The Department of Homeland Security has been able to come up with only 20 mllion dollars to fund the Mexico wall, underlining the gap between Donald Trump’s rhetoric and reality.
Donald Trump issued an executive order in January calling to build the Mexico border wall with “existing funds” of the DHS immediately.
But there is no money for it.
Trump’s promises of future prosperity are not underpinned by economic and financial fundamentals and trends. The American economy is about to crash as interest rates are hiked on the back of Trump’s inflationary tax cuts and infrastructure projects.
Stock market gains are based on expectations of future earnings. If revenues and results prove disappointing, the market can quickly dip again.
“The Trump economic plan has spawned a bull market in optimism, sending CEO spirits and stock prices soaring. But a spike in another metric–interest rates–threatens to scuttle the President’s pledge to restore American growth to heights unseen since well before the Great Recession.
In the minutes to its January meeting, the Fed revealed that “many” officials had advocated raising rates “fairly soon,” so long as the economy kept chugging.
While the Fed cautiously assesses Trumponomics, investors are taking the lead. The bond market has already seen a notable shift. Since mid-2016, the rate on 10-year Treasuries has jumped a full point, to 2.43%. And 60% of that the increase came in the three months and change following the election.
Sundry market watchers think that rates will keep climbing. In a recent report, Ryan Sweet, an economist at Moody’s Analytics, predicts that the 10-year will yield 3.2% by the fourth quarter of this year. That would mean a jump of roughly 80 basis points from today’s level, and a rise of 104 basis points from the final quarter of 2016, which would be one of the largest 12-month increases since the 1990s.
It’s not Trump’s fault that he has inherited the biggest debt in US history, federal, state and personal, household.
But it is his fault for not issuing debt free treasury money like John F Kennedy to escape the imminent debt death spiral.
David Stockmann, in fact, calls Trump’s plans “madness”.
In short, Trump’s policies are going accelerate America’s descent into the debt death spiral and his Treasury and Commerce pick know it and are pushing the USA to ruin, knowing banks can foreclose on assets for cents on the dollar.
To try to slow down the growth of debt, it looks like Trump is simply planning to eliminate federal government altogether by a succession of budget cuts.
Bannon is prepping the American public to accept the “deconstruction of the administration.” What he really means is not unnecessary bureaucracy and regulations but the fundamental institutions that give stability to America.
From the Americans point of view, it makes little difference whether the Soros or the Russian oligarchs are calling the shots.
Under Hillary Clinton controlled by George Soros, as the economy tanks and the elite look to start a war as a diversion, the nuclear missiles would likely have been fired first at Russia and, or there would have been another false flag epidemic.
Under Trump controlled by Russian oligarchs and bankers, the nuclear missiles are likely to be fired first at China and, or there is likely to be a plague or some form of biological warfare.
True, Hillary also did crooked deals like Uranium One with Vladimir Putin. But Trump’s entire business model seems to be based on money laundering Russian oligarchs, making him that much more vulnerable. And as president, he has more power.
True, too, the FBI, CIA and NSA, filled with Soros puppets, may be tapping the White House phones, trying to remove Trump. But there were factions tapping the phones, trying to remove Hillary. That did not justify her secret email server to run a shadow government anymore than it justifies Trump’s secret encryption apps.
America does not need either of these factions, which are ultimately controlled by the private bankers.
It does not need Barack Obama, who helped run up all this debt, back as president again either or Globalists to lead the country like Mark Zuckerberg or Oprah Winfrey, who sat in silence when Billionaire Globalists like Soros and Bill Gates apparently discussed culling the population in 2009.
It needs a competent patriot like JFK who will take on the Fed, slash debt and reset the financial system and bring genuine prosperity back to the USA again.
The hope that Trump might be such a patriot is not warranted given his policies aside from his secretive Russian connections. Why won’t he publish his tax returns, for example? Why won’t the White House release details of Wilbur Ross’ statement over Trump’s links to Cyprus and Russia? No one wants a witch hunt. But the American people have a right to know the extent of any potential Russian influence on a president, who has the authority to fire nuclear missiles and or leak information.
Trump should exit with his team and hand over power to moderate and pragmatic Republicans to try and get America back on its feet in the next four years.
As Greg Hunter writes, former Reagan Administration White House Budget Director David Stockman says financial pain is a mathematical certainty. Stockman explains, “I think we are likely to have more of a fiscal bloodbath rather than fiscal stimulus. Unfortunately for Donald Trump, not only did the public vote the establishment out, they left on his doorstep the inheritance of 30 years of debt build-up and a fiscal policy that’s been really reckless in the extreme. People would like to think he’s the second coming of Ronald Reagan and we are going to have morning in America. Unfortunately, I don’t think it looks that promising because Trump is inheriting a mess that pales into insignificance what we had to deal with in January of 1981 when I joined the Reagan White House as Budget Director.”
“Donald Trump is in a trap. Today the debt is $20 trillion. It’s 106% of GDP. . . .Trump is inheriting a built-in deficit of $10 trillion over the next decade under current policies that are built in. Yet, he wants more defense spending, not less. He wants drastic sweeping tax cuts for corporations and individuals. He wants to spend more money on border security and law enforcement. He’s going to do more for the veterans. He wants this big trillion dollar infrastructure program. You put all that together and it’s madness. It doesn’t even begin to add up, and it won’t happen when you are struggling with the $10 trillion of debt that’s coming down the pike and the $20 trillion that’s already on the books.”
Then, Stockman drops this bomb and says:
“I think what people are missing is this date, March 15th 2017. That’s the day that this debt ceiling holiday that Obama and Boehner put together right before the last election in October of 2015. That holiday expires. The debt ceiling will freeze in at $20 trillion. It will then be law. It will be a hard stop. The Treasury will have roughly $200 billion in cash. We are burning cash at a $75 billion a month rate. By summer, they will be out of cash. Then we will be in the mother of all debt ceiling crises. Everything will grind to a halt. I think we will have a government shutdown. There will not be Obama Care repeal and replace. There will be no tax cut. There will be no infrastructure stimulus. There will be just one giant fiscal bloodbath over a debt ceiling that has to be increased and no one wants to vote for.”