Wednesday, September 6, 2017

Trump pulling a scam on debt ceiling

He ties the debt ceiling vote to 7 billion in aid for Texas.

The total cost of Texas is about 100 billion.  Let us put that in perspective.  The interest costs paid by the swamp just jumped by 10 % a year for two years. Including social security, that means millennials have are getting dinged an additional 120 billion in interest charges, as the debt ceiling is raised. And then, we have Irma. One percent of gdp growth is about 180 billion. Boomers ain't paying for it.

Unfunded swamp obligations create recurring debt and drain swamp reserves.  Eventually they do not have a tax base to cover emergencies, the real goods just aren't there, production being shifted to goods favored by lenders. Then the swan kicks your ass.  That is why we amortize, we do not want to let interest charges create distortions in real goods margins.

Trump is betting on the innumeracy of the millennials.

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