U.S. government on course to borrow the most money since the financial crisis
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Source: Morningstar
The Treasury Department predicted the U.S. government’s borrowing needs in the second half of this year will jump to the most since last decade’s financial crisis as the nation’s fiscal health deteriorates despite a strong economy.
The department expects to issue $329 billion in net marketable debt from July through September, the fourth-largest total for that quarter on record and higher than the $273 billion estimated in April, Treasury said in a report Monday.
The department’s forecast for the October-December quarter is $440 billion, bringing the second-half borrowing estimate to $769 billion, the highest since $1.1 trillion in July-December 2008.
The estimates were “quite a bit higher than our expectations,” Thomas Simons, senior money-market economist at Jefferies, said in a note.
Read more: http://www.latimes.com/business/la-fi-treasury-borrowing-20180730-story.html
I can understand deficit spending and tax cuts as stimulus during the Great Recession, but doing so when the economy was near full employment? Also, to implement such tax cuts in a manner that only benefits the rich?
Don't worry. When the economy takes a dive, watch Republicans suddenly start crowing that its time to cut social security and Medicare.
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Susan Sarandon is probably enjoying her tax cuts like the other 1% while the middle class suffers during the "Trump boom."
https://www.marketwatch.com/story/wages-arent-growing-when-adjusted-for-inflation-new-data-finds-2018-07-17
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Wages aren’t growing when adjusted for inflation, a new report released Tuesday showed.
According to the Labor Department, median weekly earnings fell 0.6% in inflation-adjusted dollars in the second quarter, compared to the same time period of 2017.
That’s now the third straight quarter where inflation has outpaced wage growth.
The issue of inflation-adjusted wages stagnating came up in the hearing with Federal Reserve Chairman Jerome Powell on Tuesday. He was asked by Sen. Sherrod Brown, the Ohio Democrat, whether the typical worker really is better off than he or she was a year ago.
