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Will Trump do what Reagan couldn't?

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  • Will Trump do what Reagan couldn't?

    For all you trumpets, there is a possibility that Trump will become the greatest Republican ever. Republicans just spent two days of asking Janet Yellen inane questions and two thing became clear. Congress is out selling the demise of the Dodd-Frank and questions have started bubbling up about selling the Fed's balance sheets.

    First, what can Trump do that Reagan couldn't? Reagan stated that his one big regret was the deficit that he left the nation. In the weeks before leaving office he often spoke about his disappoint in leaving behind so much debt. So, is it possible for Trump to create jobs, jobs, jobs, without creating debt, debt debt?

    Since sweeping the election, I have been wondering how long it would take Republicans to start talking about liquidating the Fed's holdings. Why do politicians get excited about liquidating bonds? They know that every dollar of bonds liquidated reduces the US debt by one dollar. It doesn't take long to figure out that if Republicans liquidate the Fed's $4.5 trillion in bonds, they will have $4.5 trillion in free money to spend without increasing the current deficit or debt.

    All of you that believe that the debt is $20t should love this shell game. For those of you that know the US debt is actually $14.5t, this is a huge red flag. But, history will show that Trump did all these great things without the debt increasing, so who actually cares what long term damage is done. He can do what Reagan couldn't...

    We have $4.5 trillion in bonds sitting in the Fed and that magic term ''off balance sheet spending'' will be on the lips of every Republican. Now, how can it be done?

    The challenge for Republicans is selling the bonds reduces the money supply. As the money supply shrinks interest rates and the value of the US dollar increase. The risk for the US is growth will stall as interest rates increase and exports will shrink as the dollar increases in value. But, Republicans have figured out how to solve the problem.

    The plan is simple. Republicans plan to reduce taxes, which will offset the increase in interest expense. In addition, the consumption tax (Border tax) depends on a strong dollar to offset the increase in prices of imported consumer goods, so selling the bonds will help on that front too.

    What could go wrong? First, the US will end up servicing $20t in debt, instead of the current $14.5t. Coupling increased debt with less fiscal revenue hasn't worked out too well in the past. As Bush Senior discovered, it will be a drag on future growth. Second, the stronger dollars could impact exports, despite Trump's plan to eliminate taxes via the consumption tax.

    But, the important thing is Republicans have $4.5t to spend without the top line published debt increasing. Yellen won't liquidate the holdings; but, in 2018 the good times will roll.

  • #2
    Spend, spend, spend...and kick that can to the next president. Sound familiar?

    Comment


    • #3
      I don't know.

      I don't care.

      I do not like these questions anywhere

      I do not like them
      Gary I am.
      I do not like
      Repetitive spam

      Would you like them
      Here or there?

      I would not like them
      Here or there.
      I would not like them
      Anywhere.
      I do not like
      Repetitive spam.
      I do not like them,
      Gary-I-am

      Would you like them
      In a house?
      Would you like them
      With a mouse?

      I do not like them
      In a house.
      I do not like them
      With a mouse.
      I do not like them
      Here or there.
      I do not like them
      Anywhere.
      I do not like repetitive spam
      I do not like them, Gary-I-am.

      Would you answer them
      In a box?
      Would you answer them
      With a fox?

      Not in a box.
      Not with a fox.
      Not in a house.
      Not with a mouse.
      I would not answer them here or there.
      I would not answer them anywhere.
      I would not like repetitive spam.
      I do not like them, Gary-I-am.

      Would you? Could you?
      In a car?
      Answer them! Answer them!
      Here they are.

      I would not,
      Could not,
      In a car

      You may like them.
      You will see.
      You may like them
      In a tree?

      I would not, could not in a tree.
      Not in a car! You let me be.
      I do not like them in a box.
      I do not like them with a fox
      I do not like them in a house
      I do not like them with a mouse
      I do not like them here or there.
      I do not like them anywhere.
      I do not like repetitive spam
      I do not like them, Gary-I-am.

      A train! A train!
      A train! A train!
      Could you, would you
      On a train?

      Not on a train! Not in a tree!
      Not in a car! Gary! Let me be!
      I would not, could not, in a box.
      I could not, would not, with a fox.
      I will not answer them with a mouse
      I will not answer them in a house.
      I will not answer them here or there.
      I will not answer them anywhere.
      I do not like them, Gary-I-am.

      Say!
      In the dark?
      Here in the dark!
      Would you, could you, in the dark?

      I would not, could not,
      In the dark.

      Would you, could you,
      In the rain?

      I would not, could not, in the rain.
      Not in the dark. Not on a train,
      Not in a car, Not in a tree.
      I do not like them, Gary, you see.
      Not in a house. Not in a box.
      Not with a mouse. Not with a fox.
      I will not answer them here or there.
      I do not like them anywhere!

      You do not like
      Repetitive spam?

      I do not
      Like them,
      Gary-I-am.

      Comment


      • zitorocks
        zitorocks commented
        Editing a comment
        Wow....Gary, are you a Russian spy? Only a Russian spy would not know Dr. Seuss - Green Eggs and Ham. Or perhaps, Iran?

      • DJ4SC
        DJ4SC commented
        Editing a comment
        He's not very bright on reading labor charts either.

      • GaryB
        GaryB commented
        Editing a comment
        Zitorocks - Even worse that Russian or Iranian, I'm Irish.

    • #4
      And, I'm reporting you to the FBI.

      Comment


      • #5

        Comment


        • GaryB
          GaryB commented
          Editing a comment
          In all honesty, I was more afraid before I knew your thread.

      • #6
        I have exiled the Episcopalian into the wilderness.

        Don't become a statistic, my left leaning compadre. Cheetoh and I have had enough of the fake news and intelligence leakers.

        Comment


        • #7


          I don't like kittens.

          Comment


          • DJ4SC
            DJ4SC commented
            Editing a comment
            Seems about right for the liar, house full of pussies.

          • old scotty
            old scotty commented
            Editing a comment
            He might actually have a cat, but he doesn't have a wife. Liar

          • GaryB
            GaryB commented
            Editing a comment
            DJ - Stop with the misogynistic remarks.

        • #8
          Originally posted by Jpltrojan View Post
          Spend, spend, spend...and kick that can to the next president. Sound familiar?
          JPL - I am always intrigued by this argument. Statistically, the numbers suggest that Republicans are the spend, spend, spend party. But, your comment fits the discussion perfectly. Reagan was the first to use off-balance sheet borrowing. George W financed Iraq with off-balance sheet funding. The spending doesn't show up in the deficit, so the tactic continues to grow.

          Based on comments from Congressmen and Senators, using the Fed's balance sheet to pay for the tax cut is already being baked in. Yes, it disguises the fiscal health of the country; and, it eliminates the need for fiscal offsets. But, I happen to believe that if the Fed used the funds as intended and shrunk the debt, the country would be far better off.

          Republicans are great at selling this idea of individual responsibility and smaller government; but, it seems to always end up with more debt. In fact, the numbers look downright ugly. Now, Trump is not making any pretense of paying for his cuts. He is simply going to cut federal revenue and use the Fed's balance sheet to disguise the debt that he is piling on. Same old thing.

          Comment


          • Jpltrojan
            Jpltrojan commented
            Editing a comment
            We agree here. Not a Dem/Pub issue. It's a lifetime politician issue. It's a spending problem.

        • #9
          I love how the left uses stupid graphs like that one.

          Let's see 1980's democratic controlled congress-fail

          1993 Republicans take the house and cut Federal spending which is the dip (not you komrade stinky) that you see around 2000.

          Anybody who was alive knows what happened in '01 and also what happened in 2008-2010. Bailouts are stupid.

          Comment


          • #10
            Originally posted by DJ4SC View Post
            I love how the left uses stupid graphs like that one.

            Let's see 1980's democratic controlled congress-fail

            1993 Republicans take the house and cut Federal spending which is the dip (not you komrade stinky) that you see around 2000.

            Anybody who was alive knows what happened in '01 and also what happened in 2008-2010. Bailouts are stupid.
            A good story, but more alternative facts? I'm pretty sure that Republicans were the majority in the senate from 81-87. And, Republicans weren't the majority in either the house or senate in 1993. You'll have to work on that argument.

            Comment


            • #11
              Of course my president, the man I call Cheetoh, can do what Reagan couldn't.

              President Cheetoh will -

              1. Balance the budget and eliminate the national debt.

              2. Create a record number of high paying non government, full time jobs with awesome benefits.

              3. Defeat DAESH.

              4. Defeat al Qaeda at large.

              5. Renegotiate trade deals with everyone that are both fair and free.

              6. Eliminate illegal immigration entirely.

              6. Rebuild the military.

              7. Reduce the size of government by half.

              8. Find a cure for liberal stupidity.(okay, maybe I'm reaching here)

              9. Repeal and replace the ACA with affordable common sense healthcare that all Americans will embrace.

              10. Bring back southern rock and reform the Allman Brothers better than they ever were.

              11. Eliminate hate groups like BLM, ACLU, Southern Poverty Law Center and the DNC.

              12. Invent a perfect college football playoff system that crowns a true National Champion.

              13. Invade and annex Vancouver BC and change the name to Western Israel and give it to the PLO so the bastard sons of Abraham will quit their incessant bitching. Then, once all the Pali's are in their new home....nuke the fuck out of it and send one or two misprogrammed ICBM's into Portland, San Fran and Chicago. Don't worry, Keen, I'll get you out.

              President Cheetoh is the fucking man, Gary B. Don't you ever doubt it.

              Comment


              • GaryB
                GaryB commented
                Editing a comment
                Is this a Dr Suess book too?

              • SCBIGTIME
                SCBIGTIME commented
                Editing a comment
                On point 13., how about we just invade Baja California, dig a deep canal from the Pacific ocean to the Gulf of California cutting it off from the mainland, surround the new Island of Baja California with barbed wire, then send all the friends of Allah from the U.S. as well as the swarthy squatters in Israel and call it a day... Just an idea.

              • Georgia Boy
                Georgia Boy commented
                Editing a comment
                Are you dissin' President Cheetoh?

            • #12

              Comment


              • #13
                And now, to make the thread closing official, the President Cheetoh theme song.

                Feel free to sing along if you know the words...

                God Bless President Cheetoh

                Comment


                • #14
                  Originally posted by Georgia Boy View Post
                  Of course my president, the man I call Cheetoh, can do what Reagan couldn't.

                  President Cheetoh will -

                  1. Balance the budget and eliminate the national debt. Please name one offset that has been discussed? This is the first president in memory that hasn't bothered to discuss how he will pay for anything.

                  2. Create a record number of high paying non government, full time jobs with awesome benefits. Sorry, we are at full employment. So, that leaves the 1.6 million underemployed in U6. Good luck

                  3. Defeat DAESH. Should he use ground troops, which is going to be suggested?

                  4. Defeat al Qaeda at large.

                  5. Renegotiate trade deals with everyone that are both fair and free. Please define ''fair''

                  6. Eliminate illegal immigration entirely. We should know shortly how much more fruits and veggies will be costing. It looks like 50% of the needed workforce won't be showing up for work.

                  6. Rebuild the military. We spend more on the military than the next 10 countries combined. How much more do we need to spend?

                  7. Reduce the size of government by half. Start by impeaching the fake president.

                  8. Find a cure for liberal stupidity.(okay, maybe I'm reaching here) have the conservatives get an education. The liberals will seem a lot smarter.

                  9. Repeal and replace the ACA with affordable common sense healthcare that all Americans will embrace. Glad you didn't say anything about affordable.

                  10. Bring back southern rock and reform the Allman Brothers better than they ever were. Southern rock exists?

                  11. Eliminate hate groups like BLM, ACLU, Southern Poverty Law Center and the DNC. Again, educate the Republicans and the problem will be solved.

                  12. Invent a perfect college football playoff system that crowns a true National Champion. Agree.

                  13. Invade and annex Vancouver BC and change the name to Western Israel and give it to the PLO so the bastard sons of Abraham will quit their incessant bitching. Then, once all the Pali's are in their new home....nuke the fuck out of it and send one or two misprogrammed ICBM's into Portland, San Fran and Chicago. Don't worry, Keen, I'll get you out. Leave KO where he is.

                  President Cheetoh is the fucking man, Gary B. Don't you ever doubt it.
                  His approach is identical to the building of the Taj Mahal. This won't end well

                  Comment


                  • Georgia Boy
                    Georgia Boy commented
                    Editing a comment
                    And maybe it's just me but the futures market seems to be built on a great deal of speculation. I could be wrong....There's a first time for everything, I reckon.

                  • GaryB
                    GaryB commented
                    Editing a comment
                    There are two aspects of the futures market. First, there is a speculative side; and then, there is a hedging side. Backwardation eliminates hedging opportunities and exposes the oil companies to a strengthening dollar.

                    Not to speculate too far; but, when does the Petrodollar come into play? Is there a scenario where the Saudi could decouple from the USD because they are trying to take their state run petrol public at a time where elasticity of demand is killing them

                  • Georgia Boy
                    Georgia Boy commented
                    Editing a comment
                    Frack the Saudi's. Fucking terrorist. They're worse than Iran and I've had enough of all of the ME goat fuckers.

                    We don't need em. Thanks to Obama we have wind and solar energy now. I recently bought a wind powered 4x4 Jeep. I'm pretty happy with it.

                • #15
                  Originally posted by GaryB View Post
                  His approach is identical to the building of the Taj Mahal. This won't end well
                  First of all, you're in direct violation of WeAreSC Code IV section III subpart F

                  - Posting in an officially closed thread.

                  Punishable by up to 10 years on a UCLA board and a 10,000.00$ fine.

                  Secondly, how am I supposed to respond.....In blue? You have some nerve, Mister.

                  Lastly, I've forwarded your information to the FBI. You're history, friend.

                  Comment


                  • GaryB
                    GaryB commented
                    Editing a comment
                    The last time I was visited by the FBI, I used Old Scotty's name and they went away. I guess agents have lots of traffic tickets and have gotten to know bitters. They totally agree that he is a bitter old man.

                  • Georgia Boy
                    Georgia Boy commented
                    Editing a comment
                    Scotty is a righteous dude. We went to different schools together.

                  • denali
                    denali commented
                    Editing a comment
                    That punishment is unenforceable. It's very hard to last long on BRO without being banned. They're pretty thin-skinned over there. And if you think THIS board has some whiners...
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