Imagine how much fun it would be if you could call up the bank every Monday morning and say, “Hey fellas I’m looking at having another big week so please dump $4.2 billion into my account. Thanks. I’ll call you next Monday to let you know how much I need next week.”
I would not waste it on something ridiculous like unproductive, criminal immigrants. I would buy something practical like submarines. On the expanded money supply alone I could buy a new nuclear-powered submarine every Tuesday and still have an extra $1.1 billion for some walkin’ around money to enjoy the rest of the week.
That is exactly what our government is doing. Well, the increased money part, not the practical use part. According to FRED (the Federal Reserve Economic Database), during the one-year period ending on June 30, 2024, the federal reserve expanded the M2 money supply (printed more money) by more than $220 billion. For those of you slow at math, that is more than $4.2 billion each week. Since 2016, the amount of US currency in existence has almost doubled.
At this pace of devaluing our currency it does not matter who is President. Unless we balance the federal budget and start reducing our debt, hyperinflation is at best no more than ten years away. It will completely destroy our economy.
This is another one of those absolutes. While the current administration thinks it is debatable, history proves they are dead wrong. It has happened 100% of the time when irresponsible governments overspend for long periods of time. Most recently it was Argentina and Venezuela but Mexico had a problem with it towards the end of the last century. I can remember buying dinner at a country inn on the road to Cabo in 1983. I had a giant beef burrito. I paid with one US dollar and received seven Mexican coins in change. The server was ecstatic when I left all of the coins as a tip. (I was ecstatic to see their dog was still in the yard when we were leaving.)
Greece suffered the same fate at the end of the last century. It also ruined Germany after World War I. It was the primary cause of the demise of the Soviet Union. The only way China survived was by completely closing its economy to the world and allowing some 50 million people to starve to death. I doubt anybody in this country wants to solve the problem that way.
In any event, it is impossible to ignore the historical warnings. The real solution is to start electing responsible representatives at every level of government. In doing so we should be careful to avoid electing people who think they can control the weather on the entire planet but cannot control the looting in their own house.
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In the USA, the three houses that are in complete disorder are called California, Illinois, and New York. You may think they do not affect you but they greatly affect all of us. I often use New York as an example because its population is almost as large as Florida’s population so it makes comparisons easy. New York’s budget is in such disarray that every year they receive more money in federal bailouts than the entire budget for the State of Florida. As a reward for their total mismanagement of state finances, legislators in the New York legislature received four times the salary as legislators in Florida’s legislature. (And there are 55 more of them). That defies all aspects of logic, common sense, and even basic intelligence.
Illinois is so far gone that they pay more in government pensions and benefits to government parasites than they do for government services to taxpayers. They would qualify for bankruptcy under any measure. Yet every year the federal government continues to borrow money it does not have to bail out Illinois. That money comes from you and me. More accurately, the penalty for this stupidity will be paid by our grandchildren. Sounds like child abuse to me.
California is the best example of a government that has come completely off of the tracks. Their high-speed rail project far surpassed Boston’s “Big Dig” as the biggest single corruption project in US history. After running some 3,000% over budget and paying contractors inflated prices that would make Pentagon contractors blush, they still have not completed 20% of the project. Donald Trump did the right thing by cutting off federal funding until they stopped the graft and corruption. Then China Joe and Kammy Harris took office and the spigot was turned back on in full. Do you still wonder why so many companies are giving money to the Democrat party?
California had a balanced budget just four years ago but a kindergarten student could tell it was only a temporary situation. To cover excessive spending, they had raised taxes so high that people and businesses were starting to leave the state. Then they raised taxes a bit more and cut fundamental services like police protection and incarceration of dangerous criminals. Then the taxpayers stated leaving en masse. Last year California announced that they had a budget deficit of $33 billion. It turned out to be $45 billion. This year they project a deficit of more than $50 billion. Do you want to bet me it is not more like $70 billion?
The easiest solution for California would be to remove from office the trust-fund liberal they stupidly elected as Governor. Gavin Newsom was raised on the $20 million a year his father received as trustee of the Getty Family Trust. Gavin has no concept of thrift.
Newsom recently used $200,000 in state funds to hire a Hollywood photographer to follow him around and take his picture. It did not solve California’s crime or homeless problems nor did it help with their nation-leading illiteracy rate. In fact, there is absolutely no public use for the pictures. In properly runs states it would be considered embezzlement or misuse of government funds. The Governor would be removed from office and imprisoned. Instead of impeachment, their corrupt legislature sent him a bill to give money to illegal immigrants so they could buy homes. Of course. Their puppeteers want to get in on the graft before it all dries up.
While Gavin’s photo spree is only a drop in the bucket, it demonstrates his predisposition to spending without regard to the needs of his state or the consequences of wasting money. Based on his upbringing, I think he is incapable of sound fiscal management. As long as he is in office, California has no chance of recovery.
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On the federal level, the solutions are actually easy. One of the best ways to solve this problem is for the federal government to pass a law that prohibits the administration from giving any money over a certain amount to a state that pays its legislators more than the lowest salary paid by to any state legislators in the country. If they want to live like kings and queens, they need to bear the responsibilities of kings and queens.
Another good solution would be to limit federal funds to states that have more than a certain percentage of their population employed by their state and local governments. If counties and municipalities are included, New York has approximately 600,000 more state and municipal employees than Florida. Again, Florida has a larger population so there really is no basis for such a bloated New York government payroll.
Florida state employees also help enforce federal law enforcement, including use of Florida Marine Patrol officers to enforce federal fishing regulations and to keep immigrants from flooding our beaches. In New York, law enforcement is prohibited by law from helping federal immigration officials. Not only is that stupid, it also violates the US Constitution (A I, S 8; A VI). If anything, Florida should have a federally subsidized payroll, not New York.
In any event, no federal funds, not a penny, should be given to any states that fail to cooperate with the federal government in the enforcement of its immigration laws.
When choosing your representatives to Congress this year, you should ask them if they are willing to pass these laws. If they say no or in any way don’t come back with a forceful “yes,” you should vote against them.
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Speaking of bloated government payrolls, one of the bills on which Kammy Harris cast the tie-breaking vote allowed the federal government to hire 40,000, new federal IRS employees to go after people who receive most of their revenue through tips. Do you think Kammy is going to lay off 40,000 IRS employees if she follows through with her campaign promise (originally Donald Trump’s promise) to end income tax on tips? Me neither.
But then again, I don’t believe she is going to follow through on any of her campaign promises. This is a woman who daily violates her solemn oath to support and defend the US Constitution. What makes you think you can trust her on a campaign promise?
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How much would we save if we closed the DHS? They failed at every job they've had for the last two decades and are the primary reason we have an open border.
Not to worry, with Kamala Harris as president. and AOC as Economic Advisor ,This problem can be fixed on Day One.