POLL: Who Are You Voting For In The 2016 Presidential Election?

[Kyle M]

If just checked the history. in Bush Sr. years. America was loosing around 350-400 billion each year. Bill Clinton reduced this to around 100 billion each year at the end of his eigth years. Then Bush Yr. came and he gradually increased it to 1600 billion of looses at the end of his eight years. Then Obama and came and it decreased a bit to 300 billion in 2015. Sadly in 2016 it is back to 1400.

So the big picture is that republican presidents increase the yearly added debt, while democratic presidents decrease the yearly added debt.

Even when we go much more back in history this trend hold. Reagan added around 250 billion each year to the debt. While at the end Carters presidency it was 90 billion a year.

The president has nothing to do with the debt compared to the boom/bust cycle. Bill Clinton's so called surplus was based on models that used the growth of the tech bubble that burst in 1999 and left George W. Bush with a recession, something people never mention even though they mention how Obama inherited a recession from Bush. So Bush did the same thing, or rather Greenspan did the same thing, that was done before under Clinton, further slashed interest rates. They eventually got to less than 2%, and that inflated the housing bubble. What did they do in response to that bursting? Slash interest rates again, to zero this time. Also engage in open market operations to buy hundreds of billions of dollars of treasury bonds and some other bonds and securities. Now we have an enormous bond bubble, that will burst at some point.

The point is, the thing that makes the debt look different is mostly because of how it's presented to you. Sometimes it's reported as debt/GDP, if that makes it look better, and sometimes the way they add raw numbers to the debt has to do with how much debt instruments the treasury is planning on selling. The debt isn't what matters, what matters is government spending and control. Whenever the government does something, that will eventually be debt held by the people one way or another. Whether it ends up in the official debt numbers, or is inflated away, doesn't kinetically make a different at the end of the day to average people forced to use USD at the point of a gun as their trading vehicle.

 

[charlie]

Thank you to everyone who participated in the poll. Ray Peat Forum right again!

I am locking this thread and we can continue the discussion over in the "Trump" thread. I am doing this so we do not have a lot of political threads tying up the front page. If possible, please keep all the relevant Trump information to one thread.