Conservative Review: We always knew Republicans don’t care about debt and have no intention of cutting spending. But at least they could have used the deficit to make the tax cuts permanent and further fuel economic growth. Instead, they made government spending permanent and increased spending to unconscionable levels.
The beatdown in Washington last week was so swift that many of us couldn’t find time to catch our breath and analyze the consequences of this bill. Taken in totality, this bill ensures that we will never recover from the debt crisis.
- Spending is increased by $296 billion for two years
- The increased health care spending will ensure that we never restore a consumer-driven market
- Given that the spending offsets will never materialize, this bill will add well over $100 billion in net interest payments over the next 10 years to service the higher debt
- In just nine years, interest on the debt will rise from about $300 billion to over $800 billion because of rising interest rates more …
Opinion: We have said it many times. Our president is a real estate mogul and using massive amounts of debt is the way he built an empire. As for the rest of Congress, deficit spending has gone on unabated since and including Ronald Reagan.
Last week the Dow Jones Industrial Average dropped 1,175 points as the bench mark 10-year Treasury note rose to a 4 year high.
But the market chaos really started on January 31 when the US Treasury announced that it needed to borrow $995 billion to pay for the out of control spending. To do so the treasury would have to flood the market with additional bonds putting the economic recovery in jeopardy by driving interest rates higher.
While all that was going on, Keynesian Federal Reserve governors ran around the country calling for even higher interest rates, despite the future increase in debt payments.
Over $4 trillion in shareholder equity was wiped out and now the government wants an additional $1.5 trillion in infrastructure spending. Why not $2 trillion or 10? …
If all that sounds dangerous, it’s because it is. The US $20 trillion debt when combined with at least $100 -$150 trillion in unfunded liabilities (Welfare, SSA, Medicare, Medicaid) will not only never never be paid down but, with the new budget allowing for trillion dollar deficits along with higher interest rates, a future disaster is assured.
“The wicked borrows and does not repay, But the righteous shows mercy and gives. For those blessed by Him shall inherit the earth, But those cursed by Him shall be cut off.”