Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and that is a c

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

joko104 said:

Why do you support Democratic Party debt? Obviously by your message you do.

Click to expand...

As you know, calling government debt "Democratic Party debt" is merely your inflammatory baiting attempt. I urge nobody to take the bait.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Grand Mal said:

After eight years of Obama the deficit increased 57%. Trump has increased it 20% so far.

US Deficit by President: What Budgets Hide

Click to expand...

that is 20% after what Obama left what would the percent be if it was when Obama took over
the percent Trump ran it up would be a lot higher.
Trump in his first Fiscal year has run it up MORE then Obama did in 5 out of the 8 years he was in office and in Trumps second fiscal year he has already run it up more then Obama did in 3 of his 8years in office and we still have over a month to go.
will it be another year that Trump runs it up more then half of the Years Obama did?
and REMEMBER Trump is saying we are in a GREAT economy and for the first couple of years Obama was dealing with a recession
Have a nice night

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Bullseye said:

Obama was President for most of FY 2009 - I notice you ignore that. Oh, and "Bush's recession ended in 2009, about five months after Obama took office. Oh, and Trump didn't inherit a "robust recovery economy" He inherited an anemic, gasping economy struggling to reach 2% GDP grow. In fact the economy grew only 1.6% in 2016 - Obama's last year. And Trump managed to cut Obama's "full employment" 4.7% unemployment rate by a full point to 3.7% while adding millions to the labor force. Also, you conveniently over look that the GOP controlled the House during most of Obama's "deficit shrinking".

Click to expand...

Such dishonesty --- this article is dated Jan 7, 2009, before Obama's inauguration.

CBO projects record $1.2 trillion deficit - Jan. 7, 2009

The U.S. budget deficit in 2009 is projected to spike to a record $1.2 trillion, or 8.3% of gross domestic product, the Congressional Budget Office said Wednesday.

The dramatic jump to the highest-ever deficit in dollar terms compares to a $455 billion deficit in fiscal year 2008 and $161 billion in 2007. The estimate does not account for the massive spending and tax cuts proposed in President-elect Barack Obama's economic rescue plan.

And let's also not forget that Bush/Cheney inherited a budget surplus.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Bullseye said:

Obama was President for most of FY 2009 - I notice you ignore that. Oh, and "Bush's recession ended in 2009, about five months after Obama took office. Oh, and Trump didn't inherit a "robust recovery economy" He inherited an anemic, gasping economy struggling to reach 2% GDP grow. In fact the economy grew only 1.6% in 2016 - Obama's last year. And Trump managed to cut Obama's "full employment" 4.7% unemployment rate by a full point to 3.7% while adding millions to the labor force. Also, you conveniently over look that the GOP controlled the House during most of Obama's "deficit shrinking".

Click to expand...

Obama's first fiscal year started on Oct1 2009 and that was the 2010fiscal year
the 2009 fiscal year belongs to Bush NOT Obama
The only thing you can put on Obama is what he added to the Bush Budget and I believe that was 256 Billion
Have a nice night

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

MTAtech said:

I don’t see what benefit China gets from buying up U.S. debt, causing our government to enjoy super low borrowing costs.

Click to expand...

You are probably right. They could instead be out there buying up the $15T or so in negative interest bonds floating around instead of ones that actually pay interest. Whatever could I have been thinking.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Drawdown said:

You are probably right. They could instead be out there buying up the $15T or so in negative interest bonds floating around instead of ones that actually pay interest. Whatever could I have been thinking.

Click to expand...

What you aren't taking in consideration is the discount on those bonds. Bond prices in the secondary market change in price depending upon prevailing interest rates -- bonds issued at high rates sell at a premium in low interest rate environments; bonds issued at low rates sell at a discounts in higher interest rate environments. Those negative interest bonds are selling at high discounts, making them bargains.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

MTAtech said:

What you aren't taking in consideration is the discount on those bonds. Bond prices in the secondary market change in price depending upon prevailing interest rates -- bonds issued at high rates sell at a premium in low interest rate environments; bonds issued at low rates sell at a discounts in higher interest rate environments. Those negative interest bonds are selling at high discounts, making them bargains.

Click to expand...

And what you aren't taking into consideration is that there have been two major upticks in foreign investment in US treasuries trends in recent history that corresponded to global slowdowns---during the dot com bubble burst and after the Great Recession. Foreign investors are now the second largest holder of US notes and bonds. Germany is heading into a recession; Brexit is looming; Japan is stuck in deflation; and much of the world is selling negative interest bonds. The US is their safest bet right now.

That said, getting back to what I posted about China, the ability to dump a massive amount of US treasuries is a hedge against trade and currency wars with the US. It is their nuclear option.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

joko104 said:

Why do you support Democratic Party debt? Obviously by your message you do.

Click to expand...

I don't. Only the gop is responsible for our debt so I blame them. I will take small govt liberals like obama and clinton over big govt conservatives like reagan, bush, and trump any day of the week.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

JohnfrmClevelan said:

Yeah, but the article is rubbish. The increased debt won't pose a problem.

You read it here first.

Click to expand...

It will if the gop is in charge. What will happen is they will try to pass austerity in name of paying down debt when the real source of the problem was the huge tax cut for corporations and wealthy.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Mycroft said:

Treasury wouldn't have to do this if Congress did their job.

Click to expand...

On budget matters , the President proposes, and Congress disposes.

So when a GOP President, whether it be Reagan, Bush or Trump, proposes a budget they own the fiscal outcome.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

TomFitz said:

On budget matters , the President proposes, and Congress disposes.

So when a GOP President, whether it be Reagan, Bush or Trump, proposes a budget they own the fiscal outcome.

Click to expand...

Nonsense.

There is nothing that says Congress has to legislate what the President proposes and the reality is that Congress rarely does what the President asks. Furthermore, Congress can...and should...come up with their own proposals. They don't HAVE to wait for the President.

Heck, we've had years and years in which Congress delays budget legislation until it's so late that all they can do is pass some continuing legislation that doesn't make any changes as all. When that happens, the President has only two choices...pass their useless legislation or shut down the government.

No matter what the President proposes, it's Congress who write the laws. The President can only act on what they send to him.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Media_Truth said:

Such dishonesty --- this article is dated Jan 7, 2009, before Obama's inauguration.

CBO projects record $1.2 trillion deficit - Jan. 7, 2009

The U.S. budget deficit in 2009 is projected to spike to a record $1.2 trillion, or 8.3% of gross domestic product, the Congressional Budget Office said Wednesday.

The dramatic jump to the highest-ever deficit in dollar terms compares to a $455 billion deficit in fiscal year 2008 and $161 billion in 2007. The estimate does not account for the massive spending and tax cuts proposed in President-elect Barack Obama's economic rescue plan.

And let's also not forget that Bush/Cheney inherited a budget surplus.

Click to expand...

I wonder who controlled Congress when the 2009 budget was written and passed by them.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Drawdown said:

And what you aren't taking into consideration is that there have been two major upticks in foreign investment in US treasuries trends in recent history that corresponded to global slowdowns---during the dot com bubble burst and after the Great Recession. Foreign investors are now the second largest holder of US notes and bonds. Germany is heading into a recession; Brexit is looming; Japan is stuck in deflation; and much of the world is selling negative interest bonds. The US is their safest bet right now.

That said, getting back to what I posted about China, the ability to dump a massive amount of US treasuries is a hedge against trade and currency wars with the US. It is their nuclear option.

Click to expand...

When there is instability in the world investors move to what they perceive as safe havens. Traditionally, that's been U.S. gov't securities.

Foreigners hold $6.6363 in U.S. securities. China's holdings have decreased slightly to $1.1125 trillion from $1.1912 trillion in June 2018.

You are going to have to explain to me how the ability to dump a massive amount of US treasuries is a hedge against trade and currency wars with the US. I don't see it. Selling large amounts of securities on the private marker drops the price of those securities. What effects the price of trade is the price of the US dollar against the Yuan. The Yuan is being floated by supply and demand and is now at about 7.06 Yuan to $1, up from ~6.3 in early 2018.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Mycroft said:

Treasury wouldn't have to do this if Congress did their job.

Click to expand...

Sure, but it was the GOP-led Congress, after spending years and years criticizing Obama for the debt, who significantly reduced government revenue through tax-cuts then significantly increased government spending in 2017/2018. It was the GOP-led Congress under Trump that went along with a trade war that eventually saw Trump practice socialism in the manner of bail-outs to American farmers. In the meantime, you Conservatives cheered for this with no thought to what these tax-cuts meant for the future or for what financial bail-outs to farmers are (the wealthiest being most of the recipients) as you rage against "socialism." Now you insist that Congress do their job? Not the two years that the GOP owned Congress under Trump? Your loyalties to the idiot in the White House clouded your judgement and allowed this nonsense.

But who is going to ultimately deal with the deficit and debt? Were your tax-cuts permanent? Are you one of Trump's friends? After 12 years of Reaganomics, George H.W. Bush recognized the need to raise taxes, which saw Republicans betray him, and Bill Clinton win the 1992 election. He, more of a Conservative Democrat in this regard, went on to get the economic affairs of the country under control throughout the 1990s as Republicans fought him every step of the way. Then, George W. Bush blew the roof off again after 9/11 while Republicans demanded tax-cuts throughout his presidency, with no real regard of exponential government spending as the "War on Terror" got completely out of control.

Eventually, somebody in the future (Democrat or Republican) is going to have to publicly recognize that we have to raise taxes because of what Republicans (the supposed "fiscal" ones) did, yet, again. But as I stated, your tax-cuts weren't permanent.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

99percenter said:

Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and that is a concern - MarketWatch

As usual, the deficit skyrockets with a gop president.

Click to expand...

Common sense says that when someone is in a bind and needs to borrow money, a/k/a USTreasury Bonds, that the cost of that money will rise. Seems like the US will have to increase the interest payments on the bonds to entice lenders/buyers of USTreasuries. Otherwise, buyers will lose money on the bonds. The numbers are only in the TRILLIONS, not a thousand, and not a thousand thousand, and not a thousand million, but over a thousand billion. I think visualization of this reality is extremely difficult for any citizen. Think about it!
/

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

1-Anyone that thinks "the other side" is to blame for the deficit is a partisan ****ing moron. Both parties have ****ed this country over with their lack of fiscal responsibility.
2-Trumps administration is failing with regard to controlling deficit spending.
3-Anyone that championed Obama but then points their finger at Trump is a ****ing moron. Obama more than doubled the entire accumulated national debt of all previous administrations combined. There is no excusing that.
4-Anyone that champions Trump but has pointed their finger at Obama is a ****ing moron.

Face it...both parties are covered in **** pointing their finger at the other guys and laughing and saying "look what THEY stepped in". And if anyone is voting and sending those same ****wits back every year, you are covered in that same **** and just as culpable.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

DaveFagan said:

Common sense says that when someone is in a bind and needs to borrow money, a/k/a USTreasury Bonds, that the cost of that money will rise. Seems like the US will have to increase the interest payments on the bonds to entice lenders/buyers of USTreasuries. Otherwise, buyers will lose money on the bonds. The numbers are only in the TRILLIONS, not a thousand, and not a thousand thousand, and not a thousand million, but over a thousand billion. I think visualization of this reality is extremely difficult for any citizen. Think about it!
/

Click to expand...

It might seem like it, but check the data.

Interest rates are right where the Fed wants them to be. The market has little to say about it.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

VanceMack said:

3-Anyone that championed Obama but then points their finger at Trump is a ****ing moron. Obama more than doubled the entire accumulated national debt of all previous administrations combined. There is no excusing that.

Click to expand...

What a moronic thing to claim.

The Obama administration was handed a $1 trillion + budget deficit for fiscal year 2009, right as they took the reigns. It wasn't happening for some random reason... as a global financial crisis (sparked from within U.S. fixed income securitization) wreaked havoic every developed economy in the world, resulting in a massive decline in total government receipts while expenditures rose as a result of automatic stabilizers. The U.S. recovered from the Great Recession, or as i like to call it the Lesser Depression, and deficits fell dramatically. Furthermore, in conjunction with the expiration of the Bush tax cuts on the top income bracket, total federal revenue would go to grow by roughly $900 billion between 2012 and 2017 (37%).

Your entire post is based on bull**** and a lack of familiarity with the data.

Governments should grow deficits when the economy is weak and reduce them when the economy is strengthening. Nothing you can say will negate this point... and therefore, you haven't brought any value to this discussion.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Mycroft said:

I wonder who controlled Congress when the 2009 budget was written and passed by them.

Click to expand...

Before, you blamed Obama. Now that I proved that the extreme deficit was already in place before Obama, you deflect.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Mycroft said:

Treasury wouldn't have to do this if Congress did their job.

Click to expand...

Talk to Moscow Mitch about that.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Media_Truth said:

Before, you blamed Obama. Now that I proved that the extreme deficit was already in place before Obama, you deflect.

Click to expand...

Please don't confuse me with someone else. I've always...and only...blamed Congress for deficit spending.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

uptower said:

Talk to Moscow Mitch about that.

Click to expand...

Deficit spending has been a feature of Congress...both Dems and Reps...long before McConnell came on the scene.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

MSgt said:

But who is going to ultimately deal with the deficit and debt?

Click to expand...

This portion of your blatantly biased nonsense is the only thing worth responding to...and the response is blindingly simple: Nobody.

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

VanceMack said:

1-Anyone that thinks "the other side" is to blame for the deficit is a partisan ****ing moron. Both parties have ****ed this country over with their lack of fiscal responsibility.
2-Trumps administration is failing with regard to controlling deficit spending.
3-Anyone that championed Obama but then points their finger at Trump is a ****ing moron. Obama more than doubled the entire accumulated national debt of all previous administrations combined. There is no excusing that.
4-Anyone that champions Trump but has pointed their finger at Obama is a ****ing moron.

Face it...both parties are covered in **** pointing their finger at the other guys and laughing and saying "look what THEY stepped in". And if anyone is voting and sending those same ****wits back every year, you are covered in that same **** and just as culpable.

Click to expand...

I have to ask why do the people on the right keep repeating the lie that Obama doubled the debt?
Fact is on Oct 1 2009 the day Obama took over the budget and the debt the debt was 11,920,519,164,319.42
that comes from the US Treasury web site Debt to the Penny (Daily History Search Application)
so IF Obama did double the debt wouldn't it have been well over 23 Trillion dollars when Trump took over ?
It was 20,244,900,016,053.51 On Oct 1 2017 the day Trump took over the Budget and the debt.
So please stop repeating this right wing LIE
have a nice day

Re: Treasury is about to flood the market with debt to fund U.S.’s $1 trillion deficit — and tha

Mycroft said:

Please don't confuse me with someone else. I've always...and only...blamed Congress for deficit spending.

Click to expand...

Rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrright.