Fake News Reporting Thread

[Kidlicious]

There won't be any humans.

Wow. Did Al Gore tell you that?

[Aeson]

The financing costs will increase by less than 1%. I know what the national debt is.

The lowest 10 year treasuries have been in recent decades is about 1.4% ... currently they're at 2.5%, close to the low end of the spectrum. That is a yearly financing cost, and continues to add up until the debt is repaid. It definitely will cost more than 1% of the principal PER YEAR, and a total cost will be much, much higher.

[Aeson]

Also, if we follow your predictions about the economic effects of the tax bill ... interest rates will likely increase and thus so would debt financing costs.

[Kidlicious]

The lowest 10 year treasuries have been in recent decades is about 1.4% ... currently they're at 2.5%, close to the low end of the spectrum. That is a yearly financing cost, and continues to add up until the debt is repaid. It definitely will cost more than 1% of the principal PER YEAR, and a total cost will be much, much higher.

The principle isn't the financing cost.

[Aeson]

Duh.

[Kidlicious]

You are maybe thinking the 1.5 Trillion is for one year. It's for a decade. It's only adding about 1% to the national debt per year. Therefore it is only adding about 1% to the financing costs.

[Aeson]

You are maybe thinking the 1.5 Trillion is for one year. It's for a decade. It's only adding about 1% to the national debt per year. Therefore it is only adding about 1% to the financing costs.

I shudder at the idea that there exist (or at least existed) institutions which give degrees in economics to people like you.

The principle will increase by less than 1% a year, but the cumulative principle from the tax bill will still be > 5% after a decade, and unless we pay down the debt (which there's no reason to assume we will) the financing costs on that principle will continue to add up indefinitely. Over a few decades (or more quickly if interest rates rise) the financing costs will become more than the principle.

And of course the whole point was that government spending would increase due to increased financing costs ... which you are now admitting is true. You're just ignorantly quibbling about how much it will be.

[Kidlicious]

I shudder at the idea that there exist (or at least existed) institutions which give degrees in economics to people like you.

The principle will increase by less than 1% a year, but the cumulative principle from the tax bill will still be > 5% after a decade, and unless we pay down the debt (which there's no reason to assume we will) the financing costs on that principle will continue to add up indefinitely. Over a few decades (or more quickly if interest rates rise) the financing costs will become more than the principle.

And of course the whole point was that government spending would increase due to increased financing costs ... which you are now admitting is true. You're just ignorantly quibbling about how much it will be.

Oh brother. This is your last chance. In no year will the financing costs increase by more than 1% because of the current deficit because the current deficit will only be around 1% of the national debt. There is no possible way that the financing costs will increase by more than 1% over time if they don't increase more than 1% per year.

edit: I understand about the a cumulative effect but the deficit decreases over time with economic growth, unless it is increased.

[Kidlicious]

The tax base is going to increase more than the finance costs.

[-Jrabbit]

His master's voice.

[Proteus_MST]

The tax base is going to increase more than the finance costs.

Only if the utopian projections by the GOP about the yearly economy growth come true (for every year during the next decade).
Projections that are disputed by (almost) all reputable economists

[Kidlicious]

Only if the utopian projections by the GOP about the yearly economy growth come true (for every year during the next decade).
Projections that are disputed by (almost) all reputable economists

Tax revenue increases at about the same rate as GDP. If the economy just grows at the current rate tax revenue will increase faster than finance costs increase (at least twice as fast).

[Aeson]

This is your last chance.

In no year will the financing costs increase by more than 1% because of the current deficit because the current deficit will only be around 1% of the national debt. There is no possible way that the financing costs will increase by more than 1% over time if they don't increase more than 1% per year.

Holy ****, you think the national debt is going to go up by > $15 trillion per year for at least 10 years!

[Kidlicious]

I thought that's what you thought. You said the finance cost is going to exceed the principle. Who do you think they are going to borrow from, the mob?

[Aeson]

Unless we pay down the debt or the whole system crashes, eventually the finance costs will exceed the principle. However, that's not what you were saying at all. You were saying that adding $150 billion to the debt each of 10 years was somehow the same as only adding $150 billion to the debt one time. The reality is that it's cumulative, and so the total principle added will be 1.5 trillion over 10 years, and the only way that adds up to less than 1% is if the total national debt is > $150 trillion by 2028.

[Ming]

Pretty sure there won't be any environmentalists in 2075.

And why is that... and what alt-right rag told you that?