WizardofOz
New member
This thread is devoted to everything that has to do with the Trump budget. It is early in the planning stages but he has indicated that we wants to increase military spending by 10% ($54 billion), increase law enforcement budgets and increase infrastructure budgets.
He wants to make cuts at the EPA, foreign aid and non-defense federal agencies. Source
The cuts sound great but the EPA has an annual total budget of $8.14 billion. All foreign aid totals up to $35.2 billion and cutting non-defence federal agencies is too vague to put a price on.
So, if we completely eliminate the EPA and eliminate all foreign aid we are ahead $43.34 billion. This, however, leaves us in the hole somewhere around $10.66 billion and we know he isn't going to eliminate all foreign aid and isn't shutting down the EPA.
Again, this doesn't not include increasing spending on law enforcement or infrastructure and does not include cutting non-defense federal agencies. I would be willing to bet, however, that there will be a net increase in spending between these three plans. Top economists forecasted that his budget plan would add $5.8 trillion to the national debt, according to The Wall Street Journal.
This is all when Trump is also talking about cutting taxes. This is a move I am in support of but if he is going to increase spending and decrease the government's income through tax cuts, how high can our budget deficit go?
We will find out March 15th when the deficit ceiling must be increased yet again.
Further reading
He wants to make cuts at the EPA, foreign aid and non-defense federal agencies. Source
The cuts sound great but the EPA has an annual total budget of $8.14 billion. All foreign aid totals up to $35.2 billion and cutting non-defence federal agencies is too vague to put a price on.
So, if we completely eliminate the EPA and eliminate all foreign aid we are ahead $43.34 billion. This, however, leaves us in the hole somewhere around $10.66 billion and we know he isn't going to eliminate all foreign aid and isn't shutting down the EPA.
Again, this doesn't not include increasing spending on law enforcement or infrastructure and does not include cutting non-defense federal agencies. I would be willing to bet, however, that there will be a net increase in spending between these three plans. Top economists forecasted that his budget plan would add $5.8 trillion to the national debt, according to The Wall Street Journal.
This is all when Trump is also talking about cutting taxes. This is a move I am in support of but if he is going to increase spending and decrease the government's income through tax cuts, how high can our budget deficit go?
We will find out March 15th when the deficit ceiling must be increased yet again.
Spoiler
Two weeks after David Stockman warned that "the market is apparently pricing in a huge Trump stimulus. But if you just look at the real world out there, the only thing that's going to happen is a fiscal bloodbath and a White House train wreck like never before in U.S. history" and exclaimed that, when looking at markets, "what's going on today is complete insanity" he is back with another interview, this time with Greg Hunter of USAWatchdog in which he, once again warns, that a giant fiscal bloodbatch is coming soon, and urges listeners to pay especially close attention to the March 15, 2017 debt ceiling deadling, at which point everything could "grind to a halt."
As Greg Hunter writes, former Reagan Administration White House Budget Director David Stockman says financial pain is a mathematical certainty. Stockman explains, “I think we are likely to have more of a fiscal bloodbath rather than fiscal stimulus. Unfortunately for Donald Trump, not only did the public vote the establishment out, they left on his doorstep the inheritance of 30 years of debt build-up and a fiscal policy that’s been really reckless in the extreme. People would like to think he’s the second coming of Ronald Reagan and we are going to have morning in America. Unfortunately, I don’t think it looks that promising because Trump is inheriting a mess that pales into insignificance what we had to deal with in January of 1981 when I joined the Reagan White House as Budget Director.”
So, can the Trump bump in the stock market keep going? Stockman, who wrote a book titled “Trumped” predicting a Trump victory in 2016, says, “I don’t think there is a snowball’s chance in the hot place that’s going to happen. This is delusional. This is the greatest suckers’ rally of all time. It is based on pure hopium and not any analysis at all as what it will take to push through a big tax cut. Donald Trump is in a trap. Today the debt is $20 trillion. It’s 106% of GDP. . . .Trump is inheriting a built-in deficit of $10 trillion over the next decade under current policies that are built in. Yet, he wants more defense spending, not less. He wants drastic sweeping tax cuts for corporations and individuals. He wants to spend more money on border security and law enforcement. He’s going to do more for the veterans. He wants this big trillion dollar infrastructure program. You put all that together and it’s madness. It doesn’t even begin to add up, and it won’t happen when you are struggling with the $10 trillion of debt that’s coming down the pike and the $20 trillion that’s already on the books.”
Then, Stockman drops this bomb and says:
“I think what people are missing is this date, March 15th 2017. That’s the day that this debt ceiling holiday that Obama and Boehner put together right before the last election in October of 2015. That holiday expires. The debt ceiling will freeze in at $20 trillion. It will then be law. It will be a hard stop. The Treasury will have roughly $200 billion in cash. We are burning cash at a $75 billion a month rate. By summer, they will be out of cash. Then we will be in the mother of all debt ceiling crises. Everything will grind to a halt. I think we will have a government shutdown. There will not be Obama Care repeal and replace. There will be no tax cut. There will be no infrastructure stimulus. There will be just one giant fiscal bloodbath over a debt ceiling that has to be increased and no one wants to vote for.”
As Greg Hunter writes, former Reagan Administration White House Budget Director David Stockman says financial pain is a mathematical certainty. Stockman explains, “I think we are likely to have more of a fiscal bloodbath rather than fiscal stimulus. Unfortunately for Donald Trump, not only did the public vote the establishment out, they left on his doorstep the inheritance of 30 years of debt build-up and a fiscal policy that’s been really reckless in the extreme. People would like to think he’s the second coming of Ronald Reagan and we are going to have morning in America. Unfortunately, I don’t think it looks that promising because Trump is inheriting a mess that pales into insignificance what we had to deal with in January of 1981 when I joined the Reagan White House as Budget Director.”
So, can the Trump bump in the stock market keep going? Stockman, who wrote a book titled “Trumped” predicting a Trump victory in 2016, says, “I don’t think there is a snowball’s chance in the hot place that’s going to happen. This is delusional. This is the greatest suckers’ rally of all time. It is based on pure hopium and not any analysis at all as what it will take to push through a big tax cut. Donald Trump is in a trap. Today the debt is $20 trillion. It’s 106% of GDP. . . .Trump is inheriting a built-in deficit of $10 trillion over the next decade under current policies that are built in. Yet, he wants more defense spending, not less. He wants drastic sweeping tax cuts for corporations and individuals. He wants to spend more money on border security and law enforcement. He’s going to do more for the veterans. He wants this big trillion dollar infrastructure program. You put all that together and it’s madness. It doesn’t even begin to add up, and it won’t happen when you are struggling with the $10 trillion of debt that’s coming down the pike and the $20 trillion that’s already on the books.”
Then, Stockman drops this bomb and says:
“I think what people are missing is this date, March 15th 2017. That’s the day that this debt ceiling holiday that Obama and Boehner put together right before the last election in October of 2015. That holiday expires. The debt ceiling will freeze in at $20 trillion. It will then be law. It will be a hard stop. The Treasury will have roughly $200 billion in cash. We are burning cash at a $75 billion a month rate. By summer, they will be out of cash. Then we will be in the mother of all debt ceiling crises. Everything will grind to a halt. I think we will have a government shutdown. There will not be Obama Care repeal and replace. There will be no tax cut. There will be no infrastructure stimulus. There will be just one giant fiscal bloodbath over a debt ceiling that has to be increased and no one wants to vote for.”
Further reading