The US needs to borrow almost $300 billion this week

The budget deficit will balloon as rising interest rates sharply increase debt service outgoings.

 

I saw that tonight on the news.

 

While I agree that neither Bush or Obama were fiscally responsible. Reagan was the worst and Bush Sr was also a princess with a credit card.

These two took us to the brink of insolvency. Interest on our debt as a ratio of income shot up to over 25%.

It is somewhat meaningless to pick out numbers numbers void of context and assigning blame on that basis.

It is one thing to be handed a zero deficit and end up with a 1.4 Trillion dollar deficit like Bush Jr. It is quite another to be handed a 1.4 Trillion dollar deficit and a burning ship when you wank into office.

Once again we have a Republican walking into office with a reasonably good economy and a deficit-while I would not call 500-600 Billion reasonable it was trending down - and spend money like a princess with a credit card.

The problem with Trumps fiscal irresponsibility is made worse due to a rising interest rate environment. Interest on our debt is going to balloon.

 

<Rule 2>

You are fully aware that your claims are complete and total bull ****?
Federal Debt:
Jan 20 2014: $17,273,683,713,523.05
Jan 20 2015: $18,086,048,044,499.39 Increase $812,364,330,976.34
Jan 20 2016: $18,941,406,899,252.15 Increase $855,358,854,752.76
Jan 20 2017: $19,947,304,555,212.49 Increase $1,005,897,655,960.34 An ^18% INCREASE Final Obama year.
Jan 20 2018: $20,493,342,622,878.63 Increase $546,038,067,666.14 A ^46% DECREASE from Obama's final year.

Federal Debt accumulation was trending UP not down. The amount of Federal Debt Increase in Obama's final year was almost 20% higher than the amount of his increase the second to the last year he was in office, and in Trump's first year, he cut the increase, nearly in half!

https://www.treasurydirect.gov/NP/debt/current

 

Don't blame me for your inability to figure out when the fiscal year begins and ends.

 

Pick any date at random, it's going to tell roughly the same story.

 

The date is not "random" The fiscal year goes from October 1 to September 30.

Deficits
2009 - Bush's last fiscal deficit - 1,413 Billion
2010 - Obama's first fiscal deficit - 1,294 Billion

2014: 485 Billion
2015: 438 Billion
2016: 585 Billion
2017: Obama's last Fiscal year - 665 Billion
https://www.usgovernmentspending.com/federal_deficit_chart.html

If you google the deficit headlines for any year (I chose 2017) you will find hundreds of business sites that will give you what the deficit was - to check the number from the site you are using.

U.S. ends fiscal 2017 with $666 billion budget deficit
https://www.marketwatch.com/story/us-ends-fiscal-2017-with-666-billion-budget-deficit-2017-10-20

The Real Halloween Scare: The U.S. Ran a $666 Billion Deficit Last Year
http://fortune.com/2017/10/21/666-billion-federal-deficit-2017/

I can post 10 more sites if you like .. business sites - not some partisan website with an agenda. All will give the same numbers as given above.

Don't call me a clown when it is you who does not have your ducks in a row.

 

Obama's term didn't end on 9/30 it ended on 1/20, Silly!

 

Once again - your understanding of how our budget process works is flawed. The 2009 budget was put out in Feb 2008 by Bush. That Budget called for 3.1 Trillion in spending on estimated revenue of 2.7 Trillion for an estimated deficit of 400 Billion.

The 2009 Budget year starts in October 2008 and ends in September 2009.

The 1.4 Billion dollar deficit for 2009 as achieved as follows: 400 Billion was already baked into the cake. https://www.cato.org/blog/dont-blame-obama-bushs-2009-deficit

It is not like when a new President comes in 5 months into the fiscal year he redoes the budgets from all the various departments. The money has already been allocated. The new President can spend new money but it is not like he goes to the Dept of Defense and says "give me that money back".

So where did the other 1 Trillion dollars come from ?

1) Due to the 2008 crash - revenue dropped from 2.7 Trillion down to 2.1 Trillion (600 Billion)
2) TARP (250 Billion - enacted under Bush) and other stimulus spending accounted for the other 400 Billion.

 

Uhhh...

You claimed the Federal Debt was falling as Obama left office and Trump took over.

The RATE of Federal debt accumulation increased by nearly 20% in Obama's final year and then dropped by nearly 50% in Trump's first year. Weird thing, Obamanomics didn't work until Trump got elected. And now you are going back nearly a decade in this frantic attempt to take the attention off what we have been watching with our our eyes these last few years?

Thank goodness the Bush/Obama era is OVER!

 

I did not ever claim the debt under Obama was falling. I claimed "the deficit" was falling. The difference between what we take in and what we spend. Nor do I give Obama any big Kudo's for reducing the deficit and certainly not for reigning in spending to any great degree.

Nor do I blame Obama for walking into a 1.4 Trillion dollar deficit that had nothing to do with him. I do not solely blame the Bush administration for handing Obama a 1.4 Trillion dollar deficit -although it is hard not to blame most of it on the Bush administration and the Bush admin was as "Establishment" as it gets.

It was the Establishment that was responsible for the 2008 crash - and anyone who has studied the crash in any detail is hard pressed to deny this.

Watching the fed heads walking around saying "we had no idea" when sht hit the fan was like someone throwing a bunch of rocks or shooting bullets into a crowd of people and claiming to be surprised - and not responsible - at the fact that people were injured.

Every mortgage broker, banker, investment bank KNEW that the bomb was going to explode. Many like Paulsen even predicted the time period when it would happen.

So your a mortgage broker - you no longer have to ensure that the person you are giving a mortgage to has credit, a job, or assets ... NINJA loans No income - no Job - no assets.

In fact - you get paid more the worse the applicant is !! The bank doesn't care - unlike in previous days when they made money off of holding that loan to maturity - and profiting off the interest so long as the person remained solvent - the bank was selling the paper prior to the ink on the paper being dry into a mortgage backed security.

Now many of these loans were ARM's adjustable rate mortgages. You got a low rate for the first three years and then the interest rate would double or triple. People who were diligently making payments and doing the right things and trying to make a go of it got the big shaft.

Imagine scraping buy to make your payment of 1000/month .. and all of a sudden you find out that your mortgage payment is now $3000.

Its like throwing rocks into a crowd - you know that many of these mortgages are going to default. EVERYONE in the industry knew that at some point the party would be over .. and that it would be like a game of musical chairs when the music stops.

The investment bankers during the hearings - were found to have been sending emails to each other laughing about "what a piece of carp" in relation to the product they had just sold to some schmuck investor.

Paulsen put one these packages together for (think it was JP Morgan). He chose the worst of the worst mortgages he could find. Then he shorted it - bought insurance called a Credit Default Swap CDS. This is like insurance on your house - if the house gets destroyed you get paid out .. except in this case you do not have to own the underlying asset. It is like being able to buy insurance on your neighbors house and getting paid out when there is a hurricane.

This insurance could be bought for pennies on the dollar ... not even. 1 dollar could insure 1000 dollars. AIG - The Too Big To Fail company- was the issuer of Billions of dollars of these swaps. Then you have leveraged money investing in these CDO's and MBS's so you had leverage on leverage.

There are more issues related to third party risk that came into play - which led to a full blown global financial crisis but - you should get the gist of it from the above.

The bottom line is that this was a big ponzi scheme and everyone knew. The idea that the Fed did not realize what was going on ...and that at some point that the crisis would happen doesn't come close to passing the giggle test. There are recorded incidents of really smart people giving specific warnings ... just watch the documentary "Inside Job" and some of these people are interviewed.

Then when the crash happened - guess who got bailed out ... the Establishment international financiers who's little game got so out of control and the collapse was so fast and furious - that they themselves were on the brink of suffering serious financial loss.

And guess who bailed them out ? ---- the good taxpayers of the USA.