If I have a regret over the last two years, it is not doing a better job of documenting my specific predictions about what a potential Trump Presidency would be like. I would if I could go back and do it again, but I didn’t the first time because, like so many others, it didn’t occur to me until about a week before the election that he might actually win. He did win, and here we are.
Yesterday the President made a deal with the House and Senate minority leaders, members of the party that is theoretically his opposition, while leaving the leaders of the party that he is theoretically his on the sidelines. Now I say theoretically because Mitch McConnell (R-KY) and Paul Ryan (R-WI) are hardly allies of the President, nor are they small government conservatives. Nor is the President. Nor are Nancy Pelosi (D-CA) or Chuck Schumer (D-NY). Frankly, why they all don’t just join the same party is beyond me.
The fact is though, private citizen Trump donated heavily to the campaigns of every one of those lifelong politicians. This should have been a warning sign to his supporters, but for reasons passing understanding it was not, even when it was pointed out to them. Trump was a long time Democrat, became and independent, then a Republican, then a Democrat again, now a Republican again. He has no firm principles he believes in.
I’m not here to bash Trump. This is simply who he is. And if I had done the aforementioned documentation he’d be following my predictions as if it were scripted.
So, it is no surprise to me that the issue that he has chosen to cross over and work directly with Democrats while ignoring Republicans is debt. After all, Trump is the self-proclaimed “king of debt.” The problem is that description comes from his business “savvy” where he has become wealthy in the world of micro-economics by borrowing and then sometimes defaulting on debt, leaving his investors holding the bag while he walks away with profit. This is all legal of course, but legal and moral aren’t the same thing.
Further, while this might work in the world of micro-economics, he is now dealing with macro-economics and on a global scale. It’s not certain that Trump understands that he can just have the US file for bankruptcy protection and walk away without paying our debts.
First of all, much of that money is owed to ourselves. We are the world’s reserve currency, which is the only reason we’ve been able to amass this much debt over this period of time. When China and Russia trade, they don’t trade Yuans for Rubles, they trade Yuans into US dollars and THEN into Rubles.
Or at least, they used to. That system is rapidly going away as major economic powers like Russia, China, Australia, Japan, Saudi Arabia and others are starting to conduct business without the dollar. When the dollar stops being the world’s reserve currency, we will suddenly have to start living within our means overnight, and debt will not be able to be taken anymore.
We’re already paying billions on just the interest on our loans. We’re taking loans out to pay our loans. We’re told every time the debt ceiling come up that we must “raise it to pay our bills.” This. Is. Insane. STOP SPENDING.
I’m not saying don’t raise it at this time, but it MUST be coupled with massive spending cuts.
I’ve written about tax reform and how it relates to federalism before. Most of what the Federal government does, it doesn’t have the Constitutional authority to do, but it keeps granting itself that authority in spite of the Constitution. With this usurped authority has come massive unnecessary spending that has put us in onerous debt that we must deal with NOW.
Can you imagine what would happen if we don’t do this correctly? What would happen if massive austerity measures had to be taken overnight? Look at Greece. That. Times a thousand. Some people scoff at that idea. Well, we live in a country where people literally riot over a thug who attacks a police officer getting shot. Imagine what will happen when their EBT cards suddenly stop working. Yeah. Scary.
Plenty of people reading this right now probably think I’m crazy. That’s normal. What you’re feeling right now is called the Normalcy Bias. It’s the belief that because something hasn’t happened to you before that it won’t. Well, your house has never burned down before (probably) but you still have fire insurance right? Why? Because you know it does happen. Well, financial meltdowns have happened before in other countries, and it CAN happen here. It WILL happen here is the debt is not brought to heel.
One of the reasons I didn’t see a difference between Hillary Clinton and Donald Trump is neither of them were the least bit interested in dealing with our massive debt, and frankly it was my number one domestic priority. Even if one of them had promised to deal with the debt I wouldn’t have believed them. Neither would have dealt with the root cause of the debt. Clinton has a long history of working to increase the burdensome social programs and regulations that overburden the taxpayers and lead to debt, and Trump never understood it.
The national debt, and the even greater unfunded liabilities that some experts estimate to be nearly $100 Trillion, not just the $20 Trillion in debt must be our national domestic priority, and the ONLY way to counter it is massive spending cuts. Despite the rhetoric of the leftists in both parties, the rich pay their fair share, and if they don’t, it’s the fault of the government for not enacting REAL tax reform as I’ve written about previously. We cannot tax our way out of this. We have to stop spending.
Trump’s “betrayal” of the GOP leadership (I see it as just returning to his roots) is really just dealing with debt in the only way he knows how: take out more debt. These are dangerous times for our country, but the looming debt bubble may be the most dangerous issue of all, and if it isn’t tackled quickly and smartly, we may not survive. Unfortunately, few in the two party system in Washington are inclined or capable of doing what must be done.