Milei-nomics for America? Musk Wants "Milei-style cuts on steroids."
- Thread starter What Would Jesus Do?
- Start date
Trump is going to wreck this country.
If your idea of this country is trillions in unfunded transfer payments cycled through Washington D.C., one can only hope he succeeds.
$724,671,896,969 in new debt just since the FY started on October 1st.
That's on pace for a 3.4 trillion dollar deficit.
Which will only increase the already over 1 trillion annually in taxpayer funded interest payments to Wall Street to fund the debt.
What happens if you just keep pushing the debt until interest payments are entirely consuming taxes?
What is the end game of the ever higher debt forever crowd?
BUENOS AIRES, Sept 16 (Reuters) - Argentina's sovereign bonds and stock index climbed in early trading on Monday, as investors cheered an ambitious 2025 budget plan from libertarian President Javier Milei, that predicts robust growth and sticks to a "zero" fiscal deficit.
Argentina's S&P Merval sock index (.MERV), opens new tab hit an intraday record high against its previous peak registered at the beginning of the month. Bonds, which have rallied strongly since Milei took office in December, were up around 1%.
On Sunday Milei had told Congress his 2025 budget would stick by his key pledge to establish a fiscal surplus and that he would veto any bills that threatened his zero deficit plan.
Milei, a right-wing former economist, has taken tough austerity measures to overturn years of fiscal deficits, tackle rampant inflation and stabilize the economy. He has called a balanced budget non-negotiable.
The draft budget foresees the economy expanding 5% in 2025, inflation dropping from over 250% now to some 18% by the end of next year, and the exchange rate weakening to 1,207 pesos per dollar by end-2025 from 960 per dollar now. There would be a primary fiscal surplus of 1.3% of gross domestic product (GDP).
"The new budget bill is very ambitious... but now we will have to see if it is approved and what it really looks like in practice," said analyst Marcelo Rojas.
"The fact though that the government is committed to not spending more than it collects is already an achievement."
You give him too much credit. Like all things, this too shall pass brah. We might be a little worse for the wear, but we will be just fine.
I’m all for efficiency in government but the US economy is not suffering through a recession nor is inflation a concern.
Before COVID, $100 was the magic price point for a hotel room to avoid having meth lab technicians in the room next to yours.
Now it's more like $150.
We'll see whether Milei can succeed. But let's be clear: Trump will worsen the deficit with his promised tax cuts and necessary borrowing; there's no reason to believe he will enforce balanced budgets.
How much of the borrowing is ‘necessary’?
There’s no reason to assume all of it is, and good reasons to assume much of it is not.
In the end poverty figures suppressed by money printing given to the poor is a doom loop policy.
It has been tried.
Does not work.
The best method for reducing poverty is capitalism, not socialism.
The trend is to weaken the federal government. The US will end up more like the EU - where some states are more powerful than the central government and will increasingly go their own way.
There's a tipping point with corruption where it will become extremely difficult to walk it back. We're headed toward that, if not already there.
Milei has done a tremendous job cleaning up the leftist/socialist mess in Argentina. The left destroys everything it touches with its corrosive ideas.
It's 200 after taxes. Dems pretending inflation isn't a concern are high as a kite off of copium.
In what way?
Is Oregon going to join a war in Nigeria?
They’re not going to escape federal law.
They do have the prospect of carving local policies as the 10th amendment explains.
In a way, it tracks. The ones who want bureaucracy and bureaucratic distribution see choices as ‘inefficient’, like Bernie bemoaning the choices of sneakers and deodorant. They’ll likewise struggle to see why the ‘political consumer’ might voyage for greener pastures in a large free trade bloc committed to free travel and common defense, but otherwise largely allowing its constituent states create their own local policies to reflect more accurately the local will. Getting closer to the goal of consent of the governed.
So does this mean Musk wants the budget for services that help retirees and children slashed, while at the same time just bloating military spending like Milei? No fuggin’ thanks.
Argentina’s defense spending is comparable to Switzerland, at less than 1% of GDP.
Switzerland is looking to increase defense spending closer to the NATO 2% goal, is Milei really a bogeyman for doing the same?
I am very unhappy with what Biden did for the country. I am willing to give Trump a chance to do what he wants. let his results speak for themselves.
More like a huge hypocrite with terrible priorities.
Problem is that we saw 4 years of it, and the results were sh**. Sorry, but the only thing objectively worse about Biden was his messaging.
Is Argentina facing any external threats? It's not part of NATO so it doesn't need to hit the 2% line.
Switzerland is likely looking to increase spending in response to Russian aggression in Europe. Has there been an aggressive nation in South America?
It's hilarious like you are pretending that Trump wasn't president before and didn't run up huge deficits of his own.
Democrats and liberals have no answer for these questions because most of them are financially illiterate.
Biden’s own economic advisor could not explain how money is created.
It is up to the GOP to save the Republic.
Biden ran up even bigger deficits. Trump ran on making cuts to the government.
You have to give some context to Trump's deficit, he did ok until covid hit. Biden just kept on spending even after covid was over.
Remove covid and Trump spending during his first administration looks like a breath of fresh air...
Their neighbors have been military dictatorships in our lifetime.
How early did you predict Venezuela would devolve into dictatorship and threaten the territory of its neighbors?
Switzerland has several NATO members and thousands of kilometers between itself and Russia, yet you make the argument that their defense spending is prudent.
Venezuela is making a territorial claim on its neighbor currently. Should Argentina only have a military if its direct neighbors are making threats? If that’s the case, what threats from Canada and Mexico are justification for our bloated military, sprawled across the world?
Is it wise in your opinion to borrow money to send troops to Syria in order to compel a partition of that country between Turkish and Kurdish proxies?
Not really
2017 deficit is 665 billion
2018 deficit is 779.1 billion
2019 deficit is 983.6 billion
His deficits only increased not decreased. Why do you think he is going to be able to decrease the deficits now?
He opposes the big omnibus cr package that was proposed that was filled with wasted spending. It seems like a good start.
We're f***ed then. If you think they are really going to be able to get the debt under control, you are delusional. I would love it if they did, but the GOP always talks a big game on this, but NEVER follows through. "Reagan proved deficits don't matter" - Dick Cheney.
We're a part of NATO so we should hit the 2% mark.
However I am an advocate of dropping our defense spending back to that 2% mark.
Venezuela is not a legitimate threat to Argentina which already spends around 3 times as much as Venezuela. Venezuela doesn't have nukes either.
There isn't a legitimate reason for Argentina to be concerned about Venezuelian aggression.
However Russian aggression should concern the whole of Europe, especially with noted Putin fanboy Donald Trump as POTUS because it's guaranteed that Trump would not assist them in the event of Russian aggression upon them.
2023 deficit a trillion dollars less than the 2021 deficit and less than half the 2020 deficit.
Do I think they were going to get rid of the deficit all together? No . . . but neither will Trump and he's not going to significantly reduce it either because the first thing Republicans want to do when they take power is pass a tax cut which will reduce revenues.
You want to cut military spending by 33%!
You must be a 'Putin puppet' to make a radical suggestion like that!
How early (what year) did you predict Venezuela's Bolivarian revolution would start making territorial threats on its neighbors?
I bring up Venezuela because it's realistically the same kind of threat to Argentina that Russia is to Switzerland, but more importantly it is indicative of the unpredictable nature of neighboring regimes.
Argentina's neighbors have been military dictatorships in our lifetime.
It's one thing to hope they never are again, but another thing to plan as if they could never be again.
He couldn't quite fix, to your satisfaction, everything trump f**ked up in his first term. Sorry, that you aren't bright enough to see that. But with any intelligence, you wouldn't be a magat.
Yep, and if you remove just $1 trillion in annual expenditures his first administration looks like it ran a surplus every year...
Biden deficit performance:
2021 = 2.77 trillion
2022 = 1.38 trillion
2023 = 1.70 trillion
2024 = 1.83 trillion
Going back to a trillion dollar deficit would look pretty good right now,.. I stand by my breath of fresh air comment.
I never like to use touted 'deficit' numbers, because they invariably leave certain categories of spending out.
Increase in federal debt at the end of each fiscal year is the real barometer, that's what we carry interest expense on evermore:
The ~9 billion dollar a day pace of new debt we're on so far for this fiscal year would turn into a 3.4 trillion dollar annual deficit.
Nope,.. This tax cut is already in effect and currently scheduled for expiration,.. Making it permanent causes no additional reduction to the current revenue stream....
Many things are under discussion, but extension of the existing Trump tax cuts is the only tax item immediately on the table,.. You said "first thing".
