Nations across Asia are scrambling to prop up their deteriorating economies as the Coronavirus continues to spread. Some are so obsessed with growth that they are handing out free cash to citizens.
Hong Kong Hit Hard
The Hong Kong economy has been battered over the past year or so as protests and rioting gripped the island nation. The Coronavirus (Covid-19) outbreak has added to Hong Kong’s woes as the country plunges into recession.
According to reports the government has unveiled a budget packed with giveaways which include a one-time cash handout to its citizens. One of the main features of the annual budget announced this week is a payment of HK$10,000 (approx. US$1,280) to each permanent resident of the city aged 18 or older.
The cash handouts are part of a $15 billion stimulus package but economists are not convinced that giving away free money is the solution.
Crypto industry insider Anthony Pompliano called it insanity adding;
“Governments are so addicted to growth that they are doing cash giveaways!”
LATEST EXAMPLE OF THE WORLD GOING INSANE:
The Hong Kong government is handing out $10,000 Hong Kong dollars (~$1,200 USD) to about 7 million citizens.
This is part of a $15+ billion stimulus package.
Governments are so addicted to growth that they are doing cash giveaways!
— Pomp 🌪 (@APompliano) February 26, 2020
Binance boss Changpeng Zhao commented that it is a rare occasion they actually gave it to the people.
“Usually, it’s just printed and the people won’t see a penny of it. But still, unlimited supply…”
He added that because the HKD is pegged to the USD they can keep printing more as the FED does.