Boy, I’ll tell you what, Fox News is having one helluva day when it comes to cramming lies down the throat of the American public.
And look, that’s saying something. Because Fox’s raison d’être is lying to the public. So when they’re doing so much lying (or otherwise giving Trump administration officials a forum from which to lie) that it merits special mention, well then that’s truly remarkable.
Earlier today, former CNBC star (and current embodiment of the phrase “what the actual fuck?“) Maria Bartiromo, hosted a characteristically smug Steve Mnuchin who was trotted out to refute “rumors” that Trump is still hell-bent on pulling the U.S. out of the WTO.
That went about like you would imagine and the defining moment was when Steve gave the old wink, wink to Maria about “fake news”:
You're welcome… pic.twitter.com/MUNpopm5mz
— Walter White (@heisenbergrpt) June 29, 2018
Well, Maria also hosted fellow CNBC alumn (and “Gordon Gekko doll, original, in box”) Larry Kudlow, for a discussion about Trump’s economic “miracle.” Here’s what Larry had to say about the deficit:
Got that? “The deficit is coming down and it’s coming down rapidly.”
No, Larry, it’s not. That is a demonstrable, bald-faced lie. Period. Everyone knows the deficit is exploding – that’s the main criticism of Trump’s fiscal policy.
As WaPo correctly notes, “there is no publicly available justification for [Kudlow’s] claim.”
But that reminder is for public consumption – that is, it’s meant to communicate to the layperson that what Kudlow is saying has no basis in reality. For those of us who spend our time steeped in this debate, Kudlow’s contention is flat out laughable. All anyone has been talking about for months on end is the deficit.
Just ask Jeff Gundlach, who earlier this month said this in a webcast:
It’s pretty much unprecedented that we’re seeing this level debt expansion so late in an economic cycle. Increasing the size of the deficit while we’re raising interest rates almost seems like a suicide mission.
Or just ask Goldman, who wrote this earlier this year:
Federal fiscal policy is entering uncharted territory [as] Congress has voted twice in the last two months to substantially expand the budget deficit despite an already elevated debt level and an economy that shows no need for additional fiscal stimulus. While most of the recent fiscal expansion has not come as a surprise to us, this nevertheless raises new questions about the plan for US fiscal policy.
Or hell, just ask the CBO, which in April projected that the deficit will hit $1 trillion in 2020, two years ahead of previous estimates (and I’ve embedded the full CBO report at the bottom of this post for those who are inclined to review it in light of Kudlow’s demonstrable lies):
For God’s sake, the CBO issued a report just 48 hours ago (it’s also embedded in full below) that contained this passage and idiot-proof (but not Kudlow-proof) visual:
In CBO’s projections, the federal budget deficit, relative to the size of the economy, would grow substantially over the next several years, stabilize for a few years, and then grow again over the rest of the 30-year period. In total, deficits would rise from 3.9 percent of GDP in 2018 to 9.5 percent in 2048. (Adjusted to exclude the effects of timing shifts that occur because fiscal year 2018 began on a weekend, the budget deficit in 2018 would be higher, at 4.2 percent of GDP).3 Those large budget deficits would arise because spending would grow steadily under current law, and revenues would not keep pace with that spending growth.
If you need more, you can read all about it here:
- Goldman Warns On U.S. Fiscal Policy: ‘We Are Heading Into Uncharted Territory’
- ‘Is Nobody Gonna Tell Him?’ MAGA And The Pedal To The Metal Economy
- ‘This Is Poorly-Timed’: Credit Suisse Ups Rate Hike Forecast Amid Budget Boondoggle
- Albert Edwards: ‘Trump’s Grotesquely Ill-Timed Stimulus Will Be Trigger For Market Implosion, Recession’
Of course Kudlow knows better. Or maybe he doesn’t. This is the same old bullshit that he’s been pushing for years. Basically this: “We’ll make up for it in growth”.
That’s bullshit. No we won’t. And you won’t hear any mea culpas when this turns out exactly like it always turns out. Especially not from Maria Bartiromo who, as CBS dryly notes, “did not appear to challenge him on that statement.”