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Making America insolvent

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2 years ago

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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.

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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.

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Economy

President Trump working with Congress to sanction Turkey

Published

5 days ago

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October 13, 2019

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President Trump working with Congress to sanction Turkey

In less than a week, Turkey has managed to draw the ire of most of the world, including most on Capitol Hill, as they move to eradicate Kurds and Christians in eastern Syria. Their invasion, coordinated with attacks by their Syrian al Qaeda proxies, have already caused turmoil, killed hundreds, and displaced hundreds of thousands.

Now, President Trump appears ready to follow through on his threat to “cripple Turkey’s economy” through sanctions.

The President has been criticized by many in both political parties following the White House announcement that we are withdrawing troops from the border region. What followed was such a quick response in the form of an all out Turkish invasion that it’s clear they’ve been planning this for some time.

Our EIC took to Twitter to push the President towards following through with his threat against Turkey should they cross the line. As he noted, they have clearly crossed the line.

Reports of civilian deaths are mounting. It isn’t just the Kurds that Turkey and al Qaeda are targeting. Syriac Christians are in the crosshairs as well. The intense fighting seems to be focused on clearing out entire cities to make room for the millions of refugees the Turks currently hold. Instead of just taking out military targets from the Kurds, who Turkey believes to be terrorists, the invaders are wiping out the entire populations in cities and villages near the border.

Senator Lindsey Graham chimed in. Graham has been a Trump supporter, but broke from the White House over the Syrian withdrawal. Now, he’s voicing hope and alignment with the President’s sanction plans.

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Turkish President Erdogan clearly lied to President Trump. It’s time to send them a clear message in response. Our troops may be coming home, but we can stop this bloodbath through sanctions. Cripple their economy, Mr. President.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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Democrats

Andrew Wilkow: Elizabeth Warren’s lack of real-world experience is why progressives love her

Published

5 days ago

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October 13, 2019

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Andrew Wilkow Elizabeth Warren

Elizabeth Warren is the current frontrunner for the Democratic nomination for president. I’ll admit, I never expected that to be the case until recently. I truly believed she would be in the middle of the pack before bowing out in favor of Bernie Sanders, Kamala Harris, or one of the other radical progressives who would take on Joe Biden. But I was wrong. She has surged into the lead and at this point, it’s her race to lose.

BlazeTV’s Andrew Wilkow explained her popularity among the progressives, and in doing so showed by I was unable to see her appeal. According to Wilkow, the difference between her and Hillary Clinton is that she’s a member of the elite academia, which progressives love. Her lack of real-world experience isn’t seen as the clear detraction that it should be. Instead, having lived in a theoretical bubble of feel-good progressive policy proposals gives her an advantage in the eyes of hyper-leftists.

In other words, she hasn’t had any real-world experience to burst her bubble, so she’s able to enact hypothetical ideas that are demonstrably bad without reality clouding her judgment. To the far-left, this makes her an ideal candidate.

How in the world is Elizabeth Warren leading in the Democratic polls? Andrew Wilkow breaks it all down for us in this eye-opening analysis for BlazeTV. She’s as detached from reality as her policy proposals, which is why the radicals adore her.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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Economy

Trump to farmers: ‘Buy more land and get bigger tractors’

Published

7 days ago

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October 11, 2019

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Trump to farmers Buy more land and get bigger tractors

President Trump announced today a “phase one” trade agreement with China. Part of the deal includes a dramatic increase in agricultural products to be sold to China, ramping up from around $16 billion worth per year at its highest historic mark to $40-$50 billion per year moving forward. Current levels are estimated at around $8 billion. While announcing it, the President said farmers should immediately “buy more land and get bigger tractors.”

The deal is expected to be written and signed in three to five weeks. It was negotiated on China’s behalf by Chinese Vice Premier Liu He.

Both economies have suffered through the trade war that started last year between the two biggest economies in the world. But pressure seems to have hit China harder as they are generally the exporter while America is more of an importer. The President’s goal of balancing out trade between the two countries prompted back-and-forth tariffs. This deal stops upcoming tariffs, at least temporarily.

Also included are intellectual property and financial services, two sticking points between the countries since long before President Trump took office.

Opinion

I’m hopeful, but I don’t trust China one bit. This stalls upcoming tariffs, but until it’s signed it’s still just a theory. Nevertheless, it’s a positive sign and a step in the right direction towards bringing back free trade as our national economic mantra.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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