TRUMP'S RISING DEBTS WILL SOON FORCE THE U.S. TO SPEND MORE ON INTEREST THAN MEDICAID, DEFENSE

Increasing deficits in during stable economic times is irresponsible. Increasing deficits in a rising interest rate environment is the pinnacle of fiscal irresponsibility.

 

Good luck with that in our lifetimes..

 

The Feds raising interest rates comes with a booming economy. Trump has done a terrible job of controlling the spending and I think he is starting to get that. Repairing the obama destroyed military was high priority and that is much of the deficit spending and I am OK with getting that job done first.

 

I understand that rising interest rates are in part a function with increased economic activity which often leads to inflation. This however is not the only factor. While the Fed sets domestic interest rates - it does not set the interest rates on our debt. (2yr, 10 yr, 30 yr bonds - and so on). This is controlled by supply an demand in the debt market.

In 2014 you could float 2yr debt at less than 0.5%. "Easy Money". Demand for US debt was solid. The 2 year is now sitting at 2.9%. The chart is parabolic. This puts upward pressure on the overnight lending rate which the Fed sets.

I disagree with your take on the military spend. Under Bush the Total Military Spend went from roughly 300 Billion to over 900 Billion and it exceeded 1 Trillion under Obama. Part of the problem is that things like the VA (when you have tens of thousands coming home wounded from war - it gets expensive) costs have dramatically increased and that eats into the DOD spend. We spend 130 Billion/year on "Homeland Security"/ intelligence agencies if you include the "black budget" spending.

130 Billion is near double what the entire country of Mexico ( 11th largest purchasing power in the world) spends federally.

Regardless - this is not the point. The point is that we are in a rising interest rate environment. The reason for this is because the supply demand equation has changed. Not only has demand decreased (at some point how much US debt does one hold - the world is awash in US debt) due to numerous factors including more competition from nations like China and India - at the same time supply has increased.

On the supply side the Fed is now (rather than quantitative easing - buying US debt thus reducing supply) floating some of the 4 Trillion it accumulated back into the market. In addition in order to reduce average interest rates on our debt we sold a whole lot of shorter term debt - such as the 2year (see above). If you floated 2 year bonds in 2014 (at 0.3%) you have to refloat in 2016 (at higher rates) and you had to refloat again in 2018 at 2.9% - a 2.6% increase. This is severe pain.

Obviously increasing deficits also increases the supply - putting more upward pressure on interest rates but, also decreasing overall confidence.

There is no way around it - you can justify however you like but, increasing deficits in a rising interest rate environment - is the pinnacle of fiscal irresponsibility.

 

Don't hide your racism!

On the other hand, there are plenty of statistics on Trump voters and viewers of Fox News, neither of which is the pick of the smart people.

 

When did Trump even show any interest in controlling spending? I must have missed that!

 

Who cares? Let's focus on the interest being paid on the $1tn deficit Trump's running ... not the $20tn in pre existing debt? That approach takes stupid to whole level.

 

Does it really?

Since debt rolls over, and the outstanding bonds are discounted against the going rate (thus affecting the desirability of US government debt), the approach isn't so stupid.

Especially since no one has any faith in this Administration's ability to manage anything with any degree of competence ,and everyone can see that he fully plans to borrow and spend like a drunken sailor because he doesn't care at all about what happens once he's gone.

 

You have Trump confused with Nancy Pelosi? Trump lost the House so Trump's deficit spending is over. $1tn of $21tn ... Don't like rising interest? Trump either ... he hates the Fed. level ...

 

Hey. you memorized a new phrase, maybe next you can figure out what it actually means. Obama's GDP growth was simply unacceptable, whereas Trump's is of the level that gives us a much better opportunity of meeting our Social Security, Medicare and Pension obligations even as it drives near decade high wage growth.

 

I agree it Sucks that Trump not only has to figure out how to pay his trillion but also Obama's what 16 trillion or so at higher interest rates.

 

For someone who has yet to figure out what the "Fiscal Year" means - and how it relates to Gov't spending - you should really not be inferring that others have not "figured it out".

I had plenty of issues with Obama. Blaming him for the crash that happened after Bush was not one of them but, I digress.

GDP Growth for Trumps first fiscal year was 2.9%. For Obama's last fiscal year it was 2.3%

Your claim that Trump doubled GDP growth is simply false.

 

Yes, Obama's debt is rolling over in a higher interest rate environment, and the Amazing Trump is STILL reducing the Debt/GDP ratio.



The effective interest rate is 16 TIMES what it was 13 quarters ago, yet Trump still has reduced the Debt to GDP ratio.

No more coherent than the mindless mutterings of an unmuzzled rump-fed puttock:

Trump has been President for 663 days, and over that period he has run up $9,711,584,108.80 LESS in debt than Obama did in his final 663 days.

https://www.treasurydirect.gov/NP/d...tYear=2015&endMonth=11&endDay=14&endYear=2018

 

I keep less than 50% and I already listed why. Ive never been to NJ, but I heard that 70% of those living there say that its the best place to live. (The other 30% are still missing!)

jk

 

The crash was over a decade ago, this is a CURRENT topics panel. If you want an old history discussion, find an appropriate place for that discussion...

If you look at he ALL of Trump's WHOLE quarters, it most certainly IS true.

He has averaged 3.0 annualized inflation adjusted growth while Obama only managed a paltry 1.48% growth.

Trump's more than doubled it, which is why wage growth is finally spiking and the Debt to GDP ratio is finally moving in the right direction.

 

yeah but i need more proof than some internet complaint.

 

THAT is an excellent question. That graph was before the Presidencies of Dumb and Dumber, the two dumbest back to back Presidents in US history.

We'll be decades fixing that, but, at least we finally have the Debt to GDP ratio moving in the right direction.

 

Remember, Establishment Republicans ran the House for most of Obama's presidency, and I'm not convinced that Ryan was any better than Pelosi on the debt.

 

Overspending is consistent in congress regardless of political party.

 

Probably not as high on CNN's list as are which shoes or jacket Melania is wearing.

"Trump Today: President seeks spending cuts as deficit widens"

 

EVERY spending bill MUST originate in the House of Representatives. The House holds primary control of spending, the Framers deliberately constructing our system in this fashion as the House is the closest to the People.

You cannot look at the massive levels of spending that occurred while the GOP held the House and fell proud of the work of the GOP establishment, which is why so many of the GOP establishment has been turned over since 2010 when they failed to do the job we elected them to do.

We had a purge of GOP leadership after the 1994 revolution, we did not have a leadership purge after the 2010 revolution. We erred.

We took over in 2011 with a debt to GDP ratio of 93.36 and currently have a 103.84% ratio an 11% rise. That's NOT getting the job done.



Look at that spike from q3/15 to 4q/16. Paul Ryan negotiated that. He's a complete sell out. I'm glad he's gone. We needed time to rebuild our leadership in the House.

 

And pigs could fly too!!!
Have D's ever called for BBA? Why do you think they 'd do so now?
You are making no sense, I think you're covering the R's butts because they are lie about most everything.

 

Did you have some point or were you just agreeing with me?

 

My point was well illustrated in my post. Just because Democrats failed to carry out their Constitutional Charge to be prudent with OUR national checkbook does not excuse our doing the same. You seem to be excusing our conduct based on the conduct of those we defeated. I completely disagree with that.

What is the point in our victory if we do the same?

 

If D's are truly interested they would. No D has ever voted to cut spending except for Bill Clinton who championed "the end of the era of big government"..