The election is finally over.
The apparent solution to everybody’s problems now seems to be to borrow a bunch of money so they can improve the military, improve infrastructure, and a few other favs of Trump’s. Since he wants to reduce taxes dramatically, the government will have to borrow a boatload of money to do that. They have already borrowed over $200 billion since the election, so how far this goes is anybody’s guess. Trillion is the new Billion.
The Committee for a Responsible Federal Budget, a bipartisan group that advocates fiscal restraint, estimates that Trump’s plan to cut taxes could raise the national debt by $11.5 trillion over the next decade to roughly $35 trillion in 2026. That’s a lot of moola. Obviously debt is necessary in a modern economy, but pushing the burden of repayment to our children and grandchildren is unconscionable. I can anticipate more wars and national emergencies down the road, to give even more unlimited power to the government to usurp your rights and assets.
There is a lot of scuttlebutt about getting rid of cash in the US and only using digital money. Not only would the government know exactly how much you have, but this would make it incredibly easy to take your money when a new financial crisis hits under the excuse of national emergency. The Indian government has recently outlawed large rupee bills and the lines at the tellers and growing by the hour to deposit the rupees before they become worthless. In Vietnam in 1968-69 they wanted to change MPC (military payment certificates, like monopoly money) to avoid local merchants from hoarding cash. C-day, as it was called, was confidential and for 24 hours military personnel were restricted to the base to prevent bars, prostitutes and locals from swapping the old MPC for the new bills. (See https://en.wikipedia.org/wiki/Military_payment_certificate)
This is what happens when you put off till tomorrow, what you should have taken care of yesterday. I’m talking about Quantitative Easing and other far-flung solutions to prevent having to deal with the economic crisis cause by these same policies.
This reminds me of Tennessee Ernie Ford’s hit in 1955, 16 Tons. For those of you too young to remember, it goes like this:
You load sixteen tons, what do you get
Another day older and deeper in debt
Saint Peter don’t you call me ’cause I can’t go
I owe my soul to the company store.
In those days the company store was where you bought everything, and if you didn’t have cash they would loan you the money, knowing full well that they would withhold your paycheck to pay the money you owed at the store. You could never leave or retire, you owed too much to the company store.
Does that ring a bell?