Wednesday, July 25, 2018

Trump to provide US$12 billion in aid to farmers to ease trade pain
Read more at https://www.channelnewsasia.com/news/world/trump-to-provide-us-12-billion-in-aid-to-farmers-to-ease-trade-pain-10559952

25 Jul 2018 11:49AM
Ricky Lim
Trump by using taxpayers fund of US$12 billion to subsidise China trade tariff will again add on to its humongous public debt which stand at US$21 trillion now and need to pay US$500 billion a year to pay the debt interest.
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Ricky Lim
Also the dollar is bleeding red ink. Tax receipts into the US Treasury in the first five months of the current fiscal year, from October thru February, were $1.286 trillion while outlays were $1.677 trillion. Receipts are growing +4% per year, on average, while outlays are rising +7%, on average.

This mean Trump will have to borrow from banks, financial institutions or overseas lenders of US$12 billion to subsidise China trade tariff - further incurring more debt for US Treasury.

Trump is digging a big hole - for US taxpayers to jump in.


Worst as Trump's public debt is so huge - the debt interest for this US$12 billion will be very high - as lenders will not take a big risk by lending to Trump with such as a high debt leverage that Trump embark on.

Will any lenders trust a "Dai Yi loong" (loanshark) indebted borrower like Trump? Of course charge Trump high high interest lah .....
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Ricky Lim
Trump thought his US$500 billion trade deficit is his BIG strength to attack China's trade tariff.

But China got US$3 trillion reserve and US$1 trillion US Treasury bond that US owe to China.

China US$4 trillion reserve firepower - will beat Trump US$500 billion trade deficit hands down....
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Ricky Lim
Trump is leading US into a big Economic trouble - and his stupid trade war - is pledging US future as his chips.
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