Could that have had anything to do with recovery from the great recession?
REPUBLICANS YANK OBAMACARE REPEAL BILL
- Thread starter Tony Stark
- Start date
We will let it pass this time. Just remember the last time we got our dander up, the fine citizens of our Tar Heel state got our muskets out and invaded the North.
that's true, and another major part, was borrowing nearly a trillion to fund TARP and stimulus programs. This was accomplished via QE spread out over many months. In the later part of the Obama second term you can see the deficit dropping as revenues increased and expenditures dropped due to a recovering economy.
During QE The Fed bought Treasury bonds on the secondary market. By acting as a ready buyer in competition with other buyers they forced down interest rates and held them down. The Fed also, in operation "twist", sold short term bonds from their inventory and replaced them with the 30 year bonds (qualitative easing) thus holding down mortgage rates and preventing billions in variable rate mortgages from resetting at higher rates. QE is the cheapest way for the Treasury to borrow, but it also can have the effect of expanding the money supply and fueling inflation. However during a deep recession demand for money naturally dropped and the money created via QE did not readily find its way into circulation but remained largely as excess deposits in reserve accounts at the Fed. Hence we did not experience the inflation that many had predicted. Assets the Fed acquired from the Banks in exchange for crediting the banks reserve accounts produce income for the Fed and this income was used for further bond purchases or will be returned to Treasury helping to compensate Treasury for the interest, and eventually the principal, that must paid on the bonds they issue. The TARP account can be viewed at treasury.gov. Altogether it was an amazingly masterful job that the Fed did in rescuing the economy and the financial sector from dire straights. The Fed of course , under Greenspan, played a major roll in creating the crisis in the first place. It refused to properly regulate mortgage underwriting even though Greenspan was well aware of the excesses. The government also contributed by allowing an unregulated swaps market to develop. Just another example of how one can not trust the fox to not eat the chickens once you've let them into the hen house.
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I know the Tar Heels are not to be trifled with.
The deficit started dropping because Obama brought hundreds of thousands of troops home from Bushs wars,raised taxes,lowered defense spending(All of which the republicans in congress opposed ),and tax revenues increased after we stopped losing 500,000 jobs a month and had years of positive job growth.
McCain, Romney and the republicans in congress wanted the opposite,even lower taxes,more defense spending,and keeping the wars going.