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Making America insolvent



Making America insolvent

The stock market is setting records, unemployment is relatively low, inflation is low, and America’s economy is churning along. Lots of reasons to be happy if you’re rich. But we’ve got a $20 trillion Sword of Damocles hanging over our collective heads.

America’s GDP is somewhere north of $18.5 trillion, and increased over the 2nd quarter of 2017 at an annual rate of 3.0 percent (over the 1.2 percent of the first quarter), while the PCE price index went up by only 0.3 percent.

Though it’s encouraging to see the economy growing at a reasonable rate, it’s very troubling to see the federal government’s debt exceeding the nation’s GDP. In business, nobody ever wants to owe more than they produce, unless those debts are tied to solid and appreciating assets.

Of course, the value of the United States’ real estate far exceeds the national debt, right? Well, actually, no. The value of all land (in 2009 dollars) was estimated at $23 trillion by the Bureau of Economic Analysis, in a 2015 report.

Essentially, the federal government has mortgaged all the land in the country, including Washington D.C. and every bit of property the federal government owns (about $1.8 trillion according to the report).

Your home may have a mortgage, but the government has also mortgaged your land, and every dollar produced by every company in America is mortgaged and attached by the federal debt.

In business, we call this situation “insolvency.” Companies that believe they can grow their way out of insolvency have to sit in front a room full of creditors and bankers and explain how this works. Frequently, the bankers don’t buy it.

But the U.S. government is too big to fail, and therefore China, Saudi Arabia and other debt holders aren’t about to call Congress on the carpet to explain how we get out of insolvency. That’s the job of the electorate–we’re the ones being mortgaged and co-signed on the debt our government has piled up.

It is unconscionable and immoral for our federal government to continue to lead us into insolvency. If you look at history, when powerful nations embark down a road of insolvency, ultimately it leads to war.

The U.S. has no shortage of natural resources. We are the most productive nation on earth in food, energy, and innovation. Trump and Bannon’s answer to the national debt is to grow our way out of it by making better trade agreements. That means selling America’s resources at a higher price to foreign buyers. If it only worked that way in reality, if only “America, incorporated” could simply raise the price of food, natural gas, oil, and intellectual property, we’d all be drinking wine and smelling roses.

But it doesn’t work that way, does it? Corporations in America have foreign capital investments, and many are owned and headquartered offshore. Much of America’s enormous productive capacity is pledged to foreign owners profit expectations. That’s how a free market works.

The only way to force companies to fall in line with a nationalist economic policy is to…well, force them. In historical political science-y and economic terms, that’s called “fascism,” where the government sets the economic priorities for each market and companies must comply or be nationalized.

A nationalized economy does not suit America, where liberty and opportunity are valued above cultural homogeneity. Where the left would impose that hegemony over American social values, our federal government and the economic nationalists led by Steve Bannon would impose it on our corporate values. Neither solution can work in the U.S.

In the end, either foreign capitalists will continue to draw profits out of America, in an unending spiral of unpayable mortgages until someone calls a debt (provoking war); or we will impose unacceptable barriers to free trade, which will cause consumer prices to skyrocket, in a cycle of punitive tariffs and restrictive trade agreements. This will eventually lead some nation that the U.S. forces an ultimatum of forgiving defaulted debt or resource starvation to begin a war.

It might be an economic war at first, but such things usually lead to a shooting war. This is how Japan ended up in World War II. It’s how North Korea might react if all other options are removed. It’s how China will react as they continue to build their power and military.

By mortgaging America, our federal government is placing our nation at odds with practically every country in the world. Even Canada and Mexico, faced with renegotiating NAFTA, will side against an America with $30 trillion in federal debt and $25 trillion in GDP.

Our federal debt more than doubled since 2007. In another 10 years, it’s entirely possible we will see this scenario in our faces, especially if Trump remains in office 2024.

The federal government must, for the sake of our nation and our liberty, stop this disastrous debt spending. Insolvency is no way to run a business, or a government.

Managing Editor of NOQ Report. Serial entrepreneur. Faith, family, federal republic. One nation, under God, indivisible, with liberty and justice for all.

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Trump tariffs another in-name-only moment for the in-name-only president



As a man who likes the title but not the responsibilities of the office, Donald Trump has proven himself to be America’s President In-Name-Only. From the primaries to today the New York Liberal with an “R” after his name has demonstrated a lack of any core convictions as he makes policy decisions based on the need to feed his narcissistic personality.

One of the consequences of Trump’s lack of character is the frequency in which he’s forced to take action based on the rhetoric he continues to feed his dwindling base. Even though most of the promises he makes are nothing more than the politically convenient ramblings of a man who has no intention of keeping them—he bragged in a TV interview that he could change into whatever he needs to be—Trump’s never-ending need for the praise and adulation of his followers has forced him to at least give the appearance that he will keep his word.

This has given birth to a host of in-name-only legislative efforts by Mr. Trump. Some of his biggest hits on the in-name-only charts deal with two of his major campaign promises: rescinding DACA and withdrawing the US from the Paris Climate Accord.

When Trump issued his executive order rescinding DACA, he immediately teamed up with Chuck Schumer and Nancy Pelosi to create an amnesty program for DREAMers. At the same time, he made a promise to reinstate DACA after six months if necessary.

In addition to statements from the White House that he never intended to rescind DACA, Trump has advocated amnesty for nearly two-million illegals (a number that was originally around 800,000). By the way, the deadline has come and gone, and DACA still exists.

When Trump announced in June that the US was withdrawing from the Paris Climate Accord, he immediately committed to re-entering it under better terms. In addition to statements from members of the White House team that Trump would work on getting the US back in, Trump stated in a January TV interview with Piers Morgan that the US is ready to re-enter the Paris deal.

“The president said he is open to finding those conditions where we can remain engaged with others on what we all agree is still a challenging issue.” – Rex Tillerson on CBS’s Face the Nation

“He left the door open to re-entering at some later time if there can be a better deal for the United States.” H.R. McMaster on ABC’s This Week

Following Trump’s recent trade-war announcement that he was adding across-the-board tariffs to steel and aluminum imports, he proudly crowed that he was keeping a campaign promise on trade. Yet, when faced with an avalanche of blowback for the obviously anti-free-market policy, Trump turned this into another in-name-only moment.

On the day of the announcement, Trump immediately granted exclusions to the tariffs for Mexico and Canada—two of America’s biggest providers of imported steel—despite repeated statements from the White House indicating otherwise.

“We have made clear these will be across-the-board tariffs with no exclusions. The problem with exclusions is that they are a slippery slope. Once you start, where do you stop?” — White House, March 2 (Wall Street Journal)

“There will be no country exclusions.” — Pete Navarro, President Trump’s radical trade adviser, March 4 (CNN’s State of the Union)

“I have no reason to think he is going to change.” — Wilbur Ross, President Trump’s protectionist commerce secretary, March 4 (NBC’s Meet the Press)

As a believer in free trade, I’m ecstatic that Trump at least partially broke his promise, but it serves as the latest evidence that Trump is nothing more than an in-name-only president willing to take make-believe actions to make it appear he’s keeping his make-believe promises.

Originally posted on The Strident Conservative.

David Leach is the owner of The Strident Conservative. His daily radio commentary is nationally syndicated with Salem Radio Network and can be heard on stations across America.

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In Lieu of what is Right – An Interview with Dr. Ken Wright



One of the most vapid and reliably anti-Constitutionalist members of Congress is known to anyone who takes to Twitter, Ted Lieu, of the California 33rd Congressional District, suddenly has a staunch conservative to square off against. I got to sit down for about an hour over the phone with Dr. Ken Wright, who was one of the most interesting interviews I’ve done this year (and after Erin Cruz, Austin Petersen, Shane Hazel, and Hunter Hill, that is saying something).

Dr. Wright is a renowned pediatric ophthalmologist who is invited to teach all over the world. For that reason (sorry doc) I thought he might have the demeanor of a college professor. Analytical without a lot of passion. I was right about the analytical part. I was dead wrong about the lack of passion. This is a man who in no way needs to run for Congress, but instead sees it as a public service that he is willing to take on to make the world better for his family and for all of ours as well. It’s probably worth noting that one of the most respected and freedom-oriented members of the Senate, Dr. Rand Paul, is also an ophthalmologist. I also have an acquaintance here in my home town who is a Constitutionalist and an ophthalmologist. There seems to be a pattern here.

I found Dr. Wright to be authentic, passionate about Constitutional freedoms, and a man who will not be bullied by anyone. He supports much of what President Trump is trying to do, however I have no trouble believing he would stand up to the President should he go off the rails. The people of the California 33rd would do well to put a man of such integrity into office, and with him get rid of one of the most staunchly anti-freedom members of the US House of Representatives, Ted Lieu.

BW: What specific experience and education make you feel makes you the most qualified to be a Congressman?

KW: With the present state of our representatives I think as long as you have a pulse you could do a better job. They’re bought. The special interest lobbyists are running the show. Any good, ethical citizen could do a better job and do what is right for the people.

**I needed to take a moment to stop laughing at this answer. It was funny because it’s true.**

I’m a pediatric ophthalmologist. I know people all over the world since I travel for teaching in my field. I was awarded a service medal from the President of Panama after Noriega was ousted due to the work I was doing there. I’m a doctor, and doctors use data and facts to make decisions. We don’t put a Band-Aid on an infection and expect it to go away. Dems in inner cities have made people dependent for more than 50 years with no way out and they end up in gangs or living on welfare. Let’s get factories into the inner-cities. Let’s get them jobs instead of food stamps and a few bucks. I want to actually solve problems instead of creating a never-ending cycle of dependency.

BW: What specific issues will be your main focus if elected?

KW: Immigration is a huge problem right now. President Trump gave Congress the job to put together a real plan for DACA and they’ve done nothing. We need a clear policy regarding immigration. To my mind we need to secure the border. Without that we have open borders. We need a wall for at least part of the southern border. It worked in Israel. Then you can think about what to do with 13 million illegals.

Whether they were invited by the government or not, many illegals came here because we wanted people to come here; we wanted them to do certain jobs like pick crops or be a housekeeper, and it would be wrong to send them all home after so many years. That said, criminals with so much as a DUI have to go. This is my problem with sanctuary cities; they allow criminal illegals to roam free and harm our citizens. This is not a Democrat or Republican problem, but rather an American problem.

The largely law abiding that we choose to let stay can get in line behind everyone else and perhaps pay some fines and do some service, but they shouldn’t be able to get to the head of the line like so many Democrats want, and they certainly shouldn’t be given blanket amnesty.

Healthcare is a big issue, mostly because the Democrats have made it that way with Obamacare. Despite what the Democrats say, there were never bodies lying in the street before Obamacare. No one is turned away from any emergency room. Everyone can get care. Not everyone needs health insurance. If you’re a 20 year old on your first job and in good health, perhaps you don’t need to spend money on health insurance, and it’s wrong for the government to force you to subsidize health insurance for others. We need to repeal McCarron-Ferguson Act which exempts insurance companies from most federal regulation including anti-trust laws. That would allow real free-market competition back.

BW: What failures do you feel have been made on the part of Ted Lieu?

**Note: I asked Dr. Wright to please try to keep this to a top 5 list… I know I could write an article just on this question**

KW: When the Syrian war was really going on he wanted to bring 200K refugees from Iraq and Syria and voted against the SAFE Act. That’s dangerous for America.

He doesn’t protect America first. He wants open borders. He’s for sanctuary cities. He votes against Kate’s Law every time it comes up. He has sponsored legislation for no-money bail, saying bail is unfair to the poor, yet judges can take that into consideration. He wants to take the discretion away from the judges.

He’s a hypocrite. On his web site the number one issue he talks about is climate change. And yet, when he was a state senator he accepted $13K from real estate developers who wanted to build a new stadium, and then he co-sponsors a bill to exempt the real estate developers from environmental regulations. He’s a career politician and has never had a real job in his life. I’ve had a real job. I’ve run a business and put people to work.

BW:  What political challenges do you face and how do you plan to overcome them?

Well, District 33 is only 24% Republicans, which has discouraged the GOP and the GOP wasn’t even going to run someone in 2016. However, there’s almost 30% here with no party preference. I was able to take 37% in 2016 and I didn’t have a real organization. I have a whole organization this time and I think winning this district is doable.

BW: With the current debate over gun-control, what are your thoughts?

KW: Well this isn’t an easy issue. I think we all, or at least most, agree a civilian doesn’t need to own a surface-to-air missile. At the same time, the 2nd Amendment isn’t about hunting, it’s about being able to resist a tyrannical government. We need to find a balance. I think for certain weapons perhaps some form of mental evaluation might be in order. The problem is the Democrats always want to take it too far. Instead of making things simple and wanting to implement legislation that might actually save lives they are intent on disarming the population.

BW: There has been a lot of debate over President Trump’s tariffs. How do you feel about them.

KW: Great question. Would you agree that it is equally wrong for one to hire someone to commit murder as it is to commit murder yourself?

BW: Sure.

KW: Well by the same token, if it’s wrong for us to use slave labor to make our products, it’s equally wrong for us to allow China and other countries to use slave labor without any kind of penalty. The Chinese have a miles long factory where people were crammed into tiny rooms to live and work. It was so miserable that people were jumping to their deaths. Know what the Chinese government did? They put up nets outside the building so that people couldn’t even kill themselves to get away. It’s that miserable and yet we are profiting from it in the form of cheaper goods. You’ll notice that the President isn’t imposing these tariffs on Europe or Canada or other nations that play by the rule of civilized behavior.

BW: I’m personally very much against tariffs, but I have to admit that I never thought about it that way.

KW: Most people don’t.

BW: I ask this of all California candidates since your state pretty much has been the leader on this issue: What about legalization of Marijuana?

The half-life of marijuana is 3-4 days. If you smoke 2 or 3 times a week then the half life becomes about 2-3 weeks. Alcohol is metabolized much faster. I think it should be available but through a pharmacy, and not in smoking form. Physicians were encouraged to give more opioids for pain management and they found it to be profitable. This has led toward a lax attitude toward drugs. Marijuana should be available to those who need it, but we can’t be so careless with how it’s used.

BW: What do you want the people of the California 33rd to know about you?

KW: Both Republicans and Democrats need to realize that we are Americans first. Vote for someone who has the moral fiber to do what is right. Don’t vote for someone just because they might be at your end of the ideological spectrum.

You can learn more about Dr. Ken Wright by clicking here.


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Free but Fair Trade – Is it Possible?



Free but fair trade is an expression which we often hear today from President Trump; just as we hear that millionaires and billionaires must pay their fair share from Senator Sanders. When asked what percentage is fair; since these millionaire and billionaires are in the highest tax bracket and pay the most in taxes, we never seem to get an answer. All we hear is from the progressive left that they have too much and need to pay more.

Similarly, the expression free but fair trade sounds great, but the meaning of “fair” is utterly void of any substantive meaning. The idea of a 25% tariff may be fair, but it is by no means free. So the question is, how can we obtain free but fair trade?

The Reality

Before we can answer this question, we must first examine the deficiencies in our current trade policies. The first thing we must realize is that we do not currently have free trade. Think about it like this. If we did have free trade why would we need complex trade agreements? The fact is we have thousands of tariffs in the United States. Just like every other country, we seek to protect some industries over others.

Some are for supposed national security reasons, and others are simply to protect an industry in a member of Congress’ district.

The second and most significant reason we do not have free trade is that true free trade is optimal but not politically expedient. For instance, let us use China and the United States as examples and let us say we currently do not trade with each other.

Establishing trade with one another is beneficial for both countries regardless of tariffs. Since trade never existed, an unfavorable trade agreement is preferable over no trade at all. Reasons being both countries will benefit from trade. Industries may open, and some may close, but there will be a net positive for both countries. It is a mutually beneficial arrangement.

Now instead of unfavorable trade agreements, what if we had free trade. All products coming from China into the United States and vice versa are tax-free. In this situation, you will see the greatest mutually benefit as both countries will have positive net growth. If this situation exists for years, you will see a fluid economy as some industries will be created, grow, decline, or shut down.

The problem that arises is not the creating and growth of some industries but the decline or elimination portion.

If a software engineering firm which sells most of its software to China opens up in a congressional district, you will be sure to see that member of Congress at the ribbon cutting ceremony will a plethora of other politicians stating their policies fostered the creating of this software engineering firm.

On the other hand, you won’t see these same politicians at the factory down the street which is packing up and moving to China. The same policies that opened up the software engineering firm eliminated your manufacturing job. What is an elected official to do?

What they will try and do is give tax incentives and add tariffs to prevent the closure. If they succeed, they will once again take credit; even though the biggest net benefit to the economy as a whole is to allow the factory to shut down, though it isn’t politically expedient.

Back in China, they will also try and protect their software engineering firms by adding tariffs and regulations on the US-based company. The result of all this will be less than optimal, but a long-term net benefit is not politically expedient. So protectionism will inevitably begin.

Possible Solution?

Therefore, how do we create complete free and fair trade? The honest answer is you can’t; as we have demonstrated allowing complete laissez-faire trade policy will never occur because it isn’t politically expedient. Some may be for good reasons and some for bad reasons.

To achieve the most optimal outcome would be to eliminate tariffs. But how do you do that without cheating and allowing politically expedient policies?

Maybe this example trade policy below might help in this endeavor.

All products, goods, materials, and services, entering the United States and its territories shall be free of tariffs. Any fees, including but not limited to docking, storage, and inspection imposed at points of entry shall be uniform at each location regardless of country of origin. Likewise, all products, goods, materials, and services produced in the United States and its territories shall be free of tariffs. Any country that imposes a tax on any of said products shall immediately, have the highest equivalent tax impose on all their goods and services at the same rate plus 10%; until eliminated.

Likewise, any fees should not favor any other country over the United States and its territories. Fees must be uniform or to the benefit of the United States. If fees are to the disadvantage of the United States, those same rates shall be immediately imposed on said country plus 10% until eliminated.

How it works

I postulate this trade policy would allow greater free trade then we have ever seen.

For instance, if China has a combined 20% tariff on mid-sized trucks and 25% on sedans, then since 25% is the highest tax imposed on US products then 100% of all items coming into the United States from China will have a tariff of 27.5% immediately imposed on it. This scheme would also apply to any value added tax or border adjustment tax which would disadvantage the United States over other foreign or domestic products. Therefore, I believe the consequence would be so devastating to China they wouldn’t dare put a tax on American products, and likewise, the United States would not want to engage in a trade war just to protect one industry or factory.

Let us say that we just succeeded in creating Free Trade the vague notion of Fair Trade can never be quantified or defined.

For instance, if China is subsidizing its steel industry and shipping Chinese steel into the United States cheaper than the free market can produce it, is that still Fair Trade?

Is it Fair?

It’s still Free Trade because no taxes or tariffs are imposed but is it fair?

Some would argue that it is not fair for China to subsidize their steel industry because that puts the US steel industry at a disadvantage. The US could impose a tariff but as stated that would eliminate free trade. The only other option would be for the United States to subsidize the US steel industry or let it possibly collapse. Sidenote, we only receive 2% of our steel from China, and U.S. Steel production makes up 70% of the steel used in the United States.

Some might see this as unfair; others see this as a plus benefit to the United States.

American economist and Nobel Memorial Prize in Economic Sciences recipient Milton Friedman viewed this as reverse foreign aid. If China wants to tax their citizens to provide US citizens and companies with subsidized steel why not let them. In a Milton Friedman perspective, this might seem unfair to Chinese taxpayers and more than fair to US taxpayers.

Some may argue that US steel production is vital to US national security. Having enough steel is crucial to our national security, but that doesn’t mean that we can’t stockpile Chinese steel. Also, it neglects the fact that other countries like South Korea protect their steel industry by subsidizing steel in their country to prevent monopolization by Chinese firms. The US can also buy from South Korea or even Canada.

Countries may also put strict regulations on how steel is produced in their countries as well as impose those rules on foreign producers. These policies may not have a defined numerical value as a tariff but in a sense act as a protectionist trade barrier. Since there is no quantitative value to these types of regulations, having US laws automatically trigger countermeasures would be impossible.

So can we truly have Free but Fair Trade? As we have seen having Free Trade is possible, but Fair Trade is really in the eye of the beholder. Ultimately, the best interest of the United States and its continued success is by having a free trade policy, maybe something like I have spelled out in this article, as well as, limiting regulations and limiting government interference in the economy.

Nothing can be put in place to be completely fair and balanced, but the most reasonable thing to do for the overall benefit of America and Americans is to maximize laissez-faire economic policies void of politically expedient measures.

Konstantinos Roditis is a candidate for California State Controller. You can learn more about his campaign at, and you can follow him on Twitter & Facebook.

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