Donald Trump is escalating tensions with North Korea even as the US government faces shut down on Saturday when it runs out of money to pay its bills unless Congress raises the debt ceiling.
Let’s think about what a government shut down could entail as Trump’s nuclear submarine and flotilla of aircraft carriers reach the Korean Peninsual with enough fuel to start a military strike, but not enough money to pay for refuelling and as sailors serving on board are notified they won’t be paid…
Wars are very expensive, especially world wars, and a cash strapped US military could find any mobilization frozen by a lack of cash.
US government has suffered its biggest drop in revenues since the last recession.
And the revenue shortfall will get worse if Trump pushes through his tax cuts.
A reduction of the corporate rate to 15% will load the US with an extra 2 trillion dollars in debt, debt that China will be expected to buy…unless Trump starts to issue war bonds or confiscate money and property from Americans to pay for the war.
Reductions in the personal rate of taxation will be offset by increases in the interest rate of loans, and benefit mainly the banks.
A government shut down looks likely because Trump wants a new funding bill to include a provision which Democrats reject, namely, to pay for a border wall with Mexico in violation of his promise that Mexico would pay for the wall, for example through tariffs.
Trump could also pay for the wall by issuing debt free Treasury bills like John F Kennedy, for example.
But the wall is just a propaganda show and could be used as an excuse for government shut down.
Trump has drastically slashed funds to the coast guard, opening a new gap in the US border, to people trafficking and drug smuggling.
In addition, he is has started resettling Syrian refugees at a much faster pace than Barack Obama.