Congress’s $2 Trillion Coronavirus Stimulus Package will not go well

Updated: May 28, 2020

When Congress reach a historic $2 trillion stimulus deal, an IChing reading 兌為澤 is derived. It is said that there are some internal conflicts. The ripple effect will not reach the furthest end. The one who would benefit more are the ones closest to Congress.


兌為澤 is also known as one of the eight pure hexagrams. In general, when a pure hexagram is derived, it denotes an ominous uncertain situation. 兌為澤 also explains that harmony is the key to resolving. Easier said than done especially in a freedom society like the United States. It isn't easy to unite the influential individuals.

If we looked at the provision, we would notice that

  1. Businesses: Loans for distressed companies from a $425 billion fund controlled by the Federal Reserve. An additional $75 billion would be available for industry-specific loans, including to airlines and hotels.

  2. Small business: $367 billion federally-guaranteed loan program for small businesses who must pledge not to lay off their workers. $10 billion in Small Business Administration emergency grants and up to $10 million of emergency relief per business. $17 billion for the SBA to cover six months of payment for small businesses with existing SBA loans. $30 billion in emergency education funding and $25 billion in emergency transit funding.

Total Business Budget: $917 billion (Almost half of the $2 Trillion Coronavirus Stimulus Package)


Healthcare: $100 billion in assistance for hospitals and health systems across the nation.


The focus has turned to the economic response to the coronavirus pandemic, with experts and politicians proposing their preferred policy tools — ranging from tax cuts to corporate bailouts to direct payments of cash. Each is worth debating, but the focus is misplaced. This is not an economic crisis; it is a healthcare crisis.


The stimulus package is a historic amount in US history which may leave them too much too early and too little too late. US has been misjudging the timing of market from impact of coronavirus, interest rate and now $2T stimulus package. Even though the package may serve as a temporary measure to help support Wall Street but it could not consider as an effective measure to contain the virus. The balance of health and economy is tilted. More budget may be required for healthcare when the infection prolongs. The aftermath of this may widen the US debt further and jeopardize the US as a secure powerhouse in the future.






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JASON CHAN

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