If you listen to, watch and read major media you may believe President Trump is sitting at his desk drooling all day while Steve Bannon and all the other evil people he hired are running things and plotting against the black and brown folks as well as all liberals, homosexuals and college professors, also known as, “…the usual suspects.”
Meanwhile the bureaus are strongly opposed to the President and plotting for his overthrow, removal, tarring and feathering while Hillary Clinton sneaks into town to take her rightful place in the throne room of the White House to the applause of all bureaucrats preserving their outrageous salaries, annual bonuses, quarterly retreats to spas and the south of France in time for the Truffle harvest. “Can you imagine?” ask they, “He actually wants to get rid of the Environmental Protection Agency for dirty water and air!”
The EPA is an out-of-control bureau with a long trail of Gestapo-like actions invoking $30,000 penalties for nonsensical infractions like having bought a gallon of outlawed paint that was sold to an unknowing contractor!
In another case a family made a pond on their land by damming a rainwater runoff, but were fined $150,000 for having interrupted a “natural water course.” In response they destroyed the dam, but were given another several hundred thousand Dollar fine for then having destroyed a wetland! The EPA appears to be a bureau for people who have serious emotional issues and become environmentalists to get revenge on everybody!
A recent study broadcast by Fox News revealed 90% of all Federal bureaus donated to the Hillary Clinton campaign. It is possible a high percentage of these people will resist much of what the Trump Administration will want to do. We may see that most Federal workers fall into line, do their jobs and avoid trouble in the realization that this is the way a political change works. There was a very high expectation Hillary would win and what she would do in office was predictable so the majority was simply falling into place. It remains to be seen and we can only be hopeful that Federal workers will salute the new regime.
Nonetheless, there are real concerns for the immediate future and how Mr. Trump will deal with them. He is talking about repairing our crumbling infrastructure: roads, bridges, dams, airports and on through a long list of Federal responsibilities including the military that has been allowed to decay under the anti-military Administration of Barack Hussein Obama. This will be on top of our already outrageous $20 trillion national debt. So, from where will all this money come?
During his eight years Mr. Obama spent about $1 trillion more than Federal revenues which were not from the sale of Federal Reserve T-Bonds at $100,000 per bond, paying three percent annually, maturing in 30 years for a net cost of $190,000. Yes, that $20 trillion is actually $38 trillion in taxes for the generations to come. And…
These were bonds with no backing. They were not sold on the open market, but “…put on a shelf,” in the words of the immortal Fed Chairman Dr. Ben Bernanke and Janice Yellin, Ben’s successor who carried on the Bernanke doctrine.
This money was meant to stimulate the economy per the Keynsian Theory that such “stimulation” would get the industrialists off their butts to create jobs and bring in a new era of economic prosperity. No economist has ever been able to prove the idea, but they believe it in places like the Yale Business School from where Mr. Obama got Mr. Bernanke.
To distribute all this free money the Federal Reserve sent it to the banks to lend to the business people to make stuff people were not buying because they didn’t have jobs to pay for them. In liberal logic, “If you make it; they will buy it!” Jobs would appear like mushrooms in the morning. That this had never happened anywhere, any time never occurred to Ben. Ben is a man who believes. In what we are not sure, but Ben believes.
Meanwhile, the banks were sitting on all this money and no one showed up to borrow it so thanks to the elimination of the Glass-Steagal Act of 1932 to keep the retail banks out of the stock market as they had caused the Crash of 1929 with unwarranted speculation and not the Jude Wanniski theory it was caused by passage of the Smoot-Hawley trade tariff law that only affected 3% of our economy while bank equity trading affected 20% to 50% depending on who is counting. Smoot-Hawley did not help and it got a lot of ink, but this horse was terminally ill before that pill.
We have a similar situation today. The Obama Gang, with Machine Gun Bernanke and Ma Yellin inflated the equities markets to the place where the only way for this bubble is “poof!” We suspect Mr. Trump will be blamed by the folks who buy ink by the barrel and TV by the Megawatt. The only question is when. As for Caesar, beware of the Ides of March.