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Four Hundred And Eighty-Eight Billion

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http://abcnews.go.com/Business/wireStory/us-treasury-q1-borrowing-set-record-488-billion-54836250

Okay. If the across-the-board horrible results that the South has consistently gotten for the conservatives it keeps consistently electing isn't enough to prove to conservatives that they are gullible idiots who are too stupid to be voting, maybe this will do it.

During a booming economy (inherited from his predecessor, who -- surprise! -- knew how to handle an economy better than the Republicans do), Trump is building the deficit at record levels. From January to March, the Treasury borrowed $488 billion dollars, which is the highest for that period. By 2020 the deficit's projected to be over a trillion.

This is happening with a Republican president, Republican house, Republican senate, and during a good economy.

Last time this much was borrowed it was because we were having to get the country out of a massive recession. The Republicans don't even have that excuse now. This is just flat-out stupid irresponsibility from people who don't know how the economy works, and don't give a damn, either, because they're looting things for their rich buddies who already have more than they could ever spend anyway.

Any idiot -— well, almost any idiot — knows that in times of economic trouble, you borrow to get out of it. When the economy’s strong, that’s when you pay down your deficit. You don't lower taxes to “stimulate” an economy that’s in no need of stimulating. And you sure as hell don’t hike up the borrowing!

Trump’s financial legacy is debt and bankruptcy. I don’t care if he plays with his money and future that way… but this isn’t his money, it’s all of ours. The colossal fools who voted for this guy didn't research his actual financial skills, they just bought an image cooked up for a reality TV show, because that's all they're capable of understanding. They're opinionated children who like to be told stories, and, unfortunately, they get to participate in making decisions that affect the rest of us... and that's why we've got this incompetent dolt in the White House. They can get mad at me all they want for saying it, but, sorry, it's the truth, it's in your face, there's no denying it, there's no worming out of this one, and no one left to blame.

If you still back Trump, you're an idiot. You have nothing to say to anyone about anything. You're the low-end of the intelligence bell curve and should just be grateful that the rest of the world is willing to put up with you.

There are pre-teens running paper routes who understand economics better than Trump and his goons do.

Honestly, I think they know the clock has started on them and they’re making one last cash grab before their goddamn party’s voted to oblivion in the next few years. They know they screwed up so now they’re just smashing windows and filling their pockets as the sirens get louder in the distance.

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Sooo... Obama deficits to wall st, banks, and the mic good. Trump deficit to the citizenry bad.

Got it... lol. Razz The funniest part is we're talking about money that people earn... it's not a giveaway.

I hope he starts cutting the fed govt like a Thanksgiving Turkey to calm your leftist sensibilities.

Hypocritical as they are.

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Great post Z. The republican party should be replaced by a more honest version of themselves like the Sexual Abuse Party or the MAGA Child Abuse Party or the Woman Hating Idiots Party. Their voters would all be happier in a party like that anyway. Of course you know that the NRA, the Mercer Psycho Family and the Koch Brothers will still be shoving tons of money down the open maws of these neoconservative parties so they will still have success at the voting booth. They care nothing about their families nor their children because they have no souls. Maybe the Republican Ugly Soulless Establishment party would be the best fit for those people. Calling them people is more praise than they deserve Twisted Evil

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Raving about deficits is a conservative scare tactic and ya'll are falling for it.

The Public debt comprises debt instruments, i.e. Treasury bills, bonds and notes, that have been bought by the private sector. In other words: PUBLIC DEBT IS PRIVATE SAVINGS.

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Deus X wrote:Raving about deficits is a conservative scare tactic and ya'll are falling for it.

The Public debt comprises debt instruments, i.e. Treasury bills, bonds and notes, that have been bought by the private sector. In other words: PUBLIC DEBT IS PRIVATE SAVINGS.

How do massive loans from other countries such as China fit into that picture? (I'm asking because I really don't know -- finance is not my bailiwick.)

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RealLindaL wrote:
How do massive loans from other countries such as China fit into that picture? (I'm asking because I really don't know -- finance is not my bailiwick.)

They buy Treasuries at auctions the same way other nations, institutional investors--pension funds, etc.--and private citizens do. All of them buy Treasuries because, although they are low yield, they are the safest investments possible.

To finance the public debt, the U.S. Treasury sells bills, notes, bonds, Floating Rate Notes (FRNs), and Treasury Inflation-Protected Securities (TIPS) to institutional and individual investors through public auctions. Treasury auctions occur regularly and have a set schedule. There are three steps to an auction: announcement of the auction, bidding, and issuance of the purchased securities.

https://www.treasurydirect.gov/instit/auctfund/work/work.htm


The Safest Investment

Treasuries are backed by “the full faith and credit” of the U.S. government and, as a result, the risk of default on these fixed-income securities is next to nothing. Since the initial formation of the government in 1776, the U.S. Treasury has never failed to pay back its lenders.

Not even the safest corporate bond in the world can make that claim. If your primary goal is to not lose your money, treasuries are for you. When you buy a treasury bill, bond, or note, you can rest assured your principal will be returned in a timely manner, along with all the interest that's due.


https://www.thebalance.com/what-is-the-safest-investment-417037





http://ticdata.treasury.gov/Publish/mfh.txt

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Despite the fact that  "air dollars" are sold as bonds primarily... that doesn't change a few simple facts. The buyers expect returns and they will receive increased interest on them... they are the wealthy elite and nations. There was so much "money" injected by the fed during the Obama admin that there's simply no other outcome. Inflation and interest rate hikes are certain and the beneficiaries are not mom and pop. It'll be a continued transfer of great wealth via and to the detriment of our economy and country. There was no other expected outcome... despite what that idiot Krugman spews. Our only real chance is to grow the economy and continue creating jobs. I don't see how the dem platform for regulation, taxes, and socialized authority can be appealing to anyone with half a brain.

https://www.google.com/amp/s/wtop.com/business-finance/2018/05/fed-set-to-leave-rates-alone-amid-signs-of-rising-inflation/amp/

https://mobile.nytimes.com/2018/04/26/upshot/the-era-of-very-low-inflation-and-interest-rates-may-be-near-an-end.html

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Deus X wrote:
RealLindaL wrote:
How do massive loans from other countries such as China fit into that picture? (I'm asking because I really don't know -- finance is not my bailiwick.)

They buy Treasuries at auctions the same way other nations, institutional investors--pension funds, etc.--and private citizens do. All of them buy Treasuries because, although they are low yield, they are the safest investments possible.

Thanks, Deus, I never knew that.

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How “Voodoo” Caused Most of the National Debt

"We’re still great, but here’s how national-debt policy was captured by Wall Street and went crazy. You can see exactly when it happened in this graph. You can even see the first President Bush predict it in the video clip below. And then take it back when he gets a new boss. Now Trump is under the Voodoo spell, and this time the country really is losing its greatness.



World War II was looming, and the country was flat broke. But Uncle Sam was popular, the country patriotic, and all were happy to lend him money. Compared to the size of the economy back then, the debt soon outstripped even today’s debt, and we won the war. Then, without any to-do, we almost paid it off, until …

Something weird happened. When Ronald Reagan became president. He rode to office on complaints of an “out-of-control debt” that was as big as “a stack of $1000 bills 67 miles high.” And in eight years in office he added another 125 miles to that stack.

Debt: Total owed from past and present borrowing. Deficit: This year’s borrowing.

As the graph shows, the debt was actually at its lowest point in 50 years compared to the US economy, but he grew the debt much faster than he grew the economy. That’s why the graph shoots up when he takes office. No one had done that since Word War II, and Reagan had promised to balance the budget. That’s weird.

But one guy saw it coming and said so loud and clear. And that same dude, a first-class Republican, is seeing the same thing all over again and says he’s voting for Hillary Clinton (09/19/16). His name is George H. W. Bush, the 41st president of the United States.

He called Reagan’s plan Voodoo economics, and when it came to the debt, that Voodoo made a zombie out of Reagan and generations of Republicans. Unfortunately Bush lost the primary to Reagan, and Reagan made him vice president. So not long after he called Voodoo on Reagan, he had to deny he ever said it. It’s well worth 22 seconds of your time to watch this:..."

(read the rest @Smile

http://zfacts.com/p/318.html

*************

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Floridatexan wrote:How “Voodoo” Caused Most of the National Debt



So what?

The National Debt: Why Fret Over Something That Doesn't Exist?

The public is lied to when it comes to the so-called national debt. They're clueless about it
[That's you, FT] , as are most, if not all, of our lawmakers.

First off, there is no debt. The debt is dollars. The government spent $20 trillion more than it took away in taxes over the last 240 years, and those dollars, held by the non-government, comprise a big portion of the non-government's wealth. Nothing is "owed." It's owned, by us, the people.

Second, there is nothing to pay back. The money was paid, ended up in someone's bank account and now it's being held in the form of Treasuries. What's a Treasury? A Treasury is a dollar, the only difference being it's a dollar with a term (duration) and a coupon (interest payment). Why would people hold dollars in the form of Treasuries? To earn some interest, that's all. It's like saying, why would you put your money in a savings account as opposed to a checking account? Same reason, to earn interest. If you want it back in your checking account, you tell your bank and it switches it back from your savings account to your checking account.

That's how it works with the government, too. It "pays back" holders of Treasuries all the time. That's called a redemption and when Treasuries are redeemed the government simply instructs its bank, the Fed, to take back the securities and credit the individual's (or firm's or foreign government's or whomever's) bank account and, voila, it happens. Paid back. In fact, it happens so regularly and on such a big scale that it will totally blow your mind.


https://realmoney.thestreet.com/articles/10/25/2016/national-debt-why-fret-over-something-doesnt-exist


The real reason hide-bound reactionaries bleat about the deficit is to promote austerity. Progressives who rave about "the deficit" are falling into that trap.


Fiscal Scare Tactics

These days it’s hard to pick up a newspaper or turn on a news program without encountering stern warnings about the federal budget deficit. The deficit threatens economic recovery, we’re told; it puts American economic stability at risk; it will undermine our influence in the world. These claims generally aren’t stated as opinions, as views held by some analysts but disputed by others. Instead, they’re reported as if they were facts, plain and simple.

Yet they aren’t facts. Many economists take a much calmer view of budget deficits than anything you’ll see on TV. Nor do investors seem unduly concerned: U.S. government bonds continue to find ready buyers, even at historically low interest rates. The long-run budget outlook is problematic, but short-term deficits aren’t — and even the long-term outlook is much less frightening than the public is being led to believe.

So why the sudden ubiquity of deficit scare stories? It isn’t being driven by any actual news. It has been obvious for at least a year that the U.S. government would face an extended period of large deficits, and projections of those deficits haven’t changed much since last summer. Yet the drumbeat of dire fiscal warnings has grown vastly louder.

To me — and I’m not alone in this — the sudden outbreak of deficit hysteria brings back memories of the groupthink that took hold during the run-up to the Iraq war. Now, as then, dubious allegations, not backed by hard evidence, are being reported as if they have been established beyond a shadow of a doubt. Now, as then, much of the political and media establishments have bought into the notion that we must take drastic action quickly, even though there hasn’t been any new information to justify this sudden urgency. Now, as then, those who challenge the prevailing narrative, no matter how strong their case and no matter how solid their background, are being marginalized.

And fear-mongering on the deficit may end up doing as much harm as the fear-mongering on weapons of mass destruction.


https://www.nytimes.com/2010/02/05/opinion/05krugman.html

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Deficits are our saving

Even the most simple understandings are lost in the public debate about budget deficits and public debt. The Flat Earth Theorists who whip up deficit hysteria each day like to stun people with large numbers. They produce debt clocks that relentlessly tick over and try to get us to believe that impending doom is upon us. But if we just take a deep breath and think the situation through we would see that the ticking debt clock is really just a measure of the portion of non-government wealth embodied in public debt. We would then learn that budget deficits are just the mirror image of non-government savings. Saving is usually considered to be something we should aim for. Increased wealth is also something we usually aspire to. So the increasing deficits and increased debt outstanding is, in fact, beneficial to the private sector (overall). Once we understand that then the deficit hysteria becomes transparently ideological. These characters just hate government and want to get their greedy hands on more of the real pie.


http://bilbo.economicoutlook.net/blog/?p=10384


The above quote is from Bill Mitchell's "billy blog".

Mitchell is a Professor of Economics and Director of the "Centre of Full Employment and Equity" at the University of Newcastle, New South Wales, Australia.

He REALLY knows his shit! Anyone who wants to understand money would be well advised to read his stuff at http://bilbo.economicoutlook.net/blog/

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Economics is much more complex than some of the simple answers which are tossed about. Debt is relative to current and projected income. America has no government on the earth which provides a better safe harbor for middle class investors in other nations.

There has been no real raise in interest rates in 10 years, and inflation during that same period is probably below 2%. So this idea that we are in some kind of fiscal panic is hysterical. Debt will however impacts the dollar. Yet, when we quit buying foreign oil and hit the mother lode of natural gas our balance of payments changed significantly and to such an extent that many fold its influence pushes the dollar higher while the debt simply cannot strip those balance of payment. However, debt created by giving tax cuts to the wealthy will adversely impact economic growth long term, because it is not a sound investment in the America economy as wealth is fungible and could end up as a condo in Costa Rica.

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[quote="Deus X"The public is lied to when it comes to the so-called national debt. They're clueless about it [That's you, FT] , as are most, if not all, of our lawmakers. ][/quote]

First of all, you would be hard pressed to find anyone with a more solid business background than I have. I understand the concept. Do you understand the words "full faith and credit of the United States"?

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2seaoat wrote:Economics is much more complex than some of the simple answers which are tossed about.  Debt is relative to current and projected income.  

Apparently you don't understand the difference between Economics and Accounting.

As far as "Debt" goes, repayment of the principal is a reduction of a Liability and therefore a Balance Sheet item. Interest payments, on the other hand, are an Income Statement item.

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Deus X wrote:
2seaoat wrote:Economics is much more complex than some of the simple answers which are tossed about.  Debt is relative to current and projected income.  

Apparently you don't understand the difference between Economics and Accounting.

As far as "Debt" goes, repayment of the principal is a reduction of a Liability and therefore a Balance Sheet item. Interest payments, on the other hand, are an Income Statement item.

If you're so confident about your position, why do you find it necessary to try and put me down? I have forgotten more about both subjects than you ever knew.

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Floridatexan wrote: I have forgotten more about both subjects than you ever knew.

Delusions of adequacy.

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Deus X wrote:
Floridatexan wrote: I have forgotten more about both subjects than you ever knew.

Delusions of adequacy.

TRACK RECORD, FOOL. And don't waste my time. I'm done here.

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Floridatexan wrote:
Deus X wrote:
Floridatexan wrote: I have forgotten more about both subjects than you ever knew.

Delusions of adequacy.

TRACK RECORD, FOOL.  And don't waste my time.  I'm done here.

Many much out loud laughings!

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