Posted on 07/30/2019 6:39:31 AM PDT by SeekAndFind
Most of us know that U.S. government spending is too high. And the deficit and the debt are going to get us one day. So why doesn’t someone do something?
And why has President Trump done a “$320 billion budget deal” with Speaker Pelosi that kicks the can down the road yet again? How come he’s willing to do a deal with Nancy Pelosi that increases spending and raises the debt ceiling through the 2020 election?
Well, of course. Trump wants to clear the decks for electoral action, and he doesn’t want to be stubbing his toe on a debt ceiling crisis just before the election in 2020.
And, don’t forget, Trump ran in 2016 promising not to cut Social Security and Medicare.
What would it take to get the federal budget under control? It would take a ruling class, on left and right, agreed that debt should be controlled. We did it before, as this chart of the federal debt since 1900 proves.
In World War II federal debt went to 120 percent of GDP. Then, for the next 30 years, our presidents, both Republicans and Democrats, brought the debt down to 30 percent of GDP.
But then the nation divided. Democrats wanted to save the world with the Great Society and, after a pause, Republicans said: Not with our taxes you don’t. And so the debt went up to 60 percent of GDP.
Then the Democrats’ plan for a mortgage in every pot blew up in 2008, and the debt went to 100 percent of GDP.
Okay, let’s look at federal spending in the 20th century.
(Excerpt) Read more at americanthinker.com ...
The voters are apparently unconcerned. So why would anyone in Washington be?
The awkward reality is that the United States can finance its debt at almost zero interest. Other nations buy our debt as a valuable investment and this is the dirty secret fiscal hawks do not want to acknowledge.
We have the greatest economy and society in human history.
Others want to come here and if they cannot they want to invest in it and profit from it.
Anyone who thinks the Republicans will propose spending cuts is delusional.
I don’t think either side as a great deal of incentive to drastically reduce the deficit and keep it minimized.
The GOP used to, but that was before the budget ballooned into a matter of Trillions, sums beyond inconceivable to most people.
I think a majority of politicians in both parties have concluded that we will always be in a state of indebtedness for the foreseeable future. Sort of like having a ‘spotty’ credit history. Therefore, you may as well lobby for your own special interests before all the
‘prime meat’ of the budget has been eaten away.
Some expect China to continue buying our bonds even with trade tariffs enacted. A strained, but symbiotic relationship that has lasted over 40 years.
The Democrats have held the House for jus over six months and have already grown the deficit to record levels.
We are a nation that lives on credit cards. When people finally goes broke, someone always excuses them or pay their bills. This is the mentality of our government, only one day we will wake up and no one will excuse us or pay the bills.
Yep. People who blame this all on the Dems at this point are part of the problem.
Because cutting spending will not reduce our debt.
IMO Trump is setting the stage to basically get rid of the Federal Reserve in his second term.
You cannot reduce debt when every dollar in circulation is created by a private bank and loaned to us for interest. How do you pay the interest? You borrow more dollars at interest. The $23 trillion or so that the Us owes is basically unpayable. It might as well be $50 trillion.
Until we do away with the Federal Reserve and put the Treasury department back in charge of creating dollars the debt ceiling is meaningless. IMO Trump does plan to dismantle the Federal Reserve system as it would create havoc in the markets and an economic meltdown. More likely he would somehow overlay the current system with the Treasury department running the show and issuing the money into circulation.
Because cutting spending will not reduce our debt.
IMO Trump is setting the stage to basically get rid of the Federal Reserve in his second term.
You cannot reduce debt when every dollar in circulation is created by a private bank and loaned to us for interest. How do you pay the interest? You borrow more dollars at interest. The $23 trillion or so that the Us owes is basically unpayable. It might as well be $50 trillion.
Until we do away with the Federal Reserve and put the Treasury department back in charge of creating dollars the debt ceiling is meaningless. IMO Trump does not plan to dismantle the Federal Reserve system as it would create havoc in the markets and an economic meltdown. More likely he would somehow overlay the current system with the Treasury department running the show and issuing the money into circulation.
It’s easy. Don’t allow Congresscritters a paycheck until every last dime of debt has been paid. Shutter half the government agencies. Cut the remaining departments’ budgets in half except for the military and security. Close the bleepin’ border. Do not issue any visas for H-1B, other work, student or whatever extended stay. Deport every last illegal alien and visa overstays and certainly no freebies for them prior to their swift deportation. Perhaps put a live bounty on illegals (oh, the horrors!!!). No more college grants or loans until every last dime has been recovered. Cut welfare to US citizens to 6 months twice in a lifetime.
“Some expect China to continue buying our bonds even with trade tariffs enacted.”
China buys our bonds because of their big trade surplus. If that is drastically reduced so will their purchase of US bonds. At that point watch interest rates go up.
We're operating under the budget and appropriations done when Republicans had the Congress.
And any profit from that interest goes directly back into the US Treasury.
What profit? Do you mean taxes? Taxes are paid from dollars currently in circulation all of which were loaned to us at interest.
There is no other revenue that is created without interest that could be used to pay down debt. All we do is pay on the interest. We never pay down the debt. Its unpayable which is why Congress cares nothing about the debt ceiling. They understand how this works. Its the general public that doesn’t.
Why not just have the president say something like he did in 2018 “I will never sign another bill like this again.” A promise like that would have to work wouldn’t it?
From 2011 through 2016 there were repeated threats of a debt default due to House Republican opposition to raising the debt ceiling, and budget sequestration that helped bring on a three percentage point decline in federal spending’s share of GDP.
Did you forget the </sarcasm> tag?
There is ONLY ONE WAY to get the Budget and Debt under control, see Andrew Jackson, the only one to ever do it.
ABOLISH THE 3rd Central Bank!!!
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