Trump-Republicans-Spending-Debt-Bob Davis Podcast 850

Another Trillion Dollars

This week the president’s budget deal adds a trillion dollars to the National Debt. These days it’s depressing when so called conservatives say, “Deficits Don’t Matter“. Learn more in Trump-Republicans-Spending-Debt-Bob Davis Podcast 850.

Trump Republicans Spending and More Debt

Above all, Trump’s spending is on pace with Obama first term red ink.

I’ll Pay Off The Deficit In Eight Years

Moreover campaigning in 2016, Trump said he’d pay off the deficit in just eight years. In those days the deficit was 20 trillion. It’s now almost 23 trillion.

Current Federal Debt Is Unsustainable? Bring It on!

As the president began his second year in office, the General Accounting Office released a report on the national debt. The current Federal Fiscal Situation is unsustainable, it said. More in Trump-Republicans-Spending-Debt-Bob Davis Podcast 850.

Republicans Addition To Debt Peaks In 2030

In fact, the GAO report showed US debt beginning to rise and peak in 2030, long after Trump has left the White House.

American Cities Are Broke Again

Over 70 US cities are in deep financial trouble. New York City is broke. Los Angeles isn’t far behind. Chicago is in a tailspin. I’ll explain it in Trump-Republicans-Spending-Debt-Bob Davis Podcast 850.

The Amount of Spending And Debt Is Shocking

When it comes to cities, counties and states investigators have to use forensic accounting to find out what’s going on. Even in small towns and counties across the country those investigations are uncovering a shocking amount of spending and debt.

Bonding On Bonding

Even more, states use bonding bills to get around balancing budgets. Therefore creating more debt through bonding.

Corporate Debt Binge

US corporations are on a debt binge too. Corporate debt is skyrocketing. It’s now 45 percent of our GDP. Much higher than during the 2008 crisis and dotcom bubble.

Americans Saved The Economy In The 2nd Quarter With More Debt

In addition Americans are more indebted than they were before 2008. US Household debt is 13.3 trillion in the second quarter. Much of it auto loans. Certainly Americans don’t save enough.

Conservatives Say Don’t Worry

Republicans say debt doesn’t matter and democrats have a new monetary theory. There’s nothing to worry about. Right? The US can “print” as much money as it needs as long as it prints US dollars.

Politicians Handing Out Goodies

Goodies like free college, single payer health, a green new deal, a higher minimum wage and guaranteed full employment are just around the corner. Just simply print money.

[Editor’s Note: In this podcast I used a quote from President Trump saying that he said, “No politician has ever been thrown out of office for not spending money. In fact he is reported to have told Senator McConnell, “No politician has ever lost his job for SPENDING money.”)

Forget Rome, England, Spain, Germany, Venezuela and Zimbabwe.

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Trump-Republicans-Spending-Debt-Bob Davis Podcast 850

 

 

Booming US Economy-Reality Check-Bob Davis Podcast 811

These days Trump cultists love to talk about the booming economy. Time for a reality check. Learn more in Booming US Economy-Reality Check-Bob Davis Podcast 811.

Under 3 Percent

Especially relevant are Gross Domestic Product numbers from the 4th quarter of 2018. The average for the whole year is predicted to be under three percent.

Cherry Picking Numbers

Boosters like to cherry pick statistics. I like good old Gross Domestic Product numbers. They are released at the end of every quarter. GDP performance for each fiscal year is pretty hard to ignore. Especially when people say this president has ‘fixed’ the economy and worked miracles.

Just Because You Do Well Doesn’t Mean The Economy Is Doing Well

Moreover if I’ve heard it once I have heard it a thousand times. Saying your business is doing well does not mean the economy as a whole is doing any better than it has. The latest retail performance is a good example. This distinction is important only because the president wants us to believe he “blows Ronald Reagan Away”.

Objective Legislative Achievements On Economy

In Booming US Economy-Reality Check-Bob Davis Podcast 811 I objectively list President Trump’s few legislative achievements when it comes to the economy as well as his executive orders concerning the economy.

Hardly A Boom

In 2017 the US Economy grew by 2.2 percent. First quarter of 2018 was 2.2 percent. Second quarter 4.2 percent. Third quarter 3.4 percent. Fourth quarter 2.6 percent. Hardly a boom.

Not Even As Good As Obama

In contrast, President Obama’s best year was 2015, at 2.9 percent. Obama also presided over one quarter of growth of 5.1 percent, followed by another quarter of 4.9 percent growth. Better than Trump’s best two quarters so far.

Actual GDP Numbers

First of all growth is growth and we’ll take it. However, because of republican claims of great economic success, it’s time for a reality check based on actual GDP numbers.

And Obama Wasn’t That Good Either

At issue are claims by the president and his supporters he has done a fantastic job. Truth is so far his numbers are still about the same as Obama’s, which weren’t very good either.

We Pale In Contrast To The Early 80’s, Mid and Early 1960’s and 1950’s

Even more, all the numbers in our time pale in contrast to performance above 7 percent in the 80’s, high six percent in the 60’s and above 8 percent in the 1950’s.

Contrast our time with the 1980’s, 1960’s, or 1950’s.

What we’re living through is not a boom.

Republican Doesn’t Mean Conservative Anymore

Finally a republican in the White House does not guarantee ‘conservative’ economic management. Pushing for a weak dollar. Borrowing to stimulate. Trade Protection. Adding trillions to the national debt. More debt and deficit spending for ‘infrastructure‘ don’t seem like ‘republican‘ ideas.

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Booming US Economy-Reality Check-Bob Davis Podcast 811

Storm Clouds Gather Over The Bull Market-Podcast 665

We don’t see the storm building over the markets. Distractions. Shiny things that draw the eye and ear. A war of words between a North Korean dictator and the president. Kneeling football players and the Tweeter In Chief. Meanwhile, the long expansion in the markets may be about to end. A heads up for you on how and why in Storm Clouds Gather Over The Bull Market-Podcast 665.

Watch The Shiny Thing

We don’t look beyond the distractions in the media to see what they conceal. No amount of pointing and saying ‘look’ is going to change it. We have not had a serious market or financial crisis since 2008. Our economy has been on life support ever since. Now the DNR order has been signed. Find out why in Storm Clouds Gather Over The Bull Market-Podcast 665.

Market Shocks Have Political Consequences

Remember 2008? The market crashed. The banking system was going to seize up, they said. A republican administration suddenly bailed out the banks, insurance companies and big car companies. The shock changed politics. A new administration came in, in 2009. New banking regulations, more government spending and a very large stimulus package was passed by congress.

Hey! What Happened To The Punch Bowl?

The Federal Reserve, bank of last resort, began a program called Quantitative Easing in 2009. Over the next eight years the FED added trillions of dollars to its balance sheet as it ‘injected’ money into the US economy. QE one, two three and four indirectly supported the stock market through the purchase of hundreds of billions of dollars worth of securities. What happens when they take that away?

Pay Attention

So this is a simple heads up that it might be time to start paying attention. While we’re talking about things that don’t matter they are doing things that do. That storm roiling to the west, might be rolling in anytime. In Storm Clouds Gather Over The Bull Market-Podcast 665.

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Storm Clouds Gather Over The Bull Market-Podcast 665