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Discussion Starter #61
2602016




The U.S. budget deficit is growing faster than expected, and President Trump’s trade war is weighing on the economy, according to a new Congressional Budget Office forecast that highlights key challenges as the 2020 elections approach.

The shortfall is set to widen to $1 trillion by fiscal year 2020, two years earlier than previously estimated, according to the nonpartisan group’s annual budget outlook, released Wednesday. That’s up from an estimated $960 billion in the year that ends Sept. 30. In January, the CBO predicted a gap of $890 billion next year and didn’t expect it to top $1 trillion until 2022.

Widening the nation’s budget gap is legislation that raised spending levels, though the effect will be somewhat moderated by the expectation of lower interest rates, which reduces the government’s debt-service burden. Trump has badgered the Federal Reserve to cut its policy rate, and market rates are low too.

It would be the first time the deficit exceeded the $1-trillion mark since 2012, as the economy was recovering from the financial crisis. That could give Democrats ammunition as Trump runs for reelection. Fiscal hawks say the rising wave of red ink also limits the federal government’s ability to provide stimulus in the event of an economic downturn.

The CBO’s report rebuts a claim by White House economic advisor Larry Kudlow that the deficit is “coming down, and it’s coming down rapidly.” Kudlow made the comments a year ago, and he has stuck to that message. Last month he said the deficit was “quite manageable” and not “a huge problem.”

He may have a point when the projected deficits are measured as a share of the economy. According to the CBO’s numbers, the deficit will be 4.6% of gross domestic product and stay under 5% of GDP through 2026. That’s about half the level it reached during the financial crisis a decade ago.

The bigger problem is government debt, which is forecast to rise as a share of the economy over the next decade, from 81% this year to 95% by 2029.

 

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92 300CE/1996 mustang cobra (supercharged)/12 Civic/15 F150/04 F150 mud truck
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i guess no one cars anymore.
 

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Discussion Starter #64
So what happened to the Tea Party?... oh.


Ten years since that summer of rage, the ideas that animated the Tea Party movement have been largely abandoned by Republicans under President Trump. Trillion-dollar deficits are back and on track to keep growing. The Affordable Care Act has never been repealed, and Republicans concede it may never be. When Congress approved $320 billion in new spending this month as part of its latest budget deal, most Republicans in the Senate voted yes, prompting a lament from Senator Rand Paul of Kentucky, who was first elected in 2010 as a slash-and-burn fiscal conservative.

A spotlight on the people reshaping our politics. A conversation with voters across the country. And a guiding hand through the endless news cycle, telling you what you really need to know.

“The Tea Party is no more,” he said.











 

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92 300CE/1996 mustang cobra (supercharged)/12 Civic/15 F150/04 F150 mud truck
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i care about my personal deficit !
 

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Discussion Starter #66
2609368




Cough!...

The federal deficit for fiscal 2019 was $984 billion, a 26% increase from 2018.




2609367



2609369
 

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'74 & '78 450 SEL
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Trumpanzees, is this dehumanization by a pompous git with a moral deficit, or is it funny?

Democrats called W. Bush, "Chimpy".
Now they're calling Trump supporters, "Trumpanzees".

I remember when they screamed that it was racist when political cartoons depicted Obama with large ears because it was assumed he was being compared to a chimpanzee.

Even though Obama really does have big ears.
 

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Is it possible to reduce the annual deficit by spending less money?

Or is that just too ridiculous to consider?
 

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1990 560SEC, 129,00 miles, in good shape, starting to do some small mods-steering wheel, exhaust
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It's funny how everyone is worried about this. We're lucky we have the perfect President in office now to solve this problem. He'll just do like he always does just on a bigger playing field, he will stiff everyone that is owed money, problem solved.
 
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