Interesting stock market effect

[mspart]

 

https://www.independentnews.com/news/national/poll-majority-of-americans-want-spending-cuts-included-in-debt-ceiling-deal/article_7299b979-bc9c-5b4c-8bee-4e8512a01eee.html

Poll: Majority of Americans want spending cuts included in debt ceiling deal

In a national survey of 2,000 people conducted by McLaughlin and Associates over a four-day period beginning on May 4, nearly 61% of voters polled agreed with the statement that “House Republicans have done their jobs and passed a responsible debt ceiling increase, now President Biden and Senate Democrats must do their job and negotiate a compromise.

https://www.newsweek.com/joe-biden-debt-ceiling-kevin-mccarthy-poll-government-spending-1798339

An exclusive poll conducted on behalf of Newsweek by Redfield & Wilton Strategies of 1,500 U.S. adults found that half think that the government is spending too much, while the same amount would like to see the debt ceiling raised but with commitments to spending cuts.

https://www.mdjonline.com/neighbor_newspapers/news/national/poll-majority-of-americans-want-spending-cuts-included-in-debt-ceiling-deal/article_ecae05f9-d795-50a2-adfc-fb6c6af203c9.html

Poll: Majority of Americans want spending cuts included in debt ceiling deal

An overwhelming number of voters say that President Joe Biden should compromise with House Speaker Kevin McCarthy to cut government spending as part of a deal to raise the U.S. debt ceiling, according to a new poll commissioned by America’s New Majority Project.

In a national survey of 2,000 people conducted by McLaughlin and Associates over a four-day period beginning on May 4, nearly 61% of voters polled agreed with the statement that “House Republicans have done their jobs and passed a responsible debt ceiling increase, now President Biden and Senate Democrats must do their job and negotiate a compromise.

 

It looks like Pres Biden is listening to the American People by caving to the Rs and negotiating regarding spending cuts to go along with a debt ceiling increase.    Good for him.

mspart

 

[Plasmodium]

The sane compromise should be spending cuts and tax increases, but that will never happen.

[mspart]

Well, perhaps a slightly less sane compromise would be spending cuts.  Oh, that's what the House has passed. 

mspart

[Offthemat]

58 minutes ago, mspart said:

Well, perhaps a slightly less sane compromise would be spending cuts.  Oh, that's what the House has passed. 

mspart

That was last week.  Today’s news is “Biden caved.”

[mspart]

That was the point of showing the polling on this.   His position would have worked with D majority in the House.   But the Rs  put together a package and it sounds like a reasonable approach to most Americans.  It's tough for the Pres to ignore that. 

mspart

[Plasmodium]

Biden is too nice.  He could have taken the tools given to him and scorched the earth.  Too late for that.  Scorched earth would have been to give up almost everything in the negotiation but negotiate something a small number of Republicans find unacceptable.  Leak and when they go ballistic, introduce a motion to vacate and demand a new speaker.

[mspart]

So what is wrong with less spending that you find so distasteful?   Taking covid funds that are no longer needed and not spending that seems like a good thing.  Reducing spending is a good budgetary move.   As you can see, the stock market responded favorably to the "caving" of Biden.   Biden doesn't have the votes in the Senate to get a clean debt ceiling bill with no other qualifiers.   His hands are really quite tied.   Based on what the American people apparently want, not including you, negotiations must be held in curbing spending as a qualification for debt ceiling being raised.  He is not caving to the R's, but to the American people.   They are who he is supposed to cave to.  It just so happens that the Rs are speaking most American's language on this issue.   Biden has not been and has been woefully out of touch. 

mspart

[Plasmodium]

27 minutes ago, mspart said:

So what is wrong with less spending that you find so distasteful?   Taking covid funds that are no longer needed and not spending that seems like a good thing.  Reducing spending is a good budgetary move.   As you can see, the stock market responded favorably to the "caving" of Biden.   Biden doesn't have the votes in the Senate to get a clean debt ceiling bill with no other qualifiers.   His hands are really quite tied.   Based on what the American people apparently want, not including you, negotiations must be held in curbing spending as a qualification for debt ceiling being raised.  He is not caving to the R's, but to the American people.   They are who he is supposed to cave to.  It just so happens that the Rs are speaking most American's language on this issue.   Biden has not been and has been woefully out of touch. 

mspart

Nothing is wrong with less spending. The deficit spending and corresponding debt will be catastrophic at some point.  The debt is already too high so we need spending cuts and tax increases.

[Mike Parrish]

https://twitter.com/GRDecter/status/1658526505440247834

[mspart]

17 hours ago, Mike Parrish said:

https://twitter.com/GRDecter/status/1658526505440247834

This is THE reason to get spending under control and pay down the debt.   The interest on the debt alone is a huge portion of the federal budget.  

mspart

[Plasmodium]

11 minutes ago, mspart said:

This is THE reason to get spending under control and pay down the debt.   The interest on the debt alone is a huge portion of the federal budget.  

mspart

Are taxes independent of budget deficits?

[mspart]

No, but the burden on people is high currently.   Taxes on businesses is paid for by the consumer.   So the average Joe gets hit in an invisible way.   Taxes are high enough.   We need to live within what we have.   There is no reason for the US Government to require more money that we currently bring in.   Reign in spending and start paying down the debt.   That is how anyone else in the world has to do it.   It makes fiscal sense and is prudent where we have not been prudent at all over the last 40 years.  And don't give Clinton as an example, the voters called him on his plans and voted in R majorities and they enforced fiscal discipline on Clinton where he didn't have that as his plan initially.   We needed more of this after that but didn't get it.   Biden and the D  majorities in Congress exacerbated the problem with the huge increases in spending which spawned the inflation we are living under.   I'm not saying Trump and the Rs were fiscally responsible either.   They weren't.   But this effort is long overdue. 

mspart

[Mike Parrish]

https://www.taxpolicycenter.org/briefing-book/how-do-us-taxes-compare-internationally

[Plasmodium]

6 minutes ago, Mike Parrish said:

https://www.taxpolicycenter.org/briefing-book/how-do-us-taxes-compare-internationally

As mentioned, most everyone else receives tangible benefits for their taxes.  The addition of tertiary education differentials and medical care will push us way up.  Medical industry consumes almost 20% of GDP here.

[Mike Parrish]

4 minutes ago, Plasmodium said:

As mentioned, most everyone else receives tangible benefits for their taxes.  The addition of tertiary education differentials and medical care will push us way up.  Medical industry consumes almost 20% of GDP here.

National insurance would cut a large swath of office work overhead and insurer profits out of the picture.

[mspart]

What would be more instructive is to take the budget and see where the cuts can be made.   2023, we are projected to take in $4.8T in revenue.    Is there no way possible to live within that amount?   Of course there is but no one wants to make that decision.   Just spend more and more and you get to where we are now.   It makes everyone feel good to spend more, but the time comes where that isn't possible anymore.    We are ruining our currency to the point that the world wants another default currency and are looking to China.   That's certainly something we don't want. 

https://www.washingtonpost.com/world/2023/05/16/china-yuan-renminbi-us-dollar-currency-trade/

mspart

 

[Mike Parrish]

https://www.usgovernmentspending.com/us_fed_spending_pie_chart

 

https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/

Edited May 18, 2023 by Mike Parrish

[Wrestleknownothing]

20 hours ago, mspart said:

What would be more instructive is to take the budget and see where the cuts can be made.   2023, we are projected to take in $4.8T in revenue.    Is there no way possible to live within that amount?   Of course there is but no one wants to make that decision.   Just spend more and more and you get to where we are now.   It makes everyone feel good to spend more, but the time comes where that isn't possible anymore.    We are ruining our currency to the point that the world wants another default currency and are looking to China.   That's certainly something we don't want. 

https://www.washingtonpost.com/world/2023/05/16/china-yuan-renminbi-us-dollar-currency-trade/

mspart

 

This is not the reason for a push to consider alternatives to the US dollar as the world reserve currency.

The US dollar's hegemony over all economic activity is. The government that controls the world reserve currency, has great control over the world. No one looks at the US as a bad investment because of our tax or spending policies.

That the US government can control foreign banks is a perfect example. Even though the US has no regulatory authority over these banks themselves, they can effectively control a foreign bank by blocking or threatening to block access to all dollar denominated systems, like wire transfers.

It is all about power and control.

[Offthemat]

Inflation is certainly a factor in other countries avoidance of the dollar.  No other currency has proven to be as stable though, so it will remain to be seen how things work out.  

[Mike Parrish]

1 hour ago, Offthemat said:

Inflation is certainly a factor in other countries avoidance of the dollar.  No other currency has proven to be as stable though, so it will remain to be seen how things work out.  

I just got back from Argentina.

The central bank raised interest rates to 97%.

We've got it soooo good here.

[Plasmodium]

6 minutes ago, Mike Parrish said:

I just got back from Argentina.

The central bank raised interest rates to 97%.

We've got it soooo good here.

Wow, new meaning to "Not worth the paper it is printed on"

[mspart]

9 minutes ago, Mike Parrish said:

We've got it soooo good here.

Yes we do.  

mspart

[Mike Parrish]

I've still got two pounds of Argentinian Pesos that I have to convert back to dollars today...

[mspart]

You mean dollar?

mspart

[Mike Parrish]

Just now, mspart said:

You mean dollar?

mspart

Argentina has pesos.
I am converting back to US dollars.