Beyond the Cusp

December 24, 2017

Let’s Talk About the Tax Cut Law


The long talked about and maligned tax cut legislation has finally passed, and will be signed as a Christmas present for all in tax lands. What has been some of the main talking points have been that the uber rich will receive more money back than the poorest of the poor and that companies having more of their money is not required for them to pay higher wages or hire more employees while expanding business, they could pay more to employees and hire more without a tax cut or expanding their business. Why don’t we simply look at these half-crazed statements which have infected much of the discussion over this economy boosting legislation?


The very first things we need to be honest about are that the Democrat Party elites have never seen a new tax or tax increase they did not like, a government giveaway to the lower fifty percent of earners they could not get behind, and tax cuts which includes corporations and the top fifty percent they could not hate. Since we are speaking of the tax cut, we will address the last point only. When your definition of the uber wealthy includes the entirety of the top fifty percent of earner sans the Hollywood elites, then any tax cut will provide the wealthy with almost all the tax relief as they are those in the top fifty percent of earners who pay taxes while those in the bottom fifty percent largely do not pay income taxes. The confusion comes in because the entirety of earners pay taxes, but not all pay income taxes which is what we are talking about. If the Democrats were really so concerned about the taxes paid by the lower fifty percent of earners, then they would find some way of restructuring Social Security taxes, Medicare and Medicaid taxes such that it was less of a burden on those at the lower wage earning end of the scale. One means would be to make minimum wage earners exempt from these taxes and have them begin after earners have earned a specific amount and raise the upper end cut-off one more. Of course, once this begins, very soon these taxes will end up like income taxes, only paid by the top fifty percent of earners and the lower fifty percent of earners being exempt for the most part. Such a taxation schedule should be called the “Democrats think this is almost fair tax schedule.” It is this protection racket by which the Democrats all but lock in those who earn less as their supporters and why they are scared to death of such ideas as a fair tax system where there are far less deductions and a flat tax rate for everyone. To the people complaining about this tax cut, a straight flat tax is called grossly unfair and a tax plan that helps the rich. That is only an accusation available because of the mess of a tax system the two parties have patched together through years of designing taxes to fit their ideas of fair. Such a system has produced a money wasting and unfair system which drains of close to if not over ten percent of the economic growth just to address taxation. That is unfair to everyone no matter where on the pay schedule they fall as it takes money from everybody at an equal percentage and allows the IRS to use the tax code through differing interpretations to attack people which those in power decide need targeting.


The people telling us that only the rich will see significant reduction in their taxes are selling you a yarn. We have heard arguments that the lowest one-third of income earners will not see a single penny extra in their paychecks resulting from this legislation. Well, of course not, they do not pay income tax but many get a refund from the income earned tax credit, a straight giveaway to those who pay no taxes such that they will receive a tax refund so they can believe they must have paid taxes. In reality, this is another form of welfare the democrats have devised calling it a tax refund for the tax challenged. What else do you call a refund sent mostly to people who never paid into the fund from whence the refund for payments comes from? We call that a backdoor, disguised Welfare payment. The other truth they leave out is virtually every taxpayer will see some degree of reduction in their tax bill with the singular exception being such special cases who claim every conceivable deduction through some form of tax wizardry and now face some of those deductions being removed from the tax code as part of simplification and those deductions outweighing the amount their taxes were reduced. Thusfar, in everything we have read, such an individual exists in examples of how such could conceivably occur and have names such as John Doe, John Smith, Taxpayer X and other such nomenclature for something which is so rare that no such individual could be found, but we are assured that there are millions who fall into this narrow class of people and they just did not have the time and resources to find anyone.


Capitol Cash Machine

Capitol Cash Machine


The other huge problem is that this tax cut legislation actually gives corporations, which term is used such that you do not believe this includes the Ma and Pa store on the corner or down the street, it does, are receiving tax cuts. They poke fun at the idea that this will increase the ability of these companies to pay their employees more, save up and enlarge their company thus hiring more employees at a higher rate of pay. Their claim is companies, including the Ma and Pa shop aforementioned, can pay their employees more and expand their businesses and hire more people now if they really wanted to but they are not doing so which simply proves that they will just pocket the extra money and pay the top earners more while probably cutting lower earners’ salaries because they got a tax cut so do not need as much salary. These people really do hate companies and wealthy people unless they are leftist backers of the Democrat Party. Below are a few selected tweets from Hollywood and other elites we took from an article titled, “Liberals Have an EPIC Meltdown Over GOP Tax Reform” which we found online at and cleaned up Mr. Maher’s language to retain our family friendly ratings. These comments were extremely amusing in a provocative way as they come from people who make more in one week than we will in our combined lifetimes. Do they not realize that they are the wealthy of which they complain so loudly? If it is so rotten being that wealthy, we have another suggestion for them, not only refuse their ill gotten tax cuts, but make an example and pay double what they owe and denote that their extra payment must be used to pay down the principle of the debt, something which truly would help the nation and its financial wealth and would pay dividends far into the future. If the entirety of the mega-wealthy would make a contract that they each pay one million dollars additional taxes each year denoting that it goes directly into paying off the principle of the debt, with one proviso, the government finish that year with a balanced budget or showing a profit. That would serve a number of worthy causes, it would give the government, particularly Congress, an incentive to live within its means, pays down the principle and not just another interest payment making the interest in the future less, and eventually such a contract would remove the debt altogether making the United States debt free for the second time in its entire history (the other time was January 8, 1835, under President Andrew Jackson). Wealthier corporations could join this effort, use their participation as an advertising gimmick, and likely make more profits than the payments would cost. The biggest benefit of such a bribe would be getting Congress every few years to actually manage to spend within its limits, the more often the better.


Liberals Have an EPIC Meltdown Over GOP Tax Reform Tweets

Liberals Have an EPIC Meltdown Over GOP Tax Reform Tweets


While we are speaking on taxes and balanced budgets, there are some dangerous realities coming in the near future if the United States does not get its fiscal house in order. The first is that with the debt climbing to such a high level, the interest is eating an ever-larger share of each yearly budget making spending limitations impossible. Should the interest rates increase, which should the economy heat up would become unavoidable, then the interest on the debt, which is paid with short term loans, would balloon making even meeting that payment beyond the ability of the government leading to a default situation. This has been part of why the interest rates have been kept artificially so low as the government would collapse should they ever reach close to or above nine percent prime rate. Of course should the debt increase faster than the economy increases as was the case over the past twenty years, then nothing will prevent default within some set period of time probably within this century. The best plan for taking care of this problem would be two-fold approach; first, pass a balanced budget amendment to the constitution which would require that no budget surpass the previous years tax intake by the IRS except in time of declared warfare, and second, a tax policy which incentivizes the economic growth through simplification of the tax code which would include a wealth tax on uninvested savings, which would include trust funds and endowments, of over two-hundred-fifty-million dollars, adjusted for inflations and deflation each year, such as to encourage these large pools of revenue to be invested thus stimulating economic growth as that is the easiest and fastest way to shrink the deficit.


As far as the ridiculing and belittling of the tax simplification and reduction legislation, it is being done for two basic reasons. First, the left-leaning media-Democrat Party-entertainment-news conglomerate believes firmly that the government can spend your money far more wisely than can you as you would never spend your hard-earned money on some of the insanities such as investing in anthropomorphic global warming schemes from the United Nations or whatever your favorite waste of money by government might be but the government will spend money on the United Nations IPCC (Intergovernmental Panel on Climate Change) and that means they would spend your money more wisely than you could ever spend that money. Second, this was one of Donald Trump’s ideas and as he backs this plan, it must be prevented from being enacted at all costs simply because it is Donald Trump’s idea. That is the hard and basic truth. It matters not if this tax package is good for America, good for most of the populations, good for the economy; it was not done by an approved individual, read Democrat, and thus is terrible, horrible, dastardly and must be made to be unpalatable to the public. What the people pushing this inanity twenty-four-seven have not and refuse to recognize is that they have reached the point where the rest of the world is getting on with their lives and have been ignoring them for months. They cannot see this as they are locked into echo-chambers of like-minded, or out-of-minded, others who are doing the same thing. They each retweet or repost the same things in such a manner that they do eventually repeat about every seven or eight months thus these have become ring-posts which work their way around varying groups of people finally reaching back to the original point only to start around again. Some of these people are in multiple rings making the entire hodgepodge somewhat less discernable, especially for those involved. Granted, there are some who remain in contact with a number of these people either for amusement, gain information on the other extremes, or because they have lost a friend to the fire breathing circuit and are waiting for the right moment to try an make a recovery effort.


As a closing point, having companies pay fewer taxes is always a good thing because companies do not pay taxes, only people pay taxes. Does anybody really believe as some have posted that companies do not pass on the cost of taxes in the price of their products and in lower raises for the employees. Those are the realities of running a business as we can tell you from experience in doing exactly that. Overhead includes tax payments, licensing, rental fees, fuel costs and a myriad of other incidentals and are all summed up and then incorporated in determining the cost of their goods and services. Lower any single element and the price drops, raise any single element and the price goes up. What you are not being told is it is less expensive for you to pay a tax directly than for you to pay the tax through a corporation placing the costs of that tax into its price formula. When they incorporate the tax as part of their price formula, that cost is added to the base cost of the goods and other essentials in manufacturing or producing the goods or services and once that determination is made, it is then increased by a percentage. For example, an item costs ten dollars to make and overhead is five dollars per unit of which one dollar is taxes. The price mark-up is one-hundred percent (not uncommon for production to retail price with Jewelry far higher and low ticket items less but this is a normative range) then you take the ten dollars and the five dollars and add them getting fifteen then increase that by one-hundred percent and you get a selling price of thirty dollars of which two dollars are for the taxes. That is right, they mark-up their tax cost and pass that along and make a profit on their taxes because companies make a profit on everything otherwise they would not be in business very long. So, which is more expensive, the corporations paying the taxes or the individual paying the taxes once you realize that the corporation places the cost of taxes into the production cost and then mark-up the entire cost including a mark-up on the taxes so you pay for the taxes plus. It really is that simple, you pay for the taxes plus for a profit on their paying the taxes in the price of everything you purchase, so would it not just be easier to pay the taxes yourself instead of through a middleman? We know there are some out there still saying that the corporations and companies can afford to pay more taxes but they do not actually pay the tax, the people do. The corporation and tax costs are passed on to the customer with an allowance giving the corporations additional profits.


Beyond the Cusp


December 15, 2017

Will America Explode First?


There has been any number of editorials commenting about the presumed unrest in the United States. They all, more often than not, have referred to the extreme anger and protest existing on social media. They assume that as social media was largely quiet during the Presidency of Barack Obama and has been very noisy since the election of Donald Trump as President that the United States public was more unified during the former and very distressed now. There have been those who point out that there is this old expression of the “silent majority” which was described as what awoke to elect President Reagan. This was presumed to explain that the “silent majority” actually is silent. There is some support to this as these are presumed to be the older people plus ones who are not as computer active as the ones now protesting so vehemently. After all, they are presumably silent, right? Still, how completely upside down and fouled does the world, and the United States in particular, have to be for Donald Trump to be elected to the Presidency? That has been one of the overriding questions which are somewhat more difficult to answer. Had the election gone the other direction, there would be people asking how far things must have gone awry and has become to elect Hillary Clinton. The other question is how crazy have things become that an avowed socialist and former Communist to almost win the Democrat primary elections. Well, how far gone have things become in the United States?


The first point that we believe shows that the political class has completely lost all connection with reality has been the debt. Things were viewed as having reached the verge to going off the rails when George W. Bush was elected President and the debt stood near five-trillion dollars. Eight short years later the debt had all but doubled pushing towards ten-trillion dollars. Then enter President Barack Obama and another short eight years later and the debt had almost doubled again approaching twenty-trillion dollars. Things actually went off the rails far earlier when the politicians decided that they could only afford to pay the interest on the debt and never pay down the debt. When under President Willian Jefferson Clinton with a Republican Congress managed to make a budget that on paper did not add to the deficit, the nation celebrated as if President Andrew Jackson completely paid off the debt which was celebrated on January 8, 1835. By the end of 1935, the debt had returned to between thirty to thirty-five billion dollars. Apparently, the debt had been eradicated for just a few weeks and then Congress returned to business as usual. Debt appears to be the norm and not the exception. Eventually, one of two things are going to happen, either there will be a Constitutional Convention called by the States to amend the Constitution placing a balanced budget amendment onto the Constitution with a stipulation that some percentage, ten sounds like a good number, of each budget must be applied to the principle of any existing debt until all debt is vanquished and to be reapplied instantly should new debt accrue. Anything short will lead to the worst possible option, default.


Eventually the interest on the debt will exceed the ability to allow paying the full amount and still running the government and meeting promised payments and allotments. Now it is possible to continue to pay the interest and all government expenses as long as there is somewhere for the United States to borrow the necessary amounts of money. This became a problem when China closed its loan office to the United States. This led to some creative financing. The Federal Reserve sold the United States the needed moneys while creating this money through bonds which it gave to the main lending banks. This method works just fine providing that these funds remain dormant in the lending banks. The problem comes when the economy becomes more active and there comes a demand for more loans and these funds begin to be utilized by the loaning banks. This is called giving the money velocity in economics. This leads to inflation as the money supply begins to increase, and in this case possibly rapidly. With inflation comes the problem of removing this excess currency from the monetary supply. There are two means for completing this task, taxes and interest rates. There are, needless to point out, ramifications to each of these means. Increasing interest rates makes the interest on the debt, which is refreshed through short-term loans on the debt, rise and eventually this leads to default or spiraling inflation. So raising interest rates is out of the question and explains why interest rates have been artificially kept so low. The other means is taxes and increasing taxes ends the economic activity and leads to less tax moneys being collected. This would also eventually lead to default or spiraling inflation. Any means used will, eventually, lead to default on the debt which will cause a loss in faith of the dollar. What would that cause?


A crisis in the dollar would have any number of consequences. First, and likely the most devastating, the world would all but immediately demand that some different or group of different monetary notes be used as the new reserve currency. If a group of currencies were chosen, there would be some form of complicated and intricate formula to determine what the rest of the world’s currencies would be worth. The other choice would be some mythical means for establishing exchange rates and the various values of currencies. The reason for these confusions and problems is easy to explain, gold is no longer the basis of any currency. As the dollar was the reserve currency when President Nixon took the dollar off the gold standard, he took the world off the gold standard and now currencies floated against the arbitrary value of the dollar. This is also why gold prices fluctuate against the dollar, though they actually do not gain or lose value. If you were to figure what a Ferrari would have cost in gold in 1971 and then figured the price of a Ferrari cost in gold today, the difference would be relatively negligible. That is why these claims that investing in precious metals, especially gold, will make you more wealthy in the future. It will not, you may receive more dollars, Federal Reserve Notes, but they will have very much the same purchasing power as the money you utilized to purchase the gold in the first place.





Would defaulting on the debt ruin the United States? Interestingly enough, such a default would allow the United States to get out of debt faster. The dollar would immediately lose much of its value and imported goods would become prohibitively more expensive. On the other hand, it would make American made goods extremely affordable to the rest of the world, except China who falsely set their currency tied to the dollar, so China would also become a pauper nation. This would allow the United States to become a prime location for manufacturing, as American labor prices would be lower than almost everywhere else where the ability of the work force is comparable. Made in America would become desirable once again not only for quality but also for affordability. Still, a default would be ruinous for American business initially and numerous companies, especially those manufacturing overseas, would find they were no longer able to be profitable and they would be replaced by new companies which would spring up almost overnight. The largest problem would be foreign corporations and billionaires could buy large shares of American companies which would provide the United States with the funding to climb out of the hole they would find themselves to have fallen. The real losers would be those people holding stocks and other investments which were in dollars as overnight they would become almost worthless compared to their value just a few days, possibly hours earlier. Such a default might lead to another stock market crash but the following dark days could be avoided providing that Congress was locked in political gridlock and unable to act. Financial bubbles burst and that makes room for new smaller bubbles to begin. That is the normal cycle for investing, especially if you are investing in tulips in the Netherlands from 1619 to 1622 when the bottom fell out when one person decided that tulips were not worth their price and everyone realized that mania had led them astray. Those left holding tulips had lousy investments but very pretty flowers to show for the insanity. On that flowery lesson, we will let the American mania continue and see when their crash comes or if they might be saved by some sagely leadership, whenever that is proven to be found. In the meantime, stay tuned for more fun and watch the crazed social media; it can be amusing as long as nobody gets hurt.


Beyond the Cusp


October 22, 2017

J’accuse and Your Guilt is Sealed


The new left is quite different from the liberals who used to make up the left. The new left is activist and refuses to permit people to oppose their dictums. Your religious beliefs are inconsequential in the world they are preparing for the future. Your political leanings must be corrected until you yield to their beliefs. Nothing can be permitted in opposition. Change has become the order of their day, their night and any time they spend awake. There can be no higher calling than the transition of society’s norms to match their beliefs. What is wonderful is how accepting these leftists can be when you talk their talk and walk their walk. They have their definition of a wonderful new age where everybody is completely equal. There will be no difference in treatment between men and women because gender, sexual is a word which they have deemed offensive so we cannot use such here, identity at birth is irrelevant to them as they can find one male and one female who are equal at any task. Power lifting, take the women’s world heavyweight record holder and some man who has never pressed weights in his life and has a figure so slight that he hardly seems to have muscles at all, the woman can out lift him so proof positive. Running, they can find a woman who is faster than some man. Whatever you can find and there is some pairing of a particular woman and a particular man where the woman is equal or superior. Tennis has already been established, as women are superior after Billie Jean King defeated Bobby Riggs. Let us look at some of the results of these policies.


This was sufficient proof of equality to permit women into combat units. Never mind that some of the enemies they may face believe that women captured on a battlefield are to be used for the pleasuring the capturing troops as their reward for such a prize. These enemies know that their brutalizing of their enemies’ women is a particular insult which is why they will use captured women in propaganda which proves their superiority over the enemy which is incapable of protecting their delicate flowers, their women. Many of the developed world, where these leftists run unchecked, are incapable of understanding that there are those in the world whose societies differ greatly from the developed world. These societies are less advanced and less sophisticated in their moral principles holding on to mores discarded by the developed world anywhere from a century to millennia ago. Acts which they believe to be normal practice and acceptable as a means of proving their superiority using their beliefs that men are superior to women and because of this superiority then a brave and strong man would protect a woman at all costs and capturing and debasing an enemies women was a measure of dominance.


Many soldiers in the developed world’s armies know this and, because of their knowledge, they will go to extremes to prevent any woman in their charge from being taken by the enemy, even at the cost of their own lives. Despite evidence presented proving this danger would be real, the leftists demanded that women be permitted to serve in combat units. But this posed an additional problem; the women who desired to serve in the combat units were largely incapable of meeting the physical requirements. The leftists were there with the solution, a lesser degree of physical ability with tests adjusted for, wait for it, gender be used where women only be required to perform at approximately three-quarters that of their male counterparts. Other than the different physical requirements, men and women are completely equally capable of performing the necessary requirements for combat arms units.


Some Marines were once asked what misgivings they had with women serving in combat units and universally they had two main problem areas. The first was the insensitive treatment, the outright vile treatment they would receive if captured which would place their unit in jeopardy as this would require their being overly protective of any woman or women in their unit even to the point that some said they might consider shooting their female compatriots rather than allow them be captured. These interviews disappeared from records within weeks of their being reported. Their other complaint was they really would prefer that another male Marine be expected to carry them from the field of battle when injured as the women would likely struggle carrying a two-hundred-fifty pound Marine who was a full foot taller than the female soldier. This had been a proven problem in training to the point that the women were only required to carry another woman in such exercises and if no woman was present, then the slightest and shortest male soldier would be their victim to carry.


But this demands that all inequalities be ignored because if you ignore differences and compensate for them making that the norm, then differences really no longer exist. Simply pretend that there is no difference and then no difference is noted. That makes all differences simply vanish as they have been deleted from reality. This has been carried over to marriage such that the gender of the people being joined in marriage no longer matter. Marriage can be between a man and a woman, but where is the fun in that. Marriage can also be between a man and a man or a woman and another woman, viva the lack of difference. Now there is another new rule for society, everyone must treat same gender partners in a marriage exactly the same as they would a traditional married couple. There must be no differentiating or else. So, if you are a baker, one of about fifty in a city, and you are known to be a religious person, a very religious person, then there will at some point be a same gender couple who will seek out your bakery demanding that you make their wedding cake. Should you refuse, then you are in for a heap load of trouble. You will be sued and driven out of business rather than simply finding another baker who would accept your business and happily bake your cake. You see, it is a matter of principle that everybody must accept your choice in marriage and those who refuse on religious grounds, especially on religious grounds, must be driven from the public square.


Even in the workplace, if there is a person where one member of a same gender couple is employed, then there is a dynamic which at some point is almost guaranteed to erupt with the slightest provocation, even unintentional provocations. The horrible side to this is that no provocation is actually required, just the individual believing there had been a provocation. What is really unique about same gender marriage currently in society is that it is the particular area of greatest sensitivity. Should the member of a same gender marriage feel they have had their special relations insulted and bring charges that they have been slighted over their relations, then the accused is guilty. The accusation in and of itself is sufficient proof of commission of the crime and the accused is basically finished and will forever carry the stigma of being an insensitive boor to be scorned by all. This is further guaranteed by those who will be charged with doing the investigation. The EEOC officer likely has their degree in gender studies or other equally prestigious area of social studies. They are trained to be capable of feeling the slightest tremor or disturbance in the polite requirements of their highly sensitized abilities. Many of them are over-zealous just chomping at the bit to find some inequality to level, some wrong to right, some offended person to defend, some reason to champion a cause and make a difference. Never mind that often that difference has a person who becomes the victim, but these victims deserve being victimized, as they fell on the wrong side of the new social constructs. Wait until you hear of some who choose to be gender free.


Things were so very different back at the front end of the new age when equality actually meant accepting one another for the person we were and trying not to be judgmental. This was during that long ago age of flower power and being groovy and dropping in or dropping out which often could mean the same thing. Back then there was a revolution in society where the past was to simply be left in the dust, the dustbin of history and a whole new world was going to be replacing the old where people were judged by their character, ability, and quality of their performance, their work and differences were to be respected. People were to be permitted their differences and if one felt uncomfortable with your lifestyle, then as long as they were polite and treated you with respect, then you were to respect their beliefs and not demand they approve of you just as they were not to expect you to reform to their beliefs. It was all about respecting differences and everyone living their life by their rules and allowing others to do the same. Life has changed and the world is now about forcing everyone to believe the true and enlightened path of leftist dogma. We went from no such thing as a set dogma and everybody was allowed to make their own rules for their life and nobody’s rules were any better, more respectable or more correct than anyone else’s rules and that was that to strict dogma demanding complete compliance dictated by the extreme left. Now you must be in with same gender marriage, open relationships and every last iota of the leftist menagerie of whatever is their latest decision modern society must now embrace. It is difficult to keep up with some of the changes society has taken and the speed of these constant demands which come at us from every corner.


Many people, far more than the leftists are willing to accept, are growing tired of their holier than thou preaching about how everyone is supposed to think and what we are to cherish and what is acceptable and what is not. Despite the overwhelming social media offensive which claims the President Trump was placed into the Oval Office by no less than the devil himself, or was a Russian President Putin, and is there a difference as social media says there is no diff, but the people who voted for Trump were not all people who actually thought he was the most wonderful choice possible, but they definitely knew he was not going to be another leftist, and that was all that mattered. There are a number of Republicans who have misjudged the anger running through the American electorate and others who have seen it for what it is and decided to retire and let somebody the people can believe in to hopefully replace them. Now for the interesting thing which deserves its own paragraph.


The Democrat Party will survive their plunge into the farthest left swimming pool they could find and then swimming to the left end of the pool. They truly believe in what they are representing, and good for them. They will pay the price for their plunge to extremism and will recover and return to just being the excessively liberal party. The Republican Party is a completely different matter. Should their mainstream old school leadership insist on trying to play Democrat lite, then the party will die, as it should. They have a choice that they need to make, either change their leadership and actually stand for something or become irrelevant. Donald Trump is just a symptom of a very disgruntled portion of American society who is sick and tired with being ignored by both parties. They are going to either be given control of the Republican Party or they will declare a new party and the Republicans will go the way of the Whig Party, the party they replaced when the Whigs refused to take a strong stand on slavery. There is no singular item which will spell the end of the Republican Party but the lack of ability to repeal Obamacare, their inability to address and pass meaningful tax reform, their inability to address illegal immigration, their inability to deliver all the items they had promised if only they were given the White House and both houses of Congress, they did not demand a supermajority, which the people granted them, their inability to put the brakes on John McCain and impress vote control of their party members as the Democrat Party does as simple as for the asking, their inability to be honest with their supporters is what will bring them to an end. There are a great number of people who are very angry and their distress is not going to wane, their determination will not be denied, and their fervor will spread as more people wake to the fact that the United States is in distress and unless things are turned around and changes, basic and desperate changes, are made and made immediately, within the Trump four years, then all will be lost.


United States has a Fever


United States debt went from five-trillion dollars in 2000 to twenty-trillion dollars by the end of 2017, which is quadrupled. George W. Bush doubled it in his eight years; and, just not to be outdone, Barack Obama redoubled the debt in his eight years. There is a President which should be emulated for his absolute intolerance of the United States being a debtor nation. He did not settle for simply balancing the budget with accounting gimmicks or actually balancing it for a year or two or showing a small surplus which would evaporate all but immediately. This President paid off the entire debt and on January 8, 1835, at a gathering of the so-called important people in Washington, it was announced that President Andrew Jackson had fulfilled his campaign promise and the entire national debt was paid in full. His methods may have been somewhat dubious but his desired aim was admirable. To get the current debt is not something which could be vanquished by any single President and will take the full attention and efforts of an extensive number of administrations but is something the people are going to demand Washington change as their economy starts to be affected as the debt causes financial ruin and threatens to destroy the United States. Have you ever wonder why savings accounts earn almost no interest? The debt is the answer. The interest rates are being kept artificially low so the debt will not destroy the United States. Should the interest rates rise, then the payment on the interest would accordingly rise. Currently the United States has barely managed to keep up with the payments at their current level. Double the interest rate to close to five percent and the interest payments would double. Redouble them to around nine percent, about half of where they were under President Jimmy Carter, and the interest payment would take over almost half or more of the Federal budget at current levels and force the United States to cut funding for programs and halve the military. Should they rise beyond that, well, let us hope that never becomes the new reality. The time has come in the United States to make balanced budgets and paying off principle and not merely the interest of the debt a primary concern. When a political party and politicians start speaking about this, we will know that just possibly the United States may be starting to heal itself because it is currently quite ill and has a disease which causes it to bleed the people’s financial future.


Beyond the Cusp


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