This is not a premonition. This is cold hard reality that IS happening. Right now. With the passing of the new tax bill this week, middle class Americans will be burdened with more debt. How so? I’ll explain.
In accounting, all the numbers must balance. If a company gives somebody $10 then it must show that transaction in two places in the accounting system. Therefore, the company incurs debt to give the money away or they take it out of the cash account. When you take it out of the cash account, the transaction is finalized and the company is now worth $10 less than before it gave the money away. However, if you use debt to give the money away, eventually you will need to give the borrower the original $10 from the cash account PLUS the interest that will also come from the cash account. That $10 could cost you $11 before the transaction is finalized. Now the company is worth $11 less than before the give-away. Somebody has to earn the original $10 plus the extra $1. I’ll give you a clue… it’s the employees.
The so-called “tax reform” bill is giving away money to the rich by incurring debt to do it. The money to give to them does not exist in our government coffers. Our government has NEGATIVE DOLLARS. (In middle and lower class lingo, our government is “broke”.) If they give away 1 trillion dollars to the rich (who have high-paid accountants to get out of paying taxes), then the middle class person will not only be saddled with coming up with the 1 trillion dollar give-away, but also the possible quarter-trillion in interest incurred from the give-away. (Remember compounding interest.)
In other words, even if you get $20 more in your tax return for THIS YEAR because of the give-away, it is coming from debt. Furthermore, you are now responsible for coming up with the money that will be given to the rich in the form of debt as well. Yes, that is correct; YOU are responsible for paying the debt incurred to get the $20 and you also get to pay off the increased debt for the trillion dollars given to the rich. To put it succinctly; as of this week, YOU will be enslaved by the rich to earn and distribute the money that was just promised to them. Merry Christmas, as Trump would say. The $20 was only a smokescreen so you would think that you were are actually making out well. Always remember; it is from you where the government gets its revenue.
This money scheme is similar to how pimps make money off of the backs of prostitutes. The prostitutes can never get ahead because the pimp initially loans the prostitute money, and then keeps them in debt to themselves. They can never get out of debt and therefor keep working for the pimp in the hopes that they can. Only, the pimps keep changing the rules before the debt can be repaid.
You can call yourself a prostitute to the rich or a slave. Either way, at the end of the day, you will be working your ass off to give money to them. Who said slavery was dead.
Now let’s say that the government decides to print more money. That fixes nothing. Inflation will rear its ugly head and now YOU will pay more for EVERYTHING just to live. Again, the pimps win.
It was disgusting when I read that Senator Corker would not vote yes on the tax bill until his real estate company would get a tax break using pass-thru companies. That’s right; the mighty Republican conservative politician that swore to never vote for increasing the nation debt, jumped on this band wagon just as soon as it gave HIM much more money.
And remember; this really is a TAX BREAK… to large companies and the rich. They WILL NOT be contributing to the money to pay off this debt! It is YOU who is stuck with paying it.
This isn’t even like giving “new” money away from increased revenue. The rich have been given a break from paying off the existing debt. The national debt is 20.6 trillion dollars as I write this. Of that, 6.3 trillion is owed to foreign “investors”. In July, the national debt was 19.8 trillion. In just 5 months, the debt increased almost a trillion dollars. And now this new bill is going to add trillions to it. Presently, you are paying approximately 266 BILLION dollars in interest payments per year. That is OVER a quarter-trillion dollars of your money being given away to debt holders that gives you nothing back in return. That is over a quarter-trillion dollars PLUS principle payments against the debt… that keeps increasing. This is worse than giving your credit card to a stranger after losing your job.
I saw one Republican politician warn the other representatives that if they did not pass this bill, then the funding going into their political campaigns from the rich (so the politicians could keep their “job”) would stop. It does not get any more clear and disgusting as that! They are owned by wealthy contributors. They work for them, and not you.
What will happen as the debt climbs? Eventually services and benefits will need to be cut. It is just plain and simple math. You cannot make something from nothing. Your money will go toward paying debt holders so it cannot go toward infrastructure, services, and defense. Social Security and health services will be taken away, roads will fall into disrepair, people will die, and our economy will tank. It is NOT a sustainable situation.
You must remember! Trump plays with other people’s money, not his own. He is putting you into debt for his gain. And the Republican-held Congress is jumping into his band wagon because they see that THEY will personally gain by doing it. It is the biggest selfish money-grab in the history of the world.
When we are in such deep debt, the one thing you simply cannot afford to do is to give money away that must come from more debt. That is about as simple a statement as there could be. It is the “no-brainer” that Congress should easily see. Because the economy is at a peak and debt continued to rise at the same time that the economy was booming, it is clear that there was an error in the government’s formula for funding our government. With an increasing economy, the debt should have been reduced with increased revenue.
Instead of correcting the problem, Trump and the Republican led Congress have instead compounded the problem by lowering the taxes on the rich. It is the rich that have all the money that could be used to get rid of the debt. The only other recourse to reduce our debt load would be to eventually raise taxes somewhere. Remember; a rising economy somehow made it worse. There is no magic bullet. But with the present government, they have made it clear that not only will they not increase taxes on the rich, but they are going to reduce their taxes. The only other place to get money from is YOU. You will pay and it is not going to be pain-free. The longer this charade goes on, the worse effect it will have on our country. Our country could eventually collapse from it its debt weight. We simply cannot continue on this trend. Something cannot come from nothing. And now the rich can stash their money out of the country! This is craziness!
I have said this many times before; Trump is dismantling the United States piece by piece and Congress is letting him do it. Checks and balances no longer work. Our country is headed toward bankruptcy, just like Trump’s other endeavors. And at the end of the day, he will still be rich because he will have siphoned off money before it happens. You, your children, and your grandchildren will become enslaved by the upper 1% to provide for them while your family goes hungry and die from lack of food and healthcare.
It is coming folks. You can decide to ignore it and be satisficed at the moment with your electronic habits. But one day the proverbial shit is going to hit the fan and it will be your face in front of it. We all know where the shit will come from.
Our economy is like a mirage; it looks great until you get right on top of it. Our economy is doing favorably because somebody lent us money to make it grow. And it did grow. However, so did the debt, albeit at a higher rate. We are simply over-leveraged now. That is not sustainable in ANY economy. It is okay to stimulate the economy; however, we did not pay attention to satisfying our debt because it was easier to keep borrowing. It is always easy to borrow, but it is also dreadfully painful to pay it back. We are in a position where the economy may not even have room for much more growth, yet the national debt is increasing rapidly. It is outpacing the growth of the economy. That is a lethal cocktail. That happened because of governmental gridlock caused by political fighting. It happened because our government is dysfunctional. It happened because politics trumped responsibility. And it happened because the people were too complacent and simply let it happen while they became addicted to social media and games. There is MUCH blame to be spread around.
Eventually our economy will cool off. It ALWAYS does. That spread between rising debt and the economy will then widen like a crack in the earth. Can you spell CRASH?
That runaway stock market that Trump touts does not reflect usable money and it certainly is not a crystal ball of the future. It is simply a bunch of people playing cards and placing bets. It is actually not much different than bitcoin, that is essentially worthless, but people are buying it like it is something real. Folks… it is only electrical charges that create characters on a screen. Turn off all computers and there is nothing there. It does not exist. It is the biggest scam since chain letters. The ones that pay the price will be the last ones holding the letter after paying in. This is how insane our society has gotten.
Meanwhile, two giant players in the global economy are laughing and making strategic moves to push themselves into world dominance, while we crumble. Have you noticed that Russia and China appear stable relative to us?
Here is a simple statistic for you: Our ratio of National Debt to Gross Domestic Product is 73.416%. Russia’s is 8.339% and China’s is 17.786%. What does that mean? Those two countries have a global competitive advantage because we are over-leveraged. Simple business math, folks.
You may go to bed tonight thinking that everything is going to be alright. Americans have become too complacent and simply expect that everything will be okay. It IS NOT okay! The catastrophic event is happening NOW! If you cannot see it and feel it, then you are in denial. This is not the 1970s or 80s anymore. Things are unfolding that can cripple our country for decades. The canary is already dead. You would know that if you took your earbuds out or lifted your head up from your electronic device to look at the cage.
What can you do? Educate yourself in what is happening! Pay attention! Call and write your representatives in Congress! Protest! Form groups that will put pressure on our government. Seek out smart and trustworthy candidates for office and then support them. Start reform movements. If you are strong and true, then run for office. Contrary to what you are led to believe, you CAN be a representative of the people. You do not need to have prior experience. Do not let the political parties tell you that you have no chance. Just do it! Time is running out.
Just don’t do nothing! If you wait until the shit is on your face, it will be too late. Your future, your children’s future, and your grand children’s future are already under attack. Right now. This very second. They are under attack. Just open your eyes and look. And yes, it will be scary.
For every minute that you read this blog, the national debt rose ½ million dollars. Trump is complaining because Mueller has a spent a couple of million investigating his connection with Russia, like that was a lot of money. Think of how much time Trump has spent on the golf course (costing TENS of millions in one year) and how much it costs us in debt (your money) while he is there because he does nothing. BILLIONS! Do the simple math.
This nonsense must stop. Be strong and come together as true Americans. For all of our sakes.
As always, be courageous and do something by sharing this article. Everything of true value begins from something small.