Breaking news (not reported) - debt shrunk

Discussion in 'Politics, Religion, Social Issues' started by kobalap, Feb 27, 2017.

  1. kobalap macrumors 6502

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    #1
    Amazing! Trump Cuts US Debt by $12 Billion In His First Month.

    and here is President Trump's reaction:

    On other "real news" not reported by the lamestream media:

    President Trump ordered an operation killed Osama Bin Laden. The operation, code-named Operation Neptune Spear, was carried out in a CIA-led operation, with Joint Special Operations Command, commonly known as JSOC, coordinating the Special Mission Units involved in the raid. In addition to SEAL Team Six, participating units under JSOC included the 160th Special Operations Aviation Regiment (Airborne), aka "Night Stalkers," and operators from the CIA's Special Activities Division, which recruits heavily from former JSOC Special Mission Units
     
  2. Huntn macrumors G5

    Huntn

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  3. jkcerda macrumors 6502

    jkcerda

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  4. yaxomoxay macrumors 68000

    yaxomoxay

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    #4
    I thought that Trump could bless himself.
     
  5. poloponies, Feb 27, 2017
    Last edited: Feb 27, 2017

    poloponies macrumors 68030

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    #5
    Really, so in month one, when there can't possibly be any effects of anything the entering president has done, he's taking credit for the previous president's work?

    Not to mention, a snapshot showing a $12BN decrease in a debt amounting to trillion's is like me getting excited because my investment portfolio was up a bit when I checked my account even if it dropped later in the day. It's not a number that changes anything.

    FAKE NEWS! FAKE PRESIDENT!
     
  6. jkcerda macrumors 6502

    jkcerda

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    #6
    what work would that be? wasting 4 billion per year on a failed school lunch program? signing indefinite detention w/o trial into law? expanding the wars ? arming rebels?
     
  7. MacNut macrumors Core

    MacNut

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    #7
    Until he blows out the defense budget fighting more wars he wants to start.
     
  8. BeeGood macrumors 68000

    BeeGood

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    #8
    Yes, because the fiscal situation in 2008 was clearly the same as what it is today.

    Good job Donald. :rolleyes:

    EDIT: Looks like his twitter responders beat me to it. Yikes they were brutal.
     
  9. vrDrew macrumors 65816

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    #10
    Federal tax receipts vary tremendously throughout the year. And many companies and individuals make Estimated Tax payments at the beginning of the year. Later months typically see expenditures considerably exceed revenues.

    We're still on track to experience a $560 billion deficit this year. Will Donald Trump Tweet that the Debt grew by that amount under his watch?
     
  10. poloponies macrumors 68030

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    #11
    To put it in a way even Trump would understand:

    If Trump hired someone to manage a company and that person took credit for the revenues that came in during his first month would Trump allow him to take that credit?
     
  11. NT1440 macrumors G4

    NT1440

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    #12
    ....You understand how budget cycles work right?


    Come on man.
     
  12. Carnegie, Feb 27, 2017
    Last edited: Feb 27, 2017

    Carnegie macrumors 6502

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    #13
    There's that, yeah. Net spending (outgo minus income) for the federal government varies day to day even though overall - looking at it over a long enough period of time - it continues to spend more than it brings in. There are lots of reasons for greater income or greater expenditures on particular days.

    But there's also the issue that the federal government maintains what we might think of as a cash account. Excess expenses aren't paid for directly by new debt issuances, not on a daily bases. Our cash balance fluctuates from day to day. So, even if expenses were the exact same every day and revenues were the exact same every day (and the former were always greater than the latter), our outstanding public debt wouldn't necessarily increase every day. Some days it would decrease, some days it would stay the same, and some days it would increase. Over time it would continue to increase, but day to day moves would depend, e.g., on the timing of new Treasury security auctions (i.e. new debt issuances) and Treasury security redemptions. That's what has always happened.

    If we wanted to, we could go back to last year or the years before and find short periods of time over which the outstanding public debt decreased. They aren't at all uncommon. I suspect, if we look hard enough, we'd even be able to find a period that was a month long for which that was true. We wouldn't find periods that were 6 months long though.

    The question is, what happened to our cash balance over that same period of time? If our cash balance went down $50 billion while our outstanding public debt went down $10 billion, we still spent $40 billion more than we brought in - in other words, speaking practically, we had $40 billion worth of deficit spending. If we start with $200 billion in our cash account, even if we're spending on average $2 billion more per day than we're bringing in, we can go for a while before we'd have to issue new debt and increase our outstanding public debt. In the meantime, some outstanding debt might be redeemed, technically reducing our outstanding public debt.

    That's what's happened here, our cash balance declined - that's where the deficit spending showed up. If someone doubts the veracity of that assertion, they can check the statements themselves. Details of our cash account are reported daily in what's called the Daily Treasury Statement. Check the statement from the end of the reported period and the statement from the beginning of it. The change in the balance will no doubt represent a substantial cash draw down.
     

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