Category Archives: National Debt

Can a Businessman Learn?

Donald Trump was a successful businessman (not that he didn’t have some failures) but his ascendancy to the presidency validates the point that the presidency isn’t a business position — at least as far as the current situation defines it.

No doubt before he became president Trump thought he could handle the Washington denizens. He figured that he knew a lot of Democrats in the past, had given to their campaigns and had worked with them in development projects.

I think that the the viciousness of the Washington national Democrats and their media auxiliaries ha stunned him.

A case in point — this whole Comey “memo” and Trump “obstruction of justice.”

Here’s what I suspect and think. We’ve only been treated to a highly edited, one-sided, possibly fictional version of what happened. I suspect that Trump did say to Comey at the meeting, when they were alone, that he should consider letting go of the Flynn matter. I also suspect there’s more to it. Something along the line of “You got your scalp. Flynn’s out. You know he didn’t do anything. You can call off the dogs.”

Trump’s mistake is that he thought Comey, and the Democrats in general, were honorable and were merely chasing Flynn to mark their territory and let the new president know that they are not to be trifled with. That they should be consulted with on big matters.

Trump the businessman has a grasp of such behavior. The county and city councils that he dealt with along with unions and the occasional Mafiosi behaved in a similar manner, until they were bought off with money, flattery and some choice jobs. In Trump’s experience, as an urban property developer, generally people want things developed so agreements can be reached, it’s just a matter of how much or who to employ or kowtow to. As corrupt as urban Democrats often are, they usually do want that eyesore redeveloped and they want the glory of being involved in such projects.

Washington Democrats do not operate that way.

They have one goal and one goal only — the accrual of power, total power. Everything is in service of that acquisition and anything in the way must be and will be destroyed. They are devoting their lives and the treasure (along with lots of other people’s treasure) to that goal.

Trump incorrectly thought that the taking down of Flynn was merely some muscle-flexing on the beach. Some letting the new guy in town know how things work if he wants to do business in the town.

It wasn’t. The Democrats deployed their knights and troops along with activating their media skirmishers to destroy Flynn. They will destroy everybody Trump sends out.

This whole “Russia Collusion” story is the pure distillation of that process.

Trump might think it will go away when he bribes the right people, appoints some Democrats or Democrat-approved people or compromises on the right issues. Not going to happen. Trump might think that the story will go away when the absurdity of it becomes apparent to a certain number of people and the media reports it honestly. Neither of those points mean a thing and the media will never report the story honestly. They are an arm of the Democratic party and can not operate separately of that brain any more than your arm can take on a life of its own.

There is currently one main short-term goal of the Democratic party and its disparate elements and allies in that quest for power — that is the destruction of Pres. Donald J. Trump. There will be no deviation or compromise of that goal. None.

The sooner Trump understands that, the sooner he can come up with a strategy for survival (and coincidentally, the United States as a free country rather than the totalitarian socialist state the Dems yearn for).

One leg, possibly the most important strategic long-term leg, is to Drain the Swamp.

While the Democrats and their generic allies in Hollywood, academia and business have other sources of income, influence and power, they ultimately depend on Washington in a way that a plant needs the sun. All the fertilizer and water mean nothing if there is no sun. Washington is that sun to the socialist campaign.

Start knocking the supports down and Democrat power lessens. The Dems are very weak at the state and county level so much of their lifeblood comes from two sources — very rich people (Hollywood, Silicon Valley and Wall Street) and Washington handouts. These handouts can come in the form of direct cash and/or influence.

They have an additional leg, not as wealthy, but it provides young, enthusiastic shock troops and serious cultural propaganda value — academia (K-12 and college).

Trump (AND THE DAMN CONGRESSIONAL GOP) need to start reducing numerous programs, agencies and departments.

There are so many targets of opportunity.

Start with the federalization of the student loan program. Kick it back to the private sector and states and make it clear that no one has a right to a federal government-funded education. It’s not in the Constitution.

National Labor Relations Board — Oh, Hell, yeah. Bulldoze it and salt the Earth that where it stood.

Eliminate the Dept. of Labor. It serves no purpose other than being a paid union and socialist clearinghouse. Anything that has to survive can be ported over to the Dept. of Commerce.

Eliminate the Dept. of Commerce. It serves no purpose other than being a pork barrel for select politically-connected business while also being a great place for socialists to make connections for better employment in the private sector. Anything that we just can’t live without can be reformulated in an agency.

The Dept. of Energy is a liberal pork barrel, increasingly being working against legitimate energy sources while funding green silliness. It’s legit functions with the nuclear energy industry can be put back into an agency like it was before or turned over to the U.S. Navy.

Seriously trim the Dept. of Interior. It was Ground Zero during the last government shutdown, revealing itself being staffed with hardcore liberals who viewed their fellow Americans (their actual employers) with disdain. They felt they owned the properties under their observation and that they, and only they, should be able to visit the parks and monuments.

Chase down every “green” program at every federal operation and shut it down. Chase down every “affirmative action,” “minority,” “diversity” or “inclusion” program at every agency and shut it down. You cannot believe the hundreds of millions, probably billions, of dollars these two liberal-stuffed rackets shake out of the federal government each year in the form of cash grants, conferences, giveaways and guaranteed contracts; every dollar of which goes to a liberal. The absurdity of the federal government “fighting” discrimination by openly discriminating is typical of the upside down world we live in.

There are so many liberal, anti-American, socialist NGOs and nonprofits wholly dependent upon federal funding or the imprimatur it carries. Hundreds, thousands of them. The mere threat to the Corporation for Public Broadcasting demonstrated this and how these people will cling to their taxpayer funds with every breath. They feel entitled to that money and feel it is theirs. They need to be apprised that this is wrong.

A bonus is that with the feds moving against these programs, states and counties would feel empowered to shut down their Mini-Me versions of these programs. Collateral damage would hit academia with devastating affect.

Put all these Democrat socialist soldiers out of a job. Get a real job with your NGO grievance-mongering experience. Or stock shelves at a 7-11.

Restore the Hatch Act to curtail open liberal intimidation in the agencies.Start with places like the IRS and Dept. of Justice. (And shut down any department or agency office with the words ‘Civil Rights’ or ‘Diversity’ in their title — these are fountains of mischief and vexation; they are not concerned about real ‘civil rights’ merely projecting their fascist power over their fellow citizens whom they view as backward).

Work with Congress to rein-in the out-of-control judiciary. Trim its powers — it is a Constitutional violation to have “inferior” judges sitting in judgment like a Roman emperor of Congressionally-passed laws or presidential actions. It might help to publicly depose several of the worst actors.

There’s more, sadly much more, but this would be a good start.

Pres. Trump needs to understand that, ultimately, swamp creatures will eat you. It’s what they do. They see you as an invader and a threat. Stop feeding them!

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Fuhgedaboutdadebt

The federal debt sits around $19 trillion and continues to grow. A sane person would worry about such a large number but Washington, D.C., does not contain a majority of sane people. Many in government think debt is a good thing and more debt would be a better thing.

Witness a June 3, Wall Street Journal letter to the editor by one Francis X. Cavanaugh, “the founding chief executive of the Federal Retirement Thrift Investment Board, 1986-1993.” He complains that a recent column worrying about the debt, especially in the light of the trillions of dollars in unfunded obligations to retired and retiring federal workers (which it totaled up to $118 trillion).

Cavanaugh says, “Mr. Melloan’s concern that ‘we have borrowed so heavily from future generations’ is baseless. Future generations will indeed inherit the liability of the debt but they will also inherit the offsetting asset of the Treasury securities issued to finance the debt. So the net impact of the debt on future generations is zero.”

Whew! That’s a load off my mind.

In case you didn’t follow that, Mr. Cavanaugh is saying that we can’t owe money to ourselves. All those T-Bills bought by American investors (including retirees), don’t have to be paid off; or rather the Treasury can just crank out more debt to pay them off. In fact, the debt is turned magically into an asset!

Don’t you wish you could do that with your mortgage debt; your credit card debts; any student loans?  They aren’t debts, they are assets. take that mortgage debt and use it to buy a car!

Even more good news from Cavanaugh, the feds in Washington can keep spending like drunken sailors because there really is no such things as a yearly “budget deficit” pumping up those federal accumulated budget deficit numbers. He says, “The maturing debt and the interest on it are effectively paid off by issuing new Treasury securities. So the controllable budget has been balanced on average over the past 70 years.”

He even quotes Abe Lincoln, “Men can readily perceive that they cannot be much oppressed by a debt they owe to themselves.”

It’s just that simple.

Except it’s not.

Like a lot of Lincoln’s quotes, the quote can be “perceived” two ways. Anyone can “perceive” the Earth is flat. You can “perceive” you don’t owe a debt. That doesn’t make it so. It doesn’t mean that the person who originally loaned the money is happy to wave goodbye to it.

As anyone who has paid off a debt with a credit card knows, that debt doesn’t actually go away. Rolling over debt eventually catches up with you. Admittedly, the awesome power of the U.S. government means that it can get away with things that you and I can’t get away with but it eventually will catch up.

Real people own that debt. They payed their money fairly and legally on the promise that the U.S. federal government was good for the debt. People like Cavanaugh think, SUCKERS!

Cavanaugh is typical of so many people in government. Their knowledge of economics is horrific, actually downright dangerous. Many of them, like Cavanaugh, seem to be of the mind that a future miracle is going to happen, perhaps finding a winning trillion-dollar Lotto ticket under one of the government’s many couches. The other group, socialists that are growing in power within the Democrat party (and hence the U.S. government), will simply cancel the debt just as they wish to cancel the now trillion-dollar student debt morass and are beginning to look at the mortgage market to patronize their supporters with repudiations and write-offs.

My recommendation, avoid federal government debt instruments. They might be repudiated in a future Democrat administration populated by in-debt Millennials.

All the Gold in Fort Knox

Here’s a sobering (at least for me) thought about the national debt.

When I was young, the phrase, “All the gold in Fort Knox,” was used as an analogy for an immense amount of something or an expensive item or comparative.

So, how does our current national debt, in the neighborhood of $18+ trillion,  compare to all the gold in Fort Knox?

There’s a smidge over 147 million ounces of gold in Fort Knox. That’s a lot! For accounting reasons, the gold is actually on the books at a paltry $42.22 per ounce.That values that gold at $6,206,430,000. Yeah, a surprisingly small $6+ billion. Apple probably has that much lost in its seat cushions at its Cupertino headquarters.

Gold is currently selling in the range of $1,150 per ounce. So if by some magical method the gold could be sold at that more lucrative price without crashing the market it would fetch $169,050,000,000. That’s a more impressive $169 billion.

But that $169 billion would barely scratch the $18 trillion national debt. Scratchdini would buff that out in no time.

In fact, it is estimated that all the gold in Fort Knox might be around 3% of all gold mined in history – just under 5,600,000,000 ounces. So if we take that number and sold all of the gold mined in history at our magical $1,150 per ounce we’d collect $6,413,550,000,000,000 or $6.4+ trillion, barely a third of the (rapidly growing) national debt.

In other words, our national debt is higher than the “value” of all the gold mined in history.

It’s something to think about when Pres. Obama cavalierly dismisses the debt or Congressmen of any party blow through hundreds of billions of dollars like its popcorn and we’re firing up a Lord of the Rings/The Hobbit marathon.

Here’s an interesting page to bookmark on all the debt we’re ramping up like we’re Rockhound in “Armageddon” and there’s no tomorrow.

BTW, I’ve done all these calculations on my own so there is no guarantee they are 100% accurate so it would be nice if someone who is good with numbers checked them.