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Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: Steve G.
Date: October 12, 2017 01:32PM
That is correct: Trump has no idea of what he's talking about. This is not good.

Trump just claimed stock market gains actually offset national debt
[www.cnbc.com]
President Donald Trump on Wednesday said that, "in a sense," gains made by private financial markets reduce the national debt. The claim is incorrect on its face, but it does point to how the president views the economic interplay between the federal government and Wall Street.

"The country — we took it over and owed over $20 trillion," Trump said in an interview on Fox News, referring to the total national debt, which has hovered near $20 trillion since early 2016.

"As you know, the last eight years, [the federal government] borrowed more than it did in the whole history of our country," Trump said. "So they borrowed more than $10 trillion, right? And yet we picked up $5.2 trillion just in the stock market. Possibly picked up the whole thing in terms of the first nine months, in terms of value."

"So you could say, in one sense, we're really increasing values. And maybe in a sense we're reducing debt. But we're very honored by it," Trump said.

While it's true that U.S. stock market indexes have risen markedly during Trump's time in office, the current gains are part of a bull market that began in the spring of 2009, when the country began to recover from the Great Recession and the collapse of the housing market.

And it's absolutely the case that the national debt increased by $9 trillion during President Barack Obama's time in office, but many were scratching their heads at Trump's implication the debt was lessening because markets are increasing in value.

For evidence that the two metrics have little to no bearing on one another, look no further than the eight years of the Obama presidency: Between 2009 and 2017, the S&P 500 returned 235 percent while the national debt soared.

And while Trump likes to talk about "reducing debt," the economic policy proposals he's unveiled so far, especially his tax reform plan, could easily add another trillion dollars to the debt, according to economists.

A White House spokeswoman did not immediately respond to CNBC's request for additional information about the president's comments.
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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: pdq
Date: October 12, 2017 01:36PM
Yeah, I saw that. And he overestimated the stock market gain, and claimed the gain starting last November (hmm - who was president then?)

And of course, he wants to make sure that even less of those gains ever get applied to our debt, so it strikes me as another Trumpian non-sequitur.
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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: $tevie
Date: October 12, 2017 02:21PM
I read some article earlier today on Market Watch that was trying to stick up for the President. Evidently if you believe in trickle down, this concept is its silly little cousin.



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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: cbelt3
Date: October 12, 2017 03:51PM
Trump faithful co-worker today yammered about "Obama printing $Trillions" and the stock market took up the slack. So it's a talking point in the wingnut support network where they all get their instructions from Vlad.

I really didn't want to start an argument explaining that Congress sets the budgets and tax rates, and the President merely executes it. And then explaining what he SHOULD have learned in MacroEconomics. Unless his school didn't teach that to Engineers. Mine did.
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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: Steve G.
Date: October 12, 2017 06:18PM
Quote
cbelt3
And then explaining what he SHOULD have learned in MacroEconomics. Unless his school didn't teach that to Engineers. Mine did.


Economics Made Tweety
Trump University for Hire Education
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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: Speedy
Date: October 12, 2017 08:26PM
At least he isn't suggesting investing Social Security in the equity markets.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: Steve G.
Date: October 12, 2017 09:30PM
Quote
Speedy
At least he isn't suggesting investing Social Security in the equity markets.

Did you read ahead in the script? Or maybe that was a leaf that dropped out of Weasel Paul Ryan's notebook.
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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: Steve G.
Date: October 12, 2017 10:26PM

Cover of Forthcoming Textbook for Trump University Economic 101
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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: TheCaber
Date: October 12, 2017 10:36PM
"Fun with PhotoShop® For Dummies"



=TC
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Re: Moron-onomics: "Trump just claimed stock market gains actually offset national debt"
Posted by: max
Date: October 13, 2017 02:24AM
Quote
Speedy
At least he isn't suggesting investing Social Security in the equity markets.

Yes, yes, like the idiots in charge of its Norwegian equivalent did?
Boy, oh, boy, are they sorry now....
[forums.macresource.com]
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