In Biden's first year, economic growth reached a 37-year high

[Mina]

We're already in a DEPRESSION, dude...

What makes you think that? A depression is generally described as something like "a major downturn in the business cycle characterized by sharp and sustained declines in economic activity; high rates of unemployment, poverty, and homelessness; increased rates of personal and business bankruptcy; massive declines in stock markets; and great reductions in international trade."

There has been no sharp decline in economic activity. We were down a little in Q1 2022 (after a 2021 that had stronger growth than any year for almost for decades), but current measures suggest Q2 had positive real GDP growth. So, that's neither sharp not sustained decline. There's definitely not high rates of unemployment -- in fact, we're near record-low unemployment. Homelessness declined last year. Poverty rates are below historical averages. Last year, bankruptcies fell 24%. The stock market is down a bit, but it was up the prior year, such that there's been a positive rate of total return on stocks since Biden took office, and both imports and exports are up.

It appears none of the traditional measures of depressions are currently applicable. So, which definition are you using?

 

[gfm7175]

We must be using different scales.

I made up a number just as you did.

Meh.

 

[Mina]

I made up a number just as you did.

Meh.

Mine comes from a Wechsler test.

 

[gfm7175]

Very simplistic, indeed.

I did the best I could with your shitty vague example.

In reality, a company can continue to grow debt indefinitely,

If that were true (it's not), then why do companies go bankrupt?

I am sooooooooo glad that you do not run a business nor do any sort of accounting for one, as you know absolutely NOTHING about either topic.

the same as a country.

A government ultimately can't either, as the "print more money" option simply leads to a cash crash instead of a debt crash.

The issue is the ratio of debt service to one's ability to pay. The problem comes when deficits are rising faster than earns (or GDP in the case of a country), which will tend to increase debt not just in absolute terms, but relative terms as well, making it an increasing burden.

The fuck???? Speak English.

GDP and "earns" (earnings?) are not equivalent. You have no fucking clue what you are talking about

Am I right to assume you have no actual business experience?

It is very clear to me that YOU have no business experience.

 

[PostmodernProphet]

I know a great deal about both. I have an undergraduate degree in economics and an advanced degree in finance, both from elite universities, and I get paid about a quarter of a million dollars per year to consult with big businesses on finance issues related to M&A decisions.

But, tell me, what is it about that line you quoted that made you think I didn't know about economics or business, specifically?

that is not believable given that you recently stated this.....

Quote Originally Posted by Mina View Post
In reality, a company can continue to grow debt indefinitely,

no one with an education is that stupid.....

 

[Mina]

If that were true (it's not), then why do companies go bankrupt?

Bankruptcy occurs when you can no longer afford your debt payments. Your debt can grow indefinitely without that happening, so long as your income grows as fast or faster.

A government ultimately can't either

It definitely can. When is the last time the US didn't have any public debt?

The fuck???? Speak English.

Earnings.

GDP and ....earnings... are not equivalent.

No, but the concept works similarly in this context. Check out the US's finances between the end of WWII and Ronald Reagan's unbelievably stupid upper-class tax cuts, as an example.

In 1946, gross federal debt was 118.9% of GDP. By 1981, it was just 31.8% of GDP. In all those years, we only ran surpluses 8 times, and the net of our surpluses and deficits was -766.984 billion. So, with us running huge net deficits, how is it that debt became dramatically less problematic?

That's easy. Although, on average, we ran deficits, the deficits weren't growing as fast as GDP. So, gradually we were growing our way towards debt being a smaller and smaller issue for the country, in relative terms. By 1981, the debt burden was practically an afterthought. That only changed with Reagan's fiscally suicidal tax cuts, which reversed the process and led to ever growing relative levels of debt.

That's the point, though. A country or a company could theoretically run deficits forever. As long as the overall economy (in the case of the country) or the revenues (in the case of the business) are growing faster than those deficits, the tendency will be for the debt levels to fall relative of the ability of the country/company to pay.

And it's the same with individuals. My debt level can rise every year I'm alive without me ever going bankrupt, as long as my income is rising faster. If, as a freshly minted graduate, I've got an income of $50k and $150k of debt, that's more of a problem than if, 30 years later, I have an income of $250k and $200k of debt. My debt may have risen over that time, but my ability to pay it will have risen a whole lot more, making it a smaller relative burden.

It is very clear to me that YOU have no business experience.

I have a plenty. Do yo have any?

 

[Mina]

that is not believable given that you recently stated this.....


no one with an education is that stupid.....

A company can, of course, continue to grow debt indefinitely. Do the math yourself, if you don't believe me.

Imagine a super simple business model, where you can borrow money at X% and earn X+1% on it. How long can you continue to do that before you go bankrupt? The answer, of course, is you'll never go bankrupt. Your earnings will outpace your debt growth indefinitely.

In the business world, it's generally understood that businesses should keep some level of debt.... and that the optimal debt level is proportional to the size of the business. So, as long as your company is growing, it's generally understood that your debt level can and should grow with your company.

 

[gfm7175]

I know a great deal about both.

You haven't displayed any of that "knowledge" yet.

I have an undergraduate degree in economics and an advanced degree in finance, both from elite universities,

I don't believe you.

and I get paid about a quarter of a million dollars per year to consult with big businesses on finance issues related to M&A decisions.

I don't believe you.

But, tell me, what is it about that line you quoted that made you think I didn't know about economics or business, specifically?

Neither gas prices nor inflation are going to go down anytime soon. The prices on this year's harvest are going to be jaw-dropping.

 

[gfm7175]

Mine comes from a Wechsler test.

Meh.

 

[Truth Detector]

I wouldn't be surprised. Republicans sell upper-class tax cuts,

Another BIG lie. The tax cuts were across the board with EVERYONE but the wealthiest Americans winning.

Of course you have direct evidence of those tax cuts ONLY benefitting the rich? LINK

and the extraordinary income growth on Biden's watch has resulted in a high share of Americans starting to push up into higher brackets.

There has been no extraordinary income growth. With the current level of inflation, incomes have declined.

Meanwhile, Democrats fight for an enhanced social safety net, but with Biden having led us to unemployment rates well under 4%, a very small percentage of Americans feel they might need that. This is a perfect storm.

The only thing Democrats have done is make Americans far more poorer, place their 401Ks at risk, made Americans less safe and basically allowed illegals to flood into the country using up precious resources.

As for social safety nets, Americans wouldn't need Government dependency if we got our economics right. Making more Americans dependent on Government imprisons them and makes them beholding to faceless bureaucrats. That's not what our founders intended nor how we become one of the most prosperous nations on the planet.

You're a caricature of ignorance and an example of how badly our leftist educational establishment is failing us.

Seriously, when has unemployment EVER been under 5% without it favoring Republicans in the election? The fairly consistent modern pattern is that Democrats are given the presidency by voters after Republicans have made a mess of our economy, and the Dems are tasked with cleaning it up.

That is a lie that cannot be supported by historical fact. Prove this or admit you're nothing more than a lying leftist partisan hack.

Then, once they've done so, people get complacent and vote Republicans back in. That's the story of 1952, 1968, 2000, and 2016, for example. In each such year, years of Democratic executive power had led us to rock-bottom unemployment, and so voters felt safe to gamble with the "have your cake and eat it too" party, and Republicans retook power (and led us to catastrophe). The same dynamics are at work this year.

That's a massive pile of simplistic bile. 1952 was Eisenhower. 1968 was Johnson known as the year that shattered America. 2000 was Bush and we were heading into a recession and, thanks to Clinton being more interested in his dick than the terrorists, resulted in 9-11. 2016 was a great time. Obama had led the nation into the new malaise. Trump raised us out of it.

Things were great until the great China virus hoax and the needless destruction of the economy with shutdowns. Now, it is the worst shit hole since Jimmy Carter. You remember Jimmy right? Well, Biden is going down as an even worse President than him.

Yet here you are, a brain-dead hack prone to bullshitting and fabrications.

 

[PostmodernProphet]

A company can, of course, continue to grow debt indefinitely. Do the math yourself, if you don't believe me.

Imagine a super simple business model, where you can borrow money at X% and earn X+1% on it. How long can you continue to do that before you go bankrupt? The answer, of course, is you'll never go bankrupt. Your earnings will outpace your debt growth indefinitely.

In the business world, it's generally understood that businesses should keep some level of debt.... and that the optimal debt level is proportional to the size of the business. So, as long as your company is growing, it's generally understood that your debt level can and should grow with your company.

lame fuck....we're talking about operating in the red, not just carrying a debt.......

 

[Truth Detector]

I know a great deal about both. I have an undergraduate degree in economics and an advanced degree in finance, both from elite universities,

You should get your money back. They didn't teach you a thing about finance and economics. Now bullshitting and lying, you're an expert.

...and I get paid about a quarter of a million dollars per year to consult with big businesses on finance issues related to M&A decisions.

Given what you bloviate here, they aren't getting their monies worth an will probably suffer using your advice.

But, tell me, what is it about that line you quoted that made you think I didn't know about economics or business, specifically?

Defending the current administration makes you an economics moron. Any other dumb questions? '

Tell me something Mina, what government ever spent their way out of a recession?

What government ever spent their way to prosperity?

 

[Truth Detector]

that is not believable given that you recently stated this.....


no one with an education is that stupid.....

 

[Truth Detector]

Bankruptcy occurs when you can no longer afford your debt payments.

Bankruptcy occurs when no one buys your goods or services anymore.

Ronald Reagan's unbelievably stupid upper-class tax cuts, as an example.

Another moronic statement. Tax cuts have NEVER led to lower revenues. FACT: we don't have a revenue problem in this nation, we have a SPENDING problem.

Educated my ass.

In 1946, gross federal debt was 118.9% of GDP. By 1981, it was just 31.8% of GDP. In all those years, we only ran surpluses 8 times, and the net of our surpluses and deficits was -766.984 billion. So, with us running huge net deficits, how is it that debt became dramatically less problematic?

You can thank Democrats for all the federal debt. The ONLY time we had a balanced budget in the last 40 years was with Republicans in charge during Clinton's presidency. Democrats held the purse strings for five decades prior to 1994. You do know that only Congress can spend right?

And it's the same with individuals. My debt level can rise every year I'm alive without me ever going bankrupt, as long as my income is rising faster. If, as a freshly minted graduate, I've got an income of $50k and $150k of debt, that's more of a problem than if, 30 years later, I have an income of $250k and $200k of debt. My debt may have risen over that time, but my ability to pay it will have risen a whole lot more, making it a smaller relative burden.

You'll need that income to pay your share of the National debt then. Right now, your bill is around $162,000.

Yes, governments can continue to print money to pay for their debt. But over time, that currency will be worthless. So no dipshit, debt is not good and you cannot continue running it up indefinitely.

Unless, of course, your goal like the Democratic Party of Lying Jackasses is to destroy the nation. Then Marxist ideology is all for you.

 

[Truth Detector]

A company can, of course, continue to grow debt indefinitely. Do the math yourself, if you don't believe me.

Imagine a super simple business model, where you can borrow money at X% and earn X+1% on it. How long can you continue to do that before you go bankrupt? The answer, of course, is you'll never go bankrupt. Your earnings will outpace your debt growth indefinitely.

In the business world, it's generally understood that businesses should keep some level of debt.... and that the optimal debt level is proportional to the size of the business. So, as long as your company is growing, it's generally understood that your debt level can and should grow with your company.

 

[Flash]

We're already in a DEPRESSION, dude... We have been for a while now, and it's only going to get worse.

Nope. A depression is very high unemployment, low spending etc. We have 3.6% unemployment, 11.5 million job openings, A record 6.4 million jobs created in 2021, and the economy grew by 5.7% in 2021, the biggest increase since 1984.

A recession requires a declining GDP by definition. The last recession was in 2020 and only lasted two months. The 3rd quarter of 2020 saw a record decline in the economy of 31.4%.

 

[Airstrip One]

100 to 0. We won't see a recession for a year or two (if then).

Sounds good.

 

[T. A. Gardner]

A company can, of course, continue to grow debt indefinitely. Do the math yourself, if you don't believe me.

Imagine a super simple business model, where you can borrow money at X% and earn X+1% on it. How long can you continue to do that before you go bankrupt? The answer, of course, is you'll never go bankrupt. Your earnings will outpace your debt growth indefinitely.

In the business world, it's generally understood that businesses should keep some level of debt.... and that the optimal debt level is proportional to the size of the business. So, as long as your company is growing, it's generally understood that your debt level can and should grow with your company.

This isn't true. That's because the interest on the debt incurred is compounded while the earnings are not. That means the debt grows while the business tries to keep up with paying it off. Eventually, the debt exceeds earnings and the pyramid scheme fails.

 

[gemini104104]

CNN’s Enten: Polling Shows GOP Will Take Huge House Majority –Best Position in over 80 Years

In that case CNN's selective polling is much like Faux polling at polling in the gutter with foreign enemies and the enemy from within. The GOP has already declared war on America and humanity, which hopefully requires a certain extraordinary reaction in compliance with U.S. Constitutional law and possibly the War Power Act:

One year later: The GOP is Still at War against Democracy. Needed: A New Center-right Party
https://www.insidernj.com/one-year-later-gop-still-war-against-democracy/

 

[PostmodernProphet]

it is sad that lib'ruls pretend this economy is good, when they complained about Trump's economy in 2019 and shut down the entire country just to prevent him from getting re-elected.......