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Actually, the President sends a budget request to the House and they amend it and send to the Senate; then there is a conference committee so they vote on the same bill and once approved, send the the WH.
it would have been nice if ole harry reid had done that.
"to the House and they amend it" No, they can reject it outright and DO their own budget proposal.
From YOUR link:
" Step Two: The Congressional Budget Resolution
Next, Congress generally holds hearings to question Administration officials about their requests and then develops its own budget plan, called a “budget resolution.
The U.S. has a sovereign currency and therefore never has to default on the debt.
Now, I know lots of people have tried to use scary numbers, like $19 trillion dollar (in my best "Dr. Evil" voice) but nobody has explained why this debt fetishism should dominate policy or what the benefit of reducing the debt does for the average American.
The U.S. govt. is the only entity with the ability to create U.S. dollars. They are also the only entity with the ability to create U.S. bonds. When they trade bonds for dollars, or dollars for bonds, it's not costing them anything to do so, because either way, they have created their instrument out of thin air. Yet people insist on calling sovereign bonds "debt" and running the economy as if we were $19 trillion in the hole.
So no one has to buy the debt... It just buys itself?
You've been in here for years now and still repeat the same thing over and over as if it were true.
I'll let the CBO set you straight (for the millionth time).
"The projected deficits would push debt held by the public up to 86 percent of GDP by the end of the 10-year period, a little more than twice the average over the past five decades. Beyond the 10-year period, if current laws remained in place, the pressures that had contributed to rising deficits during the baseline period would accelerate and push debt up even more sharply. Three decades from now, for instance, debt held by the public is projected to equal 155 percent of GDP, a higher percentage than any previously recorded in the United States.
Such high and rising debt would have serious negative consequences for the budget and the nation:
When interest rates increased from their current levels to more typical ones, federal spending on interest payments would rise substantially.
Because federal borrowing reduces total saving in the economy over time, the nation’s capital stock would ultimately be smaller than it would be if debt was smaller, and productivity and total wages would be lower.
Lawmakers would have less flexibility to use tax and spending policies to respond to unexpected challenges.
The likelihood of a fiscal crisis in the United States would increase. There would be a greater risk that investors would become unwilling to finance the government’s borrowing needs unless they were compensated with very high interest rates; if that happened, interest rates on federal debt would rise suddenly and sharply."
~CBO - Budget Outlook 2016 - 2026~
If The Sanderistas have their way it will approach 300% of GDP.
I got an idea, why don't you quote Krugman now and completely ignore reality. Quote your armchair quarter back and get back in your ostrich hole.
Interest rates are set by Gov't and the Fed, so we have a very long way to go.
No, they're not. If no one buys your debt because they see you as a useless outdated country then you have to entice those people or entities to buy your debt by promising them higher rates of return.
So you understand?
That means the more likely you'll never pay back your debt the less likely anyone will want to buy your debt so that you can keep funding your fantasy world.
Maybe some of you should go back to Warcraft IX or something. Maybe Final Fantasy is your cup of tea.
Do you think the 2 Trillion dollar Iraq War was not tax payer money? What about totally unfunded Medicare Part D? This idea that Republicans care about the debt is a complete and total myth. They do whatever they want with the money when they can then complain when a Democrat is in office. They just need to stop pretending. It was Dick Cheney that said "Deficits don't matter".
The subject was the billions of cash that went missing.
No, they're not. If no one buys your debt because they see you as a useless outdated country then you have to entice those people or entities to buy your debt by promising them higher rates of return.
So you understand?
That means the more likely you'll never pay back your debt the less likely anyone will want to buy your debt so that you can keep funding your fantasy world.
Maybe some of you should go back to Warcraft IX or something. Maybe Final Fantasy is your cup of tea.
All our debt will never be paid back!
USD based debt is the largest store, the most sought after, liquid, safe and secure paper on planet Earth. Demand is full despite low rates. More turmoil in the world will only create more demands for it. This is the reality.
And higher rates if deemed necessary will only increase the demands!
Rates are set by the Fed and Treasury and we have little reason to raise rates. There is very little in the way of 'competition', and the set up is such that our Treasury auctions are guaranteed to sell out.
On top of all that good news, if rates do have to climb, we simply issue more short term paper.
USD based debt is the largest store, the most sought after, liquid, safe and secure paper on planet Earth. Demand is full despite low rates. More turmoil in the world will only create more demands for it. This is the reality.
And higher rates if deemed necessary will only increase the demands!
Rates are set by the Fed and Treasury and we have little reason to raise rates. There is very little in the way of 'competition', and the set up is such that our Treasury auctions are guaranteed to sell out.
On top of all that good news, if rates do have to climb, we simply issue more short term paper.
There's $1.77 trillion reasons in MBS and $2.462 trillion reasons in USTS.
In case you haven't noticed there is no more room and the FR severely wants to get rid of those ridiculous holdings in its balance sheets. So there goes your high demand theory. Your FR was buying your debt because no one else would.
To get out of your current predicament someone has to buy that debt first or it needs to be removed with much higher interest rates. Either way the FR is reactionary. They can't just do whatever they want without a care in the world regarding consequences.
So no one has to buy the debt... It just buys itself?
Do you have any idea how silly you make yourself look as if you have no idea what QE even means? Did you even bother to look at the Federal Reserves balance sheet? You need to stop posting and read something at the fundamental level including the fecklessness of a democracy when the population is ignorant.
Quote:
You've been in here for years now and still repeat the same thing over and over as if it were true.
I'll let the CBO set you straight (for the millionth time).
"The projected deficits would push debt held by the public up to 86 percent of GDP by the end of the 10-year period, a little more than twice the average over the past five decades. Beyond the 10-year period, if current laws remained in place, the pressures that had contributed to rising deficits during the baseline period would accelerate and push debt up even more sharply. Three decades from now, for instance, debt held by the public is projected to equal 155 percent of GDP, a higher percentage than any previously recorded in the United States.
And this means what to you? Yes people use da guberment debt as savings. Even though the rate has been pushed to rock bottom they still cannot be convinced to part with it because people are afraid they will not be able to buy a loaf of bread without savings. They are afraid to hold equities because they can go bankrupt. They are afraid that bonds will default. So they want guns behind their savings. That's what they want. Don't bother arguing with me.
Quote:
Such high and rising debt would have serious negative consequences for the budget and the nation:
No, its the after affects of a private credit bubble that was a complete disaster. The national debt is simply a higher proportion of all liquidity since the private debt debacle. Its the water in the basement after the rain of private credit. Japan was the same example. You think their national debt is the threat of things to come? Japanese real estate was valued more than North America was at one time. That was the disaster waiting to happen.
Quote:
When interest rates increased from their current levels to more typical ones, federal spending on interest payments would rise substantially.
You just don't know what QE is. QE sets the rate to what they want. If it show up as inflation, well gee I wonder what rising tax receipts might do to inflation along with tightening credit...
Quote:
Because federal borrowing reduces total saving in the economy over time, the nation’s capital stock would ultimately be smaller than it would be if debt was smaller, and productivity and total wages would be lower.
Hilarious. Federal borrowing increases saving because people buy the the debt to add to their savings, unless its QE in which case it would reduce the return on savings. Federal spending on the other hand is what actually results in the consumption of goods and services....This impacts capital only to the extend that what they spend it on is not perishable which is the essence of the full employment arguments...
Quote:
Lawmakers would have less flexibility to use tax and spending policies to respond to unexpected challenges.
They can play the violin standing on one leg with the other behind their head because they have the power to tax and print money. I wish what you said were actually true....I really do given I am a libertarian, however I am not irretrievably stupid.
Quote:
The likelihood of a fiscal crisis in the United States would increase. There would be a greater risk that investors would become unwilling to finance the government’s borrowing needs unless they were compensated with very high interest rates; if that happened, interest rates on federal debt would rise suddenly and sharply."
~CBO - Budget Outlook 2016 - 2026~
If The Sanderistas have their way it will approach 300% of GDP.
I got an idea, why don't you quote Krugman now and completely ignore reality. Quote your armchair quarter back and get back in your ostrich hole.
Why don't you explain why Japan just doesn't disappear? Yes they are killing themselves by raising sales taxes and causing a demographic crisis, but their "huge national debt" ratio still means they don't go into private debt with most of their liquidity being government securities. All money is in some form of debt. Pick one, private credit or national debts....or go on a commodity standard if you insist on on net equity above the defined rate of zero in a credit economy. I really wish you knew wht the last thing I said even means, but I doubt you ever will.
I mean like, wow.....
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