Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Bitcoin Price 2019 Trend Current State - 18th Sep 19
No More Realtors… These Start-ups Will Buy Your House in Less than 20 Days - 18th Sep 19
Gold Bugs And Manipulation Theorists Unite – Another “Manipulation” Indictment - 18th Sep 19
Central Bankers' Desperate Grab for Power - 18th Sep 19
Oil Shock! Will War Drums, Inflation Fears Ignite Gold and Silver Markets? - 18th Sep 19
Importance Of Internal Rate Of Return For A Business - 18th Sep 19
Gold Bull Market Ultimate Upside Target - 17th Sep 19
Gold Spikes on the Saudi Oil Attacks: Can It Last? - 17th Sep 19
Stock Market VIX To Begin A New Uptrend and What it Means - 17th Sep 19
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Why The Government Has Screwed Us Again

Politics / US Politics Jul 29, 2019 - 01:38 PM GMT

By: Rodney_Johnson

Politics I’ve got friends on both sides of the political aisle.

Some are huge Trump supporters. They’re giddy over his tweets about “The Squad.” They think, why not call out people who demean the country? And if they don’t like it here, why don’t they just go anywhere else?

And how about enforcing the rule of law once in a while by sticking to our immigration policies? We’re not rounding up migrants because they come from other countries; we’re demanding that they comply with the law, which means leaving the country when their asylum claims have been denied after a hearing.

Other friends don’t agree. As card-carrying liberals, or even conscientious conservatives, they can’t abide by much of what the president does, or anything he says. They feel betrayed when he pushes zero tolerance in dealing with migrant families and see the world going backward when he eases regulations on coal-fired electrical plants.

And tax reform? That was a gift to Trump himself and his wealthy friends. When it comes to foreign policy, they see an inept bumbler alienating our allies while sucking up to our enemies, all while Iran and North Korea build nuclear weapons.

It scares them to death.

The two sides don’t seem to agree on anything, and hope their respective leaders will fight to the bitter end to protect their points of view and interests.

Well, those leaders are fighting alright, but not for any of us – and the proof is there for everyone to see in the new spending bill.

Political leaders just tacked on $320 billion in new debt over two years and $1.7 trillion in additional debt over a decade. And they’re happy about it, claiming they avoided a shutdown and were able to spend more on the military and domestic programs.


How hard was it to say, “Hey, let’s just keep racking up the debt and spending it without doing the hard work of living within our means”?

The biggest goal these politicians have is their own re-election, not good stewardship.

Both sides act as if the magic pony theory of money, Modern Monetary Theory, which claims you can borrow forever as long as you borrow in your home currency, makes sense.

But if they read the theory, they might find the flaw. When lenders refuse to give you more money in your home currency, you’re screwed. You just don’t know when that’s going to happen.

Acting as if interest rates will remain at record lows for all of time is idiotic. Rates will march higher one day; when they do, our national debt, which currently stands at $22 trillion and is increasing by $1 trillion per year, will become breathtakingly expensive. The interest payments alone will crowd out other spending, requiring us to borrow a lot more, spend a lot less, or pile on the taxes.

Which One Do You Think Will Happen?

When the fateful days come, when the government can’t print its way out of the mess for fear of crashing the economy, the politicians will look around and wonder how they can fill the gap. And they’ll eventually land on our assets. They will claim that they need more tax dollars and it’s our patriotic duty as citizens to support the nation.

What About Their Support?

What about government officials who take an oath to protect the nation and faithfully execute our laws?

The worst part is, few people seem to care. A few conservative Senators are making a stink about it, but they’ll be shouted down “for the good of the party.”

I think the national debt was mentioned exactly one time during the Democratic debates, showing zero appetite for even broaching the subject. And Trump has always had a penchant for using debt.

In a way it seems the two parties reflect the views of the majority of the nation – give me what I want, what I think I deserve, but don’t ask me for more money.

That might work for a few years – and in the history of a nation, a couple of decades is just a blip in time – but eventually the debt comes due. When that happens, we won’t be asking people for more, we’ll be demanding it, and then simply taking it.

As a wise person once wrote, a train wreck in slow motion is still a train wreck.

Right now we’re all stuck on the train.

Rodney Johnson

Follow me on Twitter ;@RJHSDent

By Rodney Johnson, Senior Editor of Economy & Markets

Copyright © 2019 Rodney Johnson - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Rodney Johnson Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules