Federal deficit grows by 32% to $900B

[LV426]

Easy money causes speculation. During the times the speculation begins is the boom time. Everything is looking up. People are making a lot of money. More and more join the party.

From 2003-2007, the Fed was raising interest rates.

 

[Into the Night]

With the exception of massive economic contraction, inflation naturally occurs anyway.

WRONG. Inflation is a direct result of the presence of the Fed. It is not natural. You have never bothered to look at how economics in the United States worked without the Fed. All you know is the Fed.

What they predicted was hyperinflation.

Some did, some didn't. Again, you are making a bigoted statement.

That prediction never came to pass.

Higher inflation DID come to pass. Apparently you forgot about QE and QE2 that Obama ordered the Fed to do.

 

[LV426]

Easy money causes speculation. During the times the speculation begins is the boom time. Everything is looking up. People are making a lot of money. More and more join the party.Then comes the bust. The pyramid scheme built by such investing collapses (as all pyramid schemes do), and it all has to unwind. During that time the economy is poor. The Fed, too late, often triggers this by increasing interest rates after the damage has been done. Once the bust starts, the Fed goes right back to lowering interest rates, after the bust is in progress. They are constantly chasing themselves doing the wrong thing. The inevitable result of price controls is shortages. Shortages of money is what the boom/bust cycle is all about. Keneysian economics is a poor economic model. It injects money into the system at the wrong time, and pulls back at the wrong time. It is price controls that result in shortages of money itself.

You are completely, 100% wrong. Completely. Like, it's not even close to the truth.

You're just making all this shit up off the top of your head, aren't you?

 

[LV426]

Nope. Not always. They may simply decide to absorb the extra cost. Price discovery works both ways, you know.

Yes, always.

I've never heard of a business that says, "you know what? I want to make less money."

 

[LV426]

If you prefer to change history as your dogmatic belief there is nothing more to say. Your statement is bigotry.

I'm not changing history...you're just trying to cover for bad faith Conservatives who made shit predictions because they're morons.

Is the Obama Administration Dooming Us to HyperInflation?

As I've blogged before, hyperinflation is a well-justified fear among Wall Street types and more than a trillion dollars in government spending is more likely to send the economy into overdrive than just about anything else.

 

[LV426]

WRONG. Inflation is a direct result of the presence of the Fed

So before a Central Bank, there was no inflation in the US???????

 

[LV426]

You have never bothered to look at how economics in the United States worked without the Fed. All you know is the Fed.

And you know nothing of the Fed.

And the Fed was established in 1913. Are you seriously telling me that there were no economic panics, recessions, or turmoil in the US prior to 1913?

Well, this is easily researched and we find that prior to 1913, economic contraction and panics were far more common:

Panic of 1819
Panic of 1837
Panic of 1857
Panic of 1866
Panic of 1873 (This was actually the longest recession and depression prior to the Great Depression)
Panic of 1884
Panic of 1890
Panic of 1893 (Another US recession with bank failures prior to the Fed)
Panic of 1896
Panic of 1901
Panic of 1907

So...you were saying?

 

[Leonthecat]

Another massive pile of bullshit. The deficits rose exponentially when Democrats took over the House and the Senate. Obama merely grabbed that ball and ran with it.

Liberal hypocrite morons on the left downplayed the deficits by proclaiming they were for the "right" cause and "necessary."

You never get much of anything right do you snowflake?

The 1.4 trillion you attributed to Obama was Bush Juniors budget, liar.
Daffy is on track to beat that this year, liar.

 

[LV426]

Higher inflation DID come to pass.

Inflation naturally occurs, so once again, you might as well predict that water will be wet.

Apparently you forgot about QE and QE2 that Obama ordered the Fed to do.

The only reason the Fed did QE was because Conservatives in Congress absolutely refused to do anything to help the economy recover from the recession their policies caused.

 

[Truth Detector]

The 1.4 trillion you attributed to Obama was Bush Juniors budget, liar.
Daffy is on track to beat that this year, liar.

Wrong again loser boy; that was Obamacare, the trillion dollar Stimulus etc and Democrats controlled the House and the Senate. You would know that if you didn't have your head stuck up your ass and weren't such a hyper partisan hack.

They were all done with continuing resolutions because the Democrat Congress could never actually pass a budget.

 

[Leonthecat]

Wrong again loser boy; that was Obamacare, the trillion dollar Stimulus etc and Democrats controlled the House and the Senate. You would know that if you didn't have your head stuck up your ass and weren't such a hyper partisan hack.

They were all done with continuing resolutions because the Democrat Congress could never actually pass a budget.

That budget for the fiscal year was in place and in effect when Obama was sworn in.
Obamacare was another 18 months later, liar.

 

[Into the Night]

All of which are vague, generalized

This is a compositional error (at least not involving people as the class this time). You are making vague and generalized arguments and applying them across entire classes improperly. It is the same kind of error that causes bigotry (when you involve people as the class).

and would not even come close to closing the deficit they pretend to care about only when they think it helps them politically.

It's not about the deficit. It's about the spending. BOTH parties are to blame.

If you cut all non-defense discretionary spending, you still have a budget deficit of $300B.

The entire EPA is discretionary spending. So is the entire NEA, CPSC, most of the FAA, most of NASA, most of the FCC, and the elimination of other entire departments. These departments should eliminated entirely. The Federal government has no authority to implement them, and such things are better handled by the States themselves. These parts of government should eliminated. I realize it won't happen of course.

Plus, you've taken government demand out of the marketplace and not replaced that spending with anything.

Government doesn't produce anything. Spending by something that doesn't produce wealth does not increase wealth. It wastes it.

So by cutting government spending, you end up contracting the economy because you cut demand and didn't replace it with anything.

No, all you contract is that part of the economy that is not producing wealth for the people.

Cell phones didn't happen because the government bought them. Neither did the personal computer. Neither did website construction (the Federal government STILL has trouble with that one!). Neither did the automobile. Neither did slide rule, horse breeding, house construction, TV sets and flat screen displays, paper making, etc. ALL of these happened because of consumer demand for the products and by the innovation of many talented people that didn't work for the government.

 

[Moosakofsky]

Federal deficit soars 32 percent to $895B

They said the Russia Tax Cuts would pay for themselves.

Tax cuts never pay for themselves.

Never.

Ever.

Once I'm anointed King:
Raise taxes
Cut military by half (eliminate the dead wood).
Medicaid eligibility goes back to pre-ACA.
Eliminate the VA.

Until there is no more nat'l debt.

Then we'll talk about restoring some of those things.

 

[Into the Night]

Oh, word? Like what? What law has oppressed you?

I already listed some of them. Pay attention.

 

[Into the Night]

So you're mad about taxation with representation. You don't really get the point of America, do you?

The point of America is not taxes.

 

[Into the Night]

Gasoline prices here are among the lowest in the Western world.

True.Gasoline is CHEAP right now.

If you want lower gas prices,

Who doesn't?

then stop letting oil companies sell domestic oil on the global market.

Why? That doesn't raise the price of gasoline.

Simple solution.

Solution to what problem?

But you seem to want to have your cake and eat it too.

Personally I'm satisfied with the extremely cheap gasoline available today. It's always nice to get it cheaper though!

Also, when it comes to oil drilling, that is one of the most heavily subsidized private sector industries.

WRONG. They are taxed to drill, to pay their workers, to use the land, to pump out the oil, to transport it to the refineries, to refine it, to store the finished product, to transport it to the distributors, to add the chemistry for that area, to transport it to the gasoline station, to pump it into the ground, again when you pump it out of the ground, and again when you buy and license your car.

Tax...tax...tax...tax...tax...tax...enough!

I have no problem with a tax to pay for post roads (what we call freeways and major roads today), but it's gotta stay reasonable.

The tax credits oil companies get would stun you.

No, they wouldn't, because they aren't as big as you think they are. Most tax credits and subsidies pay for researching more efficient uses of oil products, and finding a greater variety of oil products, such as plastics.

It costs them virtually nothing to explore and extract oil because of the subsidies and tax credits they get for doing so.

WRONG. They are taxed...taxed...taxed...taxed...etc.

re: concerning taxes on casino wins
Yeah, because that's how progressive taxation works.

WRONG. That is the inability of the Federal government to define what 'income' actually means!

Your big thing seems to be that you're mad that you get representation for your taxation.

But I don't. True, I can vote in people to help lower income taxes, but non-elected bureaucrats impose increases in duties, fees, and taxes all the time, often on little more than a whim. Don't forget, many regulations passed by this same bunch are also effectively a tax.

 

[Into the Night]

LOL!

I literally gave you the budget from the Kansas State Legislature and it shows that the repeal of the tax cuts turns deficits into surpluses.

It's not about the tax cuts. It's about the spending.

 

[Into the Night]

Yes they do:

View attachment 7651

Nope. SPENDING does that.

 

[Into the Night]

Tax cuts are always the problem because tax cuts reduce revenue. But that's the goal of them; to starve the Treasury of revenue in order to have an excuse to push through cuts to social programs to which you're ideologically opposed, but lack the courage, will, and support to repeal through conventional legislation.

So you practice fiscal terrorism, where you fly planes of tax cuts into the budget, then cry chicken little over the resulting deficits, and propose cuts to spending instead of a repeal of the tax cuts that caused the deficit to appear in the first place.

This literally happened in Kansas. The tax cuts were so terrible that they repealed them last year. The result? Kansas' budget went from record deficits to surpluses:

View attachment 7652

There's the math, plain as day. SB 30 is the repeal of the Brownback Tax Cuts, and look at that! When the tax cuts are repealed, suddenly Kansas has a budget surplus!

Explain how that's not because of the repeal of the tax cuts, using math only. Go ahead. I dare you.

Revenue reduction is perfectly fine, so long as you reduce the SPENDING.

 

[blackascoal]

It's not about the tax cuts. It's about the spending.

It's about the tax cuts and the spending.

The amount of tax cuts are supposed to be derived by balancing them with necessary spending.

You seem to believe it's the reverse.