Fed Plans To Dispense Helicopter Money

Aug. 3, 2020 (EIRNS)—Bloomberg on Aug. 1 interviewed Simon Potter, who led the Federal Reserve Bank of New York’s markets group (Plunge Protection Team), and Julia Coronado, formerly an economist for the Fed’s Board of Governors, whom they term “innovators brainstorming solutions,” for reinventing the Bernanke helicopter. Their plan for the Fed is called “recession insurance bonds” in which, using central bank digital currency, it would place directly into various business and household accounts when recession “triggers” were reached as a means to “bypass wrangling in a crisis.” With their helicopter as a “separate infrastructure,” Coronado sums up: “The Fed would then activate the securities and deposit the funds digitally in households’ apps.”