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US budget deficit running 11.8% higher this year

MauiMan

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US budget deficit running 11.8% higher this year

"The U.S. budget deficit through the first three months of this budget year is up 11.8% from the same period a year ago, putting the country on track to record its first $1 trillion deficit in eight years."

"The country has not experienced $1 trillion annual deficits since the period from 2009 through 2012 following the 2008 financial crisis."

————————————————

The Clinton Presidency was the last time there was a budget surplus.

Trump vowed to cut the national debt “very quickly”. Was he lying? Is the United States his next bankruptcy?

Trump promised to get rid of the deficit in 8 years. But it just topped $1 trillion for the first time since 2012. | Markets Insider
 

Mycroft

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US budget deficit running 11.8% higher this year

"The U.S. budget deficit through the first three months of this budget year is up 11.8% from the same period a year ago, putting the country on track to record its first $1 trillion deficit in eight years."

"The country has not experienced $1 trillion annual deficits since the period from 2009 through 2012 following the 2008 financial crisis."

————————————————

The Clinton Presidency was the last time there was a budget surplus.

Trump vowed to cut the national debt “very quickly”. Was he lying? Is the United States his next bankruptcy?

Trump promised to get rid of the deficit in 8 years. But it just topped $1 trillion for the first time since 2012. | Markets Insider
Too bad the Fed won't help out.
 

Mycroft

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Mycroft

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The Federal Reserve has nothing to do with this aspect of our economy.
Not true.

By keeping the prime rate higher than it needs to be, they keep the interest paid to service the national debt higher than it needs to be.
 

Kushinator

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Lower the prime rate. Not only will it help businesses, but it'll reduce deficit spending.
Interest rates are already well below the historic average, and the average interest rate for Treasury debt sets at about 2.43% (for reference, in 2008 it was > 4%). Regardless, its not in the Fed's mandate to make monetary policy decisions on the basis of the helping out the Treasury.
 

Kushinator

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Not true.

By keeping the prime rate higher than it needs to be, they keep the interest paid to service the national debt higher than it needs to be.
Do you believe interest rates are too high? The 30 year Treasury trades at 2.3%... the 10 year trades at 1.8%. Not to mention, the Fed has an ongoing reverse repo facility in full swing.
 

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Not true.

By keeping the prime rate higher than it needs to be, they keep the interest paid to service the national debt higher than it needs to be.
That is not their responsibility. They play with interest rates to keep inflation at their target and to maintain stable unemployment numbers.
 

Mycroft

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That is not their responsibility. They play with interest rates to keep inflation at their target and to maintain stable unemployment numbers.
They don't need to worry about employment numbers...Trump has that covered...and they don't need to worry about inflation, either.

They could easily lower rates without having an effect on either metric...but it will substantially reduce deficit spending.
 

Helix

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US budget deficit running 11.8% higher this year
it's ok. the tax cuts will pay for themselves when the rich finally rain prosperity down on all of us and we buy things with our twenty percent trickle down raises.
 

ludin

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Lower the prime rate. Not only will it help businesses, but it'll reduce deficit spending.
This is a horrible idea. If anything right now the rates need to move up a bit. not much but just a bit.
just to slow the market down a bit.

Democrats need to cut spending. that is the only way to get budget under control.
 

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They don't need to worry about employment numbers...Trump has that covered

They could easily lower rates without having an effect on either metric...but it will substantially reduce deficit spending.
:lamo

Lowering rates is a positive for employment. The Fed needs whatever ammunition it can get for the next recession. You exhibit a great deal confusion when it comes to U.S. monetary policy.
 

Kushinator

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Democrats need to cut spending. that is the only way to get budget under control.
Cuts to spending will reduce economic growth dollar for dollar. It would be far more efficient to raise taxes on the wealthiest income earners.
 

ludin

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US budget deficit running 11.8% higher this year

"The U.S. budget deficit through the first three months of this budget year is up 11.8% from the same period a year ago, putting the country on track to record its first $1 trillion deficit in eight years."

"The country has not experienced $1 trillion annual deficits since the period from 2009 through 2012 following the 2008 financial crisis."

————————————————

The Clinton Presidency was the last time there was a budget surplus.

Trump vowed to cut the national debt “very quickly”. Was he lying? Is the United States his next bankruptcy?

Trump promised to get rid of the deficit in 8 years. But it just topped $1 trillion for the first time since 2012. | Markets Insider
Then why are the democrats not coming up with a balanced budget?
they are the ones in charge of it. why are they spending so much?
 

Jay59

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The Federal Reserve has nothing to do with this aspect of our economy.
Increased debt service attributable to interest rate increases exceeded $120 Billion, comparing fiscal 2016 compared to fiscal 2019. Don't pretend the Fed raising interest rates ten times is not significantly responsible.

Lowering rates is a positive for employment. The Fed needs whatever ammunition it can get for the next recession. You exhibit a great deal confusion when it comes to U.S. monetary policy.
Do you realize you are arguing that he is right?

Then why are the democrats not coming up with a balanced budget?
they are the ones in charge of it. why are they spending so much?
Forget balanced. How about one with no increases past inflation?
 

ludin

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Cuts to spending will reduce economic growth dollar for dollar. It would be far more efficient to raise taxes on the wealthiest income earners.
France proved that wrong. so we can dismiss with that nonsense.
No getting rid of billions of dollars in wasteful spending and re-organizing government agencies to be more efficient
and less fragmented will not reduce anything in the economy.

it will actually improve government efficient lower waste and fraud.

getting medicare and medicaid fraud under control would free up billions of dollars right there.

in 2017 the department of education got busted for 7 billion dollars in waste alone.
we don't need higher taxes that do nothing.

we need government to run itself in a more fiscally responsible manner and the money will free itself up.

636 recommendations from bipartisan and nonpartisan sources including the Government Accountability Office, Congressional Budget Office (CBO), President Trump’s fiscal year (FY) 2019 budget, and former President Obama’s “Cuts, Consolidations, and Savings” budget recommendations.
Total savings from Prime Cuts 2018 are $429.8 billion in the first year and $3.1 trillion over five years.

we don't need higher taxes.
 

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The right loves huge deficits.
 

Kushinator

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Increased debt service attributable to interest rate increases exceeded $120 Billion, comparing fiscal 2016 compared to fiscal 2019. Don't pretend the Fed raising interest rates ten times is not significantly responsible.
This is demonstrably false.




Do you realize you are arguing that he is right?
Um... he was under the impression that lowering interest rates is negative for employment. The 10 year Treasury already trades well below it's historic average. The Fed will not lower interest rates unless there is weakness in the economy.
 

Jay59

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This is demonstrably false.
Do you read your own citations? :doh:golf

Those are year to year increases, so they stack. Cheer up, though. You proved my point. :lamo
 

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In a March 31, 2016, interview with the Washington Post, Donald Trump promised to eliminate the United States' $19 trillion in debt in eight years.
Trump later softened his promise by pledging to reduce a chunk, rather than the totality of debt, in an April 2016 interview with Fortune. Asked by how much, Trump failed to provide a figure.
"It depends on how aggressive you want to be," Trump said. "I'd rather not be so aggressive. Don't forget: We have to rebuild the infrastructure of our country. We have to rebuild our military, which is being decimated by bad decisions. We have to do a lot of things."

How's the reducing the deficit going? Not well, despite a strong economy. What could have possibly gone wrong? Maybe the Republican obsession with tax cuts for the rich.
How's the rebuilding infrastructure going? Not even started. Republicans don't believe in rebuilding infrastructure. They believe in tax cuts for the rich.
 

jpn

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Lower the prime rate. Not only will it help businesses, but it'll reduce deficit spending.
The Fed has always been about keeping inflation down, although they claim to also care about employment. They aren't going to take any chances with inflation just to ease a budget problem Congress compounded with eyes wide open. The Fed needs a little room to operate with. If they lower rates for budget reasons they won't have anything left for stimulus.

By the way, remember all the silly Republicans running around pretending that their tax cut would increase tax revenues? It's biting at least on senator. If they lie to us, we shouldn't vote for them.
 
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Mycroft

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The Fed has always been about keeping inflation down, although they claim to also care about employment. They aren't going to take any chances with inflation just to ease a budget problem Congress compounded with eyes wide open. The Fed needs a little room to operate with. If they lower rates for budget reasons they won't have anything left for stimulus.

By the way, remember all the silly Republicans running around pretending that their tax cut would increase tax revenues? It's biting at least on senator. If they lie to us, we shouldn't vote for them.
We don't need a stimulus from the Fed. We need then to get out of the way.
 

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They don't need to worry about employment numbers...Trump has that covered...and they don't need to worry about inflation, either.

They could easily lower rates without having an effect on either metric...but it will substantially reduce deficit spending.
You don't understand...those are not a part of the Fed's responsibility. It would be like asking the EPA to deal with illnesses associated with pollution. Related to their responsibility, not a part of it.
 
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