US posts largest budget deficit on record in February

Discussion in 'United States' started by Jimbo11, Mar 22, 2019.

  1. Jimbo11

    Jimbo11 Well-Known Member

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  2. 61falcon

    61falcon Well-Known Member

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    The hits just keep on coming.
     
  3. Spooky

    Spooky Well-Known Member Past Donor

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    We are still feeling the effects of Obama's economy unfortunately.
     
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  4. Doofenshmirtz

    Doofenshmirtz Well-Known Member Past Donor

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  5. Spooky

    Spooky Well-Known Member Past Donor

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    Well until they get their reparations, free healthcare, free college.....then they will become ignorant again.
     
  6. Jimbo11

    Jimbo11 Well-Known Member

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    Somebody has to! The GOP deficit hawks have all died under an orange cloud of Dung...
     
    Last edited: Mar 22, 2019
  7. fullmetaljack

    fullmetaljack Well-Known Member

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    It’s sad to see cons abandoning all pretense of fiscal responsibility just to try and stay in power.

    Masters of hypocrisy, every last one of them.
     
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  8. Doofenshmirtz

    Doofenshmirtz Well-Known Member Past Donor

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    Two sides of the same ugly coin. Neither have any respect for our hard-earned money. I have no respect for either party on this issue.
     
  9. Mr_Truth

    Mr_Truth Well-Known Member

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    Suddenly the right no longer is concerned over deficits or debts.
     
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  10. Giftedone

    Giftedone Well-Known Member Past Donor

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    AKA - Princess with a Credit Card.

    Despite all this credit card spending - GDP for the Q1 is projected to come in at well under 1%. What happened to the 4% - "or much higher" that Trump was boasting about ?

    In 2018 I said that the massive deficit spending Trump was doing was like putting nitro in to an engine - short term gains for long term losses. What I did not expect is this prediction to happen so quickly.

    That said - I do not blame Trump for much of this. It is abject nonsense to think that a President can have some significant effect on the "Invisible Hand" in the short term. What this does mean however, was that Trumps comments show no understanding of how the economy works.

    In other news - the yield curve has inverted. This is the best historical indicator of a recession. The 3 month yield (2.46) is now above the 10 yr. (2.43) and much higher than the 5yr (2.22).

    In normal markets the short term yield is much lower than long term yields. In 2015 for example the 3 month TBill was at 0.2% and the 10yr was over 2%.

    Banks borrow short term and lend long term - making money on the spread. When there is no spread - or worse (negative as in the case of an inverted yield curve) Banks do not want to lend. Credit contracts and with it economic growth.

    An inverted yield is an indication that something is wrong - that the patient is sick - that the desire for US debt is waning.

    We also see this lack of desire for our paper in an overall increase what we have to pay for our debt = a rising interest rate environment.

    [​IMG]

    Above is a chart of the 2yr. So in 2014 the Gov't could borrow 1 Trillion dollars at 0.4%. Interest payments would be 4 Billion/year.
    In 2016 when that debt had to be refinanced you had to pay more - 0.8% or 8 Billion/year.

    By the middle of 2018 - when you had to refinance you now have to pay 2.5% = 25 Billion/year - more than 6 times as much as 4 years prior.

    In stable economic times - the most fiscally irresponsible thing a Gov't can do is engage in massive deficit spending in a rising interest rate environment.
     
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  11. Giftedone

    Giftedone Well-Known Member Past Donor

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    You mean the Bush economy that Obama inherited ;) heh heh heh
     
  12. vman12

    vman12 Well-Known Member Past Donor

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  13. ronv

    ronv Well-Known Member

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    Is this that new RW math Kelly Anne talks about?

    upload_2019-3-25_10-51-49.png
     
  14. vman12

    vman12 Well-Known Member Past Donor

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    No that would be the doubling of the debt since 2010, with Congress still spending at the same amount.

    Do you need some help figuring it out?
     
  15. ronv

    ronv Well-Known Member

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    I think we all understand what Bush did to Obama.
    But yes, please explain why Trump wants to double the deficit Obama left him.
     
  16. Jimbo11

    Jimbo11 Well-Known Member

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    Don't mention Trump's give away to the wealthy....of course....as he says

    He won't be around when the sh*t hits the fan....but our children and grandchildren will. We can understand a spiraling deficit in order to recover from a recession..but not when the economy is doing well.
     
  17. vman12

    vman12 Well-Known Member Past Donor

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    Well if it does, I guess you'll understand what Obama did to Trump, based on your reasoning here.
     
  18. vman12

    vman12 Well-Known Member Past Donor

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    Oh please.

    If the left gets what it wants, their kids, if they survive, will be eating out of trashcans in their burkas.
     
  19. EarthSky

    EarthSky Well-Known Member

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    So loss of revenue from tax cuts combined with massive military spending has nothing to do with it?
     
  20. vman12

    vman12 Well-Known Member Past Donor

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    There was no loss of revenue.
     
  21. Creasy Tvedt

    Creasy Tvedt Well-Known Member

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    I am. I'm terrified of the deficit. It's good that Trump has finally made the left care about deficits. That's just one more miracle he's managed to pull off.

    I will loudly criticize Trump for racking up debt, the same as I did when Obama was doing it, and you didn't hear a peep about it from the left.

    I'm worried about the mounting deficit, and my hope is that Trump will be reelected, and solidify the political clout necessary to go after the bloated entitlement programs hard, and trim some serious fat like you know he wants to.

    If a Dem defeats Trump, we're basically doomed. It'll be the left's New Green Deal lunacy which will amount to spending ALL THE MONEY EVAR! WEEEEEE! on saving the world from cow farts and capitalism.

    In summation- the mounting national debt scares the bejesus out of me, and I hope and pray that Trump will get busy doing something about it once he wins reelection in 2020, and he smacks the obstructionist Dems out of his way.
     
    Last edited: Mar 25, 2019
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  22. Jimbo11

    Jimbo11 Well-Known Member

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    Yeah....republIcans NEVER cause recessions...except they always do!

    Now they are letting Trump bankrupt the country WITHOUT A PEEP FROM THE DEFICIT HAWKS....
     
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  23. ronv

    ronv Well-Known Member

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    Of course there was.
    Are you about to say population increase shouldn't count?
    If so save it.
     
  24. ronv

    ronv Well-Known Member

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    Still waiting.
     
    Last edited: Mar 25, 2019
  25. Mac-7

    Mac-7 Banned

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    We could cut back on the unearned socilal programs like medicaid, food stamps and the EITC to name a few

    And we could cut imports from china

    But liberals will not agree to that
     
    Last edited: Mar 26, 2019

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