We Could EASILY Fix Inflation Without Raising Rates

[mspart]

RV has been on this for quite some time.   He want's more money to the government.   More and more.   He never talks about controlling spending.   The problem here is that not all spending is good.   There are a lot of spending that is non productive.    And then there is  waste that for some reason, they cannot account for.   All of that needs to be eliminated.  

Everyone's budget could be cut by 10% right now and no one would know the difference if they eliminate waste.   That would easily handle the problem.  

I remember a conversation with Ray Brinzer on some other wrestling board and he posited that generally speaking, and this was some time ago, that the amount of income this year, could have paid for the budget 2 years ago.   So if that is true, then we are not far off.   I think the situation has changed so that this is not the case anymore.   But every year, more money comes into the government.   They are already getting more and more.   Reduce actual spending 1% every year and things will level out fairly quickly.    Again, this was some time ago.   But the principle is the same.   Reduce spending.   Period.     Taking more and more with no limit on spending will result in no difference in deficit. 

mspart

[Offthemat]

31 minutes ago, mspart said:

RV has been on this for quite some time.   He want's more money to the government.   More and more.   He never talks about controlling spending.   The problem here is that not all spending is good.   There are a lot of spending that is non productive.    And then there is  waste that for some reason, they cannot account for.   All of that needs to be eliminated.  

Everyone's budget could be cut by 10% right now and no one would know the difference if they eliminate waste.   That would easily handle the problem.  

I remember a conversation with Ray Brinzer on some other wrestling board and he posited that generally speaking, and this was some time ago, that the amount of income this year, could have paid for the budget 2 years ago.   So if that is true, then we are not far off.   I think the situation has changed so that this is not the case anymore.   But every year, more money comes into the government.   They are already getting more and more.   Reduce actual spending 1% every year and things will level out fairly quickly.    Again, this was some time ago.   But the principle is the same.   Reduce spending.   Period.     Taking more and more with no limit on spending will result in no difference in deficit. 

mspart

I read yesterday, that following Biden’s budget, in ten years the interest on our debt will be a trillion dollars per month. 

[mspart]

Trillion per month?!?!?!     I can see per year, but per month.   That's 12 trillion per year.   At 8% that's 100 Trilliion in debt.   I guess we are heading there but in 10 years?   That should wake someone up. 

mspart

[Offthemat]

3 minutes ago, mspart said:

Trillion per month?!?!?!     I can see per year, but per month.   That's 12 trillion per year.   At 8% that's 100 Trilliion in debt.   I guess we are heading there but in 10 years?   That should wake someone up. 

mspart

We’re going in debt around a trillion more every hundred days.

[mspart]

Since we are informed that common sense is not a thing, what will stop this madness?

mspart

[JimmyBT]

[red viking]

Completely unreasonable to assert that we can realistically reduce the deficit by any meaningful amount by relying 100% upon spending cuts; especially when these same people hypocritically want to INCREASE military spending, which is already a fat, bloated pig. 

[mspart]

Completely unreasonable to assert that we can realistically reduce the deficit by any meaningful amount by relying 100% upon increasing taxes; especially when these same people hypocritically want to INCREASE budgetary spending, which is already a fat, bloated pig. 

mspart

[mspart]

It would be more prudent to reduce spending now, and then if that can no longer be done, then introduce new taxation.   At least in my opinion.   Any increase in taxes will be met immediately with increased deficit spending.  

mspart

[mspart]

Deficit is projected to be 1.5 Trillion for 2024.   There are 15 federal departments.   Each reduces their budget by 100B and we have a balanced budget.   Now perhaps more can be taken from some and less from others but that is the deal.   Each department on average spends 100B more than they have.   That has to stop. 

mspart

[red viking]

I said repeatedly that we also probably need to cut spending; particularly on our fat & bloated military. Some cuts in other areas may also be reasonable but not nearly as much waste in those areas. 

Your argument "Any increases in taxes will be met with increased deficit spending" can easily be flipped on its head to "any decrease in spending will be met with decreased taxes." Yes, our leaders need to make difficult decisions that are going to result in a lot of negative press. No matter how they do it. 

[Paul158]

23 hours ago, Offthemat said:

I read yesterday, that following Biden’s budget, in ten years the interest on our debt will be a trillion dollars per month. 

WE are at 800 billion right now and it is rapidly increasing. That works out to 90 million dollar every hour of every day. Or 1.5 million dollars every minute.

[mspart]

1 hour ago, red viking said:

I said repeatedly that we also probably need to cut spending; particularly on our fat & bloated military. Some cuts in other areas may also be reasonable but not nearly as much waste in those areas. 

Your argument "Any increases in taxes will be met with increased deficit spending" can easily be flipped on its head to "any decrease in spending will be met with decreased taxes." Yes, our leaders need to make difficult decisions that are going to result in a lot of negative press. No matter how they do it. 

RV, I disagree.  You say probably need to cut spending.   There is no probably.   It is necessary to get the budget under control.  

In the environment we have operated in for years and years, an increase in taxes increases spending.   A decrease in taxes increases spending.   When has there been a decrease in spending in our lifetime?   That needs to happen now. 

Budget is 6.5 Trillion.   1.5 Trillion is deficit spending.   That is 23% of the budget.   That is just plain wrong.  So maybe rather than eliminate 100B from each department, we just reduce each of their budgets by 23%.   They will have to figure out what is the most important spending and eliminate the not so important spending.   That's what they get paid the big bucks for. 

The national debt is 34.5 Trillion now.   We will need to hold the spending down, taxes will increase as they always have and the overage can be put to paying down the debt.   It will take years to accomplish but it won't be done by taxing more with nothing more being done to curb spending.   Interest is now 0.66 Trillion per year and going up.   That is 10% of the budget. 

Put "when was the last time the federal government reduced spending" into google or some search engine.   You don't get an answer.  There are plenty of moans about reducing the projected rise in spending.   But that is still increased spending.   It never stops.   It really needs to or we are in deeper do do than climate change.   The economic climate will do a real doosy on us. 

mspart

[Offthemat]

12 minutes ago, mspart said:

RV, I disagree.  You say probably need to cut spending.   There is no probably.   It is necessary to get the budget under control.  

In the environment we have operated in for years and years, an increase in taxes increases spending.   A decrease in taxes increases spending.   When has there been a decrease in spending in our lifetime?   That needs to happen now. 

Budget is 6.5 Trillion.   1.5 Trillion is deficit spending.   That is 23% of the budget.   That is just plain wrong.  So maybe rather than eliminate 100B from each department, we just reduce each of their budgets by 23%.   They will have to figure out what is the most important spending and eliminate the not so important spending.   That's what they get paid the big bucks for. 

The national debt is 34.5 Trillion now.   We will need to hold the spending down, taxes will increase as they always have and the overage can be put to paying down the debt.   It will take years to accomplish but it won't be done by taxing more with nothing more being done to curb spending.   Interest is now 0.66 Trillion per year and going up.   That is 10% of the budget. 

Put "when was the last time the federal government reduced spending" into google or some search engine.   You don't get an answer.  There are plenty of moans about reducing the projected rise in spending.   But that is still increased spending.   It never stops.   It really needs to or we are in deeper do do than climate change.   The economic climate will do a real doosy on us. 

mspart

The numbers you’re getting are different than the ones I’m getting and that’s probably because none are accurate.  The numbers I see say we collected $4..4trillion last year and Biden has proposed spending $7.3trillion next year.  

[red viking]

19 minutes ago, mspart said:

RV, I disagree.  You say probably need to cut spending.   There is no probably.   It is necessary to get the budget under control.  

In the environment we have operated in for years and years, an increase in taxes increases spending.   A decrease in taxes increases spending.   When has there been a decrease in spending in our lifetime?   That needs to happen now. 

Budget is 6.5 Trillion.   1.5 Trillion is deficit spending.   That is 23% of the budget.   That is just plain wrong.  So maybe rather than eliminate 100B from each department, we just reduce each of their budgets by 23%.   They will have to figure out what is the most important spending and eliminate the not so important spending.   That's what they get paid the big bucks for. 

The national debt is 34.5 Trillion now.   We will need to hold the spending down, taxes will increase as they always have and the overage can be put to paying down the debt.   It will take years to accomplish but it won't be done by taxing more with nothing more being done to curb spending.   Interest is now 0.66 Trillion per year and going up.   That is 10% of the budget. 

Put "when was the last time the federal government reduced spending" into google or some search engine.   You don't get an answer.  There are plenty of moans about reducing the projected rise in spending.   But that is still increased spending.   It never stops.   It really needs to or we are in deeper do do than climate change.   The economic climate will do a real doosy on us. 

mspart

Spending is generally steady as a % of GDP since 1980. The increase that we've had can mostly, if not completely be attributed to the interest payments on the debt. More bogus claims by the 'wingers. 

https://fred.stlouisfed.org/series/FYONGDA188S

 

[JimmyBT]

This thread title is a joke.   Not one thing that’s been discussed here makes it easily done without raising rates.  

[red viking]

28 minutes ago, JimmyBT said:

This thread title is a joke.   Not one thing that’s been discussed here makes it easily done without raising rates.  

Funny that you make that claim when pretty much all economists agree that the insane deficit spending (see graph in my link above) that occurred during the COVID era (starting w/ Fat Donny) was the primary driver of the inflation that started ramping up near the end of 2020. 

Edited March 19 by red viking

[Offthemat]

1 hour ago, red viking said:

Funny that you make that claim when pretty much all economists agree that the insane deficit spending (see graph in my link above) that occurred during the COVID era (starting w/ Fat Donny) was the primary driver of the inflation that started ramping up near the end of 2020. 

Curious, do your economists explain how much the economy would shrink from raising taxes just to the point of covering current spending?

[mspart]

1 hour ago, red viking said:

Funny that you make that claim when pretty much all economists agree that the insane deficit spending (see graph in my link above) that occurred during the COVID era (starting w/ Fat Donny) was the primary driver of the inflation that started ramping up near the end of 2020. 

Care to restate that?

https://data.bls.gov/timeseries/CUUR0000SA0L1E?output_view=pct_12mths

It appears to me it was going down near the end of 2020 and into 2021.   Yes things have gotten better than the 4 years of Trump inflation wise.  

mspart

[JimmyBT]

Covid coat the country $14 trillion.  Hmmmmmmm

[JimmyBT]

2 hours ago, red viking said:

Funny that you make that claim when pretty much all economists agree that the insane deficit spending (see graph in my link above) that occurred during the COVID era (starting w/ Fat Donny) was the primary driver of the inflation that started ramping up near the end of 2020. 

And that has what to do with this being an easy fix without raising the rates??  After fat Donny mush brain Biden made it worse. 

Edited March 19 by JimmyBT

[JimmyBT]

Makes claim that fixing deficit can be easily done without raising rates.  Then give no legitimate way to make it happen other than raise taxes and maybe cut spending. Shake my f ing head 

[mspart]

Is it possible RV was saying no increasing inflation rates?   If taxes are raised, deficits go down and no more inflation pressure.   Maybe he wasn't talking about tax rates.  

His main goal is to reduce the deficit.    He just wants to go about it by raising taxes more and more and more.    He mentions cutting spending only with regard to Defense.  He doesn't want to cut any other spending. 

I am good with 10% across the board spending cuts.   That is not enough to erase the deficit but would be a good start.   There is no way the government cannot handle 10% real spending cuts.   Right now.   Then hold those cuts in real money for a few years.   That would bring the deficit to zero.   No more auto inflation raises.   I might make an exception for the VA.   But then you have to start making exceptions for every other thing.   But I think VA has a special place that should not be touched other than getting rid of waste. 

mspart

Edited March 19 by mspart

[jross]

10% gets a thankzz (lisp from biting tongue)

[red viking]

14 hours ago, mspart said:

Care to restate that?

https://data.bls.gov/timeseries/CUUR0000SA0L1E?output_view=pct_12mths

It appears to me it was going down near the end of 2020 and into 2021.   Yes things have gotten better than the 4 years of Trump inflation wise.  

mspart

The month over month inflation rate was already increasing significantly by end of Jan 2021 (when Biden was sworn in). Monthly rate for Jan '21 was 0.5%, which comes out to 6% annually. By March '21 (also before any of Biden's policies could impact inflation) it was up to 0.9% for the month, which comes out to >10% annual rate. 

Biden continued the policy, but if you also look at money supply graphs, you'll see that the recent mass printing of money started under Fat Donny. The inflation was inevitable at that point. 

 

. https://ycharts.com/indicators/us_monthly_inflation_rate