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re: CPI is up again, December rate cuts still teed up

Posted on 11/13/24 at 10:47 am to
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
31485 posts
Posted on 11/13/24 at 10:47 am to
quote:

as a percentage of GDP, Spending went down under Trump until Covid.

Considering we are $36T in debt, continuing to increase that debt ever so slightly more slowly than before, and then utterly blowing out spending for the last year of his term, is staggeringly faint praise in the context of inflation fears.
Posted by Big Scrub TX
Member since Dec 2013
38354 posts
Posted on 11/13/24 at 11:15 am to
quote:

I certainly don't blame/credit Trump for this last tick down, but I'm curious to see how things shake out going forward. I've said multiple times that I'm very concerned about Trump re: inflation because I think he's going to spend like a Democrat while using the bully pulpit to try to force interest rates back down. I hope he pleasantly surprises me and only does one out of two. I have zero faith in him managing neither.
Seems like if they actually do massive deportations, that will also be quite inflationary.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
40197 posts
Posted on 11/13/24 at 11:19 am to
Ehhh. idk.

Will probably be offset by millions no longer in the domestic marketplace.
Posted by CharlieTiger
ATL
Member since Jun 2014
932 posts
Posted on 11/13/24 at 11:21 am to
quote:

as a percentage of GDP, Spending went down under Trump until Covid.


Spending may have, but debt did not.

This is an article from Jan 2021 outlining that.

LINK
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
31485 posts
Posted on 11/13/24 at 11:35 am to
quote:

Spending may have, but debt did not.

This is an article from Jan 2021 outlining that.


And because people tend to be allergic to to reading articles:

Posted by lsu13lsu
Member since Jan 2008
11764 posts
Posted on 11/13/24 at 1:34 pm to
I forget the argument at this point. Originally it was spending now it is debt.

So much of the budget is Medicare, SS and Interest. He cannot budge those. I just cannot believe trump was pushing for all kinds of new spending like a democrat. if he increased the deficit it was because of tax cuts which I am always fine with.

Posted by Joshjrn
Baton Rouge
Member since Dec 2008
31485 posts
Posted on 11/13/24 at 5:29 pm to
quote:

I forget the argument at this point. Originally it was spending now it is debt.

So much of the budget is Medicare, SS and Interest. He cannot budge those. I just cannot believe trump was pushing for all kinds of new spending like a democrat. if he increased the deficit it was because of tax cuts which I am always fine with.

"Spending" is simply being said as a shorthand because we're currently running an annual deficit of over a trillion dollars. In the context of inflation it doesn't matter if spending goes up as long as we have the money to spend. If it's deficit spending, it's either adding to the money supply via borrowing or via printing, both of which drive inflation. Claiming that increasing the deficit is acceptable as long as it's driven by tax cuts might make sense from a policy perspective, but inflation doesn't care why you've increased the money supply, only that you've increased the money supply.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11832 posts
Posted on 11/14/24 at 6:28 pm to
Rates meaning 1 rate - SOFR. Here's a look at how that correlates with CPI:



Posted by KWL85
Member since Mar 2023
3063 posts
Posted on 11/15/24 at 9:33 am to

I forget the argument at this point. Originally it was spending now it is debt.
_______________

I wonder if there is a correlation between spending and debt?
Posted by lsu13lsu
Member since Jan 2008
11764 posts
Posted on 11/15/24 at 10:42 am to
quote:

I wonder if there is a correlation between spending and debt?


Most of the spending is out of the presidents hands. SS, Medicare, Interest and more.

Revenues impact debt too. Trump cut taxes which we are all a fan of.
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
31485 posts
Posted on 1/23/25 at 2:14 pm to
quote:

I certainly don't blame/credit Trump for this last tick down, but I'm curious to see how things shake out going forward. I've said multiple times that I'm very concerned about Trump re: inflation because I think he's going to spend like a Democrat while using the bully pulpit to try to force interest rates back down. I hope he pleasantly surprises me and only does one out of two. I have zero faith in him managing neither.

As expected, Trump went straight to the bully pulpit on reducing interest rates:

Trump says he will 'demand' interest rates drop, hinting at coming clash with Powell

Hopefully he'll surprise me on spending.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
40197 posts
Posted on 1/23/25 at 2:16 pm to
quote:

Hopefully he'll surprise me on spending.



He will almost certainly outspend Biden
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
93071 posts
Posted on 1/23/25 at 5:44 pm to
quote:

As expected, Trump went straight to the bully pulpit on reducing interest rates:



They were cutting 1% this year Orange bad or not
Posted by SmackoverHawg
Member since Oct 2011
30932 posts
Posted on 1/23/25 at 6:23 pm to
quote:

Seems like if they actually do massive deportations, that will also be quite inflationary.

By removing millions of people getting billions of dollars for not doing shite?
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