Whoever becomes president will inherent an economic nightmare

Thursday, July 28, 2016 by

(Bugout.news) Some Americans are tempted to blame the country’s economic malaise on both Congress and the president, and that is accurate to an extent. But generally speaking, “the economy” is guided by the person in the White House. So, like it was “all George Bush’s fault” when his economy turned south in the last year he was in office, the past eight years belong to Barack Obama, and he deserves much of the blame he gets.

Between the imposition of Obamacare and the president’s regulatory style of management, the economy has never grown more than 3 percent in any single year since he took office – something that has never happened before. In 2015 alone, Obama’s government imposed $22 billion in new regulatory costs; since he’s been president, his bureaucracy has churned out an astonishing 20,600-plus rules and regulations. In all, he has imposed $100 billion in new costs on American labor, industry and businesses since he was first sworn in.

Add to that the dramatic rise in our national debt – and here, Congress certainly shares some of the blame for allowing the president to be so spendthrift. It now stands far north of $19 trillion on its way to $20 trillion before Obama leaves office in January – roughly double what it was when it took office. Remember when he said Bush’s piling on of debt (Bush held the record until now) was so unpatriotic?

But politics aside, by any measure the next president will be left with a mess – and a Congress that will likely be as unwilling as it has been thus far to do what is really necessary (like curbing the welfare state and entitlements in general) to cut spending and actually begin to pay off what we owe.

The fact that we have such a large debt isn’t inherently a problem, as long as certain conditions remain. For example, as long as interest rates remain at historic lows, we’re fine. But if those rates go up – and they inevitably must – then we’re in trouble. Big trouble.

As noted by The National Interest in May 2015:

There are certainly reasons to be concerned. The absolute amount of debt amassed by the federal government is at an unprecedented $18.1 trillion with $13 trillion held by the public. These are astounding amounts, but the level of debt is not the end of the story, as the level of debt does not determine the amount of interest expense tied to the accumulated debt.

While that all sounds rather clinical, the fact is we’re simply running out of time. And the bomb could explode on the next president. This source predicts that by 2023, it will be too late to “fix” the problem because all of the baby boomers will have entered their Medicare- and Social Security-earning years. And if anyone believes Congress will act then to curb entitlements, you need to stop smoking what you’re smoking.

The reality is, this debt problem won’t get fixed. Our debt will continue to grow until one day, it will simply consume the country. Only, there isn’t a sugar daddy or bank out there to save us from our bankruptcy. Everything will simply collapse. It will have to; when you just can’t print enough money or tax an already over-taxed nation any more, then the next step is financial ruin.

What happens then? When the government defaults, the economy will tank. The tens of millions of Americans now on some sort of government payroll or assistance will no longer receive a check. The government cash flow – whatever it still happens to be at the time – will all be diverted to the most important functions. The government will literally lapse into survival mode. Washington, D.C., will become a fortress against the marauding masses who are going to be looking for some scalps.

And again, some believe this will all play out during the next presidency.

There is nothing ordinary Americans can do at this point to change the trajectory of the national debt. It really doesn’t matter who we elect as president or as members of Congress. Neither the Legislative or Executive Branch can defuse the debt bomb that is now primed to explode. Even if both branches were committed to defusing the bomb, there may not be enough capital left in our country to produce the kind of wealth it will require to raise enough funds – because no one seems willing to reduce the regulatory burdens we suffer under and unchain our economy.

So the best thing – the only thing – we can do is prepare ourselves for this inevitable future. Stockpile food, water, ammo and basics. Find a place to hunker down. Get to know some good folks who will stand with you. And be ready for the hordes.

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