President Trump has indicated that he would allow $125 billion in spending cuts to take place for both defense and non defense spending if Congress does not agree to his spending plan, top White House adviser Larry Kudlow said.
“The president has indicated, if the spending caps going all the way back to the 2011 deal are not met, then we will sequester across-the-board, both defense and nondefense, excluding entitlements, but we will run by those rules,” Kudlow said during The Hill’s Newsmaker Series event in Washington. “That’s tough stuff. I think that’s appropriate.”
Kudlow was referring to budget caps set in place in the 2011 Budget Control Act (BCA), a law that was meant to force bipartisan cooperation on budgeting by threatening steep cuts to both defense and nondefense spending. Without legislation to raise the caps, 2020 defense spending would drop $71 billion and nondefense spending would drop $54 billion from current levels — about a 10 percent across-the-board cut.
The United State National Debt exceeds $22.2 billion and is growing. This is greater than our Gross Domestic Product and puts us in the same category as Greece and many third world countries. There is only three ways to solve this problem. We could have spending cuts until the inflow exceeds the outflow and starts to reduce the national debt. It appears that neither the Marxist/Progressives nor the Republican establishment favor this solution.
Another solution would be to declare a national bankruptcy and default on our national debt declaring nonpayment of principle and interest. This would bring about an international financial collapse. The third solution would be to bring about hyper inflation so the national debt would be paid with a dollar worth far less than it was worth when the money was borrowed. This solution would also bring about an international financial collapse.
The only responsible solution would be the reduction of spending. Some will say another solution would be to increase inflow by raising taxes. The problem with this solution is that an increase in taxes always decreases the inflow of dollars because of the negative impact the increase in taxes has on the economy. The solution is obvious. The obvious solution would be responsible but would be in direct opposition to the political agenda of the Marxist/Progressives (Democrats) and many of the Republican establishment
If we the American public are serious about averting an international financial collapse, we will, starting in 2020, elect people to congress who are willing to take the tough political stance of being responsible stewards. Again, it is the American public who have the responsibility to be the adults in the room. Will the American public accept the responsible course or will we continue to believe the false promise of “Hope and Change,” the false mantra of the collectivists (Marxists, communists, socialists, Nazi’s, progressives, Democrats – all virtually the same).
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