro if it collapses. That's a much bigger concern than a marginal increase to the the EU's debt ceiling.

Yes, Italy is a huge concern. It's the same old narrative in the EU - whether true or not - of the 'responsible north' bailing out the 'profligate south'. This pandemic has hit Italy and Spain harder than most, and these two countries get a lot of income from tourism, which is obviously one of the worst-hit industries. But all of Europe is hurting economically. Tension is increasing, the question is whether it will increase so far that the EU collapses.

[Vishnu.Reang]

EU is being run by populists and I don't expect much in terms of fiscal intelligence. They need to keep their support base (i.e welfare rats) happy with unlimited infusion of free money. This is not viable in the long term, and sooner or later we will witness a complete economic meltdown similar to what happened in Greece a few years back. The COVID 19 pandemic will act as a trigger.

[Febo]

EU is trying to do thier best to save the situation

By devaluing their own currency?

All fiat currencies are designated to die sooner or latter. It was known already before covid-19 pandemic. This ill just make it faster. Economist dont care about it anymore. They of course believe that there will be simple bailout and will simply start using new fiat currency. But Bitcoin have other plan.

[bitgolden]

How are we going to feel all of this in the end? That is what I want to know. Right now economy is not awesome obviously but its not at a "we are all going to starve to death" level neither, we are doing fine. I was expecting something much much bigger when this pandemic hit all the developed nations. USA is one huge nation in economy and they have 100k+ people dead, with millions unemployed and yet the economy looks like it is doing just bad, and I mean bad is good when we are talking about something this huge, it suppose to be horrible, it suppose to be world ending, not just bad.

So, I want to know what awaits us in the future, I can't even begin to think what would happen if the economy just continues like this, I expected a horrible one but got a bad one instead which is alright but the bad one can't continue forever, we need to start recovering, but if we go even worse instead of recovering it is going to be hell.

[exstasie]

How are we going to feel all of this in the end? That is what I want to know. Right now economy is not awesome obviously but its not at a "we are all going to starve to death" level neither, we are doing fine.

In developed countries that's in large part due to stimulus and relief measures, government loans to affected businesses, temporary forbearance and deferment of debt, moratoriums on evictions, etc. These put a big band-aid over everything. Whether they will reverse the tide, we'll see.

In less developed countries there is actually great fear about hunger. https://time.com/5842424/hunger-coronavirus-world-food-programme/

An estimated 265 million people could go hungry in 2020, nearly double the 2019 figures, according to WFP’s projection in April.

[Barnabe]

EU is trying to do thier best to save the situation

I understand that they are trying their best to save the situation cause the countries like Spain and Italy which are hit hard by the pandemic will run into recession if the loan is not provided but they are not doing it right because the printing of much fiat currency will only cause inflation and this was the exact mistake they have done back then before the existence of bitcoin and i wonder why they are recruiting the same mistake.

Printing money (or QE) is just another tax on who owns it. And at the moment, I think it's the only tool Europe has that could be of help... Several countries have tried to decrease their spending these last few years without success, so they might be out of options...