One Deficit Too Many

The US Government has a Budget Deficit.

It always has.

The problem is

It keeps growing.

The Revenues are still smaller than the Expenses.


Trump’s tax cuts have aggravated the situation.

Individual income taxes were reduced,

effectively decreasing the income of the government.

Companies gave the amount reduced by the tax cuts

to the employees as bonuses.

This again reduced the revenues of the government.

remember that giving the money away as bonuses

would further reduce the company income

and hence less taxes.

To make up for this reduced revenues,

the Federal Reserve prints more money.

This compounds the situation.

Now if you look at your USD money—

it does not any more say

that the money is redeemable in gold.

The government does not any more back up the USD

in gold.

It is therefore devalued again

making the American banks more jittery for holding

overvalued dollar bills.

Now comes the Republican Party led by Paul Rand

to call for an audit of the Federal Reserve.

The Agency of course refused such an audit

because the country and the rest of the world

will realize that the USD that they hold are worthless.

Comes now Trump galloping to solve this Budget deficit

by getting money back from the Trade Deficit.

This puts trump and the whole American government,

in a bind.

For how can you ask the trade partners to give back

the balance of the trade deficit.

Increasing the number of jobs may be good news

for the moment.

But the Health Care system that is now set up

will demand more government aid to the newly employed.

The Democrats most probably knew about theĀ 

ballooning budget deficit if Trump’s plans were followed.

But they never made a peep about it

because the Democrats were partly responsible

for the rise in budget deficit even before Trump.

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