Uh, nope. Debt ceiling will be eliminated and debt-to-infinity will be the rule, so any/all amounts can be paid with no cash problem. However, the value of the US $ might become as valuable as Zimbabwe’s currency over the past years. Look it up. But those who converted their US $ to other currencies will do very nicely (at least compared to the US $).
Which other currencies do you think will do very nicely?
If the US $ falls as fast as this administration’s incompetence is writ large, pretty much any currency NOT tied to the US $.
But which ones are your favorites? Also what do you consider “tied to the US$”? For example, since the Saudi economy derives most of their income from selling oil in US$, would the Saudi Riyal be considered “tied to the US$”?
Interesting, but it is another consequence of this administration failing to “follow thru” because they were negligent. The oil sale is tied to the US $ by choice of OPEC, etc. However, there is no requirement oil be priced in US $. So, by crashing the US $, it will cause OPEC (and others) to shift their sales on other currencies–thus hastening the decline of the US $ as a reserve currency. Prices of imports to the US will be unaffordable without tariffs because the US $ will be so badly devalued vs other currencies. How bad could it get? Remember Russia and the ruble? Could get worse because the intent is to destroy the US economy from within.
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Which is why they will want to raise their own taxes. Behind it all they own dollars.
Not quite. They own a fungible commodity (US $). So they can buy stuff in US $ or they can simply convert it to whatever currency they desire (could be a basket of multiple currencies–excluding the US $). They also own various things (properties, businesses, etc) which can be sold–again, not for US $. They could also swap US assets for assets outside the US.
I don’t see any begging in Michigan. Michigan, unlike many states, has a flat rate income tax. The (L&Ses) are proposing a cut in the flat rate, which will produce an annual revenue shortfall of over $700M/year. Of course, as usual with the Lansing shell game, what will be cut to make up that $700M revenue shortfall is a deep, dark, secret. Past experience says that, while the “JCs” will pocket the most dollars from the tax cut, the spending cuts will fall most heavily on the Proles.
Seems the “trickle down” nonsense never stops.
Steve
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The current approach of execute my reality show at any cost for Good TV is a waste.
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When old procedures don’t work you need new ones. I grant you it’s not very diplomatic. Neither was the White House Zelenskyy interview. Neither was the speech in Munich. At least it’s consistent, if upsetting to the old guard.
Time will tell if a waste. I watched several presentations by reputable speakers warning about the unsustainability of the national debt when the interest payment is larger than the defense budget. Every bit saved helps.
The Captain
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I am talking federal tax rates.
States ride under that in a different direction.
A humane government cannot reduce spending when its population is aging rapidly and growing more obese with all the associated health problems. Can’t do it. One can eliminate all discretionary spending on research, welfare, farm subsidies, etc and the problem will still remain. The only option is to increase revenues.
There are two obvious ways to raise revenues. Increase taxes or increase the number of people paying taxes by bringing in more immigrants.
This administration plans to do neither.
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Cutting waste and fraud does not help?
The Captain
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Policies being put in place:
-force more people on Medicaid to work, increasing tax revenue.
-denial of SS benefits to some people, forcing them to keep working, and paying taxes.
Steve
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Seems they’ve trained us like dogs, to sit under the table, waiting for crumbs and scraps.
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Cutting waste and fraud would be great! If only they’d do that, instead of haphazardly and recklessly cutting programs for show and to vilify weaker populations, and most egregious, cutting any program that might regulate or tax them and their wealthy donors.
They’re dismantling government for their good, not ours.
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Guillotine the problem in order to shorten it. Start at the top, of course.
As illustrated for you a few days ago, even the elimination of 100% of the highest estimate (of course, not possible) of all fraud and waste would still leave us with over $1 trillion annual deficit.
It helps, much like an aspirin helps with a compound fracture.
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Following the “firing” of a member of the NLRB, we have this.
Steve
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Every administration tries to cut waste and fraud. All the easy stuff has been done. The question is whether it is worth spending more money and creating more bureaucracy to deal with what’s left, particularly if the cure costs more than the problem. Is it worth eliminating the last bit of waste if doing so costs more than is wasted?
A huge amount of the government regulations people complain about all the time was put there to prevent waste and fraud. For example, government supported scientific travel requires multiple written justifications and multiple levels of approval. This requires multiple levels of bureaucracy
I can say from experience that DOGE/trump has increased the amount of bureaucratic paperwork that has to be done to do stuff with the federal government.
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