REALITY:
If your favorite candidate got elected or your favorite proposal got passed in the recent election, congratulations! Pour yourself a drink and celebrate. If your favorite candidate did not get elected or your favorite proposal did not pass, better luck next time and also pour yourself a drink.
But regardless of what election results happened, keep in mind that none of the election results really matter, none of the issues really matter. There is only one issue that matters in this country and it can be summarized by a single number: $40,000,000,000,000. This is the amount of Federal government debt that the American political class has run up over the years, a debt that eventually will have to be paid off by the American taxpayer.
But here is the problem: it is quite possible that American taxpayers do not now or may never have enough wealth to pay off the existing debt. Consider the following realities and numbers:
To pay off the debt, every American taxpayer would have to write a check for about $250,000.
However, since the median American household's net worth is only about $216,000, according to the Federal Reserve, that solution is not likely.
Forcing the wealthy in the country to "pay their fair share” is also not a likely solution since according to Forbes, the wealthiest 400 Americans have a net worth of eight trillion dollars.
Thus, even if you could miraculously seize all the wealth of the wealthiest Americans and immediately apply the seizure to pay down the debt it would pay down less than 20% of the $40 trillion.
If you spent a million dollars a day since the day Christ was born, you would have spent less than $750 billion.
The national debt is 53 times larger than this “million dollars a day” example.
According to various estimate sources, Social Security and Medicare will have unfunded liabilities of over $80 trillion over the next 75 years that are not yet funded, more than double the current known national debt.
Thus, the political class needs to find at least over $120 trillion over the next 75 years to cover the debt and political promises for Social Security and Medicare, about an additional $1.6 trillion a year in new taxes.
Oh, and keep in mind, if politicians do not find some additional Social Security money very soon, about 60 million people are going to see their Social Security checks implode downwards by about 20% in five years or so.
The Federal government used $970 billion of taxpayer dollars to just pay the interest on the national debt in 2025.
Without the debt, the average taxpayer would have paid about $6,000 less in income taxes.
Imagine how strong the economy would be if every taxpayer had another $6,000 to spend rather than spending $6,000 to service the debt.
By the way, state and local governments have an additional $1.1 trillion in unfunded liabilities that someone is going to have to pay, about 50% more than that person who spent a million dollars a day since Christ was born.
History is not kind to governments that run up huge debt:
As the debt gets higher and higher, taxation goes up and freedom goes down just to service the government spending and related debt.
Eventually faith in the currency declines which raises the cost of selling bonds to finance the debt, further increasing the debt.
Politicians feel the pressure of the debt and debt interest and start printing money that is not backed by any concept of wealth which eventually leads to hyperinflation, making today’s inflation rate look wonderful.
The hyperinflation eventually crashes the economy and financial stability of the country and destroys any personal freedom that remains as the democracy is replaced with a dictatorship.
This economic model has been proven time and time again just in the past hundred years: Weimar Republic, Venezuela, Zimbabwe, and Sudan.
The United States faces additional inflation pressure as the BRICs continue to undermine the dollar as the preferred currency of choice and once the dollar fades out of favor as the international currency the rate of inflation accelerates.
All of which brings us back to our assertion above; no matter what happened in last week's elections, none of the results matter if the debt bomb that the political class has created cannot be gotten under control very soon.
OPINION
If you think that economic simpletons in the Senate like Bernie Sanders, Elizabeth Warren, Cory Booker and others along with the economic simpletons in the House like Alexandria Ocasio-Cortez and Hank Johnson (two of the most ignorant people to ever serve in Congress) have the brainpower, spending discipline and ability to fix this debt crisis then I think you will be very disappointed.
In fact, they are much more likely to greatly accelerate the problem with massive Federal government spending programs such as the inane “Medicare for All’ idea, free college education, Civil War reparations, etc. As we see above, there is not enough wealth and money today to fund today’s Federal government debt and unfunded liabilities, never mind the tens of trillions of dollars these ideas would create, accelerating the onset of a financial death spiral, hyperinflation, an economic crash and the end of democracy.
And keep in mind the following realities: the state governments most likely to go bankrupt soon (California, New York, Illinois and New Jersey) along with the major cities most likely to go bankrupt soon (Chicago, Los Angeles, New York City, and Seattle) have all been dominated by the Democratic Party for decades. During that time they have exploded city and state government spending to the max, running up massive amounts of unfunded liabilities that will come crashing down in a relatively short time. Thus, the Democrats have shown little ability, at least at the state and city level, to run financially sound budgets and debt levels.
So enjoy your victory drink or your misery drink. Because, again, however you voted this past week it will be overwhelmed by the financial crisis that is a ticking time bomb inside a $40,000,000,000,000 national debt, unfunded Federal government liabilities of $80,000,000,000,000 and unfunded state and local government liabilities of $1,100,000,000,000.
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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:
https://www.change.org/p/deseat-congress-reset-freedom
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