Republican Hypocrites Ignore Trump's Lies, Praise Irresponsible Budget

Mish

Trump passed a budget that will increase the deficit to a trillion dollars. His supporters cheer.

Proud of Irresponsible Budget

Fools and Hypocrites Praise Trump

In 2016, Trump promised to totally wipe out $19 trillion in national debt over eight years in office. Republicans cheered.

Today, hypocrite republicans cheer a trillion dollar deficit and a national debt projected to rise by about $9 trillion.

Trump's Lies vs Reality

Please consider Trump and the National Debt

During the 2016 presidential campaign, Republican candidate Donald Trump promised he would eliminate the nation’s debt in eight years. Instead, his budgets would add $9.1 trillion during that time. It would increase the U.S. debt to $29 trillion according to Trump's budget estimates.

Democrats Happy Too

The Hill reports "Trump, who vowed last March to never again sign a massive omnibus spending package, took umbrage in the fact that the spending was divided among two separate bills and played up Republican wins."

Democrats claimed major victories in the bills as well, such as $25 million to fund research into gun violence, the first such funding in 20 years, $425 million for election security, increased funding for climate research and full funding for the 2020 census. They included a 3.1 percent pay increase for federal workers, matching the raise for members of the military.

“I am particularly proud that House Democrats prevailed in securing historic investments For the People, including record funding levels for Head Start and lifesaving medical research at NIH, and in funding priorities vital to our shared security, like gun violence prevention research and election security grants to states,” said House Appropriations Chairwoman Nita Lowey (D-N.Y.).

Hype vs Reality

Newsweek comments Donald Trump Promised to Eliminate the Deficit in 8 Years, So Far He Increased it by 68%.

According to the latest Congressional Budget Office data released on Monday, the full-year deficit for 2019 is estimated to come in at $984 billion, just shy of the $1 trillion that many analysts were expecting. In 2018 the figure was $779 billion and in 2017 it was $665 billion.

During the last election, Trump said he could clear America's $19 trillion of gross federal debt within eight years. To do that would mean eliminating the federal deficit, the negative difference between income and expenditure which keeps adding to the debt pile. It is now $22 trillion.

"We're not a rich country. We're a debtor nation...We've got to get rid of the $19 trillion in debt," Trump told The Washington Post in April 2016, several months before the election he would win. "I think I could do it fairly quickly...I would say over a period of eight years," Trump added, and suggested he would do so by renegotiating trade deals and creating trade surpluses.

Read those last two paragraphs closely. Trump pledged to eliminate the debt, not the deficit in 8 years.

Does Newsweek understand the difference?

Regardless, eliminating the deficit is orders of magnitude easier than eliminating the debt, and Trump could not even do that.

Another Trump Fiscal Idiocy

Was Trump really stupid enough to believe that or was it a purposeful lie?

Fiscal Madness

Trump is full of fiscal BS and lies, yet his supporters cheer.

The budget is irresponsible. Period.

If Democrats produced a budget with a trillion dollar deficit, the Republican hypocrites would be shouting from the rooftops.

When Republicans do the same, there is not one peep anywhere. Even the Democrats seem happy.

TDS Accusations Coming

In response to this post, I expect massive numbers of people accusing me of TDS (Trump Derangement Syndrome).

They will ignore the fact that I supported his Supreme Court appointments, praised him for not starting any new wars, and repeatedly mocked those calling for impeachment.

As example of the latter, please see Christmas Impeachment Stocking: There's Nothing In It

For the record, I voted for Trump and would do so again against Hillary.

TDS Irony

In reality, many of those accusing others of TDS are the deranged ones.

In their eyes, Trump can do no wrong. They will not admit Trump's brazen lies, massive narcissism, or disastrous trade policy decisions.

The irony in at least some of these TDS accusations is the accusers are the ones who are Trump Deranged.

Yet, I know where the accusations come from. One look at the biased anti-Trump reporting of CNN, the Washington Post, and the New York Times explains much of it.

Instead of hammering Trump on real issues, we see endless garbage on Russia and impeachment "bombshells" where the demise of Trump has allegedly been imminent since the day he was elected.

Projected US Budget Deficit Lie in Four Pictures

Meanwhile, it's important to understand that budget deficit projections are themselves a lie.

By that I mean the increase in national debt is nearly always greater than the deficit. For discussion, please see my March 11 post Projected US Budget Deficit Lie in Four Pictures.

Given new CBO projections from this revised budget, ite seems I need to do an update.

Mike "Mish" Shedlock

Comments (70)
No. 1-41
JanNL
JanNL

He's supposed to be 'directionally correct' when lying...

Tengen
Tengen

People don't want to admit that Trump is just another politician. He should be called out for adding so much debt, but we all know Hillary or any of his major 2016 red team opponents would have done the same. It's a broken system.

Accusations of TDS will probably pour in because I've noticed a marked increase in 4D chess belief recently. I don't know whether it's the impeachment drama or ramping up for an election year, but once again the argument has shifted from Trump being a lesser evil to being the embodiment of unblemished perfection. Apparently the remaining Q-tards are determined to be gluttons for punishment to the bitter end.

Zardoz
Zardoz

It’s a cult. Dear leader can do no wrong.

Yancey_Ward
Yancey_Ward

"How I learned to stop worrying and love the deficit."

Herkie
Herkie

Donald Trump is the worst disaster to hit the USA since slavery. Deficit schmeficit, he has corrupted what had been perceived as incorruptible. As a democrat my greatest fear now is not only has he killed what we loved, but he has made the damage irreparable. Mind you there will be a blue wave so huge that the GOP is actually finished. He single handed moved politics so far to the left that not even I can support it. But, it is what it is, and the far right is just going to have to live with their greed and power hungry foolishness.

lol
lol

Trump will be the first president to run "officially"...a trillion dollar Monthly deficit.....not once in 2020 but twice.

ksdude69
ksdude69

Personally I think it's the new norm and will only go higher until the wall is it, wherever that may be I have no idea. Let me know when a fiscally responsible democrat gets back in power and starts sending out multi thousand dollar monthly checks for slavepay etc.

thimk
thimk

The Trumpster shuts down the government over border wall funding (35 days; longest in history), but doesn't blink an eye signing (rubber stamping) an irresponsible budget . Oh donnie ; the way you drain the swamp is to de fund it.

5945
5945

It is driving me nuts that the orange monster and EVERYONE else is saying that our "unemployment rate" is 3.5% is the lowest since 1969. That is not true. Steve Santelli on CNBC will verify this. They changed the way we count the unemployed was changed during the Reagan and Clinton and for a TRUE comparison to 1969 youi use the U-6 unemployment rate which for November 2019 is 6.9%. I dare anyone to disprove this.

Rvrider
Rvrider

Rvrider
Rvrider

On a serious note: the 2018 CBO report paints the true story that we’re financially screwed. Nobody can save the USA, much less the world, from the coming debt collapse and probable world war. There’s nowhere to hide. A few weeks ago Gundlach said he wants to see how it plays out. Brave guy, sadist, or an idiot?

Carl_R
Carl_R

Politics have moved beyond the bizarre. Trumps budgets are so crazy, he is vulnerable to some fiscally prudent candidate. Where are the likes of Jimmy Carter and Bill Clinton today? The moderate wing of the Democrat party is dead. Where are the fiscally prudent Republicans, like Eisenhower? They are also gone.

Have the Baby Boomers and their parent stolen the future from Millennials by running up the debt? Without a doubt. I used to feel sorry for Millennials, but I stopped when I realized that their answer is to spend even more. Now it's just a matter of time before the debt implodes. I'm sticking to my forecast of ~2036. The party is almost over.

mkestrel
mkestrel

Trump is not a Republican. He is a populist which what was required to be the establishment. Trump has made some positive changes like placing more conservatives in the court and reduced some regulation and taxes. I am not sure the taxes is a positive or a negative. Is he perfect, far from it.

He has definitely has fallen flat on reforms of healthcare, Illegal Aliens, H1B visa abuse to name a few. He called the bubble when he was a candidate and has embraced it as president. He said he liked debt. So debt you get.

All candidate lie to some degree and the electorate accept it. I personally want what is best for the country and my children and grand children. Do I think things would be better under a democrat regime, no they are all communists now.

Do I think that Trump is moving the country in the right financial path, no. The FEDs actions in the Repo market is the idiot light on the countries dashboard.

Wise citizens will avoid the noise of the Republicans and Democrats and prepare for inevitable winter. Remember the old revolutionary flag join, or die. That is about citizens not parties.

Rvrider
Rvrider

GDP growth is dependent upon an increasing currency supply — that’s a feature of fiat. Currency supply is either growing or shrinking (inflation or deflation respectively). The idea about being fiscally prudent became moot when the government establishment picked inflation after globalist decided manufacturing would be best accomplished elsewhere. As joblessness increased, the government stepped in to borrow in order to create the illusion of growth. Trump is the latest in a long line of Presidents who speaks with fork tongue. His supporters are mostly people who were left behind. Their blind loyalty is their payback. On the other side, the payback (from Millennials left behind) will be the first communist, ur I mean socialist, Democrat Presidential nominee.

Jojo
Jojo

Republican politicians follow Trump like he is a cult leader.

But perhaps they should consider what happened to the followers of cult leader Jim Jones. If the Senate Republicans blanket acquit Trump, they might find that they have drunk the same proverbial kool-aid that Jones served. [lol]

Jojo
Jojo

People choose their politicians the same as they choose their religion - they focus on the parts they like and ignore what they don't.

GruesomeHarvest
GruesomeHarvest

Trump is trying to guarantee his 2020 re-election. The economy is on the edge so he is hoping a combination of Fed "not-QE" and fiscal stimulus will juice the economy enough to get him through the electiom.

I was watching some nutjob MMT guys talking about this. They suggested Europe should do the same: raise rates and do deficit spending to stimulate the economy. With the current setup, the dollar will get stronger as money flows from low interest rate countries to the US to get higher returns. This agrees with Martin Armstrong's call for Dow 40K. Of course it is all unsustainable and leads to a very bad place.

Mish, I agree with most of what you say, however, I believe you are wrong on trade policy. Allowing the wholesale shipment of jobs and technology to China was a huge mistake. It gutted middle America and should have been stopped long ago.

djhowls
djhowls

The Don is a Business Democrat always has been - always will be

Sechel
Sechel

Face it George W and Obama weren't exactly good on the budget either but Trump takes the cake with his wall spending and a tax cut which did blew up the deficit more than stimulating growth and it certainly isn't paying for itself. On a personal level he sets a bad example with his weekly gof outings at his property. Sure its a drop in the bucket in the over-all scheme of things but its unprecedented in scope and sets the tone.

But this isn't where Republicans are falling down the most. It's not holding Trump accountable to his oath of office and his poor governance. We can survive the poor spending. We might not survive the destruction of Democratic institutions and alliances.

KidHorn
KidHorn

Trump was and is going to run a record deficit. And the national debt will at least double over his 8 years. Anyone who didn't see this coming regardless of what he said is a fool. The same would be true had Hillary won.

Trump lies and is a jerk, but what people miss about him is he is a genuine jerk. He doesn't come across as phony like all the democratic candidates do.

JonSellers
JonSellers

What Republican president hasn't cut taxes and jacked up the deficit in the last 1/2 century? Isn't that what Republicanism is all about?

Anda
Anda

" "I think I could do it fairly quickly...I would say over a period of eight years," Trump added, and suggested he would do so by renegotiating trade deals and creating trade surpluses. "

Public debt is not by nescessity foreign debt, that is to say it could all be owned by Americans. Foreign ownership as reserve currency is only a token needed to play in the dollar circuit. So trade deals and surpluses will not "win back" the public debt, it can be bought back at any time, placing dollars proper in the hands of current owners. The existing public debt will continue to exist until maturity, unless (effectively) monetised. What is possible is to run a balanced budget, and not add more debt, or even use surplus to buy back existing debt and so make its earnings public.

However, public spending is government, you vote for it. Some voters seem to think that everyone else will work for a dollar an hour, that if you stop public spending, the country will reajust to something sensible. It won't, because this spending is baked into the accounts of millions of people, because the finances which touch nearly the whole population are built around it. Even here, we spend our time talking about it. If you want a sensible readjustment then it has to be by public choice and law change, the alternative is just major upheaval without nescessarily implementing a strict budget in what were to remain of the country. It might go that way anyway I suppose, some will say it needs to, and it is fair to protest the existing framework, but to expect government to reform itself ? Not very likely.

Freebees2me
Freebees2me

Mish,

You're absolutely right.

As a Republican, this is pure and simply fiscal madness and republicans should be calling this out. But, the Republicans (including Trump) are way too busy spending like proverbial drunken sailors...

Democrats have always spent like there's no tomorrow, so nothing new there...

But the image that Republicans are "fiscally conservative" is total BS and been laid to rest as the fraud that it is... fake news...

John Q. Public can look forward to paying the piper and it's going to be a big, big bill.... total USD debasement.

nothingbutblueskies
nothingbutblueskies

I'm with you Mish. I like many of Trump's policies but he's a liar with fiscal responsibility. To be fair, I heard a US House representative say that the vast majority of their constituents don't care about the deficit. This corresponds to my own conversations with republicans. I get deer in the headlights looks when I bring up our debt.

If we want to place the blame on anyone, it's on irresponsible citizens who play tribal politics instead of caring about our country. We need a mandatory one year civics class in both high school and college. (Fat chance!)

Tony Bennett
Tony Bennett

"Experts" (and bullz) never fail to connect TWO dots.

Deficits and GDP. A $trillion deficit is almost 5% (of just under $22 trillion) of GDP .... currently hugging 2% growth. Basic math reveals true state of "real" economy.

In the old days quite a few "experts" would trumpet (pure nonsense since it ignored debt growth in all other sectors) that as long as deficit % was less than GDP growth % all was well. Of course, now that deficit % FAR outstrips GDP growth % ... The Sound of Silence from "experts".

Oh, I get it ... once Phase 1, er Phase 2 (Phase 5?) of trade deals passed ... Nirvana!

RonJ
RonJ

The law of exponents. The law of politics.

A parabolic arc bends up faster and faster until it is running straight up.

What happens to a president who does the right thing? Macron. Everybody is on strike. Couldn't get elected dogcatcher tomorrow in France.

Maximus_Minimus
Maximus_Minimus

The best part is, this deficit is probably going to be financed by Euros. How do Euro banks avoid charging customers while living in NIRPvana? Then, to show them, the US will default. There is no other reasonable explanation.

Maximus_Minimus
Maximus_Minimus

"Last night I was so proud to have signed the largest Defense Bill ever. The very vital Space Force was created. New planes, ships, missiles, rockets..."

Eh, a new rocketman?

Rvrider
Rvrider

jeco
jeco

We're heading to devaluation, maybe a new federal reserve system and a very long and severe recession, we've been at the low interest rate punch bowl forever

Anda
Anda

I don't buy the idea that government debt is necessary to fund the dollar reserve status, nor the trade deficit. In effect dollar earners invest in securities to maintain a dollar account, so US public debt is just an earner (or lesser losser), the foreign market for which has an effect of lowering its interest. There is no obligation to run higher fiscal deficits to provide a larger supply of treasury paper, this reverse investment of dollars via government makes it cheaper to do so though.

So I am wondering why increase public debt now, either/and/or :

There is a need for economic/financial "stimulus" due to the US economy being on edge still.

Government complex has self interested control of spending.

The president has his own ideas as to what needs to be done.

The US thinks that it must keep the dollar value in line with other countries devaluing (printing)

There was a would be turbulent move to return dollar finance to the US as interests rates were raised.

Anyone can think of others.

?

I don't know, but the bigger picture transcends US local politics somehow. Question is how much improvisation is going on, or maybe worse, if coordination is in hands outside of our own nations.

In the meantime US registered public debt to GDP

awc13
awc13

clearly he will need another 4 years to fix all of this....

awc13
awc13

what is funny/sad is how democrats and the media (i repeat myself) have now become concerned about the deficit while republicans are all about spending

BaronAsh
BaronAsh

Although I agree with Mish's basic take here (that Trump is just another big-spending pol like all the rest), for years now I've had the feeling that no President can really turn the Big Spending Tanker around, that these things are put into motion by forces deeper and vaster than mere Presidents. Yes, occasionally they have spats about one thing or another and the govt is shut down for a few weeks, but the overall thrust and trajectory hasn't really changed under any Party's administration since ........ I don't know when but at least since WWII.

crazyworld
crazyworld

I agree with BaronAsh. No way to turn the budget deficit especially in a year of election and when economies are soft worldwide.

Furthermore, as for the military budget, Trump must also take into account a certain probability that the perpetual attack of IRAN forces, legally installed in SYRIA, by ISRAEL air force will soon or later trigger a severe reaction from this country towards Israel. Take also into account that the SYRIAN crude oil smuggling by US occupation forces at the expenses of a miserable civil war torn country, is really a very bad decision that dommage a lot the way USA, the lessons teacher in so called "democracy", is judged from abroad.

AWC
AWC

And the progression will continue until every resource is commandeered by the red/blue warfare party.

‘When the elephants wrestle, the grass suffers.’

Top*GUN
Top*GUN

Balance the Budget,,, that's a laugh,,, have you guys looked at the numbers... Defense is around 700 Billion... Deficit over a Trillion... So you cut defense spending to zip, zero, nothing and you would still have a budget deficit of 300 billion,,,, Or we could cut Social Security to zero, it's in the neighborhood of a trillion. Bonus,,, SS isn't Constitutional, so it would be the right thing to cut it to zero.

Advancingtime
Advancingtime

The American people have underestimated the ability of politicians to slip things through when their attention is diverted. According to projections from the nonpartisan Congressional Budget Office, the new budget means the national debt which now tops $23 trillion will soar to more than $33 trillion in 2028.

A trillion-dollar deficit translates into America spending $3,333 more than it takes in for every man, woman, and child in the country. To clarify, this is each year and every year but also fails to include State and local deficits as well as a slew of "off-book" promises and spending. More on this spending gone wild in the article below.

Casual_Observer
Casual_Observer

The goal is to starve the beast until it dies. Trump and Republicans have had this strategy of increasing deficits to get more permanent cuts to government spending but it hasnt worked in states like Kansas because tax cuts never brought in more revenue to offset the loss in revenue from decreased taxes. The irony is most of the increased spending has been in defense. Cut defense spending 50% and the annual deficit is mostly solved.

Casual_Observer
Casual_Observer

Mish I thought Russia was a hoax too until I read the book Sandworm and dug through logs of security databases to understand the signatures of GRU intrusion. Imo the man of the year should be Putin. He is a genius and has been planning everything we are seeing for over a decade. Both parties, the media and the American people played right into his hands. The media hasnt been showing the concrete facts that were validated by multiple intelligence agencies and the private sector over the last 4 years. The GRU even hacked my local hospital via Ukraine and made it look like it was a poorly written piece of accounting software. Russia is bad news and should be exposed but in a meaningful way. I agree with you on CNN and others who have gone after Trump rather than the actual perpetrators. At some point I think there will be multiple proxy wars between the west and Russia over the next decade. The intrusions continue. We can hope to avoid a nuclear war somewhere imo.

TCW
TCW

To fund huge welfare you have to raise taxes, cut spending or dilute the currency. The latter is the easiest to do and keeps the productive wheels moving.


Global Economics

FEATURED
COMMUNITY