Saturday, January 14, 2017
The Debt Will Rise
On Hannity last night, at the end of a segment interviewing Trump strategist Kellyanne Conway, Sean said something to the effect of "and they can keep their raising the debt ceiling. We won't need it" when referring to the Republican controlled Congress.
Unfortunately we will. The government’s finances have been so badly mishandled, we will need to go deeper into debt before we can turn things around. That is just the reality of it. Don’t expect Trump to go into office and start the ball rolling on all of these things and not be borrowing money. We have to. We have no choice. It is going to take a couple of years to get to a point where the debt is no longer growing, and several years yet before it might start shrinking. Might.
Think about it; what is the first thing Trump the real estate mogul does when he buys a dilapidated property to turn it into one of his great landmarks? He takes out loans. He then rebuilds it, “under budget and ahead of schedule”, and then starts turning a profit fast and then starts paying off the loan.
The same thing will have to happen. There is no choice. Even with record tax revenues this past year, the government still has to borrow. Even aggressively tackling waste and fraud in Trump’s first year will not be enough to overcome the spending gap. Added to that, he wants to push for infrastructure renewal, which will cost money.
Our government has grown into a behemoth of spending, and this is all by design. That spending is not for you or any other American citizen. That spending is for lining the pockets of global corporations, K-street lobbyists and the companies they represent, and the corporate-political machine writ large. Even CNN gets a cut.
Why do you think the CEO of Lockheed-Martin came out of Trump Tower the other day with her tail between her legs? Because she just talked to an incoming president who wants to pull the plug on the whole over-budget, past schedule, "cost overruns" scheme that has been the business model of defense companies for decades.
And not just defense companies...all companies who do business with the government and have gained favored status in "bidding" follow this model. It's how they make such high profits. The best thing you could do as a company in the past was get a government contract. You were guaranteed more money than what was agreed to. And you could squeeze those tax dollars for all they're worth with little or no consequences.
Trump means to change all of that, but it isn't going to change overnight. The $50 screwdrivers will still cost $50 for a while. Lockheed-Martin may actually reduce the cost of the F-35 like they said they will, but we're still stuck with the F-35, an expensive, problem-laden aircraft that was little more than a money-making scheme for all involved.
And these are only a few little things among millions of things we waste money on which have all been systematically put into place to funnel the taxpayer's money into the pockets of the powerful globalist elite.
And even cutting all of that stuff out, our national infrastructure and services remain a real "fixer upper". It is unavoidable. We either fix it or let it fall apart. Those who let it degrade didn't care, as long as the money kept flowing. Once that stopped, they'd move on to China or somewhere else they can suck dry.
No matter what, debt is going to rise. It takes a loan to “flip a property”. And it takes time to shut down and fix the whole spending and bidding system.
The good news is, that money borrowed will be used for real, tangible results that will be a part of causing the debt to shrink later. That is something to look forward to. It will be frustrating, continuing to watch that Trillion Dollar clock continue to tick, but there isn't a person or group of people on the planet who could walk into office and stop it right now. Not even if Congress, who has the Power of the Purse, did everything to stop it short of shutting down the entire government.
So keep that in mind going forward. The left, who have never seemed concerned about the debt, will suddenly become concerned about the debt during a Trump presidency.