Economic News

It is Saturday and I need to report on stuff that is happening and the MSM seems to avoid their inclusion in the daily news reports.

Remember those tax cuts last year and all the promises for the future?  Well here is some news that the GOP does not want the rest of the population to know…..

One of the many things confirmed by the great tax-bill melodrama of 2017 is that Republicans only pretend to care about “fiscal responsibility” when Democrats are in power and tax cuts aren’t on the line. With the opportunity to slash the corporate rate nearly in half, cries of “I won’t endorse a bill that adds one penny to the deficit!” evaporated, and tacking on $1.5 trillion became no big deal. Tax cuts, we will soon be reminded, don’t grow on trees, and the social safety net must be pared back in exchange. For now, though, Republicans are still in the trickle-down honeymoon phase, seeing in every corporate press release more confirmation that America has been made great again. Which makes it somewhat ironic that the Treasury is now burning through its cash reserves at an even more spectacular rate.

the CBO does not agree with the GOP bullshit……

According to the nonpartisan Congressional Budget Office, the federal government will run out of money even sooner than expected, thanks to the new tax legislation, which is estimated to lead to a fall in revenue of $136 billion in 2018. A default on debts had originally been forecasted for late March or early April. But now, because of the new withholding tables, “withheld receipts are expected to be less than the amounts paid in the comparable period last year.” That, combined with the fact that the Treasury generally issues a high number of tax refunds in February and March, means that the $272 billion in cash the Department had on hand as of Tuesday will quickly dwindle. If the debt ceiling isn’t increased by the first half of March, the C.B.O. cautioned on Wednesday, “the government would be unable to pay its obligations fully,” and would be forced to delay payments, default on its debts, or both.

https://www.vanityfair.com/news/2018/02/the-gop-tax-cut-is-draining-the-treasury

Why is it when the GOP does something economic the reserves suffer the worst?  And does no one call them on their bullshit?  Then they are the ones that bitch about the deficit the loudest and instead of responsible spending they want to make up the short fall by screwing the rest of the population?

One more news item and it is one that no one wants to hear…..recession…….

When will the US enter its next recession? Economists surveyed by the Wall Street Journal are predicting 2020. We’re currently in an economic expansion that started in mid-2009—the second-longest in American history—and 59% of the forecasters surveyed think it is most likely to end in two years due to the Federal Reserve raising interest rates. Another 22% predicted 2021; smaller groups predicted 2019, 2022, or an unspecified date beyond that.

Recessions are difficult to predict, but one economist who took part in the survey says signs are emerging that the current expansion is in the late stages of its cycle, and another says “any year from 2019 onward is in play” for a recession. The last recession began in December 2007; alarms were raised in 2011 and 2016, but the US did not enter a recession either time. The longest-ever economic expansion was in the 1990s, lasting 10 years.

Just FYI so that my readers can make any adjustments that they may need…..

Sorry if I peed on your parade….Have a good day and get some rest!  chuq

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26 thoughts on “Economic News

  1. I don’t think the UK government has had any money for decades. It exists on borrowing, with a debt so huge it could never be repaid.
    Best wishes, Pete.

      1. Like Democrats have never spent a dime spending billions of dollars on welfare the for immigrants and the welfare queens. LOL

      2. A cute accusation but it does not address the stupid spending when Repubs get the chance….as much as you would like to blame immigrants for all our problems the truth is it is closer to home chuq

      3. I don’t think any of us are ever going to solve any of these damnable political problems and that is one reason I stopped obsessing about it and blogging about it. But that is not to say that I might not start being political again because it appears that whether I am political or not I am going to get the same amount of readers on this blog — so yeah, I might go political again someday soon.

      4. People who lived 50 years before us had the same hopes and people who will live 50 years after you and I are gone with still be chasing the same dream.

      5. Well, to be fair…fighting 2 unending wars cost a HELL of a lot of money. Even without a tax cut, that burns up a surplus really damn fast.

      6. Yes it does but the American voter cares not for they do not have to fight them so they give the toads a free hand….chuq

  2. What America really needs are some fiscal conservatives. (Hahahahaha!) You know, the kind of folks who know how to balance a budget. Folks who can make sacrifices…not buy the unneeded new toys…trim their own wasteful high-living expenses and just stick to the basic needs. Folks who are willing to put in the extra effort to raise their income, rather than lessen it.

    Oh….where my party liquor at?

      1. The first step is to balance a budget. Stop unnecessary spending. Because Social Security, Medicare, etc are required expenses needed for “family survival”….Functionally speaking, that means the 2 biggest, most valuable, actions to take are:

        1) New military toys need to be cancelled and at least some of the wars need to stop.
        2) All the tax cut needs to go.

        If you’re in a deficit position, you just CAN’T reduce your own income, increase your spending and improve your situation. Just not possible….unless you’re into Voodoo Economics. (As arguably the last fiscally responsible Republican once said…and was ignored.)

      2. there seems to be a cycle…Repubs get elected on balancing the budget then they spend their ass off and Dems get elected to spend their asses off…..a vicious cycle chuq

    1. I am not interested in raising my income. If people don’t have enough to live on then that is not the fault of the government. It is the fault of the idiots who wasted their time in school, failed to get and apply the proper education and who utterly failed to take advantage of all the economic opportunities that America has always had to offer to anyone willing to take the risks and expend the effort.

      1. What the hell are you talking about??? This is about government making stupid economic decisions. Instead you’re reciting the Horatio Alger myth…which may have been true for much of your life, but is now a complete myth. The US now has less upward-mobility than even Europe does. You’re talking about something that is disappearing faster than threatened species of Rhinos. And the robot-dominated future looks a hell of a lot worse.

        But back on topic…If you were huge financial trouble, would you be permanently redirecting some of your income away…mostly to people who already had far more than enough??? Would you buy more guns with it when you already have more guns than your entire town combined??? Of course not! Only a complete fucking moron would do that…or the US government!

  3. Increase taxes on everybody — a 100% rate ought to fill the bill …. and print more money if you run short. Problem solved. (Or borrow more from China.). LOL!

    1. If deficit & debt is to be treated seriously….That’s what it’s coming to. Many decades of economic idiocy has added up. Nobody has had the balls to do anything but flap their jaws about it and pose for the cameras. America prefers to borrow money from China. (the money Americans paid them for cheap shit that used to be made by American manufacturers.)

      Granted, Clinton did somehow balance the budget for a bit. But I suspect a lot of that was the result of tax revenue from a faux-booming economy and (overall) lack of wars. Both situations would soon reverse themselves.

      1. American Manufacturers never made “Cheap Shit.” But they did start manufacturing “Expensive Shit” that was really “Shit” and that is why Americans started buying the “Cheap Shit” from China because the Chinese learned how to make Shit both cheaper and better.

      2. Yes, I thought the “cheap shit” part might confuse the issue, but that clarifying it would actually make it muddier (and drag it on)…as you proved…so I let it stand.

        “Cheap” was more about value than it was price. (Value: A concept our culture has forgotten.) Expensive shit is cynical at both ends. That’s a corporation feeling entitled to overcharge you AND give you something that’s not even worth paying less for. Lots of that today. (See: designer label shit made in the very same Chinese factory as the knockoff) And materialistic morons put themselves in debt for it.

        But the Chinese making anything “better”? How you liking all that ugly pressboard furniture you have to build yourself that now dominates the shelves? I can barely fucking breath in a room full of the stuff. And when I sneeze, I damn near break the flimsy shit. So much better than the beautiful solid wood stuff they used to make in the Carolinas, right? Shit, they don’t even make better china in China!

        But I think you’re missing from the forest from the trees. This is a self-fulfilling prophecy at work. If price is all that matters, then cheap shit will sell and quality won’t. The constant downward drive on price leads American manufacturers to make cheaper, shittier, products. And when given the chance with moronic trade agreements, those American manufacturers will make even cheaper and shittier products in places like China. (Then they’ll hide their profits in tax havens and contribute neither tax revenue, nor jobs to America.) The increasingly unemployed/underemployed Americans earning less than before will have even more motive to opt for cheaper, shittier, products.

        Thus the self-fulfiing prophecy that unemploys/underemploys increasing numbers of Americans, puts more burden on government programs, reduces tax revenue….and is the reason America has to borrow the money from China that Americans gave it just so America can remain afloat.

    2. A little extreme….but at least start a war tax to pay for the many years the toads cannot live without….but that will not do much to head off the recession if it cares to show up…chuq

      1. We will always have recessions. The key to recessions is not to worry about them but to prepare for them and to survive them at least a little bit intact.

      2. May you could pass on your economic advice so others can be more successful….there is an idea for John’s Lynxx….chuq

      3. Your proposition is intruguing. So here is my suggestion to the ambitious who would become independently upward mobile — “Buy and read the book, “Think and Grow Rich” by Napolean Hill, and then when done with that one, read another book entitled, “How To Swim With The Sharks Without Being Eaten” and then an extension or resident course at some good University that begins the path toward an MBA degree — you don’t have to finish the course because sooner or later you will be hiring other MBAs to handle things that you do not wish to mess with …. and then when all that has been accomplished, form a purposed group and come back here with a leader and we will discuss my publishing articles on personal finance here on the blog.

      4. John I would do a post on your site for here not many are into the economics of the world……I agree…..a couple of investing for dummies are in simple easy to understand and personal finances for dummies is another….chuq

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