Submitted by QTR's Fringe Finance
I’m a realist. I understand there’s always going to be hypocrisy on both sides of the political aisle. And I also understand that, as far as politics go, monetary policy is pretty much “the third rail.”
As I’ve always said, if there’s one thing that should alarm you about today’s monetary policy — which is damn close to full-on modern monetary theory — it’s the fact that both political parties agree on it. Are there any other issues that you can think of off the top of your head that both parties agree on and never argue about? I sure as hell can’t.
But while both parties have generally embraced the way the country has run monetary policy, their respective stances on how the country runs fiscal policy are quite different. And therein lies the basis for why today’s revelation matters.
There’s no doubt the United States needs to make dramatic spending cuts to prevent itself from spiraling—either downward into an eventual debt default or upward into hyperinflation. If you want a primer on why that is, I’d recommend listening to this one-hour, simple-to-understand synopsis of the country’s financial position, followed by this appearance by Jim Bianco on the Julia LaRoche podcast a couple of days ago.
Right now, the political climate consists of Republicans taking a chainsaw to anything they can get their hands on in government to cut spending, and Democrats protesting any and all cuts for any reason they can drum up. Hashing out individual issues worthy of cuts is not what this article is about, so we’ll save that discussion for another day.
This article is meant to point out the fatal hypocritical flaw that exists in Democrats’ reasoning as it relates to the country’s financials. Everybody understands the simple idea that if we run up too much debt, the country could, in essence, go bankrupt. But what’s really alarming now is the pace at which we are running up this debt. It’s why this chart of the national debt is going parabolically higher. The number $35 trillion is astonishing — but the rate with which we are moving higher is beyond breakneck.
Source: Kobeissi Letter
The cuts that are being attempted are a direct effort to address the size of the deficit, which is a fancy word for how much more money the U.S. goes into debt every year. The idea is to slow the pace of debt accumulation and then eventually reverse course to start paying it down.
Make no mistake about it—the Biden administration did not give a single solitary f*ck thought to how fast we were running up debt. The deficit under the Biden presidency propelled the debt to unprecedented levels that put us on an extremely dangerous trajectory. There appeared to be zero discretion or care in how the Biden administration spent. This is pretty much par for the course for Democrats, who generally believe there should be no ceiling on how high taxes can go and how big government can get, and nothing is off-limits to tax, regardless of how regressive.
The topic of government ever getting too big or taxes getting too high is never broached. As policy, Democrats fight for their right to push the economy to the brink.
Economists on the left have supplemented this asinine policy with...(READ THIS FULL ARTICLE, 100% FREE, HERE).
