Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

dandyfopp

King of Debt.

MAGA.



Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

https://www.thedailybeast.com/trump-on-coming-debt-crisis-i-wont-be-here-when-it-blows-up


Since the 2016 presidential campaign, Donald Trump’s aides and advisers have tried to convince him of the importance of tackling the national debt.

Sources close to the president say he has repeatedly shrugged it off, implying that he doesn’t have to worry about the money owed to America’s creditors—currently about $21 trillion—because he won’t be around to shoulder the blame when it becomes even more untenable.

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the national debt in the not-too-distant future. In response, Trump noted that the data suggested the debt would reach a critical mass only after his possible second term in office.

“Yeah, but I won’t be here,” the president bluntly said, according to a source who was in the room when Trump made this comment during discussions on the debt.

The episode illustrates the extent of the president’s ambivalence toward tackling an issue that has previously animated the Republican Party from the days of Ronald Reagan to the presidency of Barack Obama.

But for those who have worked with Trump, it was par for the course. Several people close to the president, both within and outside his administration, confirmed that the national debt has never bothered him in a truly meaningful way, despite his public lip service. “I never once heard him talk about the debt,” one former senior White House official attested.

Marc Short, who until recently worked for Trump as his legislative affairs director, said he believed the president recognized “the threat that debt poses” and he pointed to Trump’s concern “about rising interest rates” as evidence of his concern for the matter.


“But there’s no doubt this administration and this Congress need to address spending because we have out-of-control entitlement programs,” Short said, adding, “it’s fair to say that... the president would be skeptical of anyone who claims that they would know exactly when a [debt] crisis really comes home to roost.”

Recent reports have suggested that Trump is determined, at least rhetorically, to address the issue. Hogan Gidley, a spokesman for the president, noted that the president and his team have proposed policies to achieve some deficit reduction, “including in his first budget that actually would’ve balanced in 10 years, a historic, common-sense rescissions proposal.”

But Gidley also passed the buck to the legislative branch. “While the president has and will continue to do everything in his power to rein in Washington’s out-of-control spending,” he said, “the Constitution gives Congress the power of the purse and it’s time for them to work with this president to reduce the debt.”


Those close to Trump say that one reason the issue of debt reduction has never been an animating one for him is because he is convinced that it can be solved through means other than tax hikes or sharp spending reductions.

Stephen Moore, a conservative economist at the Heritage Foundation and an economic adviser to Trump’s 2016 campaign, recalled making visual presentations to Trump in mid-2016 that showed him the severity of the debt problem. But Moore told The Daily Beast that he personally assured candidate Trump that it could be dealt with by focusing on economic growth.

“That was why, when he was confronted with these nightmare scenarios on the debt, I think he rejected them, because if you grow the economy… you don’t have a debt problem,” Moore continued. “I know a few times when people would bring up the enormous debt, he would say, ‘We’re gonna grow our way out of it.’”

Moore has since championed this approach to tackling the debt as a key part of “Trumponomics,” and has co-authored a book supporting it.

As Moore recalled, a belief that robust economic growth would solve all problems was the way Trump—starting in 2016—justified the cost of his ambitious proposals to slash taxes, pursue big infrastructure projects, and simply avoid massive cuts to Social Security and Medicare. Since then, the president has continued to show indifference over the national debt, to the consternation of more traditionally conservative associates.


One current senior Trump administration official vented that Trump “doesn’t really care” about actually attacking the debt “crisis,” and prefers simply “jobs and growth, whatever that means.”

For the most part, the Republican Party has gone along. Over the first two years of the Trump administration, congressional Republicans have slashed taxes dramatically while increasing defense and discretionary spending, all without giving much indication that they’re going to take a stab at dramatically gutting certain popular entitlements.

The results have not been what Trump and Moore have promised; at least not yet. Economic growth increased over the past year—including a robust 4.1 percent in the second quarter of 2018—but the federal deficit has ballooned as well, in part because the government has taken in less revenue because of the tax cuts. Current forecasts are not too rosy about the future economy.

Recently, both Trump and some Republican lawmakers have hinted at regret over their approach. Earlier this year, Trump conveyed his disappointment with signing a large spending bill, particularly after he saw typically friendly allies on Fox News tear into him for supporting legislation that they viewed as funding Democratic priorities, exacerbating the national debt, and ditching his pledge to build a gigantic border wall, according to a report at the time in Axios.

Sources close to the president tell The Daily Beast that Trump was genuinely taken aback by the severity of this mini-revolt from MAGA loyalists.


However, right-leaning reformers shouldn’t be holding their breath.

The Washington Post recently reported that Trump had instructed his Cabinet to devise plans to trim their budgets in an effort to reduce the federal deficit. But Trump also set strict limits on what sorts of programs could be cut—and quickly proceeded to propose increased spending in other areas of the federal government.

“He understands the messaging of it,” the former senior White House official told The Daily Beast. “But he isn’t a doctrinaire conservative who deeply cares about the national debt, especially not on his watch… It’s not actually a top priority for him… He understands the political nature of the debt but it’s clearly not, frankly, something he sees as crucial to his legacy.”

The former Trump official adding, “It’s not like it’s going to haunt him.”

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sunflower_petal(5a)

Good lord, what kind of positive message does he think THAT is?

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nopartyghost

What will haunt him & the rest of his crime family is that his legacy will be one of corruption, greed & scandle. He won't be be able to handle the analysis of his inept, incompetent ill service of the country.

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katrina_ellen

BO is king of debt, QE2 & QE3 comes to mind. BO just kicked the can down the road.

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Ziemia(6a)


The best way to measure debt by President might be looking at their deficit spending.

"You can measure the debt by president by summing up his budget deficits. The president is responsible for his budget priorities.

The deficit by president reveals how much deficit was in each year's budget.

The terminology sounds similar, but a difference exists between the deficit and the debt by president. All presidents can employ a little sleight of hand to reduce the appearance of the deficit. For example, they can borrow from federal retirement funds."

And info about deficits by % gives us these 'top five' starting with *most*:

FDR

Wilson

Reagan

GW Bush

Obama

https://www.thebalance.com/us-debt-by-president-by-dollar-and-percent-3306296


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Ziemia(6a)

OK, onto debt:

This chart is very easy to 'decode' - though it is a bit out of date (doesn't cover Obama's second term).

https://ritholtz.com/wp-content/uploads/2011/10/248944-galleryV9-nnhb.jpg

Here is the article that goes with that chart

https://ritholtz.com/2011/10/us-debt-accumulation-by-president/

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vgkg Z-7 Va(Z-7)

trump promised to get rid of the fed debt in 8 years, what happened?

https://thehill.com/blogs/ballot-box/presidential-races/275003-trump-i-will-eliminate-us-debt-in-8-years

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Ziemia(6a)

Each pundit has their own way of attempting to explain it. Here's another. This is about debt.

Prior to the Reagan administration, the combined cumulative U.S. debt stood at only about $750 billion, which Reagan almost tripled over 8 years. None of his successors then slowed down, with George H.W. Bush adding $1.55 trillion in a single term, followed by Clinton at $1.4 trillion, Bush at $5.85 trillion, and Obama $8.59 trillion, all over 2 terms. Trump is meanwhile projected to add a total $4.78 trillion during his first term.


https://howmuch.net/articles/usa-debt-by-president

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Embothrium(Sunset Climate Zone 5, USDA Hardiness Zone 8)

>what happened?<

What happened is he's full of it and always has been. And as a malignant narcissist of course he doesn't care about how things are going to be after he is gone.

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vgkg Z-7 Va(Z-7)

Interest payments on the fed debt last year for 2017 were $263 billion, forecasters say that by 2028 annual interest on the growing debt will be over $1Trillion. What a waste, thank you repubs and your blind tax cutting and keep on spending BS.

https://money.cnn.com/2018/03/15/news/economy/interest-on-the-debt/index.html

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purrmich _6

Pres. Obama's terms included the biggest financial crisis since the depression. That's the reason for the deficits during his presidency.

trump's increase of the debt is for the reason of thanking his 1%'rs for getting him elected.


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Embothrium(Sunset Climate Zone 5, USDA Hardiness Zone 8)

Yep and yep.

It's easy to support weak assertions by cherry picking, without considering all the relevant facts involved.

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marquest(PA zone 6)

" considering all the relevant facts involved."

Yes it is called we have to make it simple

He died last night at 104.......He was shot last night and died at the age of 12.

Big difference how he died. Big difference of why the deficit is so high and the problems it will cause.

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chijim

Then,we have this:


Obama Bans Gimmicks, and Deficit Will Rise

By JACKIE CALMESFEB. 19, 2009

Continue reading the main story
Share This Page

WASHINGTON — For his first annual budget next week, President Obama
has banned four accounting gimmicks that President George W. Bush used
to make deficit projections look smaller. The price of more honest
bookkeeping: A budget that is $2.7 trillion deeper in the red over the
next decade than it would otherwise appear, according to administration
officials.

The new accounting involves spending on the wars in Iraq and Afghanistan, Medicare reimbursements to physicians and the cost of disaster responses.

But the biggest adjustment will deal with revenues from the alternative minimum tax, a parallel tax system enacted in 1969 to prevent the wealthy from using tax shelters to avoid paying any income tax.

Even
with bigger deficit projections, the Obama administration will put the
country on “a sustainable fiscal course” by the end of Mr. Obama’s term,
Peter R. Orszag, the director of the Office of Management and Budget,
said Thursday in an interview. Mr. Orszag did not provide details of
how the administration would reduce a deficit expected to reach at least
$1.5 trillion this year.

Mr.
Obama’s banishment of the gimmicks, which have been widely criticized,
is in keeping with his promise to run a more transparent government. Continue reading the main story

Fiscal
sleight of hand has long been a staple of federal budgets, giving rise
to phrases like “rosy scenario” and “magic asterisks.”

The
$2.7 trillion in additional deficit spending, Mr. Orszag said, is “a
huge amount of money that would just be kind of a magic asterisk in
previous budgets.”

“The president prefers to tell the truth,” he said, “rather than make the numbers look better by pretending.”

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Recent
presidents and Congresses were complicit in the ploy involving the
alternative minimum tax. While that tax was intended to hit the
wealthiest taxpayers, it was not indexed for inflation. That fact and
the tax breaks of the Bush years have meant that it could affect
millions of middle-class taxpayers.

If
they paid it, the government would get billions of dollars more in tax
revenues, which is what past budgets have projected. But it would also
probably mean a taxpayer revolt. So each year the White House and
Congress agree to “patch” the alternative tax for inflation, and the
extra revenues never materialize.

Nearly
$70 billion of the just-enacted $787 billion economic recovery plan
reflected the bookkeeping cost of adjusting the alternative tax for a
year.

The
White House budget office calculates that over the next decade, the tax
would add $1.2 trillion in revenues. But Mr. Obama is not counting
those revenues, and he is adding $218 billion to the 10-year deficit
projections to reflect the added interest the government would pay for
its extra debt.

As
for war costs, Mr. Bush included little or none in his annual military
budgets, instead routinely asking Congress for supplemental
appropriations during the year. Mr. Obama will include cost projections
for every year through the 2019 fiscal year to cover “overseas military
contingencies” — nearly $500 billion over 10 years.

For
Medicare, Mr. Bush routinely budgeted less than actual costs for
payments to physicians, although he and Congress regularly waived a law
mandating the lower reimbursements for fear that doctors would quit
serving beneficiaries in protest.

Mr. Obama will budget $401 billion over 10 years for higher costs and interest on the debt.

He
will also budget $273 billion in that period for natural disasters.
Every year the government pays billions for disaster relief, but
presidents and lawmakers have long ignored budget reformers’ calls for a
contingency account to reflect that certainty.

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Vith

Did not read, but of course he wont be there, he will be in the clinker for financial crimes lol

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nancy_in_venice_ca Sunset 24 z10

Trump has a history of being unconcerned about debt -- hence the multiple bankruptcies.

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elvis

The OP: Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The proof of its veracity: “Yeah, but I won’t be here,” the president bluntly said, according to a source who was in the room when Trump made this comment during discussions on the debt

Ahem. Who?

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redsox_gw

No republican president has balanced the budget in my entire lifetime. Why would you expect the one with the lowest intellect to do so?

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Pidge

And as a malignant narcissist of course he doesn't care about how things are going to be after he is gone.

Trump doesn't care about how things are going even while he is here.


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blfenton

What will haunt him & the rest of his crime family is that his legacy will be one of corruption, greed & scandle. He won't be be able to handle the analysis of his inept, incompetent ill service of the country. - nopartyghost

The first sentence he won't care as long as he has made money, The second sentence will be someone else's fault.

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CindyMac(8b)



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elvis

The OP: Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up


The proof of its veracity: “Yeah, but I won’t be here,” the president bluntly said, according to a source who was in the room when Trump made this comment during discussions on the debt Ahem. Who?

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katrina_ellen

Elvis - but, but, that doesn't play into the impeach Trump narrative!

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vgkg Z-7 Va(Z-7)

Politicians really do not want to be around when the debt bomb explodes, they lit the fuse by cutting taxes again without any long term fix and then head for the door. Funny how so many retired right after passing the tax bill last Dec.

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josephene_gw

So if tRump builds his wall it will be funded by senior citizens Social Security.

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katrina_ellen

vgkg - how long has that been going on - and no politician has fixed it. Its rinse and repeat for as long as I've been alive. QE 2 and 3 from Obama helped light that fuse.

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sunflower_petal(5a)

Yet, Obama was reducing the deficit as he left. Trump has ramped it back up.

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katrina_ellen

no sorry sun - that's simply not true.

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josephene_gw

Katrina, just look at what President Obama had to work with. The invasion of Iraq was very costly in money and lives. President Obama turned this country Around and started it on the right path.

just look at where our tax money is going, crumbs for the average worker and millions for the top few. Look at what’s happening at GM.

tRump has done nothing to help.

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sunflower_petal(5a)

katrina, honestly, the information is out there if you just look for it. Look at the trend of his budget over the 8 years (first 2 years were to pull the economy out of a recession).



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rob333 (zone 6b/7a)

Considering how the payment dodger/bankrupting constantly runs his business this way, does it really surprise you?

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dublinbay z6 (KS)

Trump's Wall will be funded by senior citizen's Social Security.

Is everyone taking that in--slowly!

Thanks, Josephene, for calling a [garden] spade a [garden] spade.

Kate

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katrina_ellen

Look at what the dems gave us - no crumbs and Obamacare. Gee, so much better. And those "crumbs" may mean nothing to you but they do to me and millions of others.

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kadefol


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vgkg Z-7 Va(Z-7)

vgkg - how long has that been going on - and no politician has fixed it.

It started with Reagan's voodoo econ as Bush Sr described it., this thread from last year put forth some ideas of how long it's been going on. Reagan spread the fed debt disease but the real Typhoid Mary was Hinckley. And no politician has fixed it? After almost 20 years of reagan/bush-1 debt run up then clinton with gop cutbacks balanced the budget, the debt held steady around 6 trillion, then bush-2 took the reins and made more tax cuts, here we are.

https://www.gardenweb.com/discussions/4589531/who-do-you-think-is-responsible-for-the-20-trillion-fed-debt#n=38

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purrmich _6

The ACA was a long process of research and public meetings. Transparency. Considering its scope it's not surprising there were hiccups.

Those who hate the ACA also must hate those whose lives it has saved.

Good christian thinking!!

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