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If the title of this thread holds for the mid-terms, pretty soon some of the republicans are going to have to start calling things out and accepting that Trump is responsible for serial bad news. In the past week....
Unemployment rose to 4.4%,
Prior monthsâ job gains revised downward, (as you noted)
Manufacturing, transportation, and information sectors all reported cutting jobs... simultaneously.
Labor force participation fell,
Oil prices surged above $90,
Stock markets dropped sharply
Iran war is increases all economic uncertainty.
higher bond yields and delayed Fed rate cuts
That's THIS WEEK.
Trumps complete lack of a plan, and need to be the center of attention while proving he's in charge, is quickly driving us toward a financial cliff. All of those "he's a successful business man" supporters need to look up how most of his deals end.... in bankruptcy.
I'm so happy! Went grocery shopping yesterday and a dozen of eggs is only 50 cents more than they cost right before the election in November! That's cheaper, isn't it?
One of Nico's favourite audiobooks has a nice play on that theme:
"We're not as stupid as we look!
No, at least half as unstupid as you'd think!"
I'm so happy! Went grocery shopping yesterday and a dozen of eggs is only 50 cents more than they cost right before the election in November! That's cheaper, isn't it?
Location: Blinding You With Library Science! Gender:
Posted:
Jun 3, 2025 - 8:44am
I'm so happy! Went grocery shopping yesterday and a dozen of eggs is only 50 cents more than they cost right before the election in November! That's cheaper, isn't it?
Last week Wyndham Hotel's and Resorts (where Mrs. Miser works) cut 20% of it's workforce due to a big 1st quarter loss and a projected comparable loss in quarter 2. Seems people aren't spending money on vacations like they were just last year. And to think the Big Beautiful Billionaire Bill hasn't even been birthed yet. Buckle up!
A debt payment in my mind would be going to the principal. I'm talking about the interest payment on the debt. Two totally different things. The interest payment does nothing for the economy other than it is hard cash that leaves the economy and goes to the debt holders, which are usually foreign entities. The money does not stay home and go back into the economy. Same difference as importing oil and producing it domestically.
How is an what is estimated this 2024 fiscal year interest payment of $1.2 Trillion benefit our economy ?
The U.S. government is on track to spend more than $1 trillion on interest payments this year, surpassing military spending for the first time in history.
Interest payments on the national debt (held by the public in the form of Treasury securities) will cost the government $1.2 trillion in the government's fiscal year ending in October, the Treasury Department said in a monthly report on the budget.1 Net interest outlays are the third costliest item in the budget behind Social Security and Medicare benefits.
Economists have grown increasingly concerned about the potential impact of those payments on the U.S. economy. Interest payments took up 2.4% of the entire U.S. gross domestic product in 2023, and The Congressional Budget Office estimates that could swell to 3.9% over the next 10 years.
Why Is The Government Paying So Much Interest?
Two major factors have driven those payments skyward. First, the government spent trillions to support households and the economy during the pandemic, paying for it by borrowing rather than raising taxes. Second, the Federal Reserve raised interest rates starting in 2022 to fight inflation, which pushed up how much the government owes for that debt.
Although the Fed is set to gradually lower those interest rates starting next week, the pressure on the budget is likely to keep ratcheting up in the years to come.
Paying so much and borrowing so much just to make interest payments is certainly an issue Kurtster, that doesnt contribute positively to the US economy (as a whole).
If we have such a "strong" economy, why are we running deficits as % of GDP that we typically only see during wartimes? Plain and simple, we are borrowing $ (the govs and the bottom 50% of consumers) to support our lifestyles. And what are we spending on? Consumables, discretionary goods, defense, overly paying for medical car...not really making many good l-t investments. It's like when they say on average, my temperature is 99 degrees, but i've got my head in the freezer and legs in the oven.
And everything I read has Trump's agenda pushing deficit higher than Harris' and by about 2x.
As for why it doesnt matter (right now), there are many theories and many theories why it very may well soon matter...because it ultimately will matter. Powell and the Fed are concerned about debt, but that's not in their toolbox.
Here's a good article to explain where we are with the debt issue (go to archive for access)
https://www.wsj.com/politics/p...
Meanwhile, fiscal tightening from either party is not expected (best we can hope is split party control to limit tax cuts/spending increases).
One of Nico's favourite audiobooks has a nice play on that theme:
