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Economy

Our $20 trillion debt and how the 1% can pay it off

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Our 20 trillion debt and how the 1 can pay it off

As the left and right battle atop the D.C. throne, our country passed $20 trillion in debt. I wanted to take a little bit of time and put this number into perspective. Hopefully, it will become all too clear just how much this debt is and why the BS crowd’s strategy of taxing the 1% won’t come close to addressing the problem.

I should have clarified above, BS is the acronym for Bernie Sanders… potayto potahto, I guess.

According to Forbes (2017), there are 2,043 billionaires on the planet with a total worth of $7.7 trillion. That’s a whole lot of money. Let’s steal it-all of it.

If we seize 100% net worth of every billionaire on the planet, we can take our national debt down to $12.3 trillion. Now we are being responsible! But we still need more money, so what about those greedy millionaires?

Referencing Spectrem Group’s Market Insights Report 2017, CNBC stated that there are 10.8 million millionaires nationwide. I’m already getting excited to take their money. Unfortunately, I was unable to find the total net worth of those millionaires. However, they stated:

“In 2016, there were 9.4 million individuals with net worth between $1 million and $5 million, 1.3 million individuals with net worth between $5 million and $25 million, and 156,000 households with more than $25 million in net worth.”

I’m going to calculate the numbers with something in the middle to give a basic picture.

  • 9.4 million Americans X $2.5 million = $23.5 trillion
  • 1.3 million Americans X $12.5 million = $16.25 trillion
  • 156,000 X $100 million = $15.6 trillion (estimated low, because this would also include the billionaires in the US, some of which were counted in the billionaires’ $7.7 trillion)
  • Total = $55.35 Trillion + $7.7 Trillion = $63.05 Trillion

Now, let’s be good socialists and pay off all our debt with that $63.05 trillion (heh)

-$20 trillion + $63.05 trillion = +$43.05 trillion

Like magic, America suddenly has a $43.05 trillion slush fund!

What do we do with this slush fund? Let’s do the socialist generous thing and divide it up evenly among all 320 million Americans. We could pay every American almost $135,000!

Socialists Economic egalitarians rejoice! We just toppled the bourgeois billionaire class, furthered our commitment to the “greater good,” and gave everyone in America a $135,000 paycheck.

Now, back to reality. The reality is that this tactic of seizing every dollar from every millionaire and billionaire is unrealistic and a “best” case scenario. It ignores several facts.

First, we don’t have the authority to tax billionaires outside of the US, yet (looking forward to the return of military imperialism).

Second, much of that wealth is in the stock market. It relies on combined and continual contributions to keep the value high. Once we start taking millions of dollars out, the value of the remaining pool decreases unless new money is coming in to keep it elevated.

Third, that $63.05 trillion was accumulated over many, many decades. This makes it a one-time deal. There is no continuing Utopia to be had.

Fourth, and most importantly, this doesn’t even address the hundreds of trillions (literally) in unfunded liabilities.

All that money has been stolen for a measly one-time payout of $135,000 per American.

Let that really sink in. That money sounds like a huge amount to a socialist college student, but now what? Good luck making $135,000 last more than a handful of years.

The reality is that we cannot just tax ourselves out of debt. We must address spending,sooner rather than later. Every time a budget is proposed in Congress that cuts spending, the status quo lose their collective mind. Or… at least I believe it would, it is hard to remember a budget that proposed any significant cuts.

Or… at least I believe they would lose their minds; it is hard to remember a budget that proposed any significant cuts.

Until we get a Congress bold enough and principled enough to stand for the future of our nation and generations yet to be born, we will continue to dig the hole deeper and deeper. The Republicans use a shovel, and the Democrats use a bulldozer.

Neither of those options appeal to me.

Hopefully, the Federalist Party can shake things up and (re?)introduce some sanity to D.C.

Jake Gambino has endless passion for liberty, marketing, and good lulz. After just seven years, he received his business degree from a local Community College. He would call this a sign of being a prodigy. No one else would agree, but Jake doesn't care. He is guided by reason and driven by principles.

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Economy

America’s biggest weapon against North Korea isn’t nuclear, and isn’t directed at the Norks

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Treasury Secretary Steve Mnuchin unveiled the biggest weapon the U.S. has in its arsenal against North Korea, and it’s not a bomb.

No bank in any country should be used to facilitate Kim Jong-un’s destructive behavior. This new executive order will authorize Treasury to impose a range of sanctions such as suspending U.S. correspondent account access to any foreign bank that knowingly conducts or facilitates significant transactions tied to trade with North Korea. These sanctions will be forward-looking and applied to behavior that occurs following today when President Trump signed the executive order. Foreign financial institutions are now on notice that going forward they can choose to do business with the United States or with North Korea, but not both. This new executive order enables Treasury to freeze assets of anyone conducting significant trade in goods, services or technology with North Korea. It also allows us to freeze assets of actors supporting North Korea’s textile, fishing, IT and manufacturing industries.

The target of this executive order, which is wholly legal and proper for the president to sign, is certainly China. China is North Korea’s biggest trading partner by far. It will hurt China far worse than anything we could do to North Korea. And China can force North Korea into starvation or negotiation.

Perspectives

Why Sanctions Against North Korea Are Causing Pain in China – Bloomberg

https://www.bloomberg.com/news/articles/2017-09-20/north-korea-sanctions-claim-another-victim-china-s-rust-beltWhile Beijing has joined the international community in condemning North Korea’s missile launches and nuclear tests, it doesn’t want a war on the Korean peninsula or Kim’s regime to collapse. Either event may trigger a rush of refugees and the potential for U.S. troops on its border, risking social unrest and a heightened security presence that could further hinder trade.

China advises against unilateral sanctions against North Korea | South China Morning Post

http://www.scmp.com/news/china/diplomacy-defence/article/2112446/china-advises-against-unilateral-sanctions-against“The situation facing the Korean peninsula is complicated,” Foreign Ministry spokesman Lu Kang told a press conference in Beijing.

Lu said at the press conference that “China opposes the imposition of sanctions outside the framework of the United Nations Security Council”.

In his address at the assembly, China’s Foreign Minister Wang Yi said negotiation remained the only solution to the North Korea problem, while warning its neighbour not to pursue the development of nuclear weapons.

Final Thoughts

As long as goods can flow into and out of North Korea, all the military threats we make are simply saber-rattling. Kim Jong-un will continue to provoke until we back down from a potential holocaust for South Korea. This is what he’s done for decades. But if the U.S. truly punishes China with banking sanctions and assets freezes, just like we did to Iran, soon they will push North Korea to the table, or make it clear that the Hermit Kingdom is on its own taking on the U.S. in a military battle.

The money bomb is a much bigger weapon than anything our military possesses. History shows that it always has been (read your World War II history of Japan).

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Economy

Opioid addiction hinders American manufacturing

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As Americans, we have all heard stories about the opioid epidemic. We have heard stories from both our local news and national news outlets. Zero Hedge’s “Tyler Durden” recently took a look at the effects of opioid addiction on the American manufacturing industry.

“Regina Mitchell, co-owner of Warren Fabricating & Machining in Hubbard, Ohio, told The New York Times that four out of 10 applicants otherwise qualified to be welders, machinists and crane operators will fail a routine drug test

Manufacturers around the country are struggling to find qualified and sober workers. With the inherent dangers of working in a manufacturing shop, there is no room for employees who are impaired. One small mistake can ruin someone’s life or end it completely.

Durden, speaking about President Trump’s promise to bring manufacturing jobs back, stated that the biggest problem may not be a scarcity of jobs, but rather finding “workers who are not under the influence. As Mitchell said she has jobsshe just doesn’t have sober applicants.”

There may be a lot of truth to this. The New Yorker stated, “according to the National Survey of Drug Use and Health, 97.5 million Americans used, or misused, prescription pain pills in 2015.”

To put this in perspective, in 2016 America’s population was just over 323 million. This 97.5 million amounts to over 30% of the U.S. population having used prescription pain pills. When almost one-third of Americans report using a drug with a high potential for abuse, it is no surprise that it became a national problem.

Durden closes by saying that maybe we “should contemplate how to eliminate the pervasive addiction problem which is rapidly becoming a structural hurdle for America’s millions of unemployed.”

Perspectives

 

The opioid crisis is draining America of workers – Patrick Gillespie, CNN Money

http://money.cnn.com/2017/07/07/news/economy/opioid-epidemic-job-market/index.htmlIn addition to opioid abuse, factors such as technology, an aging population and globalization, have also contributed to the declining participation of working age adults in the labor market.

But the ballooning use of opioids — whether as prescription drugs or heroin — is preventing many workers from coming back into the job market, economists argue.

FDA warns on mixing opioid addiction treatments with other meds – Health – CBC News

http://www.cbc.ca/news/health/opioid-treatment-1.4300283?cmp=rssThe U.S. Food and Drug Administration issued new warnings about the dangers of combining medication for opioid addiction with anti-anxiety medicines and other drugs that also slow breathing and brain activity.

The agency said a growing number of people fighting opioid addiction with methadone or buprenorphine also take other prescription drugs that slow action of the central nervous system.

Resources | National Institute on Drug Abuse (NIDA)

https://www.drugabuse.gov/publications/principles-drug-addiction-treatment-research-based-guide-third-edition/resourcesIt supports and conducts research across a broad range of disciplines, including genetics, functional neuroimaging, social neuroscience, prevention, medication and behavioral therapies, and health services. It then disseminates the results of that research to significantly improve prevention and treatment and to inform policy as it relates to drug abuse and addiction. Additional information is available at drugabuse.gov or by calling 301-443-1124.

 

Reactions

Final Thoughts

Most of our attention is focused on the effect of opioids on those closest to us – our families, friends, and communities. The next time you hear a story on the news about another local overdose, remember that this happens all around the nation. If you have ideas for solutions, reach out to organizations that can help. If you know someone who is struggling with an addiction, try to guide them towards some resources that can help. When we stand around without taking action or trying to find solutions we are demonstrating our complacency.

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Economy

Trump on socialism: Nailed it

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Trump on socialism

As always, I call it like I see it. When the President deserves criticism, I dish it out. Conversely, I’ll give kudos wherever and whenever it’s deserved. Addressing the United Nations, the President used 3 and a half minutes to rail against the failed political and economic ideology of socialism.

He absolutely nailed it.

“The problem in Venezuela is not that socialism has been poorly implemented, but that socialism has been faithfully implemented,” Trump said.

Should the kudos go to the President or his speech writers? Both.

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