When the Fed prints money, they lend it to a select few financial institutions, banks, at the Fed rate, which is IIRC ATM about 1.75%. Those institutions lend the money to other companies and banks at low rates, and consumers get to borrow money at higher rates, often 20%. However, mortgage rates are about 3% ATM, if you have great credit. I

The S&P 500 is a selection of 500 stocks tracked by Standard and Poor, which, if you invest in that mixture of stocks have historically increased in value about 8% a year. Thus, theoretically, you can borrow money at low rates, invest in the stock market, and make money. However, stocks sometimes decrease in value, and you can lose money. It is risky, Nonetheless, rich people do it, because they have assets to cover losses. A gambler may do it and become rich, or go bankrupt. So the rich get richer with Fed printed money, and we get the debt.

"Economist Mike Kimel has noted that the former Democratic Presidents (Bill Clinton, Jimmy Carter, Lyndon B. Johnson, John F. Kennedy, and Harry S. Truman) all reduced public debt as a share of GDP, while the last four Republican Presidents (George W. Bush, George H. W. Bush, Ronald Reagan and Gerald Ford) all oversaw an increase in the country's indebtedness.[38] Economic historian J. Bradford DeLong, observed a contrast not so much between Republicans and Democrats but between Democrats and "old-style Republicans (Eisenhower and Nixon)" on one hand (decreasing debt) and "new-style Republicans" on the other (increasing debt).[39][40] David Stockman, former director of the Office of Management and Budget, blamed the "ideological tax-cutters" of the Reagan administration for the increase of national debt during the 1980s.[41] Former Treasury official Bruce Bartlett attributed the increase in the national debt since the 1980s to the policy of "starve the beast".[42][43] While noting that George H.W. Bush's budget deal in 1990 was one of the reasons for improvement of the fiscal situation in 1990s, Bartlett was highly critical of George W. Bush for creating budget deficits by reducing tax rates and increasing spending in the early 2000s." -- [en.m.wikipedia.org]

I’m a fiscal conservative and it’s bs to me. Both sides are to blame. Each blames the other but does nothing to control it when they are in power

They don't have a rational case. In fact, the neoliberal philosophy is just a lie to support a greedy lifestyle. It is a load of crap.

@EdEarl It's an enormous tragedy that both parties have embraced neoliberalism. both waste huge amounts of money on corporate welfare and feeding the military industrial complex. This is why we need Bernie Sanders.

@abyers1970 Yes, both sides are corrupted by big money. There are very few politicians who work for the people. Since the Dodd-Frank legislation,the Fed no longer needs congress to increase the national debt; they print money to keep interest rates low, and don't print as much if inflation is too high. It must be nuanced more than that, but I'm no expert.

@RoboGraham I fully agree.

Yep. The GOP complain that Dems spend too much on social programs, but the deficit reduced during Clinton and Obama, and has increased under Bush and Trump. They don't care about the deficit (increas ing natuonal debt) as long as they are paid $$$ for enriching the oligarchs. That is welfare for the rich.

@EdEarl Actually under Obama the national debt shot up at a phenomenal rate. Under Trump it continues to rise but only gradually.

The debt was under control when Clinton left office but GWB Ran it up hugely with his useless wars.

@WilliamFleming The debt jumped $1T in October, That is huge, and IIRC has never jumped that much in one month before. Please check your facts.

@WilliamFleming Obama took office in the deepest recession since the great depression of the 30s. Government spending is traditionally used to boost the economy in a recession. We should be paying down the deficit during this period.

@rogueflyer I agree on both points. I don’t blame anyone. We need to elect true leaders and be prepared to bite the bullet on spending. Medicare eats up a third of the budget and needs to be curtailed. SS also needs fixing. Enough with stupid wars. Curtail military spending.

@EdEarl It’s a trillion per year, not per month. Look at the graph near the end of this article: The percentage increase for Clinton, Bush and Trump was about the same. Obama’s was much higher because of the recession.

[businessinsider.com]

@WilliamFleming I'm reporting what I've read and see on news reports. If it is misleading, it is not my lie.

It is a fact that the debt jumped $800B in the month of Oct 2019. [wolfstreet.com]

TY

For sure. It will take a constitutional amendment to eliminate buying elections.

Curse them.

Which president ran up the highest deficit in US history?

@Happy_Killbot

George W. Bush. President Obama inherited that mess.

@LiterateHiker But he still signed the $253 billion stimulus package into effect in 2008, increased the defense budget to $800 billion per year, and in 2010, the Obama tax cut increased the deficit by $858 billion.

Bush had a large deficit increase too, because of the war on terrorism, hurricane Katrina, and the 2008 bank bailout.

Obama still increased the deficit by more than twice what Bush did.

@Happy_Killbot Obama was a neoliberal just like the rest of them since Regan. He bailed out the banks and corporations, fed the military industrial complex, expanded our foreign wars, and kept the tax rates low. He didn't even manage to get a single payer healthcare system through a Congress ruled by a super majority of his own party.

You are right on both counts.

Things are changing for other reasons. Tesla will bankrupt the fossil fuel industry. Automation will take most jobs. And, climate change will force billions of people from their homes. IDK how economies, government and culture will change, but it will be traumatic.

@EdEarl Fine with me. We're killing our planet. We're over-populated.
We don't deserve what we have. We aren't doing anything to save ourselves.

@KKGator I dislike what my children and grandchildren will endure.

@EdEarl I don't like the idea of innocents having to endure any of this. I really don't.
It's why I hope for an asteroid. A big one. Enough to end things instantly.

@Seeker3CO So would I. At this point, I really think it's out of our hands.

@KKGator We have the ability to mediate the consequences. If the world stopped eating meat, we would have about the same effect as everyone driving electric vehicles. People don't want to take control; they want someone else to magically fix it.

@EdEarl All true. Which is why I don't care if humans become extinct.
We're not that great.

We pay for those things with taxe; we pay part of the militaey. The military budget is bloated, so that defense contractors make billions in profits. It's budget is about $750B/yr, and we get almost nothing for that money.

As an example of bloated budgets, take NASAs Space Launch System with Boeing as prime contractor. It has already cost $2B, and will take more years to complete, and perhaps another $2B. Each launch is expected to cost $500M, but estimates are notoriously low. It cost over $1@B to launch each Space shuttle. We don't know how much SpaceX will spend developing its Starship, but Elon says it will be less expensive than the Falcon 9,which is about $62M Starship will put 100 people and 100 tons into orbit, refuel in orbit, and carry those people and the cargo to the Moon or Mars. SLS will put a few people on the moon.Moreover, Starship will be operational before SLS makes its first test flight.

If military contractors were as efficient as SpaceX, the military budget would be closer to $75B than $750B.

@EdEarl All I heard was let's privatize the military!

Make it happen!

Lol, no that's a terrible idea.

@Happy_Killbot Was not my intent that you infer privatizing the military. Just pointing out how grossely inefficient it is managed, which is due to the oligarchs running the country. Thus, we go further into debt, while the oligarchs get richer, and we get the short end of the stick.

@EdEarl well, no the problem is more complicated than that, the military still buys from the lowest bidder. The real expenses come from quality control, and the fact that the US is basically the only country that has global capability.

The increasing debt is something that is institutional to the banking system, which creates twice as much debt as it creates wealth.

It's OK for each one to have a fine cell.

@EdEarl an individual Guillotine would be better..

@Charlene I'm opposed to the death penalty.

@EdEarl eat the rich!

@Charlene Koch filet.

They are crying over E. Warren's wealth tax. We must force them.

@EdEarl it would be hard...but they need to step up and do a great deal more than they are doing now! I am not a fan of ‘rich cry babies!’

@Freedompath WE need to vote the corrupt politicians out of office.

@EdEarl good start!