US Runs Largest Deficit In History In February

[Economy 53,075]

https://www.google.ca/amp/s/www.marketwatch.com/amp/story/guid/CCE6AD2A-4CC4-11E9-B43B-38685C4DED2B

 

The US ran a deficit of $234 Billion in February the largest monthly deficit in History even higher than at any point after the Great Recession & Financial Crisis of 2008

 

Trump who was a harsh critic of debt and deficits during campaigning has since reversed course with no issue running larger deficits than ever

[rumours 45,521]

2 minutes ago, Economy said:

Trump who was a harsh critic of debt and deficits during campaigning has since reversed course with no issue running larger deficits than ever

The real truth of American politics is that neither party gives sh*t about debts or deficits. Both sides just bitch about it when it's politically convenient and do nothing to resolve it.

[vitoburrrito 653]

Just now, Rumours1977 said:

The real truth of American politics is that neither party gives sh*t about debts or deficits. Both sides just bitch about it when it's politically convenient and do nothing to resolve it.

Honestly....true. I don't really understand what the deal is with a deficit or national debt...it's pretty ignorant. 

[Economy 53,075]

Just now, Rumours1977 said:

The real truth of American politics is that neither party gives sh*t about debts or deficits. Both sides just bitch about it when it's politically convenient and do nothing to resolve it.

Trump also criticised the US Central Bank (Federal Reserve) Constantly before he was president saying low interest rates for so long was inflating bubbles and encouraging too much consumer debt and it was creating a short term boost at the expense of long term growth

 

Fast forward 3 years he keeps complaining they were raising rates and slowing expansion

 

Which one is it then?

 

Also Presidents aren't supposed to comment on the Central Banks decisions. They are supposed to operate seperately free of Political influence or pressure

[Economy 53,075]

Just now, vitoburrrito said:

Honestly....true. I don't really understand what the deal is with a deficit or national debt...it's pretty ignorant. 

Which part? U don't understand why they don't care or u don't understand why they are a big deal?

 

I can't quite tell by the way u written what u meant

[Emvee 8,858]

19 minutes ago, Rumours1977 said:

The real truth of American politics is that neither party gives sh*t about debts or deficits. Both sides just bitch about it when it's politically convenient and do nothing to resolve it.

Not true. We had a surplus under Clinton and Obama’s main concern was to mitigate the damage from the recession that happened after the Bush years. 

[Economy 53,075]

6 minutes ago, Postboy said:

Not true. We had a surplus under Clinton and Obama’s main concern was to mitigate the damage from the recession that happened after the Bush years. 

Did Clinton do anything for that tho or was it just because the economic boom of the late 90s increased revenue a lot more than expected?

[Emvee 8,858]

35 minutes ago, Economy said:

Did Clinton do anything for that tho or was it just because the economic boom of the late 90s increased revenue a lot more than expected?

Specific policies such as raising taxes on high income brackets, and reduced spending in social programs and defense. 

It’s a matter of money in (via taxes) and money out (govt programs/departments)... regardless of what’s happening with the economy. 

But, to some degree, a boom helps because it allows higher taxation on highly profitable corporations and less spending on stimulus packages or welfare to aid poverty and financial crises. 

[Economy 53,075]

2 hours ago, Postboy said:

Specific policies such as raising taxes on high income brackets, and reduced spending in social programs and defense. 

It’s a matter of money in (via taxes) and money out (govt programs/departments)... regardless of what’s happening with the economy. 

But, to some degree, a boom helps because it allows higher taxation on highly profitable corporations and less spending on stimulus packages or welfare to aid poverty and financial crises. 

Great he cut defense... Something the US needs to do again

[Eighteen 5,430]

us debt to gdp is almost as high as it was during WWII. this will become a big mainstream issue again sooner rather than later i think.

[Economy 53,075]

5 hours ago, Eighteen said:

us debt to gdp is almost as high as it was during WWII. this will become a big mainstream issue again sooner rather than later i think.

It's a problem. With the exception of Japan I don't know of any Nation that has ever surpassed a debt of 140% to 150% of GDP without going into a financial crisis!

 

Sure the US having the reserve currency might give it a little extra confidence and wiggle room but even so it can't grow forever

 

Eventually the bond market will require too much refinancing and won't attracted enough money from investors without yields going higher and once this starts, it can fuel a downward spiral where investors don't trust the ability of the government to keep up and rates rise even more. This is what happened to Greece

 

And once yields go really high, it affects the cost of credit for all types of borrowing including Corporate debt and even mortgage rates because government bonds have an influence on the entire fixed income market!