Why the GOP’s Budget Betrayal Is Even WORSE Than You Think

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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.”
Psalm 37:21-22

7 COMMENTS

  1. A well informed article and opinion! I used to follow this fairly close years ago but got discouraged over the silly politics between the two parties of “the people.” Regarding this subject there is no difference between the two. In this case the dems are probable more truthful – at least they don’t try to hide it, bury it like a Tom cat, or add nonsense to make it smell better. 50 years ago a great book came out entitled “The Rich and the Super-Rich” by Ferdinand Lundburg. He more or less predicted the mess we see today and detailed the collusion between politicians and corporations. We sadly see this exact combination sitting in the White House – one who is also a consummate salesman. I really really hate saying this but in this case Nancy Pelosi may be right about the crumbs. A little now to satisfy the “sheeple” then the crushing debt burden takes over. My take away from this is that this gigantic financial house of cards is being held up by non other than the Lord Himself who has His fingers on the one card, when pulled, collapses the whole corrupt system. He is control!

    • Is it any wonder the elites are building hideaways out in New Zealand? The people who know math realize the music will stop soon and then there will be a problem.

      https://www.theguardian.com/world/2017/feb/17/billionaires-bolthole-new-zealand-preppers-paradise

      “It is an ancient landscape imbued with a natural sense of drama, where the stars blaze bright every night and the nearest town has no traffic lights. At 18,000kms from London and 23 hours by plane from New York, you are reliably at the end of the world – but also an eight-minute drive from a supermarket that stocks duck confit and chilled Veuve Cliquot.”

      I typically have the ’95 Krug Clos d’Ambonnay with my duck confit, but I guess the Veuve Cliquot will do for some people.

  2. I am most disappointed, as I heard that Planned Parenthood will still be funded for the next 2 years in this bill. We could save $1 billion right there, but that’s peanuts to the way Washington spends….

  3. Wee Wee, Mon sheree!(??) What is 95 Krug Clos d’Ambonnay? Did you misspell “duck outfit?” (Just teasing – my French – not so good.)

    • You’re curious about the ’95 Krug Clos d’Ambonnay? Oh yes, it is excellent. Not at all like that swill from ’96 if that’s what you were wondering.

  4. No. No. Just being facetious. I couldn’t tell a 90 something from anything else. Years ago after high school I remember “Red Mo” (Red Mountain wine @ 99 cents a gallon – real “swill!”). Not a time I’m all that proud of. [How did we get on to this subject?] One thing for sure, the “elites” won’t be drinking Red Mo or Thunderbird.

    • Same here, I was just mocking the elites. I wouldn’t be able to tell the difference between Ripple and the good stuff.

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