The Dumpsterfire Economy

[Rajoo]

The long-term implications of all this borrowing put the United States on track to ultimately owe more to its creditors than the economy produces over the course of a year. The nonpartisan Committee for a Responsible Federal Budget projects that the United States will run $2 trillion annual budget deficits by 2027 and have a debt-to-gross domestic product ratio of 105 percent — a level not seen since the end of World War II.

“With this deal, we will experience trillion-dollar deficits permanently,” said Andy Roth, vice president of the conservative Club for Growth. “That sort of behavior, the last time I checked, is not in the Republican platform.”

Time to start the treasury printing presses and hope they don't run out of paper.

And poor Nancy once again proved her ineptness, 8 hours and no DACA. Clutching defeat from jaws of victory?

https://www.nytimes.com/2018/02/08/u...T.nav=top-news

[finnbow]

Originally Posted by whell

Maybe you're an idiot too for just lapping up what Carney and company say?

https://www.cnbc.com/2014/08/04/obam...rd-growth.html

"Let's look at the facts," Obama said. "Since I have come into office, there's almost no economic metric by which you couldn't say that the U.S. economy is better and that corporate bottom lines are better. None."

He went on to cite the administration's successes: "a record stock market," "record corporate profits," 52 straight months of consecutive job growth" and "an energy sector that's booming."

Obama did start off in the midst of the second worse economic downturn in US history with a GOP Congress unwilling to support deficit spending to help fix it. Trump started with the US economy already in record territory, which continued until the GOP passed their ignorant, fiscally-responsible tax cut which led to two 1,000 point drops in the Dow due to inflationary pressures.

[Rajoo]

This is a good column by Catherine Rampell of WaPo.

In 2009, a few weeks after Barack Obama took office, a Republican political movement — one supposedly grounded in fiscal conservatism — was born.

Sure, the country was teetering on the edge of another Great Depression, a circumstance that would normally call for aggressive fiscal stimulus. Tea party Republicans, however, demanded belt-tightening. They wanted a government that stopped spending beyond its means. That meant, above all, reducing federal debt.

Maybe even passing a balanced- budget amendment!

Curiously, in the past few months, all those fiscal hawks have flown the coop.

The federal government is on track to borrow $1 trillion this year, roughly double what it borrowed last year.

The huge increase is partly driven by the ginormous, plutocratic tax cut Congress passed in December, as well as less-noticed, smaller rounds of tax cuts that have passed since then. Now comes a planned two-year budget deal that includes hikes in both defense and nondefense spending.

President Trump is also pushing for even more deficit-financed spending, including a border wall and an infrastructure package.

With no Democrat in the White House, Republicans have stopped worrying and learned to love deficits.

Imagine that, borrowing money to pay for tax cuts and burdening the debt on future generations. It's so easy since they are too young vote. This is like giving myself a bonus from our company's line of credit. Can I?

https://www.washingtonpost.com/opini...=.bfdffecd28f2

[Dondilion]

Originally Posted by Rajoo

Time to start the treasury printing presses and hope they don't run out of paper.

And poor Nancy once again proved her ineptness, 8 hours and no DACA. Clutching defeat from jaws of victory?

https://www.nytimes.com/2018/02/08/u...T.nav=top-news

The press been printing for a long time and paper is cheap.

[whell]

Originally Posted by finnbow

Obama did start off in the midst of the second worse economic downturn in US history with a GOP Congress unwilling to support deficit spending to help fix it. Trump started with the US economy already in record territory, which continued until the GOP passed their ignorant, fiscally-responsible tax cut which led to two 1,000 point drops in the Dow due to inflationary pressures.

All of which has nothing to do with what I posted. But hey, rave on Finn.

[whell]

Originally Posted by Rajoo

Time to start the treasury printing presses and hope they don't run out of paper.

They've been doing that FOR YEARS now - that what "quantitative easing" was all about" - and that's what has held down interest rates and was one of the primary drivers of the stock run up under Obama. The US Treasury sold trillions of dollars of bonds each year to paper over the US government deficit. The Federal Reserve printed trillions in extra money to buy these government bonds.

QE was fine in some respects. It certainly allowed the gov't to finance debt at lower rates. The negative side of that, of course, is that it lowered the pain of borrowing and did little to curb the appetite to spend. It allowed people to refinance homes at great rates and helped financial institutions earn an outsized profits without taking much risk (I'm sure the Dem's Wall Street donors were pleased about this.)

On the other hand, while big banks were making big money due to lower rates, they didn't made loans more easily accessible to people and companies.
All that talk about financial disaster that helped the Fed sell the idea of QE probably made banks more conservative when it came to loans. They also had the increased oversight of Dodd Frank to make them more risk averse.

But the other big thing that QE accomplished: it has made the stock market soar. Interest rates have remained so low for so long that investors have had no other choice but to move their money into the stock market. Now that rates are edging up, its letting some air out of the bubble.

This wasn't difficult to foresee. It does create an opportunity for the Dems to make some political hay, however. Nothing new there either.

[Chicks]

Originally Posted by whell

All of which has nothing to do with what I posted.

Given that your posts are rarely of any value, and generally OT, it’s little wonder.

You’re like your Dear Leader. You want everything to be about you. Most of the rest of us are more concerned with our country, and the horrible things this incompetent administration is doing to it and its people.

[whell]

Originally Posted by Chicks

Given that your posts are rarely of any value, and generally OT, it’s little wonder.

You’re like your Dear Leader. You want everything to be about you. Most of the rest of us are more concerned with our country, and the horrible things this incompetent administration is doing to it and its people.

Yawn. The above coming from Jay Carney's parrot.

[Dondilion]

Originally Posted by whell

They've been doing that FOR YEARS now - that what "quantitative easing" was all about" - and that's what has held down interest rates and was one of the primary drivers of the stock run up under Obama. The US Treasury sold trillions of dollars of bonds each year to paper over the US government deficit. The Federal Reserve printed trillions in extra money to buy these government bonds.

QE was fine in some respects. It certainly allowed the gov't to finance debt at lower rates. The negative side of that, of course, is that it lowered the pain of borrowing and did little to curb the appetite to spend. It allowed people to refinance homes at great rates and helped financial institutions earn an outsized profits without taking much risk (I'm sure the Dem's Wall Street donors were pleased about this.)

On the other hand, while big banks were making big money due to lower rates, they didn't made loans more easily accessible to people and companies.
All that talk about financial disaster that helped the Fed sell the idea of QE probably made banks more conservative when it came to loans. They also had the increased oversight of Dodd Frank to make them more risk averse.

But the other big thing that QE accomplished: it has made the stock market soar. Interest rates have remained so low for so long that investors have had no other choice but to move their money into the stock market. Now that rates are edging up, its letting some air out of the bubble.

This wasn't difficult to foresee. It does create an opportunity for the Dems to make some political hay, however. Nothing new there either.

In other words we have just been printing phony money and having a ball while the outside world helps subsidize the party.

[finnbow]

Originally Posted by whell

All of which has nothing to do with what I posted. But hey, rave on Finn.

Your cluelessness on economic matters challenges that of your illiterate Dear Leader.