yeah, that business tax cut really was a genius move, and ya all were happy for a meager 1K check
US posts biggest budget deficit since 2012 as tax income falls
Hunter Reyes
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Justin Hall
hahahaha why are you so stupid money isnt real, just put it in your pocket and shut up goy
Liam Howard
>Step 1: Slash revenue
>Step 2: Increase spending
>Step 3: ??????????????
>Step 4: DEFICIT!!!!
Dylan Cooper
>Name a country that has died of Government debt.
>Name a country that has suffered a debt deflation due to hitting its loan ceiling, effectively stagnating the economy.
If you believe any of this Government deficit bullshit you've literally fallen for (((Banker))) memes.
3 Sources of money creation:
Gov spending
Private Banks(don't need the central banks permission)
Central Bank fuckery
3 Sources of money destruction
Taxation
Repaying loans
Central Bank Fuckery.
For the past 50 years we've only ever expanded the money supply, by private bank lending. Now that we've hit the ceiling, and banks aren't lending oh shit, the economy's broke.
Running a deficit will be a good thing. The only problem is if the deflcit is too large, and unions are too strong, leading to the 70's where inflation hit 10%.
Governments don't need to tax money in order to gather revenue. They need to tax money, in order to remove inflationary pressure from the economy.
Cooper Morales
>running a deficit is a good thing
How fucking stupid can one person possibly be??
Easton Russell
>The deficit for the fiscal year that began in October widened to $391 billion, compared with a $351 billion shortfall the same period a year earlier, according to the Treasury report.
A 40bn increase since October isn’t that much,
Also, the more debt the US has, the better.
The colossal budget measure passed both the Senate and House on the morning of February 9, ending a several-hour federal government shutdown that started at 12:01 AM. While Trump and Congressional leaders congratulate themselves for reaching common ground and keeping the government funded, their bill’s real legacy will be hurrying the issue of unsustainable deficits from the wing to center stage. It ensures that two milestones, bound to spook the public, arrive a lot sooner than expected. Deficits will probably reach $1 trillion in the current or next fiscal year, almost double what the Congressional Budget Office had projected less than a year ago for 2018. And U.S. debt is now on track to reach $30 trillion over the next decade. That’s over 100% of projected GDP, well into the danger zone where investors demand higher rates to buy government debt. And if rates do rise substantially, the U.S. will rival the likes of Italy as one of the world’s most debt-ravaged nations.
Alexander Green
Trump is a idiot really. You have multi millionaires and billionaires begging this orange turd to tax the living fuck out of them.
Tax the mega rich 80%
Cap DoD spending at $500 billion
Raise retirement age 3 years
Right there would eliminate the deficit.
Kevin Bell
>not wanting debt
The real problem is that debt isn't increasing fast enough.
more debt = faster growth = higher average quality of life
Dylan Brooks
muh muh fucking natural barrier walls and jew denbts. jews love denbts. and i will give em to em. i am the king jew of denbts
Nolan Fisher
Look at all of these GENZ retards, too young to remember Bush
Or when Paul Ryan was touted as a "deficit hawk"
Nolan Sullivan
>not an argument
Explain, referring to my post.
The main cost of running up a deficit is inflation. However, if there is a low level of inflation running up a deficit literally won't do anything. Worst case scenario, Central Banks can buy their own Governments bonds. Only if you go full Venezuela or Zimbabwe does it matter.
>Greece
Lacks its own central bank, hence the reason there's a problem, as the Germans refuse to pay for the Greeks. Elsewise idiots who buy greek debt get what they bet on, Greece is corrupt.
The other cost of running a deficit, is if you have a negative balance of trade. THIS, is where it matters, as if you continue to just import more than you export, and run up a deficit, then your currency value falls, and imports become more expensive. That's the main cost.
As the US is the worlds reserve currency, only they need to be fidgety about their deficit, however if quadrupling, the quantity of dollars in existence, didn't lower the value of the dollar, nor increase inflation, I think its safe for you lot to run a deficit, at least for a while.
Jack Robinson
>implying we should be taxing people
As opposed to tax the corporations, who benefit from the Governments creation of the markets, and taxing them once.
Aaron Scott
>US posts biggest budget deficit since 2012 as tax income falls
So it was worse in 2011?
really cooks the ol' noodle, user..
Jordan Robinson
>running up a deficit literally won't do anything.
Literally retarded. Let me see if I can break it down nice and simply for your drooling Neanderthal face.
Deficit leads to debt
National debt will lower our credit rating
A lower credit rating will cause interest rates to increase
Are you following me?
Justin Ramirez
>running a deficit in the middle of the worst market downturn in generations
>right after the Bush era
Are you 12?
Levi Russell
2020s gonna see hyperinflation.
funny how the 1920s and the 2020s are probably gonna be similar in terms of economics, except we are far better off in terms of living standards despite beeing poor this time around.
Anthony Allen
>A lower credit rating will cause interest rates to increase
Central Banks then buy their own bonds, making the need for new sales of debt null and void.
Try again.
The Japanese Central Bank owns 80% of its public debt. The markets don't give a fuck. They continue to buy.
Nolan Allen
Tax corporations and they fuck off to a country that doesn't. This is why we need global governance.
Mason Morris
goddamn, you smoked
keep up the good work, user that actually knows how an economy works and doesn't just yell "fuck drumph."
Dominic Carter
Im too high for that gif. It Fucking startled me.
Sebastian Miller
Evade tax, remove their market privileges.
Pass a law not recognizing any foreign corporation, and declare that any domestic commerce done under their sovereignty will need to be done through a corporation registered in said country, or for the EU specifically, within the EU.
>Wut if they still hide it
Force corporations to hand over any relevant paperwork in order to gain access for market privileges, then fine then into submission if you find that they are lying.
Elsewise, remove their privileges.
This whole tax evasion meme is only a thing, as they've bought the political system, so politicians know what they'd need to do, but cannot do it without destroying their own party, the opposition likewise.
Jack Davis
Can someone explain to me why people should care about deficits and state debt? America's wealth is in its land, machinery, housing etc.
Manhattan alone is probably worth more than 20 trillion USD in real estate alone. So who cares about 20 trillion USD debt???
cnbc.com
Easton Brooks
Tax mega rich? You realise the majority of tax revenue comes from the not mega rich, right?
Lowering business taxes only works if the out sourcing stops. It will be a year before we see how it plays out.
Cooper Hernandez
Talk about logical phallacy.
Brayden Clark
When a small country defaults on its sovereign debt, bigger countries come along and bail it out to stop the contagion (Greece, Ecuador, Venezuela, Argentina, Chile, Peru). Who's going to bail out the US?
Camden Rivera
No
Nicholas Moore
>Tax the mega rich 80%
>capital flight is no such thing
They have their money faster abroad than you can say "tax the mega rich"
Samuel Ramirez
PROTECT THE 1%
Dominic Garcia
The real problem is the people. They buy foriegn goods and services or not participate at all. Factor in insane housing costs and ynu have what we see now.
Liam Diaz
>The main cost of running up a deficit is inflation.
What are debt interest payments? Good luck when interest rates rise and Bonds crash.
Eli Ross
No one and that might be the point. Maybe it is Trump plan. And do not forget that all that derivatives use USD as colateral. Plus he might screw all of (((them))) in process.
Jonathan Cooper
Good question.
This. I keep trying to explain to people that there's this fucking scammy bullshit that the government somehow does (I am not an economist so I'm not sure exactly how all this works but if you look at it you can tell that it works this way) where the Federal Reserve 'loans' money to the Government and uses the GDP as "collateral" against the 'loan'.
So, 1) The national debt is just a measure of "the nation's ability to create wealth" not "how much money we owe foreign countries" or whatever and 2) If the National Debt goes down or stays the same then that would mean that we effectively are a less capable nation next year than we are this year because we took less money from the Fed (they wouldn't 'loan' us as much because we're deadbeats and can't do enough work to repay it).
Liam Richardson
That's where you're wrong baby!
WE'RE GOIN UP
Eli Rodriguez
5D chess for autist.
Eli Parker
As said above, trade deficits, affect the value of the currency, and too much money leads to inflation. Main reasons why.
The US specifically, owns the majority of the worlds aircraft carriers, majority of the worlds navy, can field 2 armies at once, and a 3rd at a push, with control over the flow of resources. The idea that America just defaults on its loans its silly. The worst case scenario would be the collapse of the dollar as the world reserve currency, but that then merely damages US control, as opposed to destroying it, as those Navies would all of a sudden begin playing chicken with all nation states wanting to penalize the US.
It would very badly impact America's exchange rate, and could even lead to the need for the re-issuing of the dollar, or a negotiated deal establishing a new world reserve currency separate to the dollar, in exchange for a portion of debt to the US be honored, but the US will simply have the military option, and only a very select few nations will be able to resist a trade blockade.
Also all countries which possess the Euro currency are exceptions to this, as none have their own central banks. That is in fact why Greece, Spain, Ireland Italy etc are problems. In the past they'd have just bailed themselves, at the expense of their exchange rate, whereas now only Germany can do that for them and... they don't want to.
But it is a sad day when I respect the aussie's question more than most of the thread so far.
Can you really blame peasants for buying the cheapest egg? Who allowed foreign eggs to be sold in the first place?
You are right in the sense that it is the balance of trade that matters, and the west essentially threw aiming to control it out of a fucking window.
Owen Morris
Well if you slash taxes you gotta slash spending sooner or later. The Chinese wont foot the bill forever.
In fact it is somewhat surprising that in the US it seems to be possible, without complications, to decrease state income (taxes) without decreasing state costs.
Even in supposedly socialist Sweden there are rules for how large the deficit is allowed to be. And that is set in law, you cant just do some hokuspokus budget where anything goes.
Why is the Trump tax cuts even a legal possibility?
Jackson Reyes
You confusion is rooted in denial, denial that America can do anything, she rules the Earth
Logan Hill
Look, the boomers buy foriegn cars only. Usually asian death traps. Same for liberals. Then instead of maintaining said products they throw them out and buy new. This means no service economy, wich was sold during the bamastration but now does not exist accept for a few sectors. Plumbing and such. Add to that foriegner hires and what i said before and you arrive where we are now.
Ryder Clark
OMG....Politicians help their buddies...who would have thought.
Gavin Johnson
You think the rest of the World will sit by while the US prints the US dollar into oblivion - whilst they hold 5 trillion of it. You don't think China is hoping and praying for that day so they can introduce a Global currency.
But its OK cause the US can use its Aircraft carrier to force other countries to use its currency ... except those countries with nukes of course.
Justin Johnson
Its worse, right now the dems are actively conducting economic sabotage. They only hire inside circles or foriegners. The money is being evacuated from the nation along with the work.
Jose Turner
Less tax, more jobs, more tax. Simple.
Isaac Wright
The US is a puppet country also. Every 2, 3 hundred years, a new country takes the fake and the shit show starts again. Gotta take down the entire system is you want anything to get better
Nathaniel Stewart
What is Germany after ww1?
Joshua Russell
By lowering corporate taxes it makes a better atmosphere for businesses to explore new avenues in country. That is unless they out source.
Jackson Johnson
No
Thats like replacing an entire car because the battery is dead.
David Barnes
but at this point the car brand says USA but the parts are chinese/japanese...
Time to scrap the system, friendo.
Uproot the tree of liberty (rotten to the core) and replace it with a fresh sapling.
Lucas Lewis
>Federal Reserve 'loans' money to the Government
Worse in that regard. The Central Banks can literally print as much money as they want.
The way they fund a Government is through the sale of bonds. These bonds have a rate of interest, normally above the rate of inflation. This is to that people profit off of them. However, the central bank can just issue bonds, then buy them itself, and as inflation goes up at 2%, this eats away at the value of the bond.
Also, with the past 3 years there has been a complete change in how it is understood that Private Bank Loans work.
In theory, the Central Bank loans banks a fractional reserve, which banks then use lend new money off of. Banks then earn this money back, pay off their own. This in net creates no new money.
Turns out that's all a big fucking lie.
bankofengland.co.uk
BoE says:
>Money creation in practice differs from some popular misconceptions — banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits.
>Commercial banks create money, in the form of bank deposits, by making new loans [...] At that moment, new money is created.
A Deliberate policy enacted for 2 years, mostly for an intense 6 month period to screw the French. There was then a 9 year gap from that event to the Nazi's taking over. The main cause of the increase in the Nazi vote both time maps with unemployment, not inflation. Inflation was merely the cause of unemployment the first time around.
Oh of course, which is why they would need to negotiate peace, with most countries, particularly those who export raw resources.
And yes, of the 8 nuclear countries, the US couldn't directly attack. They don't need to, they simply need to cut naval control for most. Particularly China. They'd Negotiate a NWO.
Jaxon Johnson
This isn't the Opium wars.
There hasn't been a Naval blockade of a major country since The Germans blockaded Britain with U Boats. And good luck blockading Asia.
Kevin Mitchell
Due to the volume of shipping, and cargo value increasing, the economic fear factor of getting your shit taken, or sunk will be at a minimum a significant fear factor in all business decisions. Also, as most raw resources at the moment flow from Africa, securing the Ocean around Africa and Australia would be sufficient.
The cumulative effect of power projection would then kick in in terms of policy making, meaning that a single African country made an example of, brings most of them to the negotiating table, allowing most US forces to then be allied to another set of powers. This of course isn't even factoring in the countries which have a US military base within them.
Land trade would then become the main life line for all resistant countries, which would be sufficient for countries other than Russia, to either face a short term shock to their domestic supply, and public opinion soon following. Most will at a minimum want to negotiate, which is sufficient for the greater aim of re-securing de facto US hegemony.
The only thing that's really going to impact this scenario is if China build a rail network through the middle east, and the addition of Rail Guns to Naval warfare, reducing the dominance of aircraft slightly, and increasing the importance of battleships again.
Ethan Lopez
What are you trying to achieve? The US is China second largest export partner. Just pass a law in the US banning Chinese products. China needs nothing from the US to survive
China has just developed a major railway along the silk route through Russia to Europe. You gonna block that as well?
qz.com
And the real kicker, which you seem oblivious to, is that a blockade is an Act of War. Firing on a Chinese flagged transport vessel is the same as shelling the Forbidden City - China will act accordingly. There is no middle ground between a blockade a full on war.