purely political, By James Buckley
It should be clear by now that the so-called “national debt” – $31.4 trillion at yesterday’s count, but who’s counting? Certainly no one in government – will ever be reimbursed or reduced in any real way. Overspending has been a way of life in the nation’s capital for decades.
Some influential congressional leaders defend spending madness, claiming to believe that spending can actually reduce the deficit.
In a speech at a House Democratic Issues Conference in March, for example, House Speaker Nancy Pelosi said that “seventeen Nobel laureates in economics have said that the legislation (Building Back Better) does not increase inflation. It’s non-inflationary because of the way it’s written… Government spending does the exact opposite, reducing the national debt. It’s not inflationary. »
Fortunately, Speaker Pelosi and her party didn’t have enough influence or votes to pass another mammoth spending bill.
Otherwise, the inflation rate would probably reach 15% or more.
There is no arguing that rampant government spending, gratuitously printing dollars and spending as many as fast as possible, is causing runaway inflation. The government is also “borrowing” money (buying its own debt) at an accelerated rate, setting interest rates well below the inflation it causes.
This year alone, the dollar will buy almost 10% less goods and services than it could have bought last year. The cost of everything has risen 10% for US residents, hitting retirees particularly hard. The dollar amount of what the United States owes its citizens and the rest of the world remains the same, but its value has decreased by 10%.
The way our Congress thinks about money — and I’ll include a large contingent of Republicans in that — is why the Biden administration might just pick up and leave nearly $100 billion worth of military hardware on the table. ground, in tents, on tarmacs and probably in private homes and abandon Afghanistan with no regard for the value of those items left behind and their likely value to a group that will likely become an enemy at some point in the future .
The money means very little to the Washington, D.C. mob (it’s there to spend however they decree), which is why the Biden administration might as well just sign an executive order to stop construction of the border wall. south and allow newly fabricated steel segments valued at billions of dollars to rust and deteriorate in the California-Arizona-New Mexico-Texas desert. There has been no public debate about what to do with this valuable material or where it could be used more productively. No discussion.
Unlimited funds, untapped by any meaningful restrictions, are also the reason over one hundred thousand “immigrants” cross our southern border every month and are allotted iPhones, given pocket money, housing and transportation – all at government expense.
Money is not an object.
Let’s not forget that when the first Iranian nuclear deal was approved and signed by all parties, the US government not only released about $150 billion of frozen Iranian funds, but also loaded private planes amid overnight with silver paddles totaling around $1.7. billion in foreign currencies – dollars, Swiss francs, pounds sterling and euros – under the agreement. Where this money comes from has never been explained, but there is apparently a large reserve of unaccounted government (taxpayer) money left over and available for who knows what other situations.
Within a decade, it is likely that “money” as we have known it for centuries will no longer exist. Real US dollars will disappear. Hard currency will be replaced by a software points system that every citizen (and non-citizen) will have access to, much like credit card points and similar to how welfare recipients are currently paid.
Debit cards will be used by everyone to buy, spend, and maybe even “save”, although “saving” will be discouraged (as it is now), and anyone who doesn’t spend the allowance assigned to him will be forced to do his patriotic duty to buy things.
All of this makes me wonder how it could have gotten so crazy.
Spending guardrails were pushed to the outer precipice by President Lyndon Johnson in the late 1960s, when the demands of his “great society” and Democratic Party clashed with the real needs of the war in Vietnam. . Budget deficits became common as the war escalated.
In 1971, President Richard Nixon and a docile US Congress separated the dollar from gold and canceled the post-World War II Bretton Woods Agreement (activated in 1958) which promised the US government would buy gold from any country at a guaranteed price of $35 per ounce. After President Nixon’s decision to rescind the offer, the US monetary system turned to printing so-called “fiat” currency, with no backing but good faith and credit from the United States. United.
The dollar overtook sterling in the early 1960s as the world’s reserve currency. And it is this status that allows the reckless spending taking place today, with no end or even restraint in sight, until the US dollar ceases to be the world’s reserve currency.
Next week we will look at the insidious nature of collective bargaining by federal employees as one of the causes of the unchecked and dangerous overspending taking place at all levels of government and in all government agencies.
James Buckley is a longtime resident of Montecito. He welcomes questions or comments to [email protected]. Readers are encouraged to visit jimb.substack.com, where Jim’s diaries are stored. He also invites people to subscribe to Jim’s Journal.