Trump's Economic Plan

[kybkh]

I think Jack's just talking about ROI.

You'd get a better return on investment from supplementing US mfg than bombing a mud hut if Af/Pk.

[kybkh]

I think Jack's just talking about ROI.

You'd get a better return on investment from supplementing US mfg than bombing a mud hut if Af/Pk.

Hell you'd get a better ROI building a wall.

[Martin Hash]

You'd get a better return on investment from supplementing US mfg than bombing a mud hut if Af/Pk.

Dropping the bomb is consumptive but making the bomb is productive.

[Smitty-48]

The consumptive of dropping the bombs, is required to drive the productive of making the bombs, which becomes value added when you manufacture highly sophisticated bombs, in larger numbers, but with smaller warheads, dropped precision guided, such as the multi-mode seeking Small Diameter Bomb.

[K@th]

Oh, I agree, but what happened in the last eight years was above and beyond. Look at that chart. If that chart is at all accurate, Obama added more to the debt than all the presidents in our history combined.

If you look at the chart, it seems every president except Clinton just about doubled the number. It seems exponential. That's incredibly scary.

We've printed money like drunken sailors before. It doesn't turn out well.

[Smitty-48]

The issue is not the amount of money, it's the velocity, the Democrats printed a shitload of money in 2008, but all they did was hand it to the banks, the banks have sat on the money, so no velocity, Trump's challenge is simply to get the money moving, if the money starts moving, the amount is of no concern, you can inflate the debt over the long term, the issue in the near term, is that the Democrats have turned the Rust Belt into a Hooverville, Trump has simply found this chink in their Blue Wall armor, and then blown right by them with a New Deal agenda.

[ssu]

Trump is the big spender. Promised to spend even more than Hillary. Yet things are a bit different.

Obama came into office when there was an economic recession, not Trump. And now the Fed is highering interest rates... which will likely put Trump and the Fed on different sides.

Yet I wouldn't be worried about the debt of the US at first, still is better than for example Japan.

The issue is not the amount of money, it's the velocity, the Democrats printed a shitload of money in 2008, but all they did was hand it to the banks, the banks have sat on the money, so no velocity, Trump's challenge is simply to get the money moving, if the money starts moving, the amount is of no concern, you can inflate the debt over the long term, the issue in the near term, is that the Democrats have turned the Rust Belt into a Hooverville, Trump has simply found this chink in their Blue Wall, and then blown right by them with a New Deal agenda.

The money went to prop up the debt bubble and keep it secure from bursting totally and creating true deflation.

Democrats and Republicans have had basically the same strategy here: When you finance the government By issuing debt with no problems, the finance the government with debt. And once and only when a crisis hits, then in the panic you can push through the tough choices. Never before. Hence Trump can hope the crisis won't come in his term.

We've printed money like drunken sailors before. It doesn't turn out well.

Yeah, but it can take years, or a decade or two.

[Smitty-48]

Trump will not be against the Fed raising the rates, the rates are too low, the Fed needs to raise rates, to incite investment in order to get the money moving. Trump wants and needs to get the money moving, if the banks can't make a return on investment, because the interest rates are being kept artifically low, they just sit on the money, injecting some interest into the equation is a neccesity to getting the money moving, so Trump needs some interest in play as much as the banks do, even if it causes a near term correction in the equity markets, those will bounce back on the other side, but that's not actually a concern, if the Fed simply brings the rates up gently, which is what they are doing.

[TheReal_ND]

They raised the interest rate when Reagan started his first term too. It worked out ok.

[Smitty-48]

They raised the interest rate when Reagan started his first term too. It worked out ok.

You don't need to go Paul Volcker here, you are not in a stagflation environment, Yellen can bring the rates up slow and steady, but there's no need to be Paul Volcker about shit, because there is no inflation, the "oil shock" right now, is actually to the deflationary side, not the inflationary side, and the US dollar is going up not down.

Trump is in a much better position than Reagan was, so no need to be that drastic. "ZOMG inflation!" = concern trolling.

Inflation rate in 1981; 20%. Inflation rate now; 2%