Now this is something that doesn’t make sense to me. Although the “deficit” may be declining, it is still a deficit, so the debt continues to climb.
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Now this is something that doesn’t make sense to me. Although the “deficit” may be declining, it is still a deficit, so the debt continues to climb.
True. However, deficits of 100-300 dollars on a budget of 3 trillion —don’t undermine the dollar like deficits of 1.5 trillion year after year. More importantly, advanced federal revenues derived from a a true oil economy—threaten to balance the budget in a couple years.
The value of the dollar like the value of stocks — is based on future earnings — not on past performance.
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Also, there is no proposed plan that has any real legs to turn the deficit into a surplus, so the debt should be expected to continue to increase into the foreseeable future.
I absolutely agree that there is no plan in place or proposed that will turn the deficit into a surplus. In fact, I would argue that deficits will turn to surpluses DESPITE the very best efforts of the Obama administration to saddle the US with unmanageable debts forever. Deficits will turn to surpluses because of the fracking revolution
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How is the growing debt not a significantly bigger factor on the value of the dollar than a declining deficit?
Under a shrunken deficit regime ==while the debt does grow —the debt’s percentage of the economy declines.
But what’s in play is not just a shrunken deficit—but the possibility that the deficit will be eliminated altogether in 2-3 short years. That’s huge.