Dogs Sleeping Forum

Cactus Jack wrote:

Maddog wrote:The US is at about 107% debt to GDP and 5% annual deficit to GDP.

Membership in the EU requires 60 and 3 percent respectively. The US couldn't join the EU based on its debt.

Nobody of either party gives a shit. Democrats never did and Republicans are now kissing Trumps ass.

The economy here is good, but Trump knows it has to stay that way if he wants to win the next election. Lowering the rates would keep it going until at least after the election.

Rates are already stupid low. 15 year loans for houses are below 3%.

When the day of reckoning comes, its going to be ugly.

Based on the economic history of the United States I have to disagree with your characterisation of the parties.

It is true that during the times when Democrats are in power the Republicans have a 'come to Jesus' moment about balancing budgets but the rest of the time they're all for spending by X and taxes by 2X which can only grow the deficit

By contrast the Democrats generally want to raise taxes by 2X in order to spend X, which will have the effect of shrinking the deficit and debt.

I know that for ideological reasons you always favour tax cuts and spending cuts of any kind, never seeing that the tax cuts benefit only the wealthiest and the spending cuts persecute only the most vulnerable, but that's a different matter

Earning, or if you want to call it stealing go ahead, $100 and spending only $50 leaves you $50 ahead
Giving away $200 to get back $100 only leaves you $100 deeper in the hole.

Maddog wrote:The US is at about 107% debt to GDP and 5% annual deficit to GDP.

Membership in the EU requires 60 and 3 percent respectively. The US couldn't join the EU based on its debt.

Nobody of either party gives a shit. Democrats never did and Republicans are now kissing Trumps ass.

The economy here is good, but Trump knows it has to stay that way if he wants to win the next election. Lowering the rates would keep it going until at least after the election.

Rates are already stupid low. 15 year loans for houses are below 3%.

When the day of reckoning comes, its going to be ugly.

U.S. President Donald Trump on Wednesday called on the “boneheads” at the Federal Reserve to push interest rates down into negative territory, a move reluctantly used by other world central banks to battle weak economic growth that risks punishing savers and banks’ earnings in the process.

Trump, in a pair of Twitter posts, said negative rates would save the government money on its debt, which including Social Security accounts has reached a record $22 trillion on Trump’s watch. He did not address the risks or financial market tensions that central banks in Europe and Japan have confronted as a result of their negative rate policy, or the larger issue that negative rates have not secured higher growth or higher inflation for those economies.

“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term,” Trump tweeted. “We have the great currency, power, and balance sheet... The USA should always be paying the ... lowest rate. No Inflation!”

“It is only the naïveté of (Fed Chairman) Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing,” added Trump, who has repeatedly noted that rates are negative in Germany, Europe’s trading powerhouse.

The president’s comments precede a week in which the world’s major central banks, including the Fed, are expected to lower rates or otherwise loosen monetary policy in what is widely seen as a move to protect the global economy against risks partly rising from Trump’s trade war with China.