Failed State Walking
June 11th, 2020Via: Econimica:
To gauge the quantity of federal taxes collected from the economy, it’s pretty easy to divide annual federal tax receipts vs. the marketable debt (red shaded area below). If the tax receipts or coverage is declining versus the debt…we have a problem (BTW- we have a very big problem). But then you have to add in the Federal Reserve’s role in (mis)managing rates (since 1981) and actively buying Treasuries (since 2008) to distort rates and asset prices. This has encouraged Congress to spend what it isn’t willing to collect from the people…thanks to the Federal Reserve giving Congress the idea that the money is “free”. It is not.
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So, although I graduated with a history/political science degree long ago…the primary thing I learned is that both parties are crooked and untrustworthy…and easily purchased by the highest bidders. So, when I show the chart below of soaring federal debt and Federal Reserve balance sheet during the last eight presidential terms…and decidedly not soaring GDP, please understand it is not to lift one party over the other. It is to show they are both unworthy of a single additional vote. They are there in DC for the few at the expense of the many.
