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It’s the Same Story Every Year
Is there anyone out there who doesn’t expect RINOs Kevin McCarthy and Mitch McConnell to fold once again on the annual debt ceiling debate? Like clockwork, the media is retreading the usual fear-mongering stories of debt payment defaults and financial catastrope if we don’t raise the federal debt ceiling yet again. Deep State tool, Treasury Secretary Janet Yellen, is dutifully reading her Chicken Little cue cards. Joe Biden is predictably not compromising an inch on federal spending increases because he knows from 50+ years of DC Swamp life that the media will have his back and blame any negative economic effects on Republicans.
The ironic part of this argument is that we are told with straight faces that the only way to avoid default of an already $32 trillion national debt is to increase spending & debt even more. 🙄 The numbers on debt, tax revenue, and spending are so staggering they’re tough of picture in practical terms. To put it in perspective, cut off some zeroes and imagine a family budget. Assume you have an annual salary of $45,000, but you’re spending $70,000. You have limited ability to raise your salary, while your spending is mostly automatic required payments. That’s of course bad, but now imagine you have $320,000 of unsecured credit card debt that is growing by the day since you can only afford to make the minimum monthly interest payments. See any problems? Ok, now consider these numbers include interest on debt Trump mostly refinanced at rates less than 2%, which will eventually expire and need to be replaced by debt with much, much higher rates? You don’t have to be a math wiz to see we’re on an unsustainable path that will lead to a Mount Everest of debt needing to be solved in one of two ways — actual default, or far more likely, further devaluing of the U.S. dollar that will make inflation of the past few years seem like a drop in the bucket. So, what is the Biden/Yellen solution? Well, obviously take on more credit cards!
The other funny-not-funny thing in this whole mess is that none of the “experts” can seem to figure out why the crush-the-economy Fed interest rate increases aren’t cutting inflation as expected, while massive government spending continues to shift the Demand Curve of prices. Maybe they can bring in an Encomics 101 student who just completed Week 1 of their course to explain the concept. Or possibly a 2nd grader who just learned basic addition and subtraction. 👍
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