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Facing rising deficits, Treasury will lean on ‘tried and true’ securities, for now

“The weighted average maturity of Treasury debt outstanding has been stable since February and now stands at just below 70 months” writes Senior Economics Reporter for marketwatch.com. But Treasury debt managers won’t be able to relax for long, Stanley said.Facing rising budget deficits and borrowing needs, the Treasury Department is going to rely on reliable debt instruments rather than offer any new exotic securities to raise the needed funds, analysts said. Source: marketwatch.com Share This:

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Trump’s unprecedented deficits put us into uncharted territory

“I am not, however, old enough to remember the one time the federal debt was entirely paid off” writes Special To The for seattletimes.com. And, like with the federal budget, the ruling Republicans not only want to do nothing — they want to make it worse.But the enduring deficits caused under Trump push us into uncharted territory.President Barack Obama used heavy deficit spending to fill the hole in demand caused by the Great Recession.Deficits entered the modern era under the Reagan presidency, largely because of tax cuts combined with big…

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No, Trump’s Tax Cut Isn’t Paying for Itself

“That means three months of the 2018 fiscal year included a period without the tax cuts in place” reports nytimes.com. Which is to say, they’re down by $10 billion, in a direct comparison after the tax cuts started.When the tax law passed, members of Congress had all sorts of evidence suggesting it would accelerate America’s growing budget deficits.The tax cuts mostly took effect in January 2018.Personal tax receipts are up on their own, but corporate tax receipts are down by about a third from a year ago. Source: nytimes.com Share This:

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The Finance 202: Trump’s economy means soaring deficits, too

“Shrinking supplies from Iran, along with strong global growth, has fired up bullish sentiment in the oil market” writes Heather Long Is for washingtonpost.com. The possibility of tapering global growth, led by China’s slowdown, spurred a retreat from the high-flying tech sector, which declined 1.2 percent.” — Global bonds drop.The U.S. economy is humming, and a hot economy is supposed to translate into higher tax revenue and very tiny deficits. Source: washingtonpost.com Share This:

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Pension fund deficits to worsen as Bank of England warns of new era of low rates 

“The Bank of England has warned interest rates are in a new era and will not return to the levels savers became used to in the second half of the 20th century” writes Tim Wallace for telegraph.co.uk. It means more pain for final salary pension funds which were set up in a world of higher interest rates. The new world of permanently lower interest rates means schemes face bigger deficits for the foreseeable future. Source: telegraph.co.uk Share This:

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Indonesia’s currency is suffering, but that’s about to end, trade minister says

“After hitting its weakest in nearly three years against the U.S. dollar, the Indonesian rupiah should stabilize from here on out, the country’s trade minister told CNBC on Wednesday” writes unknown author for cnbc.com. The U.S. Federal Reserve raising interest rates and some of President Donald Trump’s policies have lifted the greenback, which attracted investors into the world’s largest economy, Indonesian Trade Minister Enggartiasto Lukita told CNBC’s Sri Jegarajah.When the minister was asked whether he’s confident those policies will stabilize the rupiah and prevent it from depreciating more, he responded:…

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Jackson Park trees: Another premature destruction

“Maybe the silence of the right wing is because first two Trump budget deficits (estimated), are far larger than any of the last three fiscal year Obama budget deficits” writes Letters To The for suntimes.com. During the Obama presidency, there was unrelenting criticism (some deserved) from the right wing over the size of budget deficits and the national debt. Source: suntimes.com Share This:

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The Wrong Way to Defend Trade Deficits

“President Donald Trump wrongly thinks the trade deficit means the U.S. is losing at international trade” writes Greg Ip for wsj.com. Yet in trying to prove him wrong, some critics make a misleading claim of their own: because trade deficits are matched by an inflow of foreign investment, they’re actually good. In fact, foreign investment comes in different forms and […].  Source: wsj.com Share This:

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Ocasio-Cortez understands a key feature of the economy in a way most politicians miss — and it could be a huge asset for Democrats

“Just witness the massive recent tax cuts and budget, which are projected by the independent Congressional Budget Office to catapult the US deficit to over $1 trillion next year” writes Pedro Nicolaci Da for businessinsider.com. Because Democrats often allow themselves to be straightjacketed by unwarranted fears of a rising budget deficits while they are in power. Source: businessinsider.com Share This:

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