[Piquaboy]

If it is taken out of guvmint hands, what will the rats use to beat us over the head with every election?

[2banana]

All ponzi schemes eventually collapse - the trick is to be one of the first ones in...

[Trueredstater]

Supply-siders will correctly argue that large budget deficits do not necessarily lead to higher interest rates. But at some point, government borrowing that significantly exceeds $2 trillion is bound to have some negative psychological impact on the financial markets. I am of the view that the markets will tolerate increased levels of near-term debt so long as reasonable and credible budget restraints are enacted that put Social Security into permanent solvency.

This is very dangerous thinking and in my opinion incorrect. The US currently has roughly 3 trillion in total debt. The President's plan would increase that amount by 33-50%. The dollar's recent drop clearly indicates financial markets are concerned about the the US economy. There is talk the ratings agencies may consider lowering the US credit rating. Although we would still be a good credit risk, the thought of lowering the US credit rating should shock everybody. In addition, the US already requires a net influx of 55 billion of foreign capital a month to finance its consumption. In short, we are already leveraged to the hilt.

While social security is a problem, the markets are clearly telling the US that the budget and trade deficits are more important right now. If we do not effectively deal with these problems, the dollar will continue to drop, leading to higher interest rates. This upward move in rates will only increase as we tack more debt on.

[DManA]

This 2018 prediction smells. They can't accurately predict receipts 2 years in advance. How can they predict what's going to happen 14 from now?