We call it Debt
David Schweikert calls is budget deficit
US GDP is 21 trillion dollars / 2021
Debt is 26.7 Trillion
With Biden's Plan DS says that in 30 years (by 2051):
Debt will hit 112 Trillion
https://www.youtube.com/watch?v=RYOtDMklbFE
He then proceeds to say how the Wealthy
those above 500,000 - however taxed
will be unable to pay a fraction of the interest
year by year.
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For 2022,
Federal Tax will increase by 400 billion
CBO estimate: 120 billion
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After the first 16 minutes - DS talks about the Social Spending Bill as a shell game - I'm not into that discussion
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17 to 18 minute:
DS explains how a budget of 1 Trillion for a program in 2022, spreads over to 3 or 4 years and then we find that we have an obligation of more than 1 Trillion, generally twice 2 Trillion
(although he suggests more)
I agree with this because in infrastructure projects, say a budget to build a bridge in 2022
- by the time the preliminary design, tender / bod gets finalized it's over 6 months. Detailed engineering and beginning of Earth work / rock blasting - another 6 months. All this is part of the bridge scheduled date of completion, but contractors have clauses for price escalation of steel and so on including labor wages. So the cost goes up.
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On the 19 minute DS introduces the term 'Expensing' - a concept that worked in 2018/19
where businesses increased productivity with investments in equipment and technologies of the future.
And US experienced a drop in unemployment rate, better quality of income and so on
But with the current government tax policy - this investment in capital goods 'expensing' will disappear.
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A similar phenomena happened in India when after 2012, the ruling party swung in with environmental tax (and scams) leading to many companies who had invested in modernizing their factories - went bankrupt.
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My point is that US Government plans on printing more dollars - the equivalent of devaluing currency that China did sometime around 2015 for export reasons
Printing dollars will continue the inflationary pressures experienced now - for next 30 years!!!
Biden will be dead by then
RIP Biden
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The only reason I'm bringing this to notice is because as the US economy erodes
some of the smaller countries economies are likely to bust and rest sink in deeper trouble.
We saw a milder version of this in 2008.
Edited by
jaish
on Thu 12/02/21 04:12 AM