Bad Day (part II)

[kallend 2,174]

The Congressional Budget Office said today that the government's budget deficit will be a record $422 billion dollars for the fiscal year ending Sept. 30, the highest ever.

Over the 10 years ending in 2014, the CBO analysts now predict deficits totaling nearly $2.3 trillion -- almost $300 billion worse than they projected in March.



Cheney claimed this was good news!

What a bunch of bungling incompetents!

...

The only sure way to survive a canopy collision is not to have one.

[peacefuljeffrey 0]

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The Congressional Budget Office said today that the government's budget deficit will be a record $422 billion dollars for the fiscal year ending Sept. 30, the highest ever.

Over the 10 years ending in 2014, the CBO analysts now predict deficits totaling nearly $2.3 trillion -- almost $300 billion worse than they projected in March.

When the budget deficit doubles, do they double the price you pay for the things you buy? Do they double the amount they take from you in taxes?

No. They simply project paying for the debt to take a while longer. What's the net effect on your day-to-day life? Next to nothing.

I can't figure out why you're bitching. Under the '80s Republicans, we had high deficits, allegedly. When we ran a so-called "surplus" under Clinton (even though it was smoke-and-mirrors deception to arrive at a claimed surplus), did your tax rate drop precipitously? Did anything cost you so much less? What got better for you when we had lower deficits (or claimed surpluses) that is back to being so bad again now??

I sure hope you don't do your typical "not gonna answer peacefuljeffrey's questions anywhere near directly" thing that you've been doing in several other threads. I'd really like you to address the big differences you experience between national-budget-deficit and national-budget-surplus, and why.

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Cheney claimed this was good news!

What a bunch of bungling incompetents!

-Jeffrey
"With tha thoughts of a militant mind... Hard line, hard line after hard line!"

[narcimund 0]

George Bush leaves the toilet seat up even though his wife has told him and told him and told him...

First Class Citizen Twice Over

[Frenchy68 0]

George Bush leaves the toilet seat up even though his wife has told him and told him and told him.***
...and he keeps hogging the comforter...

"For once you have tasted Absinthe you will walk the earth with your eyes turned towards the gutter, for there you have been and there you will long to return."

[PhillyKev 0]

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When the budget deficit doubles, do they double the price you pay for the things you buy? Do they double the amount they take from you in taxes?

No. They simply project paying for the debt to take a while longer. What's the net effect on your day-to-day life? Next to nothing.

You apparently have absolutely no concept of economics. Higher debt means higher interest payments. 12% of your tax dollars goes to paying the interest on the national debt. Elliminate debt, you elliminate 12% of your taxes. Reduce debt, you reduce that percentage.

Debt also affects the value of the dollar on the global market. The higher the debt, the less the value of the dollar vs. other currency. That means that goods and services purchased from other countries cost more. That means materials companies in this country use cost more, that means everything costs more.

The out of control debt has a direct effect on your take home pay and the cost of what you pay for things with the money you do get to take home.

[kallend 2,174]

Quote

Quote

The Congressional Budget Office said today that the government's budget deficit will be a record $422 billion dollars for the fiscal year ending Sept. 30, the highest ever.

Over the 10 years ending in 2014, the CBO analysts now predict deficits totaling nearly $2.3 trillion -- almost $300 billion worse than they projected in March.

When the budget deficit doubles, do they double the price you pay for the things you buy? Do they double the amount they take from you in taxes?

No. They simply project paying for the debt to take a while longer. What's the net effect on your day-to-day life? Next to nothing.

I can't figure out why you're bitching. Under the '80s Republicans, we had high deficits, allegedly. When we ran a so-called "surplus" under Clinton (even though it was smoke-and-mirrors deception to arrive at a claimed surplus), did your tax rate drop precipitously? Did anything cost you so much less? What got better for you when we had lower deficits (or claimed surpluses) that is back to being so bad again now??

I sure hope you don't do your typical "not gonna answer peacefuljeffrey's questions anywhere near directly" thing that you've been doing in several other threads. I'd really like you to address the big differences you experience between national-budget-deficit and national-budget-surplus, and why.

-


Cheney claimed this was good news!

What a bunch of bungling incompetents!

Well, maybe you should displace Greenspan as Fed. chairman, since you apparently know better than he does.

money.cnn.com/2004/02/25/news/economy/greenspan/

...

The only sure way to survive a canopy collision is not to have one.

[kallend 2,174]

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Quote

When the budget deficit doubles, do they double the price you pay for the things you buy? Do they double the amount they take from you in taxes?

No. They simply project paying for the debt to take a while longer. What's the net effect on your day-to-day life? Next to nothing.

You apparently have absolutely no concept of economics. Higher debt means higher interest payments. 12% of your tax dollars goes to paying the interest on the national debt. Elliminate debt, you elliminate 12% of your taxes. Reduce debt, you reduce that percentage.

Debt also affects the value of the dollar on the global market. The higher the debt, the less the value of the dollar vs. other currency. That means that goods and services purchased from other countries cost more. That means materials companies in this country use cost more, that means everything costs more.

The out of control debt has a direct effect on your take home pay and the cost of what you pay for things with the money you do get to take home.

The $US has declined about 30% in value against the market in general over the last 18 months. Thank you, "W"

...

The only sure way to survive a canopy collision is not to have one.

[livendive 8]

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money.cnn.com/2004/02/25/news/economy/greenspan/

Funny, those years from 1992-2000 look pretty good in that picture.

Blues,
Dave

"I AM A PROFESSIONAL EXTREME ATHLETE!"
(drink Mountain Dew)

[Jib 0]

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The $US has declined about 30% in value against the market in general over the last 18 months. Thank you, "W"

Why? Greenspan could be blamed for artificially low interest rates causing the deflation of the dollar more than W's inherenting Clinton's mess.

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the depth of his depravity sickens me.
-- Jerry Falwell, People v. Larry Flynt

[PhillyKev 0]

Bush did not inheret the largest spending increases in history from Clinton, he did that on his own. That is the direct cause of the debt. And you're a little confused about interest rates. When they are artificially low that can lead to deflation of goods and services which means a dollar buys more, not less. Raising interest rates means less foreign investment which means devaluation of the dollar.

[turtlespeed 226]

Have you ever heard of the ripple effect -

Look at a highway - if something crashes 5 or six miles ahead - it riples back until it gets to you.

Clinton's economics did just that - now we feel ihe impact.

I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama
BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun

[Frenchy68 0]

How big was the ripple? COuld it be Bush Sr's fault?

"For once you have tasted Absinthe you will walk the earth with your eyes turned towards the gutter, for there you have been and there you will long to return."

[turtlespeed 226]

4 years - Clinton first had to dismantle Reagans 20 year plan at the end of the 20 years.

I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama
BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun

[kallend 2,174]

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How big was the ripple? COuld it be Bush Sr's fault?

Or Reagan's?

...

The only sure way to survive a canopy collision is not to have one.

[PhillyKev 0]

What economic policies of Clinton's led to the current deficit spending and growing debt?

[turtlespeed 226]

Not policies -
Programs.

I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama
BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun

[PhillyKev 0]

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Not policies -
Programs.

Ok, what economic programs of Clinton's led to the current deficit spending and growing debt?

[Jib 0]

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And you're a little confused about interest rates. When they are artificially low that can lead to deflation of goods and services which means a dollar buys more, not less. Raising interest rates means less foreign investment which means devaluation of the dollar.

Raising interest rates means more return for foreign investors but equal or less borrowing by foreign business.
Lowering interest rates means inflation in property values because of the increased buying power and less incentive for a given risk; hence, a devaluation in currency to compensate for that risk. In the very short term, it meant more buying power for us. Over the long term, it means the euro goes farther as our currency devalued.

--------------------------------------------------
the depth of his depravity sickens me.
-- Jerry Falwell, People v. Larry Flynt

[Zenister 0]

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Not policies -
Programs.

Ok, what economic programs of Clinton's led to the current deficit spending and growing debt?

'chirp'

____________________________________
Those who fail to learn from the past are simply Doomed.

[turtlespeed 226]

researching - it does take time -
and some people work.

I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama
BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun

[PhillyKev 0]

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Raising interest rates means more return for foreign investors but equal or less borrowing by foreign business.

You're still confused. The federal reserve interest rate rising does not have a direct corrolation to investment return. It is the rate charged for overnight loans between banks. For example, mortgage rates have declined since the last fed raise in rates. Rising Fed rates indicate instability in the economy that dissuades foreign investors.

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Lowering interest rates means inflation in property values because of the increased buying power and less incentive for a given risk

Sure, when talking about mortgage rates. But as I've stated, that has nothing to do with the Fed.

[Jib 0]

Then why are interest rates so low? Because foreign investors are banging down our doors to invest? I thought they weren't spending money here? Why does trying to spend money here deflate the dollar overseas?

As for rates of return, I was thinking that if you invest in security instruments like mortgages for a low rate of return then that artificially low return persuades investors to take related (not quite proportional) return on riskier investments?

--------------------------------------------------
the depth of his depravity sickens me.
-- Jerry Falwell, People v. Larry Flynt

[Zenister 0]

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researching - it does take time -
and some people work.

if you could trace this large of a deficit to Clinton era policies... it would be simple to find...the Republicans would have put it all over everywhere in an election year......

____________________________________
Those who fail to learn from the past are simply Doomed.

[turtlespeed 226]

First of all there is no way to tell which INDIVIDUAL polocies affected the economy adversly. It was in fact a miriad of small increases and "under funding" of programs that had a smalll budget to start up but would need several more percentages of it's initial budget in the upcoming years to continue operating. So, we either get higher taxes to pay for thgem - or - we have to iliminate them.

I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama
BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun

[PhillyKev 0]

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Then why are interest rates so low? Because foreign investors are banging down our doors to invest?

No, because they're not. When interest rates are low, companies that carry a debt to do business have a better profit margin, encouraging foreign investment in those companies.

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I thought they weren't spending money here? Why does trying to spend money here deflate the dollar overseas?

They're not, and it doesn't. That's the point. Interest rates were at an all time low. They are now rising. Because of the massive level of the Nat'l debt they will have to continue to rise. Investors know that, so they're not going to invest where it's going to cost MORE to do business in the future.

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As for rates of return, I was thinking that if you invest in security instruments like mortgages for a low rate of return then that artificially low return persuades investors to take related (not quite proportional) return on riskier investments?

That kind of investment is a tiny portion of the economy in comparison to stocks. The main factor in devaluing the dollar is the proportion of world money invested in US stocks vs. another countries stock.

Here's a comparison between VanGuard's Total International Stock Index Fund vs. Total Stock Market Index Fund (which is US only). Foreign and US stocks are mimicing the peaks and dips, but foreign stocks overall are outpacing US stocks. The reason is investor confidence in the US market is down due to the debt, and the result is a weaker US dollar.