We have long been told that we are marching toward a fiscal cliff and that Armageddon is at the bottom should we fall off.
The laws of economics are immutable. No system whether it be socialist, communist, or capitalist is immune. When will we know we have passed over the edge? We will know when it is too late to prevent its happening.
Realization will begin suddenly after events occur revealing the fate resulting from decades of irresponsibility and blindness. It may be a stock market crash or it may be a currency failure or it may be inflation that awakens us. We will all awaken to reality at the same time and panic will be the result.
The piper will be paid and no one will like the currency demanded.
Shutdown Drama Distracts from Our Sorry Fiscal State
This year’s deficit will be nearly double last year’s.
From National Review: By JIBRAN KHAN, February 7, 2018
The recurring shutdown and short-term-funding debates have let Democrats and Republicans run through debate points about immigration and their views of the president. But lost in an argument that is grounded in spending is the spending itself: the grim outlook of our nation’s finances. It is telling that the State of the Union address, which celebrated big government but did not even mention debt or the ongoing deficits, was widely popular.
Government shutdowns have become trial runs for would-be star politicians and tend to be popular with the parties’ activist bases. Ted Cruz raised his profile by orchestrating the 2013 shutdown even though it failed to put a dent in Obamacare. (Today he claims to have “consistently opposed shutdowns.”) And after a weekend-long shutdown this year, activist Democrats protested in front of Chuck Schumer’s home because the event had ended to soon. Kamala Harris, who like Ted Cruz in 2013 is eyeing the next general election, has committed to backing a shutdown this week if the spending deal doesn’t contain a fix for the “Dreamers.”
It is easy to blame Democrats for their shutdown theatrics, but these would have been harder to pull off if the congressional GOP had opened the year by showing an interest in the budget or had demonstrated a legislative agenda beyond a vague desire for something on infrastructure. When that infrastructure idea began to materialize, it was as a trillion-plus-dollar boondoggle.
The Treasury predicts about $1 trillion in borrowing per year in 2018, 2019, and 2020; this is roughly double the borrowing last year. The increase is driven to some extent by reduced tax revenues following the GOP’s recent tax reforms. While defenders of the tax bill were not wrong in saying that reduced revenues could be offset by shrinking government spending, it seems, as skeptics argued at the time, that those cuts are unlikely to come about. In fact, across the board, the preference seems to be for more spending. The national debt is already over $20.5 trillion, a situation that rightly infuriated conservatives during the Obama years.