Janet Yellen already told us we have reached the debt ceiling. There is no longer a way to raise more money from debt.
This doesn't mean the US is about to get foreclosed upon. If this were me or you that is what it would mean, but for huge corporations, fortune 500 companies and something as big as the US government they will always wait until the building collapses of its own accord. Kind of like those barns that farmers stop using but don't tear down.
Already 50% of the world is no longer buying US debt and many of those countries are selling it. This means the "barn" is being abandoned.
Trump is not going to restore the US to the status of being the number one economy and envy of the world. He is fighting an organized retreat. The US ran a $2 trillion dollar deficit in our budget last year. That has to stop immediately. We take in 4.5 trillion in tax revenue and over $4 trillion cannot be touched on our budget, those are obligations that if you don't keep you have declared bankruptcy by violating your fiscal obligations.
That means he must cut everything else. Yes, some things will be graft, or absurd. But there is no way we spent $2 trillion last year on drag queens or bribes. So there is going to be a lot of very painful cuts. But here is the thing, if you cut $2 trillion in government expenditures you will also be cutting tax revenue from those contracts and all the people that were employed that just got laid off. So going forward our tax revenue will fall too, not as fast as our overall expenses, but for every $1 we cut in spending we may cut $0.20 in tax revenue. So in 2026 instead of 4.5 trillion in tax we may only pull in $4 trillion.
Yes, there are things that can be done, but there are no easy choices. For example he could manipulate the gold and silver markets to help pay off debt, but by so doing it will cause havoc to the world's economy and all electronics industries and so will certainly have negative consequences to our exports, imports, and tax revenue. He can go to war but we all know that in reality war is a big loser and there are no winners. He can also go to an austerity budget, but doing that will also cause the world to suffer greatly, not just the US and at a time when everyone is going to war, probably result in a World War.
Those are his options, so when you understand that weigh that against some government agency being cut. Would you rather lose the department of Education or would you rather have WW3 go nuclear? Your choice.
This doesn't mean the US is about to get foreclosed upon. If this were me or you that is what it would mean, but for huge corporations, fortune 500 companies and something as big as the US government they will always wait until the building collapses of its own accord. Kind of like those barns that farmers stop using but don't tear down.
Already 50% of the world is no longer buying US debt and many of those countries are selling it. This means the "barn" is being abandoned.
Trump is not going to restore the US to the status of being the number one economy and envy of the world. He is fighting an organized retreat. The US ran a $2 trillion dollar deficit in our budget last year. That has to stop immediately. We take in 4.5 trillion in tax revenue and over $4 trillion cannot be touched on our budget, those are obligations that if you don't keep you have declared bankruptcy by violating your fiscal obligations.
That means he must cut everything else. Yes, some things will be graft, or absurd. But there is no way we spent $2 trillion last year on drag queens or bribes. So there is going to be a lot of very painful cuts. But here is the thing, if you cut $2 trillion in government expenditures you will also be cutting tax revenue from those contracts and all the people that were employed that just got laid off. So going forward our tax revenue will fall too, not as fast as our overall expenses, but for every $1 we cut in spending we may cut $0.20 in tax revenue. So in 2026 instead of 4.5 trillion in tax we may only pull in $4 trillion.
Yes, there are things that can be done, but there are no easy choices. For example he could manipulate the gold and silver markets to help pay off debt, but by so doing it will cause havoc to the world's economy and all electronics industries and so will certainly have negative consequences to our exports, imports, and tax revenue. He can go to war but we all know that in reality war is a big loser and there are no winners. He can also go to an austerity budget, but doing that will also cause the world to suffer greatly, not just the US and at a time when everyone is going to war, probably result in a World War.
Those are his options, so when you understand that weigh that against some government agency being cut. Would you rather lose the department of Education or would you rather have WW3 go nuclear? Your choice.
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