Subject: Re: Trumps Anti-Robin Hood Tax...
I don't think debt financing necessarily results in a false prosperity.

One of the things that has always perplexed me is why the total national debt (around $38-39 Trillion right now I believe) isn't balanced against national ASSETS. I'm not sure if the assets should be only government assets or included privately-held assets. But normally, balance sheet includes debt vs. assets, not just the debt.

I mean, things like our Army, Navy, real estate/national parks owned by the federal government, and lots of other things, are probably difficult to value. But they do have a value, and I'm sure it's a lot.

The annual budget is running around $7 trillion and annual debt service is running around $1 trillion so around 14% of the budget is devoted to debt service. The trend isn't good because I believe the debt is going up around $1.78 trillion a year or somewhere around that.

We also have trillions in off balance sheet unfunded liabilities like future Medicare costs.

In the 1990's we had a few years of balanced budgets which can be attributed to raising taxes on wealthier people, cutting expenses, plus a booming economy (the rise of the internet).

I think the 2028 Presidential contest will be a very interesting year because one of the budgetary issues that is coming up pretty quickly is the Social Security shortfall predicted for 2032 or 2033. The trust fund runs out and payments in will only serve to allow maybe 75% of SS benefits to be paid going forward if adjustments are not made.

So that issue should be squarely on the table (although it's been kicking around for decades with nothing done about it).

If not addressed by whoever the President and Congress is in 2028/2030, it will HAVE to be addressed by whoever is elected in 2032. There are a number of solutions but it's too politically touchy so no one wants to do anything about it because they can kick the can down the road a few more years.

How we are able to handle the coming social security crisis will tell us a lot about how we may be able to handle longer term issues such as the general budget deficit.