Happy Twenty Trillion America
What is a trillion? It is a million millions and we just crossed a significant threshold. We are now in over 20 TRILLION dollars in debt. Yes, we have arrived. That number continues to climb. Now, what is wrong with this picture? President Trump and a few other politicians are trying to eliminate the debt ceiling. The debt ceiling is the limit on the amount of money on a 12 month basis that Congress can borrow. It is the last piece of weak accountability. Can you imagine it not being there? This is especially the case with a President who loves to use debt to build things. He has a history of borrowing money on all of his ventures. Some are successful and the money gets paid back. Some are busts and he walks away. After all, it wasn't his money that was lost. That is just how he built his empire and I would imagine that is how he plans to rebuild America.
He also wants to enact a massive tax cut. Remember, taxes represents revenue that comes into the government to pay for all of that irresponsible spending authorized by the politicians. He wants to reduce revenue to the government in the hopes that tax cuts would spur more revenue. That has always been one of those ideas that looks great on paper. Will it translate to growth? We shall see.
Then you have Bernie Sanders announcing his new medicare package. He wants to expand Medicare for all. Basically, you just present the card and you are covered. No more deductibles or out of pocket. Bernie represents what is wrong with Washington. He gave all of the specifics of the plan with the exception... OF HOW THE PROGRAM GETS PAID FOR. Isn't that the most important part?
Washington is broken and in this case you can't fix what is broken unless you remove politics and introduce term limits and that is never going to happen. So, Happy 20 Trillion America. Enjoy it where it is right now. It won't be long before it is 21 trillion. I did leave out one fact. We borrow about 1/2 of every dollar we spend. What could go wrong?