Re: The US Politics Thread

[BarrileteCosmico]

The issue is that we have to increase interest rates to curb inflation.  That's how you control it.  This has three impacts:

-  Economy tanks because the cost of capital goes up.
-  Stock markets typically retract because there's less money in the economy so growth projections are negatively impacted
-  Rise in interest rates = T-bill rates go up = government needs to pay a higher interest rate to holders

Ok with you so far

Since 106.7% of our GDP needs to be spent on servicing our debt even without the rate hikes, imagine having to pay a higher interest rate on new debt.  By definition, we'll need to borrow to cover the interest... it's a vicious circle.  

You present this like a problem but it's not really. This is already happening all the time, even when rates are lower. Typically the US govt will never pay off the debt, they will just roll it over into the next issuance, so the principal never really matters. And even if rates do go up not all debt is expiring in the short term, there's a mix of maturities so it would only have a limited impact.

Now, if our debt as a % of revenue wasn't so high, no problem. Also, if the economy was cranking and revenue projections allowed for additional spending, again, no problem. You have wiggle room.

What you CANNOT do is ignore the problem, continue to borrow money despite the fact that you're way underwater... and then have a larger disaster on your hands if inflation is still running rampant and the economy slows (which very well might happen with Covid). And you cannot expect the rest of the world to keep doing as bad or worse than the US so that, comparatively speaking, the value of the USD isn't eroding. Imagine the world turning it around and the US economy staying flat... it could happen.

I think this is where you go wrong. Yes, debt to GDP is historically high, but so what? As discussed earlier the only thing that really matters is the interest paid, and that's less than 2% of GDP. It's hardly an insurmountable amount, even if it were to double (which it won't). This is the same reason for why countries like Japan are able to have such high debt/gdp numbers and continue to be trustworthy investments.

Also growth is strong right now (6%, highest in a very long time), unemployment is back to pre-covid levels, wages are rising, the economy is booming. So the wiggle room is definitely there.

Could omicron stop that? Seems unlikely, people are covid fatigued and unlikely to change their habits much more.

[BarcaLearning]

Pretty obvious Sport is talking about the over economy in general as a whole while McLewis is able the everyday average Joe, two completely different animals now in todays world especially, n its the same worldwide pretty much

Everything in theory points to US with a big chance of collapsing, but in practice today seems unlikely since the consequences would be so great... US have been in similar positions in the past a few times right but never died and while this time its huge but prolly wont still... I hope not anyway, dont want China to become the new no.1

[El Gunner]

the consumer-slaves talk economics 101 and think it means something while the elites stay laughing

United States of Corporations

[FennecFox7]

BC, when you say growth, you mean inflation right?

[BarrileteCosmico]

No real gdp growth

https://fred.stlouisfed.org/series/GDPC1#0

The US is essentially back at the same trendline as pre covid, with current growth at 5% and expected to improve a bit once this quarter's numbers are up. I'm fact some economists are already fearing the economy is growing too fast and should be reined in or inflation could become a bigger problem.

[sportsczy]

The assumption you're making BC is that US treasuries will maintain the same level of attractiveness (demand keeping up with supply) so that there is no fiscal impact by refinancing it into perpetuity.

That is a very risky premise.

One of the big reasons that the US debt is supported by the global community is that the US consumer market dwarfed the rest of the world.  The world was dependent on US economic health.  That's shifting.  Specifically, China will actually catch up in terms of consumer spending in a few years... something that was unthinkable literally a couple of years ago.  Also, the consumer market in Asia, Africa, etc. is growing at an incredible pace.

Once that dependence goes away, then the question of whether to invest in the US via treasuries becomes more of a typical investment risk/reward equation.  That's where you're going to run into major major problems. The US is not offering attractive returns on it T bills especially considering high inflation.

There are considerable macro economic shifts occurring and the US is over-exposed.  Your premise isn't sustainable imo.

[BarrileteCosmico]

Sports this is a short term problem. In 2 years all the supply chain issues will be resolved and inflation will be back to normal (or lower even, since the fed allegedly has a price level target).

The things youre talking about will take decades to pan out.

In the short term, the uk and Europe will struggle far more than the US, China will struggle to contain omicron in their zero covid policy, etc. There is no viable alternative. And since most of the inflation issues are due to supply chain problems that will impact all developed economies similarly

[sportsczy]

I disagree. It's not decades away. it's 2-4 years away from what I see.

And the supply chain issues aren't as transitory as people are trying to make them out to be either.

[FennecFox7]

China is definitely catching steam. This is not just something conservatives have alluded too. Bernie himself has been for protectionism for the very reason (a very un libertarian POV for me to take but it’s the truth). We cannot let them overtake the western world, especially with their unfair trade practices

[Harmonica]

The truck driver who was sentenced to 110 years after fatal mistake, has his sentence reduced to 10 years by the governor. The original sentence was disapproved by even the deceased's families. https://www.yahoo.com/gma/truck-drivers-sentence-lowered-10-231212889.html



Although another mark against Murica's justice system. And it's sad news, when social media has this kind of power.

[McLewis]

BREAKING: Sen. Kyrsten Sinema praises proposed voting rights bills but reiterates support for filibuster rule, saying "I will not support separate actions that worsen the underlying disease of division infecting our country." https://t.co/ihVuth6xKF pic.twitter.com/GVNP9wBLYe

— ABC News (@ABC) January 13, 2022

BREAKING: Supreme Court blocks the Biden administration's vaccine-or-test rule for U.S. businesses, but allows a COVID-19 vaccine mandate for most health care workers. https://t.co/pvrYiiUU41

— The Associated Press (@AP) January 13, 2022

Double blow for everyone, but Republicans and COVID.

[BarrileteCosmico]

If the dems can't even come together on making sure everyone has access to voting then what are they good for

That said, I think the fillibuster will be quite useful when dems inevitably lose both chambers again

[El Gunner]

BREAKING: Supreme Court blocks the Biden administration's vaccine-or-test rule for U.S. businesses, but allows a COVID-19 vaccine mandate for most health care workers. https://t.co/pvrYiiUU41

— The Associated Press (@AP) January 13, 2022

Double blow for everyone, but Republicans and COVID.

holy shit justice prevails

[FennecFox7]

El gunner 🤍

[BarrileteCosmico]

https://www.youtube.com/watch?v=X6iSRU9486I

Needed in the senate.

I imagine he has no chance tho

[Myesyats]

They openly have been admitting this for years. Voter suppression and making sure turnout is low is the key to GOP winning elections, also keeping folks uneducated and that is tied with low turnout/awareness

Also electoral college is ridiculous.

[McLewis]

I have a lot of conversations with a relative that lives in the Deep South. She lives in a Republican-controlled, majority black city that ranks among the poorest in the country and near the bottom in nearly every measured index. She works in the school system and sees first hand the lack of necessities, support, supplies and just general resources that the school she works at doesn't get. This leads to poor graduation rates, which leads to a constant churn of poverty and struggle.

The city itself is a study for what long-term Republican-centric voting practices can do to the black vote. Everyone in this city are too busy just trying to survive. They don't have time to research candidates let alone actually show up and vote. And the Republican-controlled State Legislature has made sure that these folks have absolutely no easy way of voting. And so the turnout for Democratic candidates in the city and surrounding county is abysmal, meaning Republicans win virtually every time, sometimes running unopposed.

They're taking this strategy national and because the Democrats nationally are hopelessly inept at stopping it, it's going to succeed in November.

[McLewis]

So the spread on Biden's approval ratings currently sits at about 40% with the highest polls showing him at about 43% and the lowest at around 36%.

Only 2 presidents have ever survived a midterm with a congressional majority intact. Both had sky-high approval ratings.

Biden could've had this with a successful national recovery from this pandemic, but for a myriad of reasons it never came together.

What kills me is that Democrats did all of this hemming and hawing over "unity". Working with Republicans. How they thought this would work, I truly don't know. If the GOP had a majority that had the values of say Adam Kinzinger, they might've had a chance. Instead the party resembles more Lauren Boebert and Marjorie Taylor Greene. You can't have "unity" with demagogues like that. Democrats never understood this. They were too afraid of accusations of going it alone (and getting hammered by the GOP in the midterms) that they instead tried working with a party that does not want to work with them and did everything to undermine them.....only to find out they are still going to get hammered in the midterms. They gained nothing from any of this and are going to lose far more because of it.

When you're in power, you must use the power completely and without reservation or you will lose it. The only Democrat who ever understood this has been dead for over 75 years and was the last one to maintain a majority in Congress after a midterm. His name was Franklin Delano Roosevelt.

[Myesyats]

I think  democrats only pretend (those who actually make decisions). They're happy with the status quo. Then they'll say "oh well we did our best, we tried" and rinse, repeat. Donor money is very tempting for those spineless slimeballs and the big companies will always bribe just enough folks to prevent bills from passing. I think this is the case moreso than just "not using your power fully" due to other various reasons apart from lobbyist money.


Men with principles like FDR are very scarce and rarely get into positions of power tbh. Somehow it's always the scumbags that make it. Or they get corrupted once they actually taste power

[McLewis]

There is indeed a lot of hand wringing already starting. The excuse seems to be that if Biden had gone forward with everything in his agenda and had put Manchin/Sinema in their place, the GOP would be in this position anyway.

If that's what they're going to go with as their reasoning for getting destroyed in November, they deserve to. It didn't have to be this way.

The losses in NC and Maine are most keenly felt now than any other time Dems really needed those 2 seats to offset what Manchin and Sinema ended up doing to their agenda. Cal Cunningham couldn't keep his dick in his pants and Sara Gideon played it far too straight against Susan Collins.

[BarrileteCosmico]

FYI pic.twitter.com/Jfk0qyjFHn

— Adam Ozimek (@ModeledBehavior) April 19, 2022

Who's ready for another 8 years of trump

[Warrior]

Why the fuck would Trump be elected again lol. Republican party has nobody better to propose ?

My prophecy will become a reality. It's time for democrats to nominate Dwayne "The Rock" Johnson as candidate. I guarantee nobody beats him in a 1v1 election and certainly not Trump

[Pedram]

FYI pic.twitter.com/Jfk0qyjFHn

— Adam Ozimek (@ModeledBehavior) April 19, 2022

Who's ready for another 8 years of trump

That's what you get for appeasing Manchin and Sinema, should've gone scorched earth on them when they were derailing his agenda.

[CBarca]

I don't think that would have made a difference to be honest (not that I necessarily disagree).

Once gas prices + inflation started going up, which was unavoidable, the narrative was set for Biden. Economy is always the #1 issue and people in America absolutely despise paying semi-high gas prices. Whether it's right or not, they're always going to blame the president for that.

[CBarca]

With that being said, that graph is based on predictive betting markets. As far as I'm concerned, this far out from the actual election, you can pretty much disregard them except for the base facts: Biden and Trump are the two most likely next presidents, and the momentum is with the GOP.

However, there is no real need to have a graph to tell me that as of right now.

[BarrileteCosmico]

FYI pic.twitter.com/Jfk0qyjFHn

— Adam Ozimek (@ModeledBehavior) April 19, 2022

Who's ready for another 8 years of trump

That's what you get for appeasing Manchin and Sinema, should've gone scorched earth on them when they were derailing his agenda.

I mean, no, they should've appeased them and passed something. In the end they didn't appease them and they didn't pass anything of substance, and will rightfully get slaughtered in 6 months.

The story of the past 1.5 years is letting perfect be the enemy of good.

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