ELDER PATRIOT – We are well down the road to a financial calamity because of our elected representative’s and their appointees’ addiction to spending our money, even if they have to borrow that money from unborn generations.
This has been going on unabated since Franklin Roosevelt used the shock of the Great Depression to implement his “New Deal’ agenda and institute massive new government spending. Since that time Lyndon Johnson and Barack Obama greatly expanded Americans dependency on government and that was accompanied by the peoples’ willingness to surrender their freedoms like drug addicts desperate for their fix. And, politicians were only too happy to take advantage of this situation.
Republican presidents merely gave lip service to restoring individual freedoms, smaller government, and economic independence to America. History shows that government continued to grow irrespective of which party controlled the White House or Congress.
President Trump submitted his first budget yesterday and it proves his campaign promises were a lot more than hot air. It also proves he understands that our national debt is the greatest threat to our freedoms and security that we face.
Trump inherited debt of $20 trillion. If interest rates rise to even 5% – except for the Federal Reserve’s pathological attempt to save the Obama economy from collapsing that’s a level that has been reached and surpassed many times in the past – we will be forced to pay $1 trillion annually just to service that debt. That translates to more than of 30 cents of every tax dollar being used to pay for spending years ago with the debt remaining.
The new president understands this and is trying to avert economic Armageddon from occurring. And, so President Trump is working to impose a new paradigm on the way Washington governs. It represents a break from the free-spending paradigm of FDR, LBJ and BHO that every president and Congress, Democrat and Republican, have been locked into either for lack of vision or commitment to the survival of the Deep Sate.
Trump’s 1.1 trillion dollar budget outline breaks with the destructive policies of the past. It slashes discretionary spending drastically in line with his campaign promise to save our country from bankruptcy. It also protects Americans from the imposition of draconian financial measures by lawmakers that would be the excuse for stripping us of our remaining God-given rights. Perhaps this explains Republican statists’ resistance to what can only be called a common sense proposal.
Republicans in Congress said his proposal dead on arrival. Apparently, we have been running deficits for so long that Congressional Republicans consider any attempt to even maintain the same level of deficit spending (that means continuing to overspend but not overspending by any more than they did in the previous year) as taking “draconian” measures.
As Mick Mulvaney, Trump’s Director of the Office of Management and Budget (OMB) explained when he officially announced the president’s proposed budget, “since the President wanted to do that (add spending to rebuild our depleted military, increase border security, improve law enforcement, and fund school choice) without adding to the already-projected $488 billion deficit in fiscal year 2018, there were reductions elsewhere to offset dollar for dollar, all of those increases.”
This was just too much for most Republican leaders, interested only in protecting their fiefdoms, to accept.
Kentucky Republican Hal Rogers has spent the last six years as Chairman of the House Appropriations Committee after more than three decades on the committee. In other words he was the person John Boehner and Paul Ryan relied on to bring us to the edge of bankruptcy in the first place.
Instead of recognizing the seriousness of our nation’s fiscal condition, Rogers spoke for a large number of his colleagues in the House:
“While we have a responsibility to reduce our federal deficit, I am disappointed that many of the reductions and eliminations proposed in the President’s skinny budget are draconian, careless and counterproductive.”
Realize what he just said, no longer are balanced budgets even a consideration. They now reject even containing the rate of growth of their overspending.
I have witnessed this unwillingness to deal with financial reality many times while in business. It is a primary cause of bankruptcy and is the reason why turnaround experts like Donald Trump and Wilber Ross (Commerce Secretary) have made billions of dollars fixing unnecessarily broken enterprises.
Trump is working hard to make good on his campaign promises. Why aren’t Speaker Ryan’s Republicans?