Dollar, trade deficit, budget deficit

[transporter]

For those of you who think a first year President, particularly THIS first year President, has such a massive impact on economic outcomes...can you please explain why:

1. The year to date (Nov report released yesterday) trade deficit is 11.6% higher than during the same period last year? https://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf

2. Why is the value of the dollar lower?

3. Why is the budget deficit higher? We all know it will go higher from 2018-2027 as a result of the monumentally stupid tax cuts that were just signed into law.

All three of these issues are in direct conflict with the assertion on our incompetent President. All three are completely in line with expectations of everyone else (except the Trump cultists)

 

[Starman]

#1 and #2 are related. It should piss off the average tRump supporter, but it won't because they don't understand these things. They just keep repeating the mantra, "so much winning!" like a bunch of retards. They're not taking about it here because their handlers haven't told them what to think yet.


To be fair, though, weakening the dollar (reversing a years-long trend) has been a specific goal by tRump, not an unfortunate side-effect of ostensibly bad policies. This was is promise and intent. Trade deficits also weaken the dollar, so you've got multiple dynamics at work here.

A weak dollar reduces the chances of currency crises in emerging markets, bolsters US competitiveness, and makes dollar-denominated returns look attractive.

The question moving forward is how does he maintain it? Set aside for a moment any judgement as to whether or not you agree with what he's done -- this was his promise and it's what he did. Assuming that's what he wants to continue to do, he has a looming problem on his hands: rising interest rates, tax cuts, and cash repatriation will cause the dollar to rise. How does he manage it?

 

[SamSpade]

3. Why is the budget deficit higher? We all know it will go higher from 2018-2027 as a result of the monumentally stupid tax cuts that were just signed into law.

What was the estimated increase? 1.5 trillion over ten years? So - 150 billion more a year? Added to a 4 trillion yearly budget?
Not much of an increase AND - the projections did not factor that economy would improve and future revenues would increase.
Of course, the Democratic way is to tax the ever living crap out of everything - and STILL spend it all.

 

[Bird Dog]

For those of you who think a first year President, particularly THIS first year President, has such a massive impact on economic outcomes...can you please explain why:

1. The year to date (Nov report released yesterday) trade deficit is 11.6% higher than during the same period last year? https://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf

2. Why is the value of the dollar lower?

3. Why is the budget deficit higher? We all know it will go higher from 2018-2027 as a result of the monumentally stupid tax cuts that were just signed into law.

All three of these issues are in direct conflict with the assertion on our incompetent President. All three are completely in line with expectations of everyone else (except the Trump cultists)

1. The economy is better
2. The economy is better
3. Left over Obama chit......

 

[Kyle]

Of course, the Democratic way is to tax the ever living crap out of everything - and STILL spend it all AND MUCH, MUCH MORE!

:fixed:

 

[Rommey]

2. Why is the value of the dollar lower?

What was the value of the dollar on Jan 20, 2017 and what is the current value?

3. Why is the budget deficit higher?

While you are showing you math for the previous question, can you explain how the FY2017 deficit at $666B is somehow less than the $400B FY2018 budget (estimate)? Remember, FY2017 belongs to Obama.

We all know it will go higher from 2018-2027 as a result of the monumentally stupid tax cuts that were just signed into law.

Potentially true, but projecting out 10 years is ridiculous and the projected deficits are the expectations should everything remain static. What is the likelihood that things remain static? It also leaves no room for revenues to actually increase, reducing the effect on the deficit.