Wednesday, March 18, 2020

The Discussion of Corona-Geld

It got picked up this week....a discussion by political folks over granting 'Corona-Geld' (Coronavirus-money).  So what you have in Germany is a fair sum of people who were working 'per-hour' situations and now the shop is closed.  Grocery and drug-stores remain open....but the rest are under some official closure orders.

So if you ran a furniture store, or a ice-cream shop....you are likely closed, and the people you paid (per-hour) are sitting at home.

For the German federal government to pick up this bill?  It would go into the tens of billions to just cover one single month.  The problem is that you have to invent some method....just to cover rent-money and food expenses.  My humble guess is that some cash-flow will occur within the next ten days, and a check will be issued to people who make less than 1,500 Euro take-home each month.....to cover this period.

How long can the German government cover something like this?  It would shock me if they went past sixty days.  Dumping the 'black-zero' financial strategy within the Merkel-coalition?  You'd have no choice.

Expect this to be the bigger of topics between now and the middle of next week.

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