Connect with us

Economy

The sky’s the limit

Published

on

The skys the limit

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.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Frontier Flight Attendants vote to authorize strike

Published

on

Frontier Flight Attendants vote to authorize strike

Frontier Flight Attendants, represented by the Association of Flight Attendants-CWA (AFA), today voted 99 percent to authorize a strike.

“Frontier Flight Attendants sent a strong message today that we are united in our fight for the contract we have earned,” said Jennifer Sala, AFA Frontier President. “We are ready to do whatever it takes to get the contract we deserve.”

Frontier Flight Attendants have picketed at Frontier-hub airports over the last six months. Frontier Pilots recently announced a tentative agreement, but Flight Attendants still face labor unrest.

Negotiations are overseen by the National Mediation Board and are scheduled to continue at the end of November. Lack of progress could lead to the National Mediation Board (NMB) declaring that negotiations are deadlocked and releasing both parties into a 30-day “cooling off” period leading to a strike deadline. AFA has a trademarked strike strategy known as CHAOS or Create Havoc Around Our System™. With CHAOS, a strike could affect the entire system or a single flight. The union decides when, where and how to strike without notice to management or passengers.

Continue Reading

Economy

The best thing Alexandria Ocasio-Cortez has ever said

Published

on

The best thing Alexandria Ocasio-Cortez has ever said

The freshman congressional sensation from New York, Democrat Alexandria Ocasio-Cortez, has made some pretty awful remarks about the economy. She was so proud of answering, “You just pay for it,” when asked how to pay for the $32 trillion price tag on her proposed healthcare plan that she posted it on social media.

For someone with a degree in economics, her ideas seem to be fueled by something other than economic logic. That didn’t stop her from making a short but incredible statement about the economy.

“I don’t think most of Congress understands how economics works.”

I agree. I also think her presence in Congress isn’t going to raise the level of economic understanding any time soon. Welcome to Washington DC, Congresswoman!

Continue Reading

Economy

Keystone XL stopped by judiciary using bureaucracy to promote lunacy

Published

on

Keystone XL stopped by judiciary using bureaucracy to promote lunacy

Activist judge Brian Morris in Montana may have just put the final nail in the Keystone XL pipeline project. He suspended construction of the pipeline pending another environmental review. Apparently, he didn’t like the conclusions of the first one he ordered, so he’s asking for a second opinion.

Montana Judge Puts Brakes On Keystone XL

https://oilprice.com/Latest-Energy-News/World-News/Montana-Judge-Puts-Brakes-On-Keystone-XL.htmlThe court has asked the government to review its assessment and revise it, taking into account the changes in the oil markets since 2014, the latest in climate change, and the presence of “cultural resources” along the route of the pipeline that was planned to carry heavy oil from Alberta to U.S. refineries. The 830,000 bpd pipeline will run from the Albertan oil sands through Montana and South Dakota, ending in Nebraska, where it would connect to the existing pipeline network that goes on to the Gulf Coast.

The court’s ruling comes a little more than a month after TransCanada said that construction of the pipeline could begin as soon as next year. The announcement followed an environmental impact review from the U.S. State Department, which concluded the pipeline’s impact on the environment would be “negligible to moderate.”

My Take

Even if the project can exhaust this activist judge’s attempts to stop it, there is growing tension on the Canadian side that is likely to table the deal indefinitely. For all intents and purposes, the Keystone XL pipeline is dead.

This is lunacy. We’re talking about the most modern and safe method of transporting heavy oil from the place it can’t be used to the place it can be used. Instead, we will remain reliant on Middle Eastern oil that comes without the unnecessary baggage snowflakes like Judge Morris impose on North America.

But that’s the mood of the day for the judiciary that continues to side with former President Obama to oppose current President Trump. Their power to maintain demonstrably dangerous policies and subvert progress is one of the main reasons we need judicial reform. These maverick judges can harm the nation at will and in cases such as this, they do.

Canada will be hesitant to cooperate on big projects like Pipeline XL because of our judiciary, and who can blame them? One man swimming in power can harm two nations with the stroke of his gavel. Sadly, he’ll sleep well believing he just saved an oil or two.

Continue Reading
Advertisement
Advertisement Donate to NOQ Report

Facebook

Twitter

Trending

Copyright © 2018 NOQ Report