here's the reason:
Posted on 02/25/2019 8:14:54 AM PST by Olog-hai
A cursory assessment might find the United States a less than ideal candidate for the job of managing the planet’s ultimate form of money.
Its public debt is enormous — $22 trillion, and growing. Its politics recently delivered the longest government shutdown in American history. Its banking system is only a decade removed from the worst financial crisis since the Great Depression. Its proudly nationalist president provokes complaints from allies and foes alike that he breaches the norms of international relations, setting off talk that the American dollar has lost its aura as the indomitable safe haven.
But money tells a different story. The dollar has in recent years amassed greater stature as the favored repository for global savings, the paramount refuge in times of crisis and the key form of exchange for commodities like oil.
The enduring potency of the dollar gives force to President Trump’s mode of engagement. It has enabled his Treasury to find buyers for government savings bonds at enviously cheap rates, even as his $1.5 trillion worth of tax cuts added to the debt. It has reinforced Mr. Trump’s authority in imposing his foreign policies on an often-reluctant world by amplifying the power of his trade sanctions — especially against Iran and Venezuela. …
(Excerpt) Read more at nytimes.com ...
Cause every other country in the world is in WORSE shape.
This is why I believe that they can crank the Fed printing presses to 11 and get away with it for many years to come.
The stakes of calling B.S. for anybody else are simply too high.
So how did tax cuts add to the debt if revenue is up?
They don’t need no steenking facts.
The love of money is the root of all evil
The chasing of money is a folly
It is said put not the treasures of your heart in this world
Peter S. Goodman is the European economics correspondent for The New York Times, based in London... As Executive Business and Global News Editor at the Huffington Post and then as Global Editor-in-Chief of the International Business Times, he transformed those sites... Goodman is the author of PAST DUE: The End of Easy Money and the Renewal of the American Economy (Times Books, 2009)... He is a regular participant of the World Economic Forum in Davos
He's a Partisan Media Shill and Obama zealot.
here's the reason:
According to the Nobel winning Paul Krugman, tax cuts promote deficits while deficit spending stimulates the economy.
Bizzaro voodoo economics; People keeping more of their money is bad but government spending it (plus some) is good.
Is the NYT actually admitting that Trump did something right?
The depth of this pool is determined by the national debt. The more debt we create, the deeper the pool. Today there is an insatiable worldwide demand for dollars, and thus there is an insatiable worldwide demand for American debt.
How do we create more debt? If you're a Democrat, you expand entitlements. If you're a Republican, you fight endless wars.
The Panic of 2008 was triggered by a lack of dollars to lubricate the machinery of global finance due to the collapse of American real estate values combined with Goldman Sachs shorting its own mortgage-backed securities. Treasury Secretary Hank Paulson, who uses profanity the way a surgeon wields a scalpel, was right when he said to Goldman Sachs boss Lloyd Blankfein, "You had a good thing going, but you f***ed it up!"
In order to create more dollars to fill a rapidly expanding black hole in the world of finance, the Dubya and Obama administrations spent wildly, and the drug cartels were asked to bank their ill gotten gains in American banks on a one time basis while the government promised to look the other way.
If we change our profligate ways and reduce our debt, or even pay it off altogether, it would collapse the entire global financial system. Neither the euro nor the pound nor the yen nor the renminbi is deep enough to handle the daily exchange of currencies. You would have to go back to gold, and that would set off a wave of global deflation and currency contraction that would create a global depression for decades until the world could adjust.
We were wrong so the world must be going mad.
Might not seem like much, but I was living high several years ago when it was $1 to 36, however, it did get down to almost $1 to 27 during the glory years of Obama.
I keep recalling Jimmy Carter making gold price king and Reagan bringing it back to normalization.
The ‘public debt’ of the USA is far higher than a mere $22 trillion.
That’s just the Federal debt! You throw in state and local debt and that number climbs to north of $40 trillion!
How? Strongest economy in the world produced and maintained via capitalism, free markets, land, natural resources, oil, tremendous ability of wealth-building FREE people and corporations and all made possible by the grace of God.
But then I am one who thinks that with ever increasing debt there is eventually a reckoning.
Investors are grading the currency of the various nations on a curve, and the United States has the highest “F’ in the class.
How? Because have you seen everybody else?
If you take an honest look, do you really have any confidence in the Euro? The Chinese Yuan? Japan’s national debt is about twice ours as a percentage of GDP so you can’t have any confidence in the Yen.
If not the dollar, where else are you going to go?
The love of money is the root of all evil
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