[23063]

Re: Some Homework for Kpaul

The federal debt under the first Bush went from 2.6 trillion to a little over 4 trillion. Clinton expanded the debt from about 4 trillion to about 5.5 trillion in 8 years. Our beloved Bush junior expanded the debt from about 5.5 trillion to 7.4 trillion in 4 years and is getting a hike in the debt ceiling to 8.2trillion just this year! I think republican federal spending actually helps the democrats since they get voted in when inflation goes up because of the high federal spending and cut in taxes.

Actually, G. H. W. Bush raised the capitol gains tax to 28%. Clinton lowered it to 20% and G.W. lowered it further to 15%. G.W. will also raise taxes to slow expansion of the federal debt and put a lid on inflation.

I can no longer tell a democrat from a republican!

 

[23063]

You read this far!?



OK. Here it is in simple numbers. The federal debt is a little over 50% of the federal budget, which is about what it has always been way back to the start of supply-side economics (Paul volker, Jimmy Carter). Free-market capitalism thrives on federal debt. The deficit is about 6% of the federal debt, a little on the high side - 4 to 5% is better.

If Bush increases the debt a little more the deficit goes up a bit, if foreign countries don't buy more of our debt, which they own a huge chunk of now. In that case interest rates go up, to keep foreigners buying our debt. The dollar is falling, because of our trade deficit and low interest rates. Bush doesn't care because it will force foreigners to buy our products instead of our debt. That will increase inflation a bit but put more Americans to work. The Federal Reserve board runs the economy - not the president. We live in one big happy world with no one interested in seeing the US fail - they're making too much money off of us. Oil prices will plummet - they're way too high. Opportunities will improve. Motorcycles will improve and get cheaper. Harley's will not change. We will not go to hell in a hand basket.