U.S. Treasury debt: over $32 trillion.
Monetized Federal Reserve debt: over $10 trillion.
Joe Biden submitted a budget for Fiscal Year 2023 with almost $7 trillion dollars in spending, knowing that the government will collect around $5 trillion or so in taxes and fees. This means a built-in $2 trillion increase in the debt this fiscal year. Because the U.S. government hasn’t approved a properly appropriated budget since 2007, the Congress will pass another Continuing Resolution (or a series of mini CRs) and an omnibus spending bill. And the UniParty will give our representatives in Congress one or two days to study the massive spending bill before rubber stamping it.
A continuing resolution keeps government spending at the prior year’s level. An omnibus bill shoves all of that spending, for every federal agency, into one slapdash spending bill that rewards the millionaires and billionaires, the special interest corporations that have relocated our manufacturing to China, and the politicized non-governmental organizations that are bringing millions of economic migrants into the country from literally all over the world, and paying them hefty monthly stipends to stay here and compete with American workers.
Our economy is being decimated by a government behemoth that leeches trillions out of the productive, private sector economy and transfers it to a parasitical, corrupt, and spendthrift government. How can any organization leech $5 trillion dollars out of a country in one year (2022–2023 fiscal year) without that country’s economy starting to fail? The answer is, it can’t.
How can a government spend $2 trillion more than it takes in without sparking inflation? The answer is, it can’t.
In the old days our deficit spending was financed by the Saudis, and the Japanese, and the Chinese, and U.S. investors, who saw dollar-denominated securities as a safe investment. But government deficits are now “funded” by printing money, which debases the currency and primes inflation.
How would you feel if you put your hard-earned money into U.S. securities that lose their value year after year? Well, you would look for alternatives, and that is exactly what the rest of the world is doing. If the U.S. dollar loses its reserve status, this country will become like Argentina, which presently has an inflation rate of over 100%.
The $5 trillion the federal government is draining out of the economy this year should be used to fix our roads and bridges, start new businesses, buy new equipment, and research new technology. A healthy economy requires educated workers who receive good wages that create new jobs and support a healthy middle class. But when the federal government gets too large it destroys the private sector, like a mother who eats her babies.
Technically, “finance capitalism or financial capitalism is the subordination of processes of production to the accumulation of money profits in a financial system... It is characterized by a predominance of the pursuit of profit from the purchase and sale of, or investment in, currencies and financial products such as bonds, stocks, futures and other derivatives.”
When the government becomes too large the economy loses its productive capacity to make stuff, and employ people to make the things that support life, such as building materials and appliances and electronics. Sadly, much of that U.S. productive capacity has been transferred to China. By BOTH parties. The economy is then reduced to wealthy people creating financial instruments and investing in them. The profits generated from that have no relationship to economic reality – they are just pieces of paper.
That’s where we are now, folks.
What’s the solution?
For God’s sake, let’s vote for politicians who understand the real world and who have actually worked in the private sector, not greedy right-wing MBAs and hedge fund billionaires and corporate running dogs, or left-wing airheads who go to university and then immediately join an NGO or a government agency with no grounding in reality and issue “regulations” that only create more and more bureaucracy.
It’s time to reduce the size of government by de-funding federal agencies and reducing the number of federal contractors. Let’s restore government back to the working class and the middle class, and de-fund federal bureaucrats and contractors who leech off the system.