(4 minutes)

Many of us have been making statements that the deficit is almost exactly equal to the amount of tax cuts for the wealthy that Republicans (pre MAGAs) and MAGAs have showered the wealthy with in this country over the past 44 years. Thom Hartmann broke that down in one of his daily newsletters.

It was very nice to see the numbers in black and white. For the most part these tax cuts have been paid for with borrowed money that you and I will be on the hook for to a much greater degree than any wealthy will unless tax codes somehow go back to pre-Reagan rules.

And do not forget that the borrowed money leaves us, as it does any borrower, vulnerable to someone cashing out. We borrow through the sale of Treasury bonds. If the security of those bonds becomes at all suspect as it did last week, then the interest rates could rise dramatically. 

Thus was the source of the bond crisis that caused the sudden turn on tariffs last week that once more made Stinky Pants look like an idiot and a buffoon. The international floating of Treasuries exposed the US just enough that showed the world that at present we are not as reliable of a creditor as most thought we were. A crack in the foundation that could really grow.

From Thom Hartmann’s newsletter last week:   

Carney (note: current Canadian PM Mark Carney)  reportedly got together recently with leaders of Europe and Japan to plan their response to Trump, and — being a former central banker — knew the biggest threat he and other democracies in the world could wield against Trump would be a 1929-style collapse of the US bond markets.

All they’d have to do is to begin to carefully dump their holdings of US treasuries, and it could force Trump to back down to avoid a massive market crash and freeze of the dollar-based system of international finance.

About $8.5 trillion of the US’ $36 trillion national debt is held by foreign governments (as treasuries), including $350 billion by Canada, $1 trillion by Japan, an estimated $1 trillion by China, and between $1.5 and $2 trillion by the EU.

<<snip>>

Republicans are entirely responsible for this loaded debt gun that’s now being put to our heads. Reagan’s tax gifts to billionaires (which is still in effect) have cost America at least $20 trillion; Bush’s have cost us around $6 trillion, plus another $6 trillion for the two illegal wars he lied us into to win the 2004 election; and Trump’s last tax cut cost us an estimated $5 trillion. That’s $37 trillion, and our national debt right now only stands at $36.22 trillion. (ed. note: bolding mine)

And they did it all because of Jude Wanniski’s “Two Santas” theory from 1976, which argued that when there’s a Republican in the White House he should spend like a drunken sailor (which stimulates the economy, creating the appearance of good times) to drive up the national debt.

Then, Wanniski argued, when a Democrat comes into office, Republicans should scream and squeal about the national debt “that our children will have to pay” to force Democrats to “shoot their Santa” of Social Security and other social programs in the face.

**************************************************************************

At this point let me add a thought for the future. To pay for future tax cuts for the rich, MAGAs are proposing cutting $6 Trillion out of spending that would thus “pay” for the tax cuts. As everybody knows that spending cut is proposed for the most part to come from Medicaid. MEDICAID, for gawd’s sake!

Medicaid is the health care place of last resort for the poor and disabled in this country. So MAGAs (including all of the Iowa delegation)are literally saying they will take health care AWAY from the poorest people in this country to give more money to those who need it least. HOW GODDAMNED CRUEL CAN THEY BE???  (Take a minute to compose myself)

And just between you and me, we could save all that and more while giving everyone in this country totally paid for health care including vision, dental and mental health by going to a national health care system! Did you know that? It is not a secret. This has been known for a long time.

But insurance companies are making out like fat rats denying the American public the health care they deserve and pocketing the profits – profits that could be paying your dental bill.

And you can damn bet you that your MAGA congress member knows it. He or she likes to slide those “donation” checks from the insurance companies into the campaign account. Ask them about it some time. You know we are the only industrialized nation in the world that does not have universal health care. We can more than afford it. Ask your MAGA congress member why we don’t have it.

Thom Hartmann discusses Jude Wanniski and the Two Santa Claus theory (10 minutes) – ten years old but still quite relevant as MAGAs shoot for another huge tax cut for the wealthy.