Pausing $500 billion or so in annualized spending isn't just a 2% hit to GDP (28 Trillion), it has cascading effects since government dollars are considered safe and that money circulates through the US economy several times over This is speedrunning towards a massively recessionary environment - ThreadSky

esghound.com • 26 days ago

Pausing $500 billion or so in annualized spending isn't just a 2% hit to GDP (28 Trillion), it has cascading effects since government dollars are considered safe and that money circulates through the US economy several times over

This is speedrunning towards a massively recessionary environment

Comments

ladysnarkansas.bsky.social•26 days ago

How does a weak dollar benefit the wealthy?

esghound.com•26 days ago

there is no logic or reason here

stevetownsend0.bsky.social•26 days ago

The tech bro accelerationists want to destroy the US dollar and replace it with crypto. Debt default is an explicit goal.

esghound.com•26 days ago

I think they knew their dumb CapEx orgy was on its last legs so may as well just nuke it all

stevetownsend0.bsky.social•26 days ago

Watch for musk and co to push hard on the "Strategic Bitcoin Reserve". Anybody in either house of congress who supports this should be primaried into oblivion at the next opportunity.

bitcoinbro.bsky.social•26 days ago

Bitcoin is the best thing that could happen. Separating money and state should be a top priority. Ask your favorite LLM what a world on the Bitcoin standard would be like. Dare ya.

stevetownsend0.bsky.social•26 days ago

My bet is the Project 2025 people will actually push back on this - it's not in their interest to totally collapse the country.
Trump himself probably pro - to him it's just one more personally-monetizable scam. Let's hope that charisma-free vance tells him it *must* go ahead - that might stop him.

gkfellows.bsky.social•26 days ago

https://www.nbcnews.com/business/economy/economy-if-trump-wins-second-term-could-mean-hardship-for-americans-rcna177807

juniorminz.bsky.social•26 days ago

That lunatic fascist Milei did this in Argentina and poverty skyrocketed and living conditions worsened for average working class. but the foreign investors loved it. Profits over people.

esghound.com•26 days ago

Argentina needed severe reforms. His solutions were insane but at least you can credibly say change was needed, this is just suicide for funsies

juniorminz.bsky.social•26 days ago

Argentinians don’t need to starve

esghound.com•26 days ago

no of course not but you can't blame them for wanting something radically different, like it's understandable on a fundamental level in a way this isn't

juniorminz.bsky.social•26 days ago

Milei is redirecting the so called savings from slashing government to the bone to foreign corporations and investors. The sovereign gold reserves were handed over to undisclosed European location. It’s a smoke show and it was a POC for what Trumps puppet masters are doing in US

esghound.com•26 days ago

yes yes yes, it is bad and insane, no disagreements here. I'm just shocked that we collectively signed up for this when things are as stable as they are (if very far from perfect)

juniorminz.bsky.social•26 days ago

Oh and us US tax payers are subsidizing this via IMF. Milei is racking up more debt burden by taking more money from IMF

f1nance.bsky.social•25 days ago

Agreed. Also, the non-government economy has been shrinking for awhile. Every positive GDP read lately has been propped up by massive deficit spending (~6% GDP directly). Idk if it’s possible to paper over a recession this way or just delay, but I know what’ll happen if it suddenly stops.

esghound.com•25 days ago

it's all fine, btfd

f1nance.bsky.social•25 days ago

I did in $NVDA, but I’m about the most risk off I’ve ever been.

esghound.com•25 days ago

Short term trade? Because 30x trailing revenues should make you nervous for any sort of fundamental holding analysis imho

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