The Coming Months
February 1st, 2025So, we are almost two weeks in and it’s pretty much what I expected to see: lots of Executive Orders, lots of screeching and wailing, Judges saying things like “Just a moment there…”, and the Federal Workforce facing what everyone else faces when the economy dives for the Lowest Common Denominator.
Oh? Did I just say the economy is going to go south? Even with Cheeto-Jesus (this is a nod to my family members who are Democrats- love you!) at the helm? Eggs? Eggs for the poor?
You do not need to be a genius to see what is coming. The debt is unserviceable when the interest alone leads to doubling the Deficit. Annual Interest on the Debt is at one TRILLION dollars. Debt service now accounts for more than the Defense budget. That is if we maintain the status quo. The deficit cannot come down until government spending comes down.
We could confiscate the wealth of the billionaires out there and it would not make a dent in the figures: current Debt as I type this is $36,413,806,412,395. Nobody out there is sitting on a pile of real money that large, and if government were to attempt something like that, what they would actually get is ownership of assets. To get the money, they have to sell the assets. When you have vast quantities of assets to sell all at once, know what happens? Prices go down. Fast. Given the current condition of banks there may not be many buyers. That means prices drop even faster. They never get their money back and in the process, they rip the bottom out of the stock market.
Ripping the bottom out of the stock market impoverishes everyone with any kind of investments in say IRAs or 401Ks. However, that is okay, because the banks are going with them- the liquidity crisis would be Brobdingnagian in scale.
The thing is- this IS going to happen in one form or another, and likely sooner rather than later. The only way the US government gets out of this is by cutting spending, sparing nobody, including people holding Treasury bonds. EVERYBODY is getting it in the shorts here.
Put in this light, what the President is doing is the right thing. Cutting spending is the only way to come out intact and really, there may not be enough time to do it over a couple years. Putting downward pressure on energy prices is the right thing to do- it is the most direct way to assist consumers struggling with higher prices. And whatever you do, do not stop until you MUST. Even then, keep looking.
This is what it takes to get our country postured to survive what is coming. Would have been better to do this thirty years ago, but water under the bridge and all that. The President and the GOP have two years, and two years only. The mid-terms are likely to be brutal.
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