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Old Yesterday, 10:58 AM
 
Location: Florida
22,496 posts, read 9,565,215 times
Reputation: 18347

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Quote:
Originally Posted by Bureaucat View Post
Tax cuts boost the economy, but the timing of those tax cuts are important, and an economy already recovering from recession with a relatively low unemployment rate was not the ideal time to add deficit spending to get the most economic bang for the buck.

https://www.taxpolicycenter.org/taxv...ut-growth-rate

Now we have low growth rates again, with a lot more debt that’s getting a lot worse every year than it was before the tax cut.

Winning!
Trump is trying desperately to manipulate the economy. First up, tax cut for his buddies and corporations (known for their trickle down generosity). He says things to deliberately tank stocks. He redistributes wealth to those being by hurt by his decisions. He harasses and bullies the Fed to death about lowering interest rates like an obnoxious harpy.

Let us not forget. This is someone who has tanked businesses left and right, put them into bankruptcy, stiffed creditors all over the world, and is broadly famous for being a deadbeat.

Since he is possessive of everything belonging to the country, he is going to treat the economy like he's treated his businesses. Selfishly and badly. He knows the next president will get some blame for the mess he creates, while also having to clean it up. There is a reason why banks don't loan to him.
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Old Yesterday, 12:12 PM
 
Location: Florida
5,991 posts, read 2,784,277 times
Reputation: 7242
Another "small" (as he calls it) 10% tariff on China today ! The DOW drops 500 points.
So much WINNING !
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Old Yesterday, 12:18 PM
 
Location: Ohio
20,057 posts, read 14,310,256 times
Reputation: 16212
Quote:
Originally Posted by Ponderosa View Post
The Fed doesn't cut rates in a strong economy.
Oh, yes they most certainly do.

You don't even understand the purpose of interest rates.

The purpose of interest rates is to curb or control Monetary Inflation. That's why rates were as high as 20% in the 1980s.

Interest rates have zero effect on Cost-push Inflation, Demand-pull Inflation or Wage Inflation.

That interest rates have zero effect on Wage Inflation was proven in the late 1960s when the rate 9%. It had no effect whatsoever and Nixon ultimately implemented a Wage & Price Freeze to stop Wage Inflation a few years later in the early 1970s.

Since Monetary Inflation is virtually non-existent in your economy, there's no reason to raise interest rates.

Because neither the government nor the Federal Reserve make any attempt to differentiate between Monetary Inflation from Demand-pull Inflation, and because the Federal Reserve didn't realize that Demand-pull Inflation was the driving force in the early 1950s, the Federal Reserve stupidly raised interest rates and caused the 1952-1953 Recession.

I'm guessing the Federal Reserve doesn't want to embarrass itself by making another grotesque mistake.
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Old Yesterday, 12:20 PM
 
Location: USA
19,990 posts, read 14,799,395 times
Reputation: 12873
Quote:
Originally Posted by Ponderosa View Post
Wishful thinking. The US growth rate is limited because of an aging population as much as it is by Trump's blundering. 1-2% is the new norm. If we want to see growth above or even at 3% we are going to have to start turning out a lot of babies or bringing in millions more young immigrants.
I don't normally agree with what any new age Democrat has to say but this is true. More people(Consumers/Workers) would be needed for larger sustainable growth. Unfortunately the larger population brings higher consumption of energy, non-renewable resources and more pollution.
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Old Yesterday, 12:25 PM
 
Location: Long Island
33,337 posts, read 14,055,398 times
Reputation: 7137
Quote:
Originally Posted by Ponderosa View Post
The Fed doesn't cut rates in a strong economy. Trump is slowly destroying the Obama recovery.
The Fox News pundits are blaming the feds for the slowdown. The 2017 tax cut should have been done in 2010. There was absolutely no need for this at this time, it was sold as a means to make our corporations more competitive world wide, complete nonsense.
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Old Yesterday, 03:42 PM
 
15,635 posts, read 4,145,106 times
Reputation: 11238
MAGA - we're down to a total of about 4% per year market growth since Trump Amazing Tax Cuts and trade wars.

The Right has a new slant on all of this. Since the numbers cannot be disputed (manufacturing numbers are really bad, markets are 1/2 of normal gains, etc.) they came up with the perfect Monday Morning QB reasoning. You have to hand it to them!

Now......wait for it....."We all have to endure years of pain because if we do we will finally show those mean Chinese who is Boss"......

I wonder if the Don would have got elected if he said "It's going to be horrible folks...really terrible. We will have to get the Fed to prop things up and keep wages low and brace for low returns on real estate and the markets...BUT, if you trust me for a decade or more of pain, I promise things will be GREAT someday".....

I'm not sure that would have worked well. It was more like "I'll get rid of your health care and borrow more money to give you tax cuts with".
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Old Yesterday, 03:53 PM
 
1,089 posts, read 189,268 times
Reputation: 635
Quote:
Originally Posted by Tall Traveler View Post
Thank you 2018 Blue Wave, you've managed to slow down growth Dims...Congrats!

Considering Nancy crashed the world's economy last time she was Speaker, there's hope she can do it again.
Oh cut it out. Nothing changed or moved through that congress and you know it. There's always "that post" on every thread.
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Old Yesterday, 03:55 PM
 
1,089 posts, read 189,268 times
Reputation: 635
Quote:
Originally Posted by LS Jaun View Post
I don't normally agree with what any new age Democrat has to say but this is true. More people(Consumers/Workers) would be needed for larger sustainable growth. Unfortunately the larger population brings higher consumption of energy, non-renewable resources and more pollution.
I also agree, but politicians would never admit that. It makes for a horrible campaign slogan.
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Old Yesterday, 04:05 PM
 
8,153 posts, read 7,362,165 times
Reputation: 6501
The Fed cut rates because they were well above the Treasury yields which are largely a function of the manipulation by US and foreign central banks. Yields on treasuries dropped nearly 1 percentage point since March when the Fed announced they would buy 20 billion dollars a month. I think Powell did what he did because there is a large amount of debt that needs to be issued after the new debt ceiling becomes law and needs to be financed at the lowest possible yield. Perhaps 750 to 800 billion dollars of new debt will need to be borrowed in Q3 to rebuild the Treasury cash balance as well as fund government operations. The need may be larger to restore funds that were borrowed according to special temporary measures to avoid exceeding the debt limit.
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Old Yesterday, 04:07 PM
 
2,054 posts, read 2,256,411 times
Reputation: 1532
#bluewave
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