The House passed Senate Republicans' version of the reconciliation package on Thursday 218-214 in a largely party line vote. Only two Republicans joined Democrats and voted against the bill -- Reps. Thomas Massie (R-KY) and Brian Fitzpatrick (R-PA). The so-called "big beautiful" bill will make President Trump's tax cuts permanent, slash the social safety net, add trillions to the national debt, cut clean energy incentives and substantially bolster the administration's sweeping mass deportation agenda.
Another aspect of this massive debt ...
Pres Trump has been giving Chmn Powell grief about not lowering interest rates.
Yet Pres Trump is requiring the US to borrow more, a lot more, A LOT MORE.
So, the basic economic rules of supply and demand apply also to US bonds ...
If you want more people to buy them, you have to lower the price. But, with bonds, when you lower the price the interest rates goes up.
So, Pres Trump's demand for Chmn Powell to lower interest rates, is that making it more difficult for the US to finance it's debt?
Add to that ... China, a major purchaser of US debt in the past seems to be backing off from those purchases, maybe even trying to sell the bonds it current owns.
Is China Engaging in Large-Scale Dumping of US Treasury Securities? (April 2025)
internationalbanker.com
... Speculation has persisted that China did not, in fact, "ignore" the Trump tariffs but instead dumped substantial quantities of its US debt holdings. "China may be selling Treasuries in retaliation," wrote Ataru Okumura, a senior interest-rate strategist at SMBC Nikko Securities in Tokyo, in a note to clients, as reported by Bloomberg on April 11. If so, China has an incentive to show "it won't hesitate to cause turmoil in the global financial market in order to improve its negotiating power against the US".
Yields also markedly rose overnight after US markets closed, when overseas markets were active. "These overnight spikes are more than just market noise. They may be the clearest signal yet that China is quietly -- but deliberately -- selling US Treasuries," Joel Shulman, the founder, managing director and CIO of EntrepreneurShares, observed in an April 9 article for Forbes. "And the implications could be significant for the US economy and financial markets."
When reviewing China's recent actions regarding its net US bondholdings"a period that has seen the country sell substantially more US Treasuries than it has bought -- one might be inclined to suggest that Beijing could be behind this latest bond-market rout. ...
Yeah, remember when Pres Trump TACO'd on his huge China tariffs within days?
Could the above be the reason?
imo, this does not not look like a happy outcome to me.
Trump tax bill averts one debt crisis but makes future financial woes worse
www.reuters.com
... President Donald Trump's tax-cut and spending bill, which passed Congress on Thursday, averts the near-term prospect of a U.S. government default but makes America's long-term debt problems even worse. ...
Longer term, however, the bill has largely been seen as bad news for the U.S. bond market and the nation's fiscal health. It will add $3.4 trillion to the nation's debt over the next decade, nonpartisan analysts have estimated.
That would exacerbate concerns over additional bond supply and dwindling demand for U.S. Treasuries that have been a key driver of financial markets in recent months.
"The bill contributes to some of the structural concerns around Treasuries, with respect to No. 1, ongoing fiscal deficit and elevated debt levels, and No. 2, inflation," said Mike Medeiros, macro strategist at Wellington Management.
BlackRock warned on Monday that foreign buyers were already souring on American debt. There was a real risk that demand for the $500 billion in debt the U.S. issues every week will fall even more and push borrowing costs higher.
"We've been highlighting the precarious position of the U.S. government's indebtedness for some time now, and, if left unchecked, we view debt as the single greatest risk to the 'special status' of the U.S. in financial markets," BlackRock's investment managers said in a note. ...
#14 | Posted by ScottS
The Congressional Budget Office (CBO) is a nonpartisan agency respected by both parties for providing independent budget analysis. The federal deficit is driven by a combination of factors: rising spending on programs like Social Security, Medicare, and interest on the debt, as well as tax policy choices[1][2]. Both parties have contributed to these trends over the years.
Regarding mass deportations, multiple economic studies show they would actually shrink the economy and cost the government hundreds of billions of dollars, not save trillions[3][4]. Immigrants, including undocumented workers, contribute significantly to the labor force and economic growth[5]. Mass deportation would lead to labor shortages, higher prices, and a smaller GDP[3][4].
On poverty, research shows that targeted government aid, like the expanded child tax credit, has helped cut poverty rates dramatically in recent years[6]. The idea that helping people in need traps them in poverty isn't supported by the data; in fact, immigrant poverty rates fall faster than those of U.S.-born citizens as they gain a foothold in the economy[7].
Both parties have different approaches to spending and poverty, but the evidence doesn't support the claim that one side simply wants to give "free stuff" while the other only offers opportunity. The reality is more complex, and effective policy usually requires a mix of support and opportunity.
[1] bipartisanpolicy.org
[2] fiscaldata.treasury.gov
[3] www.americanimmigrationcouncil.org
[4] www.bakerinstitute.org
[5] www.migrationpolicy.org
[6] www.nytimes.com
[7] www.bls.gov
[8] www.heritage.org
[9] inequality.stanford.edu
[10] www.pgpf.org
@#32
I found this one ...
www.washingtonpost.com (June 2024)
... Neither candidate has made debt reduction a priority while in the White House, according to research released Monday by the nonpartisan Committee for a Responsible Federal Budget. The debt grew by $8.4 trillion during Trump's first term, while Biden so far has added $4.3 trillion, according to the group. ...
What's yer current trolling Alias got?
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