The Federal government in Washington DC is broken beyond repair. Politicians get elected by promising free or low-cost things, in order that they keep delivering the bacon. Or pork to political donors. The highest 1% get massive payoffs (like green energy subsidies or bank bailouts), the underside 99% get uncontrolled entitlements like Social Security, Medicare and Medicaid. And other unsustainable entitlements. In reality, student loans are actually an entitlement since some voters will vote for the corrupt politician (no, Joe Biden isn’t the one corrupt politician in Washington DC) who will forgive their student loans.
In reality, we now have $187 TRILLION in UNFUNDED liabilities that were promised to the 99%. The 1% will at all times get their political contributions paid. Biden and Schumer have promised their donor class trillions in spending, so which can be threatening to let the US debt default to guard the 1%.
And unfunded entitlements are expected to soar, particularly Medicare.
Mandatory spending is predicted to soar while discretionary spending is sort of flat when it comes to growth.
Meanwile, the US credit default swap stays elevated because the US Treasury short curve (2Y-3M) is near probably the most inverted in history.
And this headline, “Biden Not Ready Yet to Invoke 14th Amendment to Avoid US Default”. Meaning Biden would adopt extraordinary powers to forestall a debt default. Hence, the idiocy just like the trillion dollar coin.
Nobel Laureate and Statist useful idiot Paul Krugman wants to maintain spending trillions. Consequently, he argues “Don’t worry concerning the declining US dollar hegemony … so long as the US doesn’t default.” Translation: Krugman agrees with Dementia Joe that Republicans should just pass Biden’s budget with no strings attached. C’mon Krugman. The expansion of BRICs (Brazil, Russia, India, South Africa and growing) is partly attributable to 1) perceived weakness of Senile Grandpa Joe and a pair of) the fiscal spending and debt growth in Washington DC. After all it matters, but Krugman wants to maintain spending on green lunacy and entitlements until we break the back of the country. Appears like Krugman is on board with Cloward-Piven.
They’ll’t cut promised entitlements. Take a look at France where Macron raised the retirement age by 2 years and there are infinite riots. So debt default is the one option, though painful.
Will Congress and future administrations stop prominsing infinite spending that advantages the 1%? Not going. Our political system is hopelessly broken.
I’m sure that China’s Communist Party has sent Dementia Joe a message “We own you! You higher not default on what you owe us!!” Or default so we are able to own you financially.
Three of the 4 horsemen of the financial apocalypse. Yellen is the fourth horseman, but is just too short to look in the image.
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