FAST FIVE: Hong Kong Embraces Helicopter Money – Govt Gives Every Adult Citizen HK$10,000
Hong Kong Embraces Helicopter Money – Govt Gives Every Adult Citizen HK$10,000 Hong Kong just went full monetary-policy retard.
Support to working parents as well as allowance on rental expenses for residences.
The handout will cost HK$71 billion and benefit around 7 million people: “I have to emphasise that, although the cash payout scheme involves a huge sum of public money, it is an exceptional measure taken in light of the current unique circumstances and will not, therefore, impose a burden on our long-term fiscal position.” Notably, Bloomberg's Iain Marlow points out that Chan noted he needs to get the approval of the Legislative Council for the “exceptional” cash handout.
So Hong Kong is about to unleash the mother of all stagflations on its people – who were already on the brink of massive social unrest before the virus forced lockdowns.
Supply chains have collapsed, therefore there is no supply of goods or services, but demand is about to soar (thanks to free money drops from the government)…What happens to prices we wonder.