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It should have already risen...going to be nasty someday. To be fair, the deficit's nancy wrung up under Obama are still higher than the ones she's running up so far under Trump.
Back in 2016, Trump said he would balance the budget 'fairly quickly'. How's that going?
You'd think, but that would also be a bit older style think IMO of course.
Our broad middle class is simply not flush with cash. And rising wages have been meager.
The money supply may grow, but the broad middle class has not been the receiver. And subsequently not the over powerful spenders that might drive inflation.
The new moneys are mainly in banks as excess reserves, overseas, and of course much has gone to the rich who tend to save by various means.
IMO we are in a very different low interest, low inflation general economic paradigm. And need to worry about a potential for '70's style inflation, if onerous. And that is resource dependent inflation.
Cost-Push Inflation vs. Demand-Pull Inflation.
Demand pull continues to be thwarted by our vast productivity, along with our so far available cheap foreign goods.
Cost-push is still but a worry. I'm not sure what sector would actually have the power to incite it. I doubt oil this time around. But I no longer think that more money itself will cause onerous inflation.
I think the reason that inflation does not take hold as much as it would, theoretically, is due to the trade deficit. If the monies created stays circulating in our economy it would be very inflationary but we buy so many foreign produced goods that the inflation gets "exported" to other nation with the dollar. It should devalue the dollar globally, but with it being the reserve currency and oil being traded in dollars, it mutes the impact.
Back in 2016, Trump said he would balance the budget 'fairly quickly'. How's that going?
If he said that, he lied. Trump's never put balancing the budget as a high priority which is why he was elected. The candidates that want to balance the budget get my support but there are too few of us in either party to have an impact.
By the way, Congress passes the budget, not the President so he is not to get blame or credit.
I think the reason that inflation does not take hold as much as it would, theoretically, is due to the trade deficit. If the monies created stays circulating in our economy it would be very inflationary but we buy so many foreign produced goods that the inflation gets "exported" to other nation with the dollar. It should devalue the dollar globally, but with it being the reserve currency and oil being traded in dollars, it mutes the impact.
We certainly export some our potential inflation. In actual moneys leaving our circulation, in buying all the cheap stuff, and in conserving our own resources and environment.
Fed Chair Alan Greenspan issued his latest warning Tuesday about the fiscal situation in the U.S., saying that larger budget deficits ultimately will cause inflation.
Reagan had some of the largest budget deficits in history and yet instead of Monetary Inflation you actually had very mild Monetary Deflation.
So long as foreign and domestic entities are buying your debt, Monetary Inflation is not an issue.
Quote:
Originally Posted by Finn_Jarber
The deficit has continued to swell under President Donald Trump,...
The Democrats control the House and US Presidents do not have a line-item veto.
If Trump had the line-item veto, he'd red-pencil all the unnecessary pork Democrats stuff into Bills.
So, why are you blaming Trump for the spending Bills Democrats push in his face?
I think the partisan game of blaming one president or another for the debt is a big reason that the problem of the debt is never solved. Obama pointed the finger at Bush, and Trump at Obama. The circular finger-pointing squad ends up giving everyone an out.
I don't see an end in sight. Eventually it will be necessary to inflate our way out of the debt, paying it back with cheaper dollars. It's a tried and true technique of 3rd world nations. Zimbabwe ended up issuing $100 trillion dollar bills due to inflation. They are now collectors items. If I'm not mistaken the $100 Trillion bill was actually worth around five dollars US.
I think the partisan game of blaming one president or another for the debt is a big reason that the problem of the debt is never solved. Obama pointed the finger at Bush, and Trump at Obama. The circular finger-pointing squad ends up giving everyone an out.
I don't see an end in sight. Eventually it will be necessary to inflate our way out of the debt, paying it back with cheaper dollars. It's a tried and true technique of 3rd world nations. Zimbabwe ended up issuing $100 trillion dollar bills due to inflation. They are now collectors items. If I'm not mistaken the $100 Trillion bill was actually worth around five dollars US.
Back in 2016, Trump said he would balance the budget 'fairly quickly'. How's that going?
He tried, and the Democrat controlled House shut down the Government, then the Media lied as usual and said it was Trump's fault. Nice try, but the Dems don't want a balanced budget. They just want a bigger and bigger government.
How about all the campaign promises he's fulfilled in just three years? Fortunately, he will have four more years to fulfill the rest.
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