Things we already know about the next financial crisis
In a letter to Democratic House Speaker Nancy Pelosi, Mnuchin wrote that the US might default on its obligations as soon as early September, before Congress returns from its summer recess.
The US Treasury, which is facing a growing deficit thanks to President Donald Trump’s 2017 tax cuts, had said it had enough cash to last until the fall.
Here are some things we already know about the looming Trump recession.
1) It will be caused by greedy poor people who have the audacity to be poor while expecting government services.
2) Another culprit will be fat cat teachers and teacher unions. Also Mexicans,liberals, Iran, and the fake media.
3) More and bigger tax cuts will get us out of it because when corporations and rich people get tax cuts they reinvest that money in creating jobs.
4) We’ll need to socialize bank losses because socialism is good for that and that alone.
5) To do so, we’ll have to “tighen our belts” (around our necks) and get rid of wasteful government spending on Social Security.
6) Democrats will compromise with Republicans on this for of trickle down stimulus rather than risk being viewed as partisan.
To which I would add Big Pharma owns nearly all the politicians, “lobbying” is essentially bribery and our government is long dysfunctional and inherently corrupt. Parliamentary style democracy anyone? It would have rid us of Trump years ago.
Wanted: Americans not stupid enough to buy the same lies time after time, Republicans need not reply.
Major cuts in spending are in order. We’re already over taxed.
Don’t dare touch defense spending, blah, blah, blah
A previously convicted felon set up a scam called “Future Income Payments” and operated for years ripping off retired veterans and others with usurious loans at 200% and higher (which he called sales of pension income streams to get around disclosure laws). He advertised on TV and somehow got lists to do direct calls, there are tens of thousands of victims. The jig was up when the City of LA filed suit in 2015, then 20 states began investigations. At the end it turned into a Ponzi scheme as they could no longer collect from the vets they had ripped off and were paying old investors with money from new ones. The CFPB finally filed suit in 2018 and the felon fled to the Philippines where he resides today.
The point being that our laws and their enforcement have eroded to the point where anything goes. Greed reigns supreme with no real fear of repercussions. It is a forgone conclusion that another major financial meltdown is coming.
I see the debits side of the ledger here. Where are the assets?
This entire argument is a gross misunderstanding of how our money works.
Mnuchin knows this but it isn’t in his interest to explain it to anyone.
#MMT