"Despite taking in record individual-income-tax revenues, the federal government ran a deficit of approximately $225 billion during the quarter."

Think about this: During the last quarter, the first quarter of the 2018 fiscal year, in an early almost manic phase of the business cycle, we ran an "on budget" deficit of a quarter trillion. We always add more debt than the budget deficit, so easily a quarter trillion.

We don't have a budget. We're about to add an additional debt load, via tax cuts. We managed to accomplished this in spite of being on the verge of adding $100,000,000,000 in disaster funding. Hawks want to increase defense spending to "rebuild" the military by upping the defense budget by $50 billion. We spent zero on Trump's vaunted (probably bipartisan--if we can add earmarks) infrastructure plan.

We are running Obama level deficits during the height of the business/economic cycle in an historic low treasury rate environment.

Does any of this make sense to anyone?

For the record, I am of the opinion that deficits are ok to smooth out the economic cycle. I really wouldn't mind Congress willing to float debt to build roads and bridges, etc. especially during times of higher unemployment to minimize recessions.

It's been a long time since my econ classes, but I'll be damned if I remember any theorists arguing for deficits without end. I tend not to get too excitable and think the people panic too easily, but I have watched the markets this week go berserk. Yeah, I like my retirement account right now, but I seen movies like this one before. I think we're seeing the greater fool theory right now, "Yeah, I'll pay $1200 bucks for an Amazon share that has twenty-five bucks in earnings because it will be worth $1300 in month." (This is honestly what the market is saying, and I'm in).

But I hate to be a sad Nellie, but this is starting to feel like other asset bubbles. Trouble is, hell, Amazon may reach $2000, and I'm too greedy to pass the chance at it.

Weigh in, peeps.

One more thing. Is this a good time to look at rotation to commodities? Seems like every time I think so, I get stuck with almost no gains.
[Post edited by Shenhoo at 01/13/2018 07:31AM]