To: TideGlider who wrote (960039 ) 8/29/2016 8:49:33 AM From: FJB 2 RecommendationsRecommended By
Respond to Obama The Chimp's Parting Gift: $20 Trillion In Public Debt And A Rising Budget Deficit US Treasury , on Thursday, August 25, total US public debt hit an all time high of $19.5 trillion. there is a good chance that on the last day of Obama's presidency, total debt will be in the $20 trillion range. as part of Obama's parting gift to the US, not only will his successor inherit a $20 trilion mountain of debt, but also rising deficits. Congressional Budget Office released its federal budget update this week , it raised this year’s and next year’s deficit forecast due to lower tax receipts and shifts in the timing of certain payments.This was the first increase in the US deficit as a percentage of GDP since 2009.The new 2016 forecast is about $152 billion higher than 2015’s deficit. The 2017 deficit is expected to be $594 billion, not too different from this year’s. and expects interest rates to remain lower for longer . The lower tax revenues due to slower growth are offset by lower expected spending and interest expenses.and everything to do with US public debt which is about to take another step move higher just as foreign central banks are dumping record amounts of US government debt ... Recall :In a lunch address by Princeton University economist Christopher Sims, "policymakers were told that it may take a massive program, large enough even to shock taxpayers into a different, inflationary view of the future . Fiscal expansion can replace ineffective monetary policy at the zero lower bound," Sims said. "It requires deficits aimed at, and conditioned on, generating inflation. The deficits must be seen as financed by future inflation, not future taxes or spending cuts." At least when it comes to setting the stage for this upcoming "shock", Obama has done truly an admirable job.
