It is supposed to be a model of all economic activity. And it just turned down again in May during which time rates went up again as economic TIGHTENING by the fed continues.
This is the great horror of the Zirp State (see the book on the right – Zirp Zombies). Even with the economy dying (or in this case corpse decaying) they still have to hike rates.
The economic activity chart shows us that through all of Obama’s reign we were in a depression, not just a recession.
The Trump time is choppier. It’s like a breakout trying, but keeps getting pulled back. That pulling back is Yellen raising interest rates.
We MUST raise rates back to 3 or 4 percent to provide value to retirement and pension savers, and to general savers who wish to then provide capital. But now our national debt is so large that doing so will increase our payments from 350 to over 600 billion a year. And if rates resume up to 6 percent to get people to buy our 2Y bonds, then that interest on debt will be 1.2 trillion a year, a THIRD of our tax receipts.
What all this means is that we have to do everything we can to dig out of debt NOW. RIGHT FUCKING NOW.
Cut the budget by 20% then freeze it. Most of that will have to come out of military but we should ALSO defund the deep state spy programs – NSA, FBI, CIA and Homeland.
Second – Make income tax only kick in on income OVER 150,000 a year. Make the rates higher I don’t care. Our society should promote striving and earning for the middle class. And saving and investing. NOT taxed to death horror.
Third – Impose a 10% Security fee against the wholesale price of goods crossing the border from ALL NATIONS. No more free lunch to play in our huge homogenous market. If you don’t want to pay it build your factories here like Honda and BMW do. If anything it will make companies have an even stronger argument to build directly in the USA. When you add in the cost of shipping it’s a 15% tax advantage. Now if we also supply them with low energy and low regulations, we will get factories back. The government can do this by offering 50% of energy cost tax credits to any new factories built from today going forward.
Fourth – Put a tax on the financial houses. They have grown fat and rich after our 23,000,000,000,000 handout to them. So EVERY trade in America, regardless of type, should have a 0.3% federal trading tax stamped on it. It is very small. Derivative trades should be twice that. The thing is, we have over 35 BILLION dollars trading every day. A small tax like this would bring in over a trillion dollars in revenue EACH YEAR. possibly even two or three trillion. If it does bring in that much, then the amount can be lowered. Like the border security tax, it should just be a general cost of doing business.
Can we get these passed? Not with the current RHINOs in charge. But with America Firsters becoming more and more of the republo-thugs it is getting possible if Trump comes out and says “Hey this is our deficit reduction plan. Who is against me?”
This is much more important than healthcare. Healthcare is easy. Just turn off the 500 billion they are siphoning off of fannie may and freddie mac profits and putting into insurance company payoffs. Poof insurance companies will pull out EXCEPT where they are still profitable. Simple easy peasy. No vote for repeal is required Obozo care will simply die.
The bigger question, how long before Firsters start forming their own political party. With all these votes being so close to 50/50, even having 5 seats in each house would make them THE deciding wedge vote, and force both sides to woo them without the pressure of campaign defunding as the current firsters who are republo-thugs face now.
It’s NOW the time to address the deficit. Not when we crash. Right now. Are you listening golden eagle?