Bush $2.2 trillion budget

[Grasshopper27]

WASHINGTON, Feb. 2 ? President Bush will send to Congress on Monday a $2.2 trillion budget for fiscal 2004 that will slash taxes, pour money into defense and produce record deficits, setting the stage for a battle over tax and spending priorities in the run-up to the 2004 election.


Wow, I can't even imagine $2.2 Trillion... That is a whole lot of money...

Sigh...

Hopper

 

[her209]

Wow... just... wow.

 

[wfbberzerker]

Originally posted by: her209
Wow... just... wow.

thats my line!

 

[boyRacer]

"record deficits" are the only words i saw in that quote...

 

[MacBaine]

What exactly is the effect that the deficit has on our country? Do we ever pay it off? I mean, I keep hearing about this huge deficit... but I never hear about us being turned down by a loan from France... can somebody explain this to me?

EDIT: I meant Loan, not Load

 

[Mani]

Hey it's Reaganomics all over again...plunge the nation deeper into debt and leave the fallout to the next guy.

 

[Nocturnal]

Originally posted by: MacBaine
What exactly is the effect that the deficit has on our country? Do we ever pay it off? I mean, I keep hearing about this huge deficit... but I never hear about us being turned down by a load from France... can somebody explain this to me?

I would like to know about this too!

 

[Freejack2]

And they wonder why we all have such massive credit card debts. Hey if our government can run up huge debts, why can't we?

 

[morkinva]

This doesn't count the 5 trillion dollars we'll spend in the upcoming iraq fiasco

 

[her209]

Originally posted by: MacBaine
What exactly is the effect that the deficit has on our country? Do we ever pay it off? I mean, I keep hearing about this huge deficit... but I never hear about us being turned down by a loan from France... can somebody explain this to me?

EDIT: I meant Loan, not Load

It means higher inflation, loss worth of the dollar.

 

[Deeko]

Originally posted by: Grasshopper27
WASHINGTON, Feb. 2 ? President Bush will send to Congress on Monday a $2.2 trillion budget for fiscal 2004 that will slash taxes, pour money into defense and produce record deficits, setting the stage for a battle over tax and spending priorities in the run-up to the 2004 election.


Wow, I can't even imagine $2.2 Trillion... That is a whole lot of money...

Sigh...

Hopper

 

[BD231]

I thought the US-G was no longer allowed to decrease the value of our money by printing more insted of using what they get in circulation, is Bush printing more money?

 

[Walleye]

not really. the rest of the world uses our currency as a standard. all our IOU's in their hands are locked in their national vault, and that's what they use for a standard.

as long as we keep paying the interest, and they never call due, then it really doesnt matter if we have a defecit at all.

of course it'd be better to have no debt, as paying interest is the biggest expenditure right now.

and record defecits isnt true.

think about it this way. he never told you where he is getting all the money for all that from. he;s pulling it from more liberal programs. and i am all for that.

 

[Dacalo]

once again, another bush is gonna lead the country to budget deficit i reckon

 

[Mani]

Originally posted by: Walleye
not really. the rest of the world uses our currency as a standard. all our IOU's in their hands are locked in their national vault, and that's what they use for a standard.

as long as we keep paying the interest, and they never call due, then it really doesnt matter if we have a defecit at all.

of course it'd be better to have no debt, as paying interest is the biggest expenditure right now.

and record defecits isnt true.

think about it this way. he never told you where he is getting all the money for all that from. he;s pulling it from more liberal programs. and i am all for that.

Mind telling us what liberal programs he's taking money from?

 

[ElFenix]

Originally posted by: MacBaine
What exactly is the effect that the deficit has on our country? Do we ever pay it off? I mean, I keep hearing about this huge deficit... but I never hear about us being turned down by a loan from France... can somebody explain this to me?

EDIT: I meant Loan, not Load

it crowds out private investments is the most serious things.

 

[ElFenix]

Originally posted by: BD231
I thought the US-G was no longer allowed to decrease the value of our money by printing more insted of using what they get in circulation, is Bush printing more money?

theres a few other ways to increase the amount of money flowing around

 

[thomsbrain]

Originally posted by: Mani
Hey it's Reaganomics all over again...plunge the nation deeper into debt and leave the fallout to the next guy.

yeah, honestly, bush sr really got shafted. i feel for the next guy.

 

[SuperTool]

Government borrowing increases demand for money, and raises interest rates.
Basically, you are competing with the government for loans.

 

[charrison]

Originally posted by: SuperTool
Government borrowing increases demand for money, and raises interest rates.
Basically, you are competing with the government for loans.

Does it? we have low interest rates now..

 

[Dudd]

Originally posted by: SuperTool
Government borrowing increases demand for money, and raises interest rates.
Basically, you are competing with the government for loans.

However, some would say that if the government didn't go into deficit spending in times like this, aggregate demand would fall, lowering employment. It's really a catch-22, there are downsides to either course of action.

 

[LeeTJ]

When i was studying Econ in my younger years i did ALL government spending, Federal, State, County (county was est.) / GNP and it was more than half.

so more than half of our GNP goes to government spending.

 

[MacBaine]

Ok, let's claim national bankruptcy and eliminate our debts. Let's buy a few BMW factories first though, so we don't have to pay for them

 

[Dudd]

Originally posted by: charrison

Originally posted by: SuperTool
Government borrowing increases demand for money, and raises interest rates.
Basically, you are competing with the government for loans.

Does it? we have low interest rates now..

In theory it would. Since the government can't just print money, they go into the market looking to get loans. Of course, if the government wants 20 billion in loans or whatever tp make up the budget shortfall, overall demand is going to increase for loans. Therefore, prices for loans (the interest rate) will rise since demand for these loans has risen. Obviously, that makes it harder for the private sector to borrow money to invest.

 

[LeeTJ]

Originally posted by: Dudd

Originally posted by: SuperTool
Government borrowing increases demand for money, and raises interest rates.
Basically, you are competing with the government for loans.

However, some would say that if the government didn't go into deficit spending in times like this, aggregate demand would fall, lowering employment. It's really a catch-22, there are downsides to either course of action.

I think people forget. Deficit spending is bad, but it is better than the alternative which is hoarding. hoarding is the worst form of government spending.

balanced budget is very difficult to accomplish.

OTOH, mb it's time to rethink our policies in S. Korea and Nato and start reducing our military there.