Trump chickens coming home to roost.

NOOOO Liberal snowflake - its all Obama and the Clintons fault - said the Trumpeters

Federal Deficit Jumps 17 Percent As Tax Cuts Eat Into Government Revenue

October 16, 201811:27 AM ET

hip Somodevilla/Getty Images

Updated at 4 p.m. ET

The federal deficit ballooned to $779 billion in the just-ended fiscal year — a remarkable tide of red ink for a country not mired in recession or war.

The government is expected to borrow more than a trillion dollars in the coming year, in part to make up for tax receipts that have been slashed by GOP tax cuts.

Corporate tax collections fell by 31 percent in the fiscal year ending Sept. 30, despite robust corporate profits. That's hardly surprising after lawmakers cut the corporate tax rate from 35 percent to 21.

Income taxes withheld from individuals grew by 1 percent. Overall tax receipts were flat. As a share of the economy, tax receipts shrank to 16.5 percent of GDP, from 17.2 percent the previous year.

"The president is very much aware of the realities presented by our national debt," said White House budget director Mick Mulvaney.

He insisted that accelerating economic growth will eventually help fill the deficit hole, though so far there's little evidence that growth is finding its way to government coffers.

The White House also argued that government spending is to blame for the yawning deficit, even though spending rose just 3 percent during the fiscal year and spending as a share of the economy actually shrank.

"This fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending," Mulvaney said in a statement.

Senate Republican leader Mitch McConnell, R-Ky., called the growing deficit "very disturbing." He argued the problem is neither tax cuts nor beefed-up military spending, but rather the big three entitlement programs: Social Security, Medicare and Medicaid.

"There's been a bipartisan reluctance to tackle entitlement changes because of the popularity of those programs," McConnell said in an interview with Bloomberg. "Hopefully at some point here we'll get serious about this. We haven't been yet."

McConnell's comments drew a swift rebuke from the top Democrat in the Senate, Chuck Schumer, D-N.Y., who blamed the rising deficit on Republicans' "tax cut for the rich."

"To now suggest cutting earned middle-class programs like Medicare, Social Security, and Medicaid as the only fiscally responsible solution to solve the debt problem is nothing short of gaslighting," Schumer said.

The fiscal year-end report from the Treasury Department was broadly in line with White House and Congressional projections. Although White House economic adviser Larry Kudlow falsely claimed in June that the deficit was coming down, the trend toward rising red ink was widely anticipated.

"As expected, recent tax cuts and spending increases — all put on the national credit card — are making a bad problem even worse," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

Growing deficits, coupled with rising interest rates, will increasingly put pressure on other government spending priorities. MacGuineas notes that interest payments jumped 24 percent in the last 12 months, to $325 billion.

"Those elected to Congress this year will face stark and difficult choices to put the debt on a downward path and protect our nation's social programs from insolvency," MacGuineas said. "It's no longer a problem for the future."

President Trump has complained repeatedly that the Federal Reserve is raising interest rates too quickly.

"My biggest threat is the Fed," Trump said Tuesday in an interview with the Fox Business Network. "The Fed is raising rates too fast. And it's independent, so I don't speak to [Fed Chairman Jerome Powell]. But I'm not happy with what he's doing."

The deficit typically grows during recessions — when tax receipts shrink and demand for food stamps and other government assistance rises — then falls during good times

The current spike in the deficit at a time of strong economic growth and low unemployment represents a break with that historical pattern.

The last time unemployment was this low — in 1969 — federal government ran a small surplus.

After peaking at nearly 10 percent of GDP in 2009, the deficit declined as share of the economy through 2015. It's been rising since, hitting 3.9 percent of GDP in the fiscal year just ended.


https://www.npr.org/2018/10/16/6577...F4-nphyNE4FpSiSOuAxCH5LNsgGtjHEWqYRLtcthldB3c

That is why the ones with larger brain neurons voted against this idiot. His biggest blow to the world economies, that will come to haunt the US and off course Canada as well, are the Trade Tariffs, all in the name of "nationalism".

"If it was so bad, why do poor people still want to come to USA?"


Wait for it.

essguy_ said:

The thing I find the most amusing is that Trump actually had a good thing going for a little while (if you turn a blind eye to his deficits). But because he's a moron with no filters, no capacity to reflect, he blew it all up all with a single tweet (back in March) about Tariffs. NOBODY in the Whitehouse (with the exception of Ross and Navarro) thought these were a good idea. But Trump was pissed that Hope Hicks was turfed and tried to assert his authority by making an off the cuff statement that caught everybody by surprise. Everything since has been the Whitehouse trying to make it seem like they always had a plan - when their only plan is to hope that the rest of the world is as stupid as Trump's base (or the audience for "The Apprentice" or Terb righties).

Now he's going to have: Huge deficits, a slowing economy (hopefully NOT a recession), higher prices, and rising rates. And he won't be able to escape by stiffing a few suppliers and strong arming a couple banks.

Click to expand...

Next year, out of revenues of about $3.6T, the federal government will spend maybe $1T on interest payments.

Are you tired of Winning yet?

Ray Dalio: Losing 'Reserve Status' Would Lead To 30% Drop In The Dollar

Mon, 11/19/2018 - 15:00

During a live interview with Barry Ritholtz for his "Masters In Business" podcast on Monday, Bridgewater Associates CEO - who has been on a seemingly never-ending media tour to promote his new free e-book "A Template For Understanding Big Debt Crises" - once again expounded upon his "1937" markets thesis: That is, his theory that the US economy increasingly resembles the late-cycle dynamic from the 1930s where equity prices topped out as the Federal Reserve tightened monetary policy. Like the 1930s, the global economy is awash and debt, and populist politicians gaining power and influence in the West.



But more interesting than Dalio's retread of his calls for a recession to begin some time during the next two years, he also repeated a claim he first made back in September, which has been getting more attention since BlackRock CEO Larry Fink said something similar earlier this month: That the US dollar's days as the dominant global reserve currency are numbered.




Echoing Fink's claims, Dalio explained that widening US deficits will soon alienate foreign buyers of US Treasurys, sending yields soaring higher while causing the dollar to depreciate by as much as 30% (though at least the Fed would no longer have any trouble meeting its inflation target).

Bloomberg's Brian Chappatta reviewed Dalio's remarks in a column published Monday, where he cited previous comments by the hedge fund billionaire where Dalio said the loss of the dollar's reserve status would be America's "worst nightmare." Dalio believes other rivals to the dollar will emerge to take its place, but refused to speculate about which currencies they might be.

"The role of the U.S. dollar will diminish, and the returns on U.S. dollar-denominated debt will suffer," he said. "Then I think you will see the emergence of other currencies," though he declined to identify which ones, saying it was "too big a topic to get into."

Dalio also shared how he first came to understand currency crises when he was clerking on the floor of the New York Stock Exchange. He recalled the day in 1971 when President Richard Nixon shocked markets by severing the dollar's link to gold.

"Money would get you gold, and it was a breakdown - it was a default," he said. "I remember thinking when I was going to walk in on Monday morning to the New York Stock Exchange, this is a big crisis, and I thought the stock market would fall a lot. And the stock market went through the roof."

In response to a question about his outlook for markets, Dalio - who said back in January that anybody caught holding cash would "feel pretty stupid" - warned that the entire world is "leveraged long", and that asset returns in the coming years would be middling to negative for the foreseeable future.

"When you're at a zero interest rate in the US, a zero interest rate in Europe and a zero interest rate in Japan, I think we've squeezed out a lot of assets. I think the world by and large is leveraged long. Meaning the buying of debt - corporate debt. One of the biggest sources of returns on assets was the fact that the interest rate was low relative to the return on equity. There were a lot of buybacks and mergers and acquisitions by companies buying companies. Then you had corporate tax cuts...all of those things have pushed asset prices to the level where it's difficult to see if you could squeeze more."

He is sure trying to FUCK his best allies CANADA Less we forget)

Nice circle jerk you boys have going here, I’ll throw a few facts in and leave you to do what you do best - team wraparound.

Weaker retail sales loom over China's economy despite some bright spots

German GDP drops for first time since 2015

Eurozone growth rate slumps to four-year low as Italy stagnates - as it happened

Japan Q3 GDP growth plunges to three-year low at 1.2%

onthebottom said:

Nice circle jerk you boys have going here, I’ll throw a few facts in and leave you to do what you do best - team wraparound.

Weaker retail sales loom over China's economy despite some bright spots

German GDP drops for first time since 2015

Eurozone growth rate slumps to four-year low as Italy stagnates - as it happened

Japan Q3 GDP growth plunges to three-year low at 1.2%

Click to expand...

Sure, it is a great victory for Trump if the global economy turn south.

Do you even realize what you are posting.

danmand said:

"If it was so bad, why do poor people still want to come to USA?"


Wait for it.

Click to expand...

LOL

And their money too....

https://www.gfmag.com/topics/macroeconomy-and-globalization/countries-most-fdi-inflows-2018

danmand said:

Sure, it is a great victory for Trump if the global economy turn south.

Do you even realize what you are posting.

Click to expand...

That we are growing while the rest stumble. China is overdue for their correction, Europe has not yet got its act together.

In the 1995-2000 years the US was 60% of GLOBAL GDP growth. Hit the ball, drag the ROW.

Are you suggesting we are the indespencible nation the world leans on?

onthebottom said:

That we are growing while the rest stumble. China is overdue for their correction, Europe has not yet got its act together.

In the 1995-2000 years the US was 60% of GLOBAL GDP growth. Hit the ball, drag the ROW.

Are you suggesting we are the indespencible nation the world leans on?

Click to expand...

No, I am suggesting that it is not that good for Apple and [name american company], if the economies of China, EU and Japan goes south.

I do not understand your euphoria about a global downturn in the economy.

I despise Trump - but I support his trade war with the PRC.

Like I said before, it's a necessary evil. If he backs down, he might as well go get his shinebox.

https://www.youtube.com/watch?v=IeL8EYtbVw0

Insidious Von said:

I despise Trump - but I support his trade war with the PRC.

Like I said before, it's a necessary evil. If he backs down, he might as well go get his shinebox.

https://www.youtube.com/watch?v=IeL8EYtbVw0

Click to expand...

Why do you say that. It is not a win for USA if China's economy goes south, on the contrary (unless you want a nuclear war). The Chinese market is important. Think Apple, Caterpillar, etc etc.

Trump's fatal mistake is that he thinks trade is a zero sum game.