FBI Raids Mar-a-lago

[Up In Smoke]

It appears you started by talking about the printing of money and then went on an anti trump economy rant. Getting back to your original point that it appears you were triggered by. If we add 8 trillion dollars of additional spending from the government above and beyond what we are currently spending as we have the last 3 years how do you add the 8 trillion dollars of currency to the economy if you dont print more money?

The treasury controls the amount of money in the economy and the Fed where it goes. The amount of money in our economy went from the 14T to 21T from 2016-2020 through QE and treasury auctions. The dollar dropped more than 15% from 2016-2018 and made our treasuries very attractive to other countries who's money goes further IE the Chinese Yuan grew at about the same as our dollar shrank. These treasury auctions as well as the injection of future tax dollars into the mortgage backed securities market raised the amount of money into our economy. Very similar to a company expanding the number stocks in order to strengthen their cash position or pay for an expansion.

 

[fishtm2001]

The treasury controls the amount of money in the economy and the Fed where it goes. The amount of money in our economy went from the 14T to 21T from 2016-2020 through QE and treasury auctions. The dollar dropped more than 15% from 2016-2018 and made our treasuries very attractive to other countries who's money goes further IE the Chinese Yuan grew at about the same as our dollar shrank. These treasury auctions as well as the injection of future tax dollars into the mortgage backed securities market raised the amount of money into our economy. Very similar to a company expanding the number stocks in order to strengthen their cash position or pay for an expansion.

Do you think this Fed induced recession is the only way out as Powell suggests? I am not in the same league as you regarding the understanding of economic policy but it seems he might be overcompensating for being asleep at the switch in prior months.

 

[Up In Smoke]

Do you think this Fed induced recession is the only way out as Powell suggests? I am not in the same league as you regarding the understanding of economic policy but it seems he might be overcompensating for being asleep at the switch in prior months.

At this point everyone is agreement that the Fed was too late and too slow to react to economic factors dating back to 2018. History is guiding his blueprint at this point and the economy and markets will suffer.

 

[fishtm2001]

At this point everyone is agreement that the Fed was too late and too slow to react to economic factors dating back to 2018. History is guiding his blueprint at this point and the economy and markets will suffer.

Is it true that these rate hikes won't have an effect on inflation for 6-9 months? Isn't inflation expected to slow on its' own by then?

 

[Up In Smoke]

Is it true that these rate hikes won't have an effect on inflation for 6-9 months? Isn't inflation expected to slow on its' own by then?

The consumer will determine the rate and duration of inflation. Food, energy and housing will have to change course in a meaningful way. The government can help by capping spending so QT can have the desired affect. The loss of jobs will help slow wage inflation, which in turn will slow real inflation. Nearly 65% of all companies costs are related to labor. The rate increases are used to slow the rate borrowing and suppress demand. It all takes time, there is no light switch.

 

[fishtm2001]

oh..............ok so its perfectly fine that he stole nuclear information about a another country,gotcha

Why did he steal documents?

For Donald Trump, Information Has Always Been Power

People have wondered why the former president collected classified intel, speculating that he is just a packrat. But he has a long history of gathering and wielding sensitive info to help himself.

www.propublica.org

 

[fishtm2001]

The consumer will determine the rate and duration of inflation. Food, energy and housing will have to change course in a meaningful way. The government can help by capping spending so QT can have the desired affect. The loss of jobs will help slow wage inflation, which in turn will slow real inflation. Nearly 65% of all companies costs are related to labor. The rate increases are used to slow the rate borrowing and suppress demand. It all takes time, there is no light switch.

I just hope Powell isn't slow to put on the brakes if we see improvement.

 

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[Up In Smoke]

I just hope Powell isn't slow to put on the brakes if we see improvement.

Sad to say, company earnings have yet to affected. Once that happens the economy can start to get some traction. It took 20 plus years to get here, it may take a few years to come out.

 

[newfie]

The treasury controls the amount of money in the economy and the Fed where it goes. The amount of money in our economy went from the 14T to 21T from 2016-2020 through QE and treasury auctions. The dollar dropped more than 15% from 2016-2018 and made our treasuries very attractive to other countries who's money goes further IE the Chinese Yuan grew at about the same as our dollar shrank. These treasury auctions as well as the injection of future tax dollars into the mortgage backed securities market raised the amount of money into our economy. Very similar to a company expanding the number stocks in order to strengthen their cash position or pay for an expansion.

the other point of your rant was a dismissive slam of the stock market results during that time. I made a lot of money in my 401 K during that time as did I'm sure many other blue collar americans. the problem with Trumps tax cuts was not that we had more money to spend and invest and benifit from a stock market that soared but that our congress and president did not curtail spending.
without the covid nonsense and with a modest curb on the increase of spending we could have actually balanced by 2000.
Every president who comes into office jacks up the spending during the first term of their administration and then tends to have less deficit the second term of their president. that process has now been accelerated because we got the first term of trump back to back with the first term of biden plus the insanity of Covid spending.

 

[newfie]

The treasury controls the amount of money in the economy and the Fed where it goes. The amount of money in our economy went from the 14T to 21T from 2016-2020 through QE and treasury auctions. The dollar dropped more than 15% from 2016-2018 and made our treasuries very attractive to other countries who's money goes further IE the Chinese Yuan grew at about the same as our dollar shrank. These treasury auctions as well as the injection of future tax dollars into the mortgage backed securities market raised the amount of money into our economy. Very similar to a company expanding the number stocks in order to strengthen their cash position or pay for an expansion.

how does the country add an additional 8 trillion dollars of spending to our economy. Do they have to print more money or give an IOU for the additional 8 trillion?

 

[Up In Smoke]

how does the country add an additional 8 trillion dollars of spending to our economy. Do they have to print more money or give an IOU for the additional 8 trillion?

Capitalism. The Treasury sells you an opportunity to share in the country's prosperity by purchasing treasuries. This is the same way a company sells you stock with the prospect of it being worth more in the future. If the underlying asset grows in value, the seller and buyer earn positive returns. No one thinks UPS parted out is worth 150B, but the earnings potential says it is. There are hundreds of traded companies that lose money yearly, yet people invest because of the chance of future earnings. Are these companies printing money or allowing outside money to come in and improve their value?

 

[Up In Smoke]

Most all companies sell bond positions also. The investor gets a less volatile investment path.

 

[vantexan]

You've posted countless times about the government's "printing" of money. When the Tax Cut and Jobs Act was introduced, it was estimated by the White House to cost 5.5 trillion over 10 years, or 550 billion per year. It was sold as a economy building law that would stimulate businesses to reinvest in America and drive the GDP for years to come. It was sold as paying for itself with and expanded workforce and higher wages. Well, we all know what happened, the corporate tax cut was passed down to the shareholders by way of dividends or stock buybacks. The dollar was affected negatively causing the largest trade deficit in US history. Up more than 40% from 2016-2020. Federal debt held by the public rose from 14 trillion to 21 trillion and house prices rose near 30% in those years. The US GDP rose at a 2.5% annual rate as government spending went from 6 trillion to over 10 trillion. Government revenues rose, but at a fraction of what was estimated. In the end nearly 8 trillion dollars were added to our debt, but at least the stock market went up.

You've got your timeline wrong. The national debt was at about 20 trillion at the end of 2016, Obama's last year. We had a $500 billion trade deficit with China when Trump took office. It was a major issue he tried to address. Trump's tax cut actually increased revenue some. The problem was there was more spending than what they took in. The tax cut itself didn't reduce revenue. I've pointed out before that Trump couldn't get enough Republicans to go along with what he wanted to spend on the military. So he compromised with the Democrats and between them and enough Republicans he got a huge budget passed. You've said there was no budget passed under Trump. Not so. And the Dollar weakened? Every major currency is down against the Dollar. The Pound is at a historical low vs the Dollar. The Euro is trading at less than the Dollar. And you're forgetting that the Tax Cut and Jobs Act actually created jobs. Unemployment was at historical lows for women and minorities. This was after years of stagflation under Obama and him saying those jobs aren't coming back. People forget that gas was expensive under Obama too. Trump's policies brought those prices down. Obama added over $10 trillion to our debt in his 8 years. Trump did add to the national debt too. And by far the biggest year for that was dealing with the pandemic.

 

[vantexan]

Capitalism. The Treasury sells you an opportunity to share in the country's prosperity by purchasing treasuries. This is the same way a company sells you stock with the prospect of it being worth more in the future. If the underlying asset grows in value, the seller and buyer earn positive returns. No one thinks UPS parted out is worth 150B, but the earnings potential says it is. There are hundreds of traded companies that lose money yearly, yet people invest because of the chance of future earnings. Are these companies printing money or allowing outside money to come in and improve their value?

Those companies can't print money but the government can. And yes to cover deficit spending the government printed money. The Federal Reserve did. And to keep the economy afloat they handed out stimulus checks during the pandemic. Did the government have the money to do that? No. And it wasn't the capitalist system that produced the money. The government just produced that money out of thin air. To cover our deficit spending the government sells treasuries. The difference between now and when we had high inflation in the late 70's-early 80's is our debt to GDP ratio was much lower back then and government spending was covered by long term bonds. Now government spending is covered by short term treasuries because no one wants to get locked into 30 year bonds at super low rates. And as those T-bills roll over the government is faced with higher interest rates to service them. And all of this was pointed out by economists including Larry Summers who is not a conservative. The government did it anyways.

 

[vantexan]

Trump's a loser: he lost the popular vote in two electons, he was the only incumbent president since Daddy Bush to not serve two terms,he was impeached twice, He not only lost the Presidency but the Republicans lost the House and Senate in the same election . So...................much.....................winning!

You do realize all of this snarkiness is going to come back to haunt you in the midterms and in '24?

 

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[728ups]

As usual, you didn't answer the question.
You are about as credible as every other liberal weakling that has been run off this site due to continual asssss speak.
Get a job hippie.

I will give him credit: He ;s VERY good at selling hats and flags to Morons,as well as getting poor people to send him money

 

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[newolddude]

https://twitter.com/i/web/status/1574186900008669187