The president of the United States has about half of the voters in the United States eating out of his hand. A 40% to 50% approval rating for any politician in this day is extremely high. He has no opposition in the Democratic Party. They are all terrified of confronting Donald Trump on any kind of serious issue. War is just fine with the Democrats. On issues like war and the tariffs virtually all politicians are on the same page regardless. On tariffs, the democrats, are completely silent. That is because, like the president, all of congress is in favor of shifting the burden of the enormous federal debt onto the backs of the bottom 95% of income earners. Unfortunately Donald Trump is probably still better than anyone who might run against him. That makes him highly dangerous.
Politicians know their constituents will never study issues beyond a superficial level. So, 40 plus years of central economic planning has created a monstrous federal debt. If interest rates rise even modestly paying the interest will be very difficult. When economic activity slows down it may be impossible. The Federal Reserve can keep interest rates near 0% only if, because of circumstances, their job is easy. What happens when defaults increase? What happens if a decline in stock prices cannot be prevented? Rising asset prices which are the result of massive manipulation do not make for any set of stable economic circumstances. If interest rates rise without permission from the Fed or if the stock market can no longer be moved higher through manipulation. Remove the source of the recovery and the bottom falls out.
So what is the solution?
The solution being offered is to create enough inflation to bury the debt. Inflation is a vicious tax. People don’t realize they are being taxed. The president does not have to ask for legislation to increase taxes. Congress doesn’t have to pass a bill levying higher taxes. Inflation can be created without the consent of the governed. The American people are being forced to bail out the federal government.
The president gives Americans a small tax cut. What do they do? They start eating out of his hand. The corporate tax was lowered substantially. A Inflation is going to be less harmful to the corporate sector than to the general population. Many corporations will be helped. The inflation tax will cost ordinary Americans far more than anything they gained from the small tax cut they received. Actually it will destroy their lives.
Keep in mind that opposing Donald Trump is completely different than wishing Hillary Clinton had been elected instead. There may not actually be a candidate who is better than either of them. We have to work with whoever occupies the oval office.
The question is, as a citizen do you mind having the burden of servicing our enormous debt placed on your back? If you do mind, now is the time to wake up and make some noise. If you don’t it is going to happen and in 5 years you will be paying twice as much as you are now for everything you buy.
The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.
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