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Trump's Voodoo Inflationary Economics Proposal Will Doom The American Economy
Trump's tax cuts coupled with a crimp in our labor supply, as well as a crimp in our other supply side components such as investable capital ...
Will lead to an uptick in inflation that will quickly deflate the equity and bond markets as we currently now know them to be.
The more things change ...
In #1920, the GOP recovered the White House from the Democrats.Future President Franklin Roosevelt was the vice-presidential candidate at the time for the Democrats.
The GOP's mantra then? Taxes were considered too "high" ...!Sound familiar?
As a consequence, there was a political push by the interlocking directorates of the day ( similar to today ) to cut taxes.
The result?Bank holidays!
Fast Forward to #2017
Today, you may expect an increase in the hoarding and speculation of hard commodities such as gold, land and real estate by the wealthy as we balloon further our already disastrous $20 trillion USD ( on-the-books ) gross deficit.
Further, by rearranging the consumption habits of over 150 million American households to the detriment of retail, not a single $1 dollar more of marginal tax revenue will be generated by the government.
As Art Laffer curve enthusiasts still religiously recant even today after all of the REAL evidence that suggests otherwise, including President Reagan's own experience ...
The United States government is set to lose over 1/2 of what it currently raises in federal income taxes each and every April 15th going forward based on the current price elasticity of supply.
Given the unfolding scenario of lower federal taxes set to begin (98) years later by the start of fiscal #2018 at a time when the number of dollars needed by the government to pay the simple INTEREST on its debt portfolio silently snatches an even greater slice of the American pie each and every day, who are we to turn to?
The Federal Reserve
Do NOT look to the Federal Reserve to balloon its portfolio any more than it already has to compensate.
It's no secret Janet Yellen and her board of regional governors already know they are way over funded at the Federal Reserve level after greasing the previous anemic Obama expansion to the tune of $4 Trillion USD both here and abroad.
No, when the sh't hits the fan here in America people, the Federal Reserve will not be able to act other than to RETIRE rather than RE-ISSUE new debt.
This known fact will suck investable capital ... a supply side component like labor ... right out of the economy.
By clamping down on our supply of cheap foreign labor that, by the way, contributes around a quarter of all social security and medicare tax receipts WITHOUT the prospect of ever drawing from either, Trump has set the wheels of inflation spinning to the benefit of his multi-headed, and heavily indebted personal real estate related enterprises.
Money In, Money Out
The United States government receives around $2 Trillion dollars USD in total receipts annually.
Of this public money that comes into the government Treasury from various sources including the general income tax on both private and corporate income, around 12 1/2% or $250 billion dollars USD gets paid out in interest.
With the country of China ( $100 billion ) being the largest beneficary of that government largesse.
To put that amount of money into a lay person's perspective, the government could offer a powerball lottery each and every day of the year ( that's 365 days people! ) and still pay out a lump sum winning $500 million in cash each and every day to the winners of each lottery!
Even this amount of public goodness will not cover the interest ( $250,000 million ) that is pissed away each and every day to the holders of our government debt annually.
The Solution?
Write your Federal SenatorsandFederal Representatives at their Washington, DC addresses and tell them to absolutely No! ... Do NOT cut taxes without a corresponding drop in like spending.
Otherwise, Trump and his minions will continue to borrow us right into bankruptcy as a nation, as he did so often with the casinos he built that eventually went belly-up.
Remember ... Do NOT cut taxes without a corresponding drop in like spending.
Voodoo Trump-eNomics
Hello Congresswoman (Senator):
RE: $20 Trillion USD In the Red and Counting
With the state of our supply side components drastically inelastic ...
It is important that you push for spending cuts that will mirror any initiative by President Trump to lower our Federal tax rates at this time.
Today, our country spends approx. $250,000 million on debt service with approx. $100 billion of that going to the country of China.
Each and every day, each and every week, each and every month, each and every year we shell out productive dollars to a foreign entity to cover interest on our national debt.
If we merely initiated a daily Federal powerball and gave the winners a lump sum of $500 million cash each and every day, we would still not have enough money to cover the interest costs on our $20 Trillion debt portfolio.
Absolutely No! ... Do NOT cut taxes without a corresponding drop in like spending.
Otherwise, Trump and his minions will continue to borrow us right into bankruptcy as a nation, as he did so often with the casinos he built that eventually went belly-up.
Thank you for your consideration.
Your constituent and proud American voter,
Your Name
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