Republicans’ tax plans are going to clash headfirst with President Trump’s anti-China, anti-trade-deficit rhetoric. It’s just simple economics.
No, your claims are just simple nonsense.
Republican tax plans are forecast to increase the federal debt by about $1.3 trillion to $1.6 trillion over the coming decade, though scoring and specifics vary. This is the same debt that, campaigning in Ohio, Trump called “a weight around the future of every young person in this country.”
More nonsense. “Federal debt” simply means deposits in Fed savings accounts. The deposits have no bearing on the U.S. government’s ability to create money out of thin air. To spend money, the U.S. government does not borrow one penny from anyone.
And speaking of one penny, when people falsely claim that the U.S. government must borrow from China in order to spend, people subconsciously assume that China’s currency is U.S. dollars; indeed that every country’s currency is U.S. dollars and cents.
Anyway this article is more Trump-bashing, and it’s boring, not because we like Trump (he’s a buffoon) but because it’s repetitious (like Russia-gate) and hypocritical. The only time one party worries about the “debt” and deficit is when the other party is in power. Meanwhile both sides are always eager to give more money to the Military Industrial Complex.
But now that it’s time to pass a tax plan that nonpartisan observers agree will require deficit spending, (oh no!) Republicans are on board with growing the federal debt. Large-scale borrowing will help make up the gap in lower tax revenue while avoiding some painful cuts to government programs.
Endless nonsense. Technically the Federal Reserve is supposed to offer T-securities for sale in an aggregate amount equal to each fiscal year’s federal deficit. But what if people don’t buy enough T-securities to equal a given year’s deficit the deficit? What if people don’t deposit money in Fed savings accounts that is equal to the deficit? In that case the Fed “buys” T-securities from itself.
It’s all just a shell game with numbers that are not physical.
Furthermore when Republicans want to force concessions from Democrats, they threaten to not raise the “debt ceiling,” meaning Republicans threaten to not issue enough T-securities to equal the federal deficit, meaning they threaten to not let people deposit any more money in Fed savings accounts. Endless bullshit.
A tax cut would inject more money into this fairly hot economy — effectively putting more money into a container that’s nearly full. (Oh no! We can’t have people with less poverty!) The extra money has to go somewhere. Some of it might be saved by individuals and corporations. But the U.S. has a fairly low saving rate overall. That means the money is likely to go abroad in the form of Americans buying goods and services. When Americans buy those goods and services, they’ll give dollars to foreign countries. Those dollars can then in turn be used to provide loans to the U.S. to finance the tax cut.
So let’s see. Each fiscal year the U.S. government creates about $4 trillion, and puts it into circulation (and later taxes back 88% of it). Americans use that $4 trillion for various purposes, including the purchase of imports. Foreigners take the U.S. dollars they get from selling us exports, and “lend” them back to the USA (i.e. foreigners deposit those dollars into Fed savings accounts). Meanwhile the U.S. government continues to create money out of thin air.
So where’s the “national debt crisis”? It’s a hoax.
And by the way, only the financial economy is hot (i.e. Wall Street). Meanwhile the real economy (i.e. Main Street) continues to limp along.
There’s more garbage in the article, but you’ve seen it a million times before.
In other news, yesterday Bernie Sanders sent a letter to Republican leaders saying, “The American people have a right to know exactly how you plan to pay for a $1.4 trillion increase in the deficit before, not after, tax legislation is signed into law.”
When Sanders calls for Universal Medicare, Republicans say, “How will you pay for it?” When Republicans want tax cuts, Sanders says, “How will you pay for it?” All of them know that the question is meaningless, since the U.S. government does not run on loans or on tax revenue.
The endless bullshit of American politics reflects the endless bullshit that circulates in American society.
If Republicans say, “We will make no cuts to Medicare or Social Security,” the brainwashed masses say, “Liars! If you cut our taxes, then you must cut Medicare and Social Security!”
Elsewhere I saw an article today titled, “The many ways Trump will betray his base.” Trump doesn’t have a base. Trump has an anti-base; people who defend him in defiance of political correctness, Democrat corruption, liberal hypocrisy, and liberal self-righteousness. Even people who hate Republicans defend Trump, because at least Republicans are honest about wanting to screw the masses.
Democrats didn’t just rig the 2016 nomination. Democrats rig every nomination process with their super-delegate scam, which prevents truly progressive candidates from ever getting the Democratic nomination.
Each half of the USA thinks the other half is insane. And the rich look down and laugh at the show.
Just now I scanned twenty articles that are based on the “national debt crisis” hoax. It’s pathetic to see average people desperate to shore up the hoax as Republicans talk about tax cuts.
Clearly the one thing that most frightens average people is freedom and prosperity. Release them from jail, and they panic.
“What about the national debt?” they cry. “What about a responsible federal budget? If you take less money from us, you are really taking more money from us! If you offer us freedom, you are really taking our freedom away! I prefer my jail cell!”
From CBS NEWS: What happened to the party of fiscal discipline?
In 2010 congressman-elect Mick Mulvaney said, “The priority is to cut spending.” Mulvaney is now the director of the Office of Management and Budget. After six years of establishing a reputation as a fiscal hawk in Congress, he now says that “we need new deficits.”
When Democrats have a majority, Republicans scream about the “national debt crisis.” When Republicans have a majority, the “crisis” disappears. Average Americans understand this. Therefore you’d think that average Americans would see that the “national debt crisis” is a hoax – but no. When average Americans are presented with the truth, and the truth does not align with their programming, they switch off. They turn their attention to some other topic. They maintain the hoax at all costs.
To be a peasant is not necessarily to be poor. It is to be mentally unable to handle truth, freedom, and prosperity.
The rich have always known this.