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The debts and deficits will absolutely explode during this economic crisis. Forget $1T deficits, we're looking at $3-$5T deficits. This will not be a repeat of 2008. There's no way in hell we're getting off that easily. This is going to be far larger and far more traumatic. We're entering into a currency crisis and a sovereign debt crisis.
What, you think the USD will crump, or we stop paying interest on our Treasuries?
That means that since Trump was elected, he has not beaten the growth in 2015.
The fed did not raise the rates quickly or in bigger steps than they should have. Trump simply wanted to claim how great the economy was since he took office, and so he wanted to apply stimulus to the economy by lowering interest rates and tax rates, especially for the rich. The stimulus did exactly what it was supposed to do, stimulate the economy by making cash more available. But now we are in a downturn, and Trump's response, as always, is to throw money at the problem. That's a limited solution, and down the road at some point, this solution has to be paid for. For fiscal conservatives, this should be a huge concern.
Another $4T caused no inflation post-2008. Why now?
What are you talking about?
National debt, or printing money?
We increased our debt, but because our economy weathered the recession, and then went into recovery, we were a safe place to invest. We didn't just print money to address the problem. We dealt with the recession in ways that were considered fiscally conservative (with the exception of the bail-outs) for the most part.
President Trump inherited a growing economy. He wanted that growth to be exceptional during his Presidency, he was talking up 5% growth or more. So he had an interest in applying stimulus to the economy. And that's what he pushed. And while he got growth similar to what Obama was getting when we got out of the recession, he didn't get the 5% or more that he was touting.
Now the economy is faced with a large crisis. In the United States, it will actually have bigger ripples than elsewhere, because so much of our economy is devoted to healthcare and insurance. (Something I have been posting on for years, too large a portion of our economy is tied to healthcare.) The costs of all these shutdowns will end up closing down companies, especially small businesses in service, retail, and food. More people will end up unemployed.
We cannot just print more money to deal with the problems, because that DOES create inflation. It also devalues the USD, and that causes problems with our existing creditors, with our credit line, and with the global economy that uses the USD as a benchmark.
We increased our debt, but because our economy weathered the recession, and then went into recovery, we were a safe place to invest. We didn't just print money to address the problem. We dealt with the recession in ways that were considered fiscally conservative (with the exception of the bail-outs) for the most part.
President Trump inherited a growing economy. He wanted that growth to be exceptional during his Presidency, he was talking up 5% growth or more. So he had an interest in applying stimulus to the economy. And that's what he pushed. And while he got growth similar to what Obama was getting when we got out of the recession, he didn't get the 5% or more that he was touting.
Now the economy is faced with a large crisis. In the United States, it will actually have bigger ripples than elsewhere, because so much of our economy is devoted to healthcare and insurance. (Something I have been posting on for years, too large a portion of our economy is tied to healthcare.) The costs of all these shutdowns will end up closing down companies, especially small businesses in service, retail, and food. More people will end up unemployed.
We cannot just print more money to deal with the problems, because that DOES create inflation. It also devalues the USD, and that causes problems with our existing creditors, with our credit line, and with the global economy that uses the USD as a benchmark.
Sure we can - and will - create new moneys to ensure our people's heath and safety. Those moneys may or may not incite any significant general inflation. $4T of new money/new national debt did not after the 2008 crash. And it did not weaken the USD.
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