dow jones

[DELACROIX]

Never ceases to amaze me that instead of cooperating with and developing markets with their neighbors these countries want to dominate their neighbors. Even destroy half the world to get their way.

Another question to ask is whether China in the long run will profit from this (mysterious) COVID pandemic. It does make you wonder?

 

[Up In Smoke]

The tax cuts meant more being kept by business and individuals which meant more spending and more hiring. Thus more taxes overall collected. JFK was famous for pointing this out. I wonder if he would be a Republican today or a liberal like Teddy?

Only problem is 70% of the business savings went to stock buy backs and shareholder bonuses. Overall consumer spending fell throughout the past administration. 2015: 3.3%, 2016: 2.4%, 2017: 2.4%, 2018: 2.9%, 2019: 2.1% and 2020: (3.8%). The big spender in those same years was the government. Government spending drives tax receipts and GDP.

 

[Wally]

Stocks drop for a third day on worries central banks will keep raising rates, Dow sheds 300 points

The stock market is looking for support as Wall Street slumped toward a losing month.

www.cnbc.com

 

[vantexan]

Only problem is 70% of the business savings went to stock buy backs and shareholder bonuses. Overall consumer spending fell throughout the past administration. 2015: 3.3%, 2016: 2.4%, 2017: 2.4%, 2018: 2.9%, 2019: 2.1% and 2020: (3.8%). The big spender in those same years was the government. Government spending drives tax receipts and GDP.

Also saw a lot of businesses investment. Drove all over Texas in 2020-2021. A lot of new businesses everywhere. Creates jobs. When businesses are buying back stock aren't they trying to keep stock prices up by having less shares on the market?

 

[Up In Smoke]

Also saw a lot of businesses investment. Drove all over Texas in 2020-2021. A lot of new businesses everywhere. Creates jobs. When businesses are buying back stock aren't they trying to keep stock prices up by having less shares on the market?

Business creation was virtually flat during the period of 2011-2019. Looks like 2020 had a large influx of business applications according to census.com. The trouble with 2020 is that businesses also closed at record levels, nearly a million businesses closed that year. Companies that buy back stock see short term benefits for share holders, but risk negatively affecting there book value in the long term. I believe it came down to, pay taxes on the extra profit or buy back stock and hope it doesn't affect long term book price.

 

[vantexan]

Business creation was virtually flat during the period of 2011-2019. Looks like 2020 had a large influx of business applications according to census.com. The trouble with 2020 is that businesses also closed at record levels, nearly a million businesses closed that year. Companies that buy back stock see short term benefits for share holders, but risk negatively affecting there book value in the long term. I believe it came down to, pay taxes on the extra profit or buy back stock and hope it doesn't affect long term book price.

But they closed during the pandemic shutdowns. You mentioned all the stock buybacks. But what about all the small business owners who were able to keep more of their earnings? The record employment during Trump's term? And the government revenue did increase. But as I believe it was Fred's Myth who once said here the government didn't have a revenue problem. It had a spending problem. But right now we have a Fed which printed more in the last two years than it printed the previous ten. That's the source of our inflation along with reducing oil production.

 

[Up In Smoke]

But they closed during the pandemic shutdowns. You mentioned all the stock buybacks. But what about all the small business owners who were able to keep more of their earnings? The record employment during Trump's term? And the government revenue did increase. But as I believe it was Fred's Myth who once said here the government didn't have a revenue problem. It had a spending problem. But right now we have a Fed which printed more in the last two years than it printed the previous ten. That's the source of our inflation along with reducing oil production.

Being a small business owner (less than 50 employees) we did not qualify for many of the tax breaks. There was a different formula for sole proprietor, partnerships, LLCs, C-corps and S-corps. The profits are either paid out as limited shares (draws) or salary through your personal income. These incomes are taxed at a higher rate than the corporate rate. The employment numbers slowed a little compared to the last 3 years of Obama, but that's expected, with fewer available citizens. Where the increase was seen was in overall and government jobs. In 2008 we had 144M workers with 23.9M in government. 2016 saw 153.5M workers with 23.3M in government and in 2020 there 152M workers with 23.6M in government. Today we have 158M workers and 23.3M in government. You're correct, we have a spending problem, but neither side seems give a damn. The past 2 years we have reduced our deficit spending by large numbers, but it's still deficit. SMH.

 

[vantexan]

Being a small business owner (less than 50 employees) we did not qualify for many of the tax breaks. There was a different formula for sole proprietor, partnerships, LLCs, C-corps and S-corps. The profits are either paid out as limited shares (draws) or salary through your personal income. These incomes are taxed at a higher rate than the corporate rate. The employment numbers slowed a little compared to the last 3 years of Obama, but that's expected, with fewer available citizens. Where the increase was seen was in overall and government jobs. In 2008 we had 144M workers with 23.9M in government. 2016 saw 153.5M workers with 23.3M in government and in 2020 there 152M workers with 23.6M in government. Today we have 158M workers and 23.3M in government. You're correct, we have a spending problem, but neither side seems give a damn. The past 2 years we have reduced our deficit spending by large numbers, but it's still deficit. SMH.

Yet personal income taxes were lowered too. The resulting increase in business activity increased government revenue. Much of that revenue didn't go into just government workers but a huge increase in both military and Federal domestic programs due to a compromise between Trump and Democrats in order for him to get the military spending he wanted. And yes both sides spend too much. We had a balanced budget in what was it, '97? Every president after Clinton has spent too much. But the money printing in the last two years and the sugar rush it gave the economy now has us teetering on the brink of disaster. Their answer? Let's spend hundreds of billions more, trillions if we can.

 

[Up In Smoke]

Yet personal income taxes were lowered too. The resulting increase in business activity increased government revenue. Much of that revenue didn't go into just government workers but a huge increase in both military and Federal domestic programs due to a compromise between Trump and Democrats in order for him to get the military spending he wanted. And yes both sides spend too much. We had a balanced budget in what was it, '97? Every president after Clinton has spent too much. But the money printing in the last two years and the sugar rush it gave the economy now has us teetering on the brink of disaster. Their answer? Let's spend hundreds of billions more, trillions if we can.

Not sure what you mean when you say we're printing money. Raising rates reduces the amount of money available to borrow, thus the increased value of the dollar and treasuries.

 

[newfie]

Not sure what you mean when you say we're printing money. Raising rates reduces the amount of money available to borrow, thus the increased value of the dollar and treasuries.

He's talking about the 8 trillion of spending the last three years by our government. your own stats that you presented showed that government spending went up from 7 trillion to 10 trillion in one year and stayed there the following year. How are they generating the money for that type of spending committment if they're not printing it.

 

[vantexan]

Not sure what you mean when you say we're printing money. Raising rates reduces the amount of money available to borrow, thus the increased value of the dollar and treasuries.

I did say in the last two years. The QT hasn't quite started yet. With the Inflation Reduction Act and student loan debt relief where exactly is the money coming from if not printed?

 

[Up In Smoke]

He's talking about the 8 trillion of spending the last three years by our government. your own stats that you presented showed that government spending went up from 7 trillion to 10 trillion in one year and stayed there the following year. How are they generating the money for that type of spending committment if they're not printing it.

49 of 50 States have balance budget amendments in their State Constitutions, but the Federal Government does not. When the Federal Government runs into a deficit, they sell marketable Treasury securities. The process is called issuing debt. This debt takes the form of bills, bonds, notes, TIPS and savings bonds. This is called Public Debt and can be purchased from the US Treasury and traded just like stocks. GAS, is government held securities. Money borrowed from large programs like Medicare, SSI and the Housing Authority. Money is not printed, but sold at auction.

 

[Wally]

Futures Mixed After Market Rally Breaks Key Support

Recent breakouts fizzle as Fed rate-hike fears intensify.

www.investors.com

 

[newfie]

49 of 50 States have balance budget amendments in their State Constitutions, but the Federal Government does not. When the Federal Government runs into a deficit, they sell marketable Treasury securities. The process is called issuing debt. This debt takes the form of bills, bonds, notes, TIPS and savings bonds. This is called Public Debt and can be purchased from the US Treasury and traded just like stocks. GAS, is government held securities. Money borrowed from large programs like Medicare, SSI and the Housing Authority. Money is not printed, but sold at auction.

how do you go from spending 7 trillion dollars to 10 trillion dollars without printing more money?
you seem to be avoiding the basic rule that more spending for the same goods increases inflation?

The problem with printing money - Economics Help

Why can we just not print more money? - Explanation with diagrams and examples of why printing money can cause a rise in inflation and leave real output unaffected.

www.economicshelp.org

 

[Wally]

how do you go from spending 7 trillion dollars to 10 trillion dollars without printing more money?
you seem to be avoiding the basic rule that more spending for the same goods increases inflation?

The problem with printing money - Economics Help

Why can we just not print more money? - Explanation with diagrams and examples of why printing money can cause a rise in inflation and leave real output unaffected.

www.economicshelp.org

Printing more money is always the Bernie Sanders/AOC answer to free stuff.

 

[Up In Smoke]

how do you go from spending 7 trillion dollars to 10 trillion dollars without printing more money?
you seem to be avoiding the basic rule that more spending for the same goods increases inflation?

The problem with printing money - Economics Help

Why can we just not print more money? - Explanation with diagrams and examples of why printing money can cause a rise in inflation and leave real output unaffected.

www.economicshelp.org

It's called QE. The Federal Government buying it's own assets at today's cost and wagering the treasury's policies will pay off when the assets mature.

 

[newfie]

It's called QE. The Federal Government buying it's own assets at today's cost and wagering the treasury's policies will pay off when the assets mature.

so you're saying that when the government decides to spend three trillion dollars more in a year they never decide to print more money?

 

[Wally]

‘We’re in a housing recession’

The housing market has cooled so much as the Fed withdraws its support for the economy that some analysts say it may be in a slump.

www.politico.com

 

[newfie]

‘We’re in a housing recession’

The housing market has cooled so much as the Fed withdraws its support for the economy that some analysts say it may be in a slump.

www.politico.com

not possible all our liberal friends say they have not seen any signs of trouble.

 

[Wally]

not possible all our liberal friends say they have not seen any signs of trouble.

They have an election to win.