Trump early on talked about a Default and indicated he would default on external debt first.
The fact of the matter, and Trump understands this perfectly, is that if we don’t get deficit spending under control, the debt under control then at some point just paying the interest on the debt, along with health care cost, are going to eat the budget up and then we will have to Default.
We can’t continue to print money to solve the problem, QE 3 or 4 is coming and it is going to be ugly.
The fact of the matter, and Trump understands this perfectly, is that if we don’t get deficit spending under control, the debt under control then at some point just paying the interest on the debt, along with health care cost, are going to eat the budget up and then we will have to Default.
We can’t continue to print money to solve the problem, QE 3 or 4 is coming and it is going to be ugly.
This. I am happy that Trump is talking about debt because this is the legacy we are leaving our children. A devalued dollar and a tax they will pay their entire lives so we can spend today.
However, you are correct - we have to get our spending under control. Everyone with a brain knows there is a bubble that will burst with the dollar and our economy. The easiest solution for politicians is to simply expand the bubble - that is the most painless short term. The hardest solution for politicians is to address this because it will likely cause lots of pain (and anger) in the short term.
We need to face reality. If the GOPe (led by Ryan) calculates this politically they will oppose Trump’s measures because (likely correct) they realize the mid-term elections will be a bloodbath for the GOP if they cut spending. If Trump can get our fiscal house in order it will step on a lot of toes as we throttle back on spending - this is just as likely to lose the Presidency in 4 years as it is to create an economic boom like Reagan. It has to be done though - we must secure a better future for our kids and we are as addicted to deficit spending as a junky is to heroin - throughout the economy and government.
The other thing to prepare yourself for is the media - expect the same kind of crap stories we suffered in the Reagan years - homelessness and hungry kids stories will be the norm along with the separated “immigrant” families and kids without parents. You know that is coming!
Our country will face a decision so Trump needs to pick his words carefully. As soon as it gets tough the left will be right there to promise a return to the status quo and they will be back in power.
It’s a mess, isn’t it?