Oh Goody - Trump Stimuli

k.d.
Posts: 310
Joined: Wed Sep 20, 2017 12:19 pm

Re: Oh Goody - Trump Stimuli

Post by k.d. » Fri Jan 05, 2018 1:56 pm

People are hard to please these days. Clients, customers, and cohorts – the whole lot. They’re quick to point out your faults and flaws, even if they’re guilty of the same derelictions.

The recently retired always seem to have the biggest axe to grind. Take Jack Lew, for instance. He started off the New Year by sharpening his axe on the grinding wheel of the GOP tax bill. On Tuesday, he told Bloomberg Radio that the new tax bill will explode the debt and leave people sick and starving.

“It’s a ticking time bomb in terms of the debt.

“The next shoe to drop is going to be an attack on the most vulnerable in our society. How are we going to pay for the deficit caused by the tax cut? We are going to see proposals to cut health insurance for poor people, to take basic food support away from poor people, to attack Medicare and Social Security. One could not have made up a more cynical strategy.”

The tax bill, without question, is an impractical disaster. However, that doesn’t mean it’s abnormal. The Trump administration is merely doing what every other administration has done for the last 40 years or more. They’re running a deficit as we march onward towards default.

We don’t like it. We don’t agree with it. But how we’re going to pay for it shouldn’t be a mystery to Lew. We’re going to pay for it the same way we’ve paid for every other deficit: with more debt.
A Job Well Done

Of all people, Jack Lew should know this. If you recall, Lew was the United States Secretary of Treasury during former President Obama’s second term in office. Four consecutive years of deficits – totaling over $2 trillion – were notched on his watch.

Did he ever mention the debt ticking time bomb when he had the opportunity to do something about it? We don’t remember ever hearing this debt bomb allusion from Lew while he was Treasury Secretary. Do you?

We do remember, however, that as part of his job he had to place his autograph on the face of the Federal Reserve’s legal tender notes. Did it ever occur to Lew that, in so doing, he was publicly endorsing and personally ratifying unconstitutional money with his very signature?

Most likely, it never crossed his mind. And if it had, the illegality of the paper dollar certainly didn’t bother him enough to prompt his resignation and the pursuit of honest employment. He did none of these things.

Instead, Lew played his part to perfection. That is, he rolled over year after year in his quest for the expedient. He did the job everyone wanted him to do. He did a job well done.

Likewise, now that he’s off the clock he’s sounding the alarm on the nation’s debt problem. According to Lew, it’s all Trump’s fault. Not his.

As an aside, we don’t necessarily take issue with Lew’s assessment of the tax bill and ticking time bomb metaphor. What we take issue with is the timing of his two faced utterances.
Why You Should Embrace the Twilight of the Debt Bubble Age

In truth, no one really cares about deficits and debt. Not former Treasury Secretary Jack Lew. Not current Treasury Secretary Steven Mnuchin. Not Trump. Not Obama. Not your congressional representative. Not Dick Cheney.

Plain and simple, unless there are political points to score like Lew was aiming for this week, no one gives a doggone hoot about the debt problem. That’s a problem for tomorrow. Not today.

Quite frankly, everyone loves government debt – DOW 25,000! Aging baby boomers know they need massive amounts of government debt to pay their social security, medicare, and disability checks. On top of that, many employed workers are really on corporate welfare. They’re dependent upon the benevolence of government contracts to provide their daily bread.

What’s more, in this crazy debt based fiat money system, the debt must perpetually increase or the whole financial system breaks down. Specifically, more debt is always needed to keep asset prices inflated and the wealth mirage visible.

By providing a quick burst to the rate of debt increase, President Trump expects to get a quick burst to the rate of GDP growth. We suspect President Trump and his followers will be underwhelmed by what effect, if any, the tax cuts have on the economy. Time will tell.

In the meantime, don’t fret about government deficits and debt. The political leaders may say deficits don’t matter. But they do matter. In fact, soon they’ll matter a lot.

We’re in the twilight of the debt bubble age. Embrace it. Love it. What choice do you have, really? There’s nothing Jack Lew – or anyone else – can do about it.
“Everything government touches turns to crap.”

― Ringo Starr

j.p.
Posts: 187
Joined: Wed Sep 20, 2017 1:40 pm

Re: Oh Goody - Trump Stimuli

Post by j.p. » Fri Jan 05, 2018 2:09 pm

k.d. wrote:
Fri Jan 05, 2018 1:27 pm
I'm gonna need a source for all these wild & crazy claims you are making.
About the wall, I usually check in with Ann Coulter on that matter. Here is her recent tweet on the progress being made on the wall:
Today's BORDER WALL CONSTRUCTION UPDATE: Miles completed yesterday-Zero; Miles completed since Inauguration-- Zero. NEXT UPDATE TOMORROW.
https://tradingeconomics.com/japan/stock-market

Just for starters. The chart on the right is ok

k.d.
Posts: 310
Joined: Wed Sep 20, 2017 12:19 pm

Re: Oh Goody - Trump Stimuli

Post by k.d. » Fri Jan 05, 2018 2:18 pm

If you wanna argue that Trump has done more for the economy and markets in one year than Obama did in eight, we're good.
“Everything government touches turns to crap.”

― Ringo Starr

j.p.
Posts: 187
Joined: Wed Sep 20, 2017 1:40 pm

Re: Oh Goody - Trump Stimuli

Post by j.p. » Fri Jan 05, 2018 5:04 pm

Until Trump does anything, this economy is a combination of his predecessor's policies, trading partner policies, normal economic cycles, the FED, luck, and his policies.

If this rally is maintained we can talk. Until then, there is nothing to substantiate the wild claims.

k.d.
Posts: 310
Joined: Wed Sep 20, 2017 12:19 pm

Re: Oh Goody - Trump Stimuli

Post by k.d. » Fri Jan 05, 2018 5:16 pm

You need to try a bit harder to keep up.
“Everything government touches turns to crap.”

― Ringo Starr

j.p.
Posts: 187
Joined: Wed Sep 20, 2017 1:40 pm

Re: Oh Goody - Trump Stimuli

Post by j.p. » Sat Jan 06, 2018 8:02 am

k.d. wrote:
Fri Jan 05, 2018 5:16 pm
You need to try a bit harder to keep up.
Ok
New stats from Trump's own BLS
Jobs created in 2016 = 2.2m
Jobs created in 2017 = 2.1m

What does this mean ?
Not much to me. But since you insist on giving credit to whoever happens to be sitting in the Oval office it might mean something to you.

Conclusion: Trump has potential to maintain this growth. But the Trumpers can't claim credit for something he hasn't done. His future tax burden redistributions will probably will improve the economy in the short term. His administrative actions on environmental deregulations might too. But the main drivers of the economy now is, health, tech and banking. Manufacturing could improve with more epic government subsidies such the Foxconn welfare payments. But it will be hard to compete with third world economies.

k.d.
Posts: 310
Joined: Wed Sep 20, 2017 12:19 pm

Re: Oh Goody - Trump Stimuli

Post by k.d. » Sat Jan 06, 2018 9:22 am

Jobs? Obama 's job growth was government jobs, jobs that produce nothing. They create more bureaucracy and unsustainable pensions payments.
Black unemployment rate falls to record low

The Bureau of Labor Statistics reports 6.8 percent unemployment rate for black workers in December, the lowest in the 45 years the data has been tracked.
Unemployment overall was 4.1 percent.

Liz Moyer
Published 23 Hours Ago Updated 22 Hours Ago CNBC.co

Unemployment among black workers is at its lowest since at least the early 1970s, when the government began tracking the data.

The black unemployment rate of 6.8 percent in December was the lowest since the Bureau of Labor Statistics started tracking it in 1972, a year in which the rate ranged from 11.2 percent to 9.4 percent. In the 45 years the data has been tracked, the unemployment rate for black or African-American workers aged 16 years and older has never fallen below 7 percent.
Since Donald Trump became president, the Dow Jones industrial average has climbed to 25,000 and fewer Americans are unemployed.

Another interesting fact: The number of people collecting food stamps has declined by more than two million.

Data released by the Department of Agriculture show that the number of participants in the Supplemental Nutrition Assistance Program (SNAP), otherwise known as food stamps, dropped to 42,182,443 for fiscal 2017 – a decline of 2,036,920 from the fiscal 2016 total of 44,219,363.
(CNSNews.com) - The United States added 196,000 jobs in manufacturing in 2017, according to data released today by the Bureau of Labor Statistics.
That represents a dramatic swing from the year before. In 2016, according to the historical data published by BLS, the United States lost 16,000 jobs. In December 2015, according to the data, there were 12,359,000 people employed in manufacturing in the United States. That dropped to 12,343,000 in December 2016.
(CNSNews.com) - The federal government employed 16,000 fewer people in December 2017 than it did in December 2016, according to data released today by the Bureau of Labor Statistics.
Have a nice day!
“Everything government touches turns to crap.”

― Ringo Starr

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