Politics: Fine Politicians on Both Sides

by **Werthless** » Tue Aug 27, 2019 08:13:30

US is not Argentina. One difference is that we don't have a plurality of people that share your opinion that debt to GDP ratio doesn't matter.

My favorite part of Trumpets economic "philosophy" is how fiscal deficits don't matter under Trump but trade deficits do.

1. Trade deficit creates capital outflows and supply of US currency abroad, and demand for dollar assets
2. Fiscal deficit creates dollar based assets and broadens market of US debt for purchase.
3. Trumpers want to reduce trade deficit, and expect no impact on markets that are funded by balance of payments situation.
4. ????
5. Profit

It would be funny if these "philosophies" weren't shared by a stable genius.

by **Werthless** » Tue Aug 27, 2019 08:15:30

The trade deficit helps fund the market for US debt, which is one of the reasons that US can run reasonably sized deficits with relative impunity.

by **TenuredVulture** » Tue Aug 27, 2019 09:57:11

The other problem with the fiscal deficit is that it results in less private sector investment.

by **PhillieMooDo** » Tue Aug 27, 2019 10:12:19

I mean, Brantt has the worst taeks in every other thread, why are we expecting differently in this one?

by **thephan** » Tue Aug 27, 2019 10:57:19

TenuredVulture wrote:The other problem with the fiscal deficit is that it results in less private sector investment.

There is a tax cut that takes care of that... right?

by **TomatoPie** » Tue Aug 27, 2019 11:29:56

Note: The following is not to argue with or against any poster here, but just to add my perspective.

The nation-as-a-business analogy isn't perfect, but occasionally useful.

Companies borrow in order to grow. If the return on borrowed money is greater than the cost of the borrowed money, taking on debt makes sense for a company.

If the USA can stimulate sustainable GDP growth by borrowing, by growing the debt, it's fine until the growth of the debt outpaces the growth of GDP.

Of course, it's all easier to manage when interest rates are essentially zero.

You don't need a degree in economics to know that interest rates move in loooooong curves. They rise for 30 years, then fall for 30 years, with plenty of deceptive bumps within each broad move.

What is "normal" for interest rates? To me, it's 4 or 5% passbook savings and 6% mortgages, because that held sway in my youth. When I was 21, though, I earned 17% on my money market account. Now I earn 0.2%. What is normal?

Bottom line, it's hard to imagine that we aren't at the bottom, facing a 30 year period of rising rates (full disclosure, I've been thinking that for 10 years). And if we have to pay Chinese investors 5, 7, 9% to buy Treasury Bonds, then our enormous debt is gonna be an enormous problem.

And no one more to blame than Trump and his band of idiot GOP cowards in congress.

-----------------------------------------

Budget deficits matter.

A TRADE deficit, not so much. I never understood why we wring our hands over it. Rich nations buy from poorer ones.

by **TenuredVulture** » Tue Aug 27, 2019 12:21:43

I've long thought we should rebrand trade deficit to something like import surplus.

by **TenuredVulture** » Tue Aug 27, 2019 12:23:16

Also, Werthless's Argentine comparison is more apt than he lets on. Peron very well may be a good precedent for Trump. It didn't turn out well at all.

by **momadance** » Tue Aug 27, 2019 12:43:38

Guess he's going to nuke San Juan

@realDonaldTrump
Wow! Yet another big storm heading to Puerto Rico. Will it ever end? Congress approved 92 Billion Dollars for Puerto Rico last year, an all time record of its kind for “anywhere.”

by **JFLNYC** » Tue Aug 27, 2019 12:48:51

He’ll go for the hurricane and hit the island. “Whoops.”

by **TomatoPie** » Tue Aug 27, 2019 12:54:04

TenuredVulture wrote:I've long thought we should rebrand trade deficit to something like import surplus.

"Capital goods inflow surplus"

by **Phred** » Tue Aug 27, 2019 12:55:51

momadance wrote:Guess he's going to nuke San Juan

@realDonaldTrump
Wow! Yet another big storm heading to Puerto Rico. Will it ever end? Congress approved 92 Billion Dollars for Puerto Rico last year, an all time record of its kind for “anywhere.”

He makes it sound like since we gave them so much money that they shouldn't have another big storm coming their way.

by **Grotewold** » Tue Aug 27, 2019 12:59:23

Phred wrote:
momadance wrote:Guess he's going to nuke San Juan

@realDonaldTrump
Wow! Yet another big storm heading to Puerto Rico. Will it ever end? Congress approved 92 Billion Dollars for Puerto Rico last year, an all time record of its kind for “anywhere.”

He makes it sound like since we gave them so much money that they shouldn't have another big storm coming their way.

The height of ungratefulness

by **JFLNYC** » Tue Aug 27, 2019 13:05:14

Disloyalty.

by **momadance** » Tue Aug 27, 2019 13:10:04

Phred wrote:
momadance wrote:Guess he's going to nuke San Juan

@realDonaldTrump
Wow! Yet another big storm heading to Puerto Rico. Will it ever end? Congress approved 92 Billion Dollars for Puerto Rico last year, an all time record of its kind for “anywhere.”

He makes it sound like since we gave them so much money that they shouldn't have another big storm coming their way.

Well duh. Congress gave them $92 billion and they can even build a damn hurricane wall.

by **thephan** » Tue Aug 27, 2019 14:22:46

Time to get that Go Fund Me page set up to tow the islands south out of the historical storm path.

by **azrider** » Tue Aug 27, 2019 14:46:55

thephan wrote:Time to get that Go Fund Me page set up to tow the islands south out of the historical storm path.

personally if you just nuke the mid atlantic ridge, they should probably move on their own then.

by **Werthless** » Tue Aug 27, 2019 15:01:55

TomatoPie wrote:
TenuredVulture wrote:I've long thought we should rebrand trade deficit to something like import surplus.

"Capital goods inflow surplus"

Yes, the American consumer benefits here. It is a surplus.

by **thephan** » Tue Aug 27, 2019 15:57:28

BED BUGS ARE A SUPER BIG DEAL THIS WEEK

No bedbugs at Doral," Trump tweeted Tuesday morning. "The Radical Left Democrats, upon hearing that the perfectly located (for the next G-7) Doral National MIAMI was under consideration for the next G-7, spread that false and nasty rumor. Not nice!”

by **Trent Steele** » Tue Aug 27, 2019 18:05:47

Lol. If you are a Trump supporter, you are sub-human garbage. It’s not any more complicated than that.

Archived

Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Re: Politics: Fine Politicians on Both Sides

Quick Reply