Friday, August 3, 2018

As Trump and HIS Party Grow the National Debt and Embrace Deficit Spending On Steriods...

The Trump administration is headed for a gigantic debt headache

  • Debt levels are piling up in the government, pushing borrowing costs higher.
  • The Treasury Department announced Wednesday that it will be increasing the size of its auctions to help pay for burgeoning budget deficits.
  • While the Trump administration has said that economic growth would make up for shortfalls from tax cuts and spending increases, the early results do not bear that out.

Swelling government debt levels are shaping up to be the biggest economic challenge for President Donald Trump, a problem that could spill into the stock market.

This week's Treasury Department announcement that it would have to increase the amount of bond auctions over the next three months was a low-key reminder that the government IOU is only getting bigger and will start influencing interest rates sooner rather than later.

The total U.S. debt just passed the $21.3 trillion mark, of which $15.6 trillion is owed by the public. The Treasury announced Wednesday that it will be adding $1 billion each to auctions of 2-, 3- and 5-year debt over the next three months, and $1 billion each for 7- and 10-year note and 30-year bond auctions in August. In addition, the department is issuing a new two-month note to help assure liquidity in the fixed income market.

The changes will add $30 billion to the debt issuance for the quarter. On the overall, the Treasury said it expects to borrow $769 billion in the second half of the year, a projected 63 percent increase from 2017.

Over the short term, the debt issue likely will be superseded by other news, particularly the strong burst of growth and the tariff battles the U.S. has launched against its trading partners around the world. Ironically, the Trump administration has promised that breakout economic performance will help take care of the rising debt load brought on by tax cuts and higher spending, but the early results don't seem to bear those hopes out.

"Booming economic growth has not been sufficient to lower the budget deficit — in fact, the deficit and Treasury borrowing are headed sharply higher, and virtually no one in Washington seems to care," Greg Valliere, chief global strategist at Horizon Investments, said in his daily note Thursday.

Indeed, the Congressional Budget Office projects the deficit to be just a shade under $1 trillion in 2019 and then pass that level in 2020 and eclipse $1.5 trillion by 2028. The cost to finance all that debt has continued to grow, hitting $458 billion in fiscal 2017 and already at $415 billion in 2018 with three months left in the fiscal year.
Revenue receipts, meanwhile, are lagging.

Tax and withholding payments from individuals and corporations have come in at $1.752 trillion in calendar 2018, about $17 billion below the same point in 2017, a difference of about 1 percent, according to DataTrek Research. That's also below the 0.2 percent gain in revenue the government had projected.

The party of fiscal restraint and responsibility is hard at work showing us exactly how that works.

In the meantime prepare for higher deficits, a spiraling national debt load, and Trump, along with the conservative republican party, explaining how it's all President Obama's fault.

21 comments:

  1. How anyone could look at Trump’s business history and think he would be a fiscal conservative as president is beyond me.

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    1. We know that Jerry, but, to the Trumpanzees and the deficit hawks in the republican party Trump is a really economic wizard.


      Actually, labels and terms don't mean a thing anymore. Apparently.

      Delete
  2. There is a subset of our species which will go to their graves believing that TrickleDown works, climate change is fake science, Hannity graduated from journalism college, a former Secretary of State and Senator should be
    'locked up', evolution is a Satanist plot, and predicting "Trump will become the greatest president since George Washington". By some fickle flick of fate, they are in charge. I cannot find such a situation in history, other than those loyalists who followed Herr Hitler and his thousand year......

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    1. Sad isn't it BB Idaho? When such a significant segment of our population willfully accepts that down is up, that lies are truth, that observable events didn't really happen as they did, that tyranny is liberty, and that evil is good we know we're screwed. And that my friend is how trump would have it.

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  3. The first multi-trillion dollar debt was recorded by the Reagan administration after they cut taxes, but not spending. David Stockman once quipped, "The nation runs better on a deficit." The Republican fiscal policies have been the same ever since. Cut taxes, but not spending. The obvious and simple result of that thinking, is huge debt. The scare tactic used by Republicans is that higher taxes kill growth. That was proven wrong in the 1950's and 1960's when growth was the highest ever, yet, our tax level was the highest ever.

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    1. Excellent points all. I'm not in favor of excessively high taxes but consistently cutting taxes and increasing spending eventually sinks the ship. Which is eventually what history will paint the republican party and conservatives as having accomplished. IMO.


      Thanks for coming in Brad. Stop in anytime.

      Delete
  4. #45 promised to wipe out the national debt in 8 years; under Trump's watch, national debt tops $21 trillion for first time ever.

    When are his cultists going to wake up to #45's deceit and lies?

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    1. They won't Shaw. Too many are simply steeple. Low information folks that believe whatever president Con tells them.9

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    2. Trump’s cultists have a shorter memory than he does. They only listen to what he says today and forget what he said yesterday.

      He will not eliminate the national debt without first balancing the budget thus getting rid of the deficit. Then he must run a surplus averaging over $3 trillion dollars per year starting now, something that is absolutely impossible to do.

      Trump is a fraud and a charlatan, and his supporters are too stupid to know it. They are worse than he is.

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    3. Simple math advises us that the dept will not be reduced or eliminated by tRump. You are right Jerry. In fact our national debt and annual deficits will continue to grow, hopefully not exponentially, but they might.

      I wouldn't call the legitimately uneducated supporters that voted for tRump stupid, however, when it comes to the willfully uneducated supporters (and there are obviously many) I do.

      Delete
  5. Trumps minions: unshakeable, neither deceit nor arrogance bother them and as
    he boasts, he could shoot someone in times square, cause a world recession or execute migrants and his core would still be there. Was pondering what might shake them loose and so far all I came up with was for the president to announce he was unfit, was stepping down and was appointing Hillary Clinton. Ya think?

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    1. LOL! You may be right BB Idaho. Those 30% - 40%'ers will be in his camp as long as he keeps being tRump.

      Sad but likely true.

      Delete
  6. Trump's largest tax cut in history is the same old cut tax mantra Republicans have been spewing for decades and did earlier in the 20th century before the Great Depression. Nothing new here!

    It's a shame Americans keep swallowing this false financial garbage. Reagan's political hero was Coolidge, it's no surprise Reagan brought that false financial theory back into politics in the 1980's.

    I don't see Trump, or his supporters as some kind of new cult of financial idiots, just the same kind of financial idiots the Republicans have been creating for over a century.

    If we give Reagan any political brains at all, he knew he would not get spending cuts out of a Democratic majority Congress and he didn't care. He thought as Republicans still believe today, that added growth from tax cuts would more than make up the difference. A theory now proven wrong again and again and causing huge harm to America.

    It will take excessive tax rate hikes to balance the books, or maybe Baby Boomers should have a high death tax to pay for what they refused to pay for over the last 40 years (their earning years). It's the Baby Boomers who have voted for Reagan, Bush, Bush, and Trump. Why?

    Could the Boomers be showing their selfish traits from being a spoiled rotten generation? Boomers seem to have no remorse leaving this financial mess to future Americans.

    The 2007-2008 financial crash would have been much worse if not for Democratic supported banking regulations, which the Republicans are destroying now with current legislation, which some idiot Democrats are supporting. The last banking bill passed with Democratic votes. Have any of you read that new law? I suggest you do.

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  7. Are you looking forward to reading this?
    PRESIDENT TRUMP'S APPROVAL RATING IS NOW AT 50%...

    5 POINTS HIGHER THAN OBAMA AT POINT IN PRESIDENCY...

    ReplyDelete
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    1. Yes. The fact it's a fake number makes it funny.

      Check Nine Thirty-Eight for the REAL scoop.

      Delete
  8. Made up data + suckers who believe it - FakeNews. Chew On That, 'Chew On This'.

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  9. Not only is the 50% approval rating claim for Trump fake, the (falsely) claimed difference between the Trump approval rating and that of Obama is so miniscule as to be a mere rounding error. These idiots are claiming some sort of incredible Trump victory of popularity over his predecessor when it's really statistically little different.

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  10. Les... I think a better number to look at, as opposed to amounts, at least in regards to debt is the percentage of debt as it relates to GDP.

    Looking at it that way, the US went over 100% during the Obama Admin and has stayed there since.

    We are a family who every year is spending more than we bring in with no plan to fix it.

    Can we decrease our spending to right the ship? Perhaps to some degree, but like a family, at some point, because of fixed expenses, we're going to have to raise additional revenue if we want to pay off the loans.

    In a family, that means a second job. For the US, that means more taxes because as many have pointed out, simply cutting taxes has never produced the additional revenue to pay off our loans.

    Am I missing something here?

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  11. Nope Dave, you haven't missed anything. America is likely reaching the point of no return. No matter how you look at our fiscal practices (house).

    Since the "80's" America has headed in the direction that has brought us to this point. tRump is simply putting the pedal to the metal.

    The ultimate price this nation and her people will pay will be heavy.

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  12. The GOP way (since Reagan) is to steal as much from the US Treasury as possible when they get in then scream about the debt and blame Democrats when the take charge. And always try to cut programs that benefit middle and lower class people. And blame these programs instead of their own fiscal irresponsibility (huge amounts of money thrown at the military, tax cuts for the wealthy and corporations, corporate welfare, etc).

    Some conservatives say it's a strategy. They call it "starve the beast". But I think it's pretty clear that the main objective is theft. If you live in and benefit from the US economy, you need to pay in to keep it going. AND beneficial for ALL. Redistribution is NOT a dirty word. It is a necessity to prevent all the wealth from flowing to the top. We need more of it because, yes, trickle down is a fraud.

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    1. You are absolutely correct, Dervish.

      The 1% live in their own world. They are only interested in diverting as much money as possible from the average American (who ultimately end up responsible for the debt) to their own pockets. They live in the world, and have no country. They take, not give. They donate, and reap great rewards. They are a sickness that kills others so that they can live better than others.

      Delete

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