US debt ceiling: Will there be enough time to get a deal through?

[nauseus]

2 minutes ago, heybruce said:

Is you knowledge of economics that poor?  The idea is that higher interest rates lower inflation by slowing down the economy.

No need to be so gritty. Yes, I know about the theory. I'm just repeating what Powell has been saying since the rate hikes started - maybe you should question his economic nous instead? You know, like when he was talking about this "transitory inflation" about 20 months ago. And Yellen too. Funny people.

[BenStark]

22 minutes ago, heybruce said:

Is you knowledge of economics that poor?  The idea is that higher interest rates lower inflation by slowing down the economy.

Now wait, if the economy has to be slowed down, that means that people are earning money and spending it. Right?

So if people are spending a lot of money on buying things, the producers could actually lower their profit margin, to still have a higher profit at the end. Right?

 

But instead, they decide to increase the prices because there is high demand, and their profits skyrocket.

 

So in fact, inflation is a product of the greed from the manufacturers.

[heybruce]

47 minutes ago, nauseus said:

No need to be so gritty. Yes, I know about the theory. I'm just repeating what Powell has been saying since the rate hikes started - maybe you should question his economic nous instead? You know, like when he was talking about this "transitory inflation" about 20 months ago. And Yellen too. Funny people.

Powell assumes his audience knows that interest rate increases are intended to lower inflation by slowing the economy.  Tax increases also slow the economy, thereby lowering inflation and reducing the deficit. 

 

I'm sure if the Fed had the power to increase tax rates in addition to interest rates they would be using both tools to reduce inflation and the deficit.  They might not be successful, but they'd probably do better than Congress.

 

Regardless, those who object to high inflation and high deficits should be aware that tax increases can deal with both simultaneously. 

Edited May 26, 2023 by heybruce

[nauseus]

17 minutes ago, heybruce said:

Powell assumes his audience knows that interest rate increases are intended to lower inflation by slowing the economy.  Tax increases also slow the economy, thereby lowering inflation and reducing the deficit. 

 

I'm sure if the Fed had the power to increase tax rates in addition to interest rates they would be using both tools to reduce inflation and the deficit.  They might not be successful, but they'd probably do better than Congress.

 

Regardless, those who object to high inflation and high deficits should be aware that tax increases can deal with both simultaneously. 

And if I ruled the world.....every day would be the first day of spring.

[mikebike]

On 5/25/2023 at 12:55 AM, Jingthing said:

Puppet to who?

They're all puppets to their donors. 

[nauseus]

23 hours ago, placeholder said:

That's exactly what Republicans said about Clinton's tax increases last time. Why would tax increases this time  threatened to bring down the economy?

There is a danger that slowing the economy could trigger a recession, unemployment and, so, lower incomes. It may be too late to stop that happening already.

[billd766]

1 hour ago, nauseus said:

Your verdict - not mine.

Not a verdict as I am not a court in the USA.

 

Just my opinion, which carries the same weight as yours.

[nauseus]

22 hours ago, Jingthing said:

It will if the republican financial terrorists pull the trigger.

Looks like your pal Joe90 is the financial terrorist.

[nauseus]

3 minutes ago, billd766 said:

Not a verdict as I am not a court in the USA.

 

Just my opinion, which carries the same weight as yours.

Yes yer honour.

[Jingthing]

6 minutes ago, nauseus said:

Looks like your pal Joe90 is the financial terrorist.

I call B.S.

[billd766]

3 minutes ago, nauseus said:

Yes yer honour.

Ahhh.

 

Recognised through my disguise at last.

[ozimoron]

11 minutes ago, nauseus said:

Looks like your pal Joe90 is the financial terrorist.

Which side is now tanking the markets because of unwillingness to pay the bills they have already spent? Hint: It isn't Biden.

Edited May 26, 2023 by ozimoron

[nauseus]

6 minutes ago, ozimoron said:

Which side is now tanking the markets because of unwillingness to pay the bills they have already spent? Hint: It isn't Biden.

Could you possibly reword that and perhaps add some specifics?

[heybruce]

25 minutes ago, nauseus said:

There is a danger that slowing the economy could trigger a recession, unemployment and, so, lower incomes. It may be too late to stop that happening already.

Any approach that brings down inflation risks triggering a recession, though so far it looks like inflation is coming down while the economy is staying strong.  Should we just accept high inflation or do you have a miracle cure for the problem.

[heybruce]

32 minutes ago, nauseus said:

And if I ruled the world.....every day would be the first day of spring.

So you have no reply to my post.

[nauseus]

5 minutes ago, heybruce said:

Any approach that brings down inflation risks triggering a recession, though so far it looks like inflation is coming down while the economy is staying strong.  Should we just accept high inflation or do you have a miracle cure for the problem.

I don't agree that the economy is particularly strong. Of course high inflation over an extended period is unacceptable. I don't think anyone has this miracle cure.

[nauseus]

7 minutes ago, heybruce said:

So you have no reply to my post.

Powell is concerned with interest rates, not taxation. 

 

Do you want to change the system?

[placeholder]

45 minutes ago, nauseus said:

There is a danger that slowing the economy could trigger a recession, unemployment and, so, lower incomes. It may be too late to stop that happening already.

How would tax rate like on the wealthy slow the economy? We know that tax cuts in the past have unbalanced the economy so much that wealthy people were content to actually park their money with governments and have to pay a penalty for doing so. They have so much money that gimmicks like Bitcoin actually draw investments. There's only so much money that can be usefully invested in an economy. Thanks to the way Republicans have allowed the wealthy to keep so much more cash than the used to, there's a surfeit of liquidity.

And of course if you were concerned about the deficit as you claim to be, this is a good way to slow down the rate of  increase.

 

[ozimoron]

53 minutes ago, nauseus said:

Could you possibly reword that and perhaps add some specifics?

Outside of semiconductors every other sector of the stock market is falling. USD is rising in reaction to the debt ceiling crisis.

[nauseus]

25 minutes ago, placeholder said:

How would tax rate like on the wealthy slow the economy? We know that tax cuts in the past have unbalanced the economy so much that wealthy people were content to actually park their money with governments and have to pay a penalty for doing so. They have so much money that gimmicks like Bitcoin actually draw investments. There's only so much money that can be usefully invested in an economy. Thanks to the way Republicans have allowed the wealthy to keep so much more cash than the used to, there's a surfeit of liquidity.

And of course if you were concerned about the deficit as you claim to be, this is a good way to slow down the rate of  increase.

 

I didn't mention "tax rate like on the wealthy",  whatever that means.

[nauseus]

5 minutes ago, ozimoron said:

Outside of semiconductors every other sector of the stock market is falling. USD is rising in reaction to the debt ceiling crisis.

Never mind.

[ozimoron]

3 minutes ago, nauseus said:

Never mind.

That's why I didn't elaborate the first time, you wouldn't get it anyway.

[nauseus]

1 minute ago, ozimoron said:

That's why I didn't elaborate the first time, you wouldn't get it anyway.

Elaborate or just talk another riddle? Which side is now tanking the markets? What bills are already spent? All gobbledygook. 

[ozimoron]

2 minutes ago, nauseus said:

Elaborate or just talk another riddle? Which side is now tanking the markets? What bills are already spent? All gobbledygook. 

You provided a trite answer.; If you knew what you were talking about you'd posit an argument as to why my opinion is wrong. I have no intention of further pandering to your trolling by having to explain myself further when all you do is come up with a trite response.

[nauseus]

21 minutes ago, ozimoron said:

You provided a trite answer.; If you knew what you were talking about you'd posit an argument as to why my opinion is wrong. I have no intention of further pandering to your trolling by having to explain myself further when all you do is come up with a trite response.

I can't understand your rubbish so don't expect an answer.

[placeholder]

41 minutes ago, nauseus said:

I didn't mention "tax rate like on the wealthy",  whatever that means.

Meant to write "tax rate hike"

on the wealthy.

[ozimoron]

4 minutes ago, nauseus said:

I can't understand your rubbish so don't expect an answer.

You don't understand the mechanism by which the debt crisis talks affect the economy and stock markets? Then why challenge my explanation without a counter argument. That's trolling.

[heybruce]

1 hour ago, nauseus said:

Powell is concerned with interest rates, not taxation. 

 

Do you want to change the system?

Actually I would like to see the system changed, both by giving the Fed some power to adjust tax rates in addition to interest rates, and by ending the nonsensical debt ceiling rule that is the topic subject.  However I recognize that is politically impossible.

 

I'm simply correcting your posts implying that tax increases are more dangerous to the economy than the current path we are on which involves interest rate increases to bring down inflation. 

 

However the greatest near-term threat to the economy is the ridiculous debt ceiling rules.  Congress already passed the budget and spending plans, now McCarthy is saying he won't pay for the agreed upon spending.  That is absurd and should be illegal.

[nauseus]

7 minutes ago, ozimoron said:

You don't understand the mechanism by which the debt crisis talks affect the economy and stock markets? Then why challenge my explanation without a counter argument. That's trolling.

You haven't offered an explanation to anything. You are going on my ignore list. Bye.

[nauseus]

3 minutes ago, heybruce said:

Actually I would like to see the system changed, both by giving the Fed some power to adjust tax rates in addition to interest rates, and by ending the nonsensical debt ceiling rule that is the topic subject.  However I recognize that is politically impossible.

 

I'm simply correcting your posts implying that tax increases are more dangerous to the economy than the current path we are on which involves interest rate increases to bring down inflation. 

 

However the greatest near-term threat to the economy is the ridiculous debt ceiling rules.  Congress already passed the budget and spending plans, now McCarthy is saying he won't pay for the agreed upon spending.  That is absurd and should be illegal.

I did not introduce increases into this discussion. You are misquoting me. Ignore list.