Budget Deficits

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doodle
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Budget Deficits

Post by doodle » Thu Nov 14, 2019 8:18 am

Very little is being said about how economic strength is being bolstered by massive government deficits. Not hard to have 4 percent unemployment during economic expansion when coupled with 1.2 trillion dollar government deficits and zero interest rates. Is this our new normal?
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technovelist
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Re: Budget Deficits

Post by technovelist » Thu Nov 14, 2019 8:38 am

doodle wrote:
Thu Nov 14, 2019 8:18 am
Very little is being said about how economic strength is being bolstered by massive government deficits. Not hard to have 4 percent unemployment during economic expansion when coupled with 1.2 trillion dollar government deficits and zero interest rates. Is this our new normal?
Actually Obama couldn't get unemployment that low with gigantic deficits and zero interest rates, so there must be more to it.
Note that I'm not in favor of deficits, or zero interest rates, but we should compare apples and apples.
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Re: Budget Deficits

Post by doodle » Thu Nov 14, 2019 10:01 am

Obama only ran trillion dollar deficits during first term in wake of biggest economic collapse since 1929. During second term deficits were reduced down to around 450 billion. Trump will be at around 2.5 times that this year with projections to increase should economy slow at all. His "miracle economy" seems to be more an effect of big goverment spending than anything else
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Re: Budget Deficits

Post by doodle » Thu Nov 14, 2019 10:02 am

I also think it is completely ludicrous to compare Obamas unemployment numbers vs Trumps and not take into effect the business cycles that each president walked into. Obama swore in during an economic holocaust.
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technovelist
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Re: Budget Deficits

Post by technovelist » Thu Nov 14, 2019 10:45 am

doodle wrote:
Thu Nov 14, 2019 10:01 am
Obama only ran trillion dollar deficits during first term in wake of biggest economic collapse since 1929. During second term deficits were reduced down to around 450 billion. Trump will be at around 2.5 times that this year with projections to increase should economy slow at all. His "miracle economy" seems to be more an effect of big goverment spending than anything else
You do know that Congress controls spending and taxes, not the President, right?
I'm all in favor of a balanced budget amendment but until then Congress decides how much to spend and how much to tax.
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Re: Budget Deficits

Post by vnatale » Thu Nov 14, 2019 12:29 pm

technovelist wrote:
Thu Nov 14, 2019 10:45 am
doodle wrote:
Thu Nov 14, 2019 10:01 am
Obama only ran trillion dollar deficits during first term in wake of biggest economic collapse since 1929. During second term deficits were reduced down to around 450 billion. Trump will be at around 2.5 times that this year with projections to increase should economy slow at all. His "miracle economy" seems to be more an effect of big goverment spending than anything else
You do know that Congress controls spending and taxes, not the President, right?
I'm all in favor of a balanced budget amendment but until then Congress decides how much to spend and how much to tax.
Forgive me if I have this wrong.....but didn't Trump lead the charge to reduce taxes? If so, then if Congress spends it's NOT his role to to lead the charge to reduce taxes, producing this continuing deficit.

Vinny
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Smith1776
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Re: Budget Deficits

Post by Smith1776 » Thu Nov 14, 2019 1:18 pm

As far as I'm concerned, I think it's the endgame for the current U.S. monetary regime as well as U.S. dollar hegemony.

The arithmetic of the budget deficits, without even including the off balance sheet stuff, militates strongly against any possibility of continued solvency. And there is no political will to do so anyway.

There are rising powers in the east and new currencies ready to take the place of the dollar. On top of that, it is politically more expedient to print than to introduce real and impactful austerity.

I am confident that within my natural lifetime we will see a global monetary shift away from the dollar to another centre of gravity.

Keep that gold close, my friends.
Early to bed and early to rise makes a man healthy, wealthy, and wise.
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ochotona
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Re: Budget Deficits

Post by ochotona » Thu Nov 14, 2019 1:21 pm

Smith1776 wrote:
Thu Nov 14, 2019 1:18 pm
Keep that gold close, my friends.
Keep the gold close, and the lead closer.
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Smith1776
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Re: Budget Deficits

Post by Smith1776 » Thu Nov 14, 2019 1:24 pm

ochotona wrote:
Thu Nov 14, 2019 1:21 pm
Smith1776 wrote:
Thu Nov 14, 2019 1:18 pm
Keep that gold close, my friends.
Keep the gold close, and the lead closer.
That's the best prepper tagline I've ever heard.

You'd better copyright that before someone takes it! ;D
Early to bed and early to rise makes a man healthy, wealthy, and wise.
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ochotona
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Re: Budget Deficits

Post by ochotona » Thu Nov 14, 2019 1:30 pm

Smith1776 wrote:
Thu Nov 14, 2019 1:24 pm
ochotona wrote:
Thu Nov 14, 2019 1:21 pm
Smith1776 wrote:
Thu Nov 14, 2019 1:18 pm
Keep that gold close, my friends.
Keep the gold close, and the lead closer.
That's the best prepper tagline I've ever heard.

You'd better copyright that before someone takes it! ;D

LOL. The funny thing is the timing. I think at the latest, when the first Millennials start to retire, that will be the end (2045). In 2045, the last Boomers, born 1964, will be 81, the oldest will be 99. The US Dollar is toast. But maybe this happens not in 26 years, but in 10. Who knows? Do you have any opinions?

Gold is tough to hold for some, tough for me to buy more than a certain amount at a time, but I look at it as an old-age safety net, and a way to pass wealth to the kids, literally under the table.
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Smith1776
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Re: Budget Deficits

Post by Smith1776 » Thu Nov 14, 2019 1:52 pm

My overall personal take is that the U.S. is currently in the same situation the British were in before the two World Wars. A financial and hegemonic powerhouse of the world slowly losing its influence, only to have it abruptly drop off due to some type of systemic event. A kind of punctuated equilibrium.

In the case of the U.S. I suspect that this event will not be kinetic warfare. Rather, a climax involving cyberwarfare and economic warfare. I think it's fairly clear that eastern powers such as China and Russia are actively trying to accelerate the destabilization of the U.S. We saw that in the 2016 election, in addition to corrupt influences over Facebook and the rest of our social media in an effort to distort public opinion.

Having Trump, that buffoon as President, right after Obama is like having Magnus Carlsen give you a winning position in a chess match, only to have Carlsen replaced by a ham sandwich for the endgame. Just awful.

I once listened to an economic analysis provided by Eric Sprott were he made convincing arguments concerning China's stockpiling of gold in particular. The Chinese know that whoever has greatest cache of gold has much of the leverage when it comes to dictating the new rules of the economy during a monetary reset. China still needs to make great strides in having a deep and liquid global bond market as well as investment property rights for foreigners, but I think they are in the lead for displacing the U.S. as head honcho.

I think it's a question of if, not when! :o
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Re: Budget Deficits

Post by vnatale » Thu Nov 14, 2019 7:28 pm

Smith1776 wrote:
Thu Nov 14, 2019 1:52 pm


Having Trump, that buffoon as President, right after Obama is like having Magnus Carlsen give you a winning position in a chess match, only to have Carlsen replaced by a ham sandwich for the endgame. Just awful.

!!!!!!!!!!!!!!!!!!!!!!

Vinny
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