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Stock Thread 2019

Not sure that comparison is sound. The gov't produces a trivial portion of the GDP, yet it's responsible for all the debt. In your comparison it'd be like a 13 y/o kid claiming his parent's $500K salary as his own when he brags to his friends.
 
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Reli said:
Not sure that comparison is sound. The gov't produces a trivial portion of the GDP, yet it's responsible for all the debt. In your comparison it'd be like a 13 y/o kid claiming his parent's $500K salary as his own when he brags to his friends.
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Government policies and fed policies have great impact on GDP. The spending it self acts as one of the economic multipliers. With expanding GDP that increases tax revenue. Your snarky analogy does not apply at all.
 
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UDRider said:
Government policies and fed policies have great impact on GDP. The spending it self acts as one of the economic multipliers. With expanding GDP that increases tax revenue. Your snarky analogy does not apply at all.
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Yes and no. Expanding Federal spending acts as a force to increase tax revenues and pump up the economy. It just doesn't pay the bonds that are still being borrowed, nor the ever increasing debt and interest burden. I gave you the debt figures ( which you had misunderstood and thought to be much lower) and the projection for ten years ( over a 100% increase in interest spending.)

That's real, and that's increasing, and the future generations are going to be dealing with ever more crushing debt payments. In the near future interest will surpass every other category of expenditure. That's not good, that's disastrous.
 
afm199 said:
Yes and no. Expanding Federal spending acts as a force to increase tax revenues and pump up the economy. It just doesn't pay the bonds that are still being borrowed, nor the ever increasing debt and interest burden. I gave you the debt figures ( which you had misunderstood and thought to be much lower) and the projection for ten years ( over a 100% increase in interest spending.)

That's real, and that's increasing, and the future generations are going to be dealing with ever more crushing debt payments. In the near future interest will surpass every other category of expenditure. That's not good, that's disastrous.
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How did I miss understand? I took your 365B in interest and pointed out it's 7 something percent of budget, which you said more relevant then GDP. I took your ten year projection to 12 something percent of budget. Assuming it remains same.

I get it debt is increasing and payments are too. So as the economy, and value of debt decreasing due to inflation. So federal debt in it self is not a boogi6 man people make it out to be. Now of course devil is in details and what it is spend on and how it is achieved matters, but just to say debt bad is not accurate.
 
UDRider said:
How did I miss understand? I took your 365B in interest and pointed out it's 7 something percent of budget, which you said more relevant then GDP. I took your ten year projection to 12 something percent of budget. Assuming it remains same.

I get it debt is increasing and payments are too. So as the economy, and value of debt decreasing due to inflation. So federal debt in it self is not a boogi6 man people make it out to be. Now of course devil is in details and what it is spend on and how it is achieved matters, but just to say debt bad is not accurate.
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The devil is in the details. You are using budget to mean that including mandatory spending, which is not flexible, is growing, and can not be changed.

When you place the interest burden against discretionary spending, it's an entirely different thing. The debt burden placed against the actual funds available to pay it, is a problem, and a huge one.
 
afm199 said:
The devil is in the details. You are using budget to mean that including mandatory spending, which is not flexible, is growing, and can not be changed.

When you place the interest burden against discretionary spending, it's an entirely different thing. The debt burden placed against the actual funds available to pay it, is a problem, and a huge one.
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Yes, but you assume discretionary part doesn't increase as economy grows. Although one thing that is worrying is due to recent tax changes revenue is not increasing during booming economy. This might be treading too closely to PS thought.
 
UDRider said:
Yes, but you assume discretionary part doesn't increase as economy grows. Although one thing that is worrying is due to recent tax changes revenue is not increasing during booming economy. This might be treading too closely to PS thought.
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I'm not assuming anything. I am look at the record of debt and interest and the year to year increases. The interest burden is projected to increase until it's over 100% larger than today in less than ten years. That includes projected discretionary increases.

I don't know what PS thought is.
 
Mike95060 said:
^ Political Sink sub forum
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Ahh. Ok. Thanks.

Let's end this discussion of debt and interest then. UDR, please go ahead and respond if you wish, and then let's call it quits and get back to stocks.
 
afm199 said:
Ahh. Ok. Thanks.

Let's end this discussion of debt and interest then. UDR, please go ahead and respond if you wish, and then let's call it quits and get back to stocks.
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That's fine. Thanks for sharing you point of view.
 
UDRider said:
Government policies and fed policies have great impact on GDP. The spending it self acts as one of the economic multipliers. With expanding GDP that increases tax revenue. Your snarky analogy does not apply at all.
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It was simply my way of saying that gov't spending is peanuts compared to the total revenue businesses make (B2C, B2B, and international sales combined), which is what the majority of "GDP" is.
 
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Reli said:
It was simply my way of saying that gov't spending is peanuts compared to the total revenue businesses make (B2C, B2B, and international sales combined), which is what the majority of "GDP" is.
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Mmkay.
 
Stock market seems to love the jobs report. Number of jobs is growing but wage growth is not there. Not sure what to make of it.
 
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