Promises and Price Tags: A Fiscal Guide to the 2016 Election

Got any hogs?  The Committee for a Responsible Federal Budget has the article Promises and Price Tags: A Fiscal Guide to the 2016 Election.  I think a better name for this committee would be The Committee for The Most Irresponsible Federal Budget One Could Imagine.

Time Wise posted this report on his Facebook page.

This report is so much hogwash. One of the few things Donald Trump gets right is his statement that the United States Government never has to default on its debt because that government is the one entity that legally creates US money.

This growing debt is largely the result of rising entitlement spending and growing interest costs. Social Security, federal health spending, and interest costs are projected to be responsible for over four-fifths of spending growth over the next decade, with interest being the fastest growing area of the budget.

How can Tim support a right-wing report that says our country’s debt is mainly caused by entitlements? In his rush to condemn someone he rightfully dislikes, he shouldn’t end up supporting policies that are worse.

The growing debt is largely the result of giving back tax collections to the wealthy rather than spending it on what this country needs. Further, giving money to bailout the rich who sock it away in US Treasury securities rather than spend it into the economy is preventing economic growth. This last bit is how we create money and then end up paying interest on the money we created and gave away.

In the recent financial crisis the Fed created $26 Trillion in liquidity which went mostly to the wealthy. Where else does the money come from to buy U.S. Treasury securities? If we were really worried about this country’s debt, don’t you think the money the Fed created could have gone into paying down that debt?

The crime is not that we created $26 Trillion in liquidity.  The crime is that we got almost nothing in return for that $26 Trillion.

I guess even Tim is not immune from being sold a bunch of Kool-Aid.  I hope he comes to his senses before he drinks much more of it.  Don’t you go out and drink this stuff.

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