Senator Rand Paul makes a lot of sense when he calls on his colleagues to use foreign aid money to fund our own disaster relief from Hurricanes Harvey and Irma.
Senator Rand Paul said:
“My amendment, the ‘America First’ amendment, would take the money from money that we were going to send to foreign countries. We send billions and billions of dollars to countries who hate us. We send billions and billions of dollars to countries who burn our flag. I think it’s a very simple choice that when we’re looking at those in need in our country, we quit sending money to other countries.”
Corrupt Congress always puts Americans’ interests last. Few senators agree with Rand Paul’s common-sense logic. Republican Senate Majority Leader Mitch McConnell made a motion last week to kill Rand Paul’s reasonable proposal and that motion passed 87-10 thanks to both Democrats and Republicans in the Senate.
There’s only one reason why Republicans and Democrats are not supporting Rand Paul’s proposal: corruption. Special interest groups that got these Democrats and Republicans elected do not want a reduction in foreign aid spending and so it’s not going to happen even though it’s the right thing to do.
Here is Rand Paul in his own words explaining his brilliant proposal:
Of course Schiff works in the gold promotion industry and so it’s not surprising to hear all the ways Schiff interprets the news as being good for gold. He’s been wrong since 2012 when gold peaked but eventually he’ll be right again, at least for a little while.
Minus the gold bug doom and gloom spinning, let’s look at what’s really going on with the push to end the debt ceiling.
President Trump said he would think about working with Democrats to end the limit on the country’s borrowing. According to The Washington Post, Trump and Schumer have agreed to work on a plan to eliminate the debt ceiling.
President Trump told reporters on Thursday that “there are a lot of good reasons” to get rid of it.
Speaker of the House Paul Ryan, R-Wis., specifically has come out against eliminating the debt ceiling.
Republicans Dishonest About The Debt Ceiling
Republicans have been dishonest about the debt ceiling for many years. The debt ceiling has nothing to do with being fiscally responsible. In fact, it is just the opposite. Using the debt ceiling to control spending is like a corporation using Accounts Payable to control costs. Dumb, right? In a corporation, Accounts Payable writes the check and mails it to a vendor. It would be detrimental to the health of a corporation for the boss to tell Accounts Payable to stop writing checks and paying vendors as a way to control costs. Vendors would stop doing work for the corporation and the entire business would implode. A boss controls costs by making decisions BEFORE an invoice gets to Accounts Payable for payment.
Another analogy is declining to pay a credit card bill or agreeing to go to dinner and then arguing about whether you’re going to pay the bill, after you’ve already eaten.
Congress is dumb to threaten to not pay its bills as a means of controlling costs. It destabilizes the country and sends the message that it’s risky working for or doing business with the US government. The time to control costs is during the budget approval process and NOT after the debt has already been incurred.
The debt ceiling is hardly more than a public manipulation tool of Congressmen to fool voters into thinking they are trying to control costs by voting against raising the debt ceiling, while at the same time voting for the government programs that caused the ceiling to be hit in the first place!
When Republicans took back the House in 1995, they brought back the debt ceiling vote as a way to pressure members on spending. Republicans would waver back and forth on using the debt ceiling vote. Sometimes they’d use the budget procedure to wave it through, and then other times they’d require the vote. It’s silly because it’s just politics and grandstanding. I mean how effective has the debt ceiling really been considering we have $20 trillion in debt?
If Republicans really wanted to control spending then they would vote for budgetary and spending decisions that would balance the budget. If Republicans really wanted to reduce government spending they would do that because that’s where the money is spent.
Richard Gephardt, D-Mo. has proposed the ‘Gephardt rule,’ which does away with the need for a second debt ceiling vote to approve borrowing once Congress has already voted once to approve spending that inherently necessitates borrowing.
Peter Schiff doesn’t know what he’s talking about when he claims that President Trump is for big spending and even bigger government and that his working with Democrats to end the second debt ceiling vote is somehow proof of that. I’m not sure Schiff himself honestly believes that. I think Schiff is playing to his alternative-news audience which are primarily gold bugs. Any bit of news that can be spun to support some lofty $5,000 an ounce for gold prediction, is what Peter Schiff does and boy does he do it well.
Democrats have abruptly shutdown a Russia Senate investigation panel. I wrote that this was a likely outcome of Republicans calling for an investigation into Democrats here.
Democrats do not want an investigation into Hillary Clinton and the money she accepts from Russia through the Clinton Foundation nor the big tech companies that got work inside Russia who then gave generously to the Clinton campaign.
Sometimes it’s necessary to fight fire with fire.
Do you think Republicans should continue to push for an investigation into Democrats over Russia? Leave your comments below.
Republicans have officially given up on trying to pass a border adjustment tax to even the playing field with our trading partners. The Retail Industry Leaders Association celebrated the news and said they are now ready to get on-board with the President’s tax reform.
The retail sector, and stock traders, won a significant victory Thursday when the White House and Congressional leaders announced that they have set aside a border adjustment tax that could have raised the cost of imported products by up to 20 percent.
Republican leaders said on Thursday that the proposed border-adjusted tax won’t be part of negotiations on how best to overhaul the U.S. tax code, giving a victory to retailers’ and stock traders that had opposed the measure. Retailers said that a BAT would be passed on to consumers.
For stock traders, this is a big win because 75% of GDP comes from consumer spending at the retail level. A border adjustment tax basically would play out as a consumption tax which would reduce consumer spending. You raise taxes and can do things like a border adjustment tax in a strong economy with runaway inflation where you’re trying to cool off the economy and so fiscal and monetary policy support each other. In a weak economy with flat wages and struggling consumers, you lower taxes and do things that increase consumption. We are in a weak economy and so a border adjustment tax right now would have hurt the economy and thus job growth.
Border Adjustment Tax Impact On Consumers
Some traders told me that if costs of a BAT were passed on to consumers then that would be inflationary and help the Federal Reserve achieve their 2 percent target. The problem with that logic is that what if it didn’t work? I mean it’s only inflationary if someone is willing and able to pay the higher prices caused by a BAT. What if consumption instead contracts as a result of higher prices? If demand contracts then supply contracts and that would work against supply-side economics.
A statement Thursday from House Speaker Paul Ryan, Ways and Means Chairman Kevin Brady, White House economic advisor Gary Cohn, Treasury Secretary Steven Mnuchin, Senate Majority Leader Mitch McConnell and Senate Finance Committee Chairman Orrin Hatch said that due to the unknowns associated with the border adjustment tax, they had decided to set this policy aside to be able to advance tax reform.
For stock traders this is a big win as tax reform will lower our capital gains tax and allow us to invest and trade even more. Anything that advances tax reform is a win for traders. We are very close to going into a Bear market unless President Trump’s agenda moves forward IMO.
BAT was holding things up and we buried that several times and it kept coming back… Small businesses are going to get a tax cut, that was a very important part of the Trump plan. They talked about expensing and will have unprecedented write-offs, this is very important from a cost of capital viewpoint… Repatriation is going to be in here… Unlike health care, on taxes the Trump Administration had its act together and secondly, the Republican party basically agrees with itself.
Pitched as a major revenue source in a Republican-backed tax reform program, the border adjustment tax was touted as a key to returning manufacturing jobs to the U.S. by making imported products less competitive.
Ryan and Brady, who spent over a year championing the border adjustment tax, told Republicans prior to the statement’s release that the concept would no longer be part of tax-legislation negotiations.
Target called the leaders’ joint statement a step ahead for tax reform.
By eliminating the BAT, the way has been cleared for swift action on a middle-class tax cut which will put more money in the wallets of the American taxpayer.
I’m so happy to hear that Speaker Paul Ryan and Ways and Means Committee chairman Kevin Brady have decided to set the border adjustment tax aside and not include the controversial tax in tax-legislation negotiations. I think we finally have a chance at the first comprehensive tax reform in more than 30 years. However it leaves a question as to how to pay for these tax cuts. The BAT would have raised more than $1 trillion over a decade, according to estimates. A BAT would have helped pay for tax cuts for everybody. The problem though is that with a BAT included in tax-legislation negotiations, there’s no way tax-legislation would have passed. It was a catch 22.
Without BAT revenue, it is going to be more difficult for Republicans to keep the tax cuts permanent and to produce the kind of tax cuts that President Donald Trump has promised. Under the budget rules that GOP leaders plan to use, any tax-legislation changes that increase the deficit can only be temporary.
I think that the Federal Reserve should sell-off its balance sheet and use that money to send to the Treasury to pay for tax cuts. Have the Federal Reserve do something that’s good for the American people and main-street instead of always focusing on what’s good for Wall Street. We could corner the debt on the balance sheet of the Federal Reserve instead of the Federal Reserve spending our tax dollars and then leaving the debt cornered with the public. I’m just throwing that idea out there. That’s what we have to do. We need to come up with creative and alternative ways of paying for big permanent tax cuts.
Congressional tax writers will need to consider multiple ways of raising revenue to pay for tax cuts from various businesses by closing loopholes.
Here’s an idea. Let’s push NASA to advance the space-mining industry and then any proceeds gained from NASA mining an asteroid would go to pay for tax cuts. Just one asteroid mined could be worth trillions of dollars in tax cuts.
If you have any creative ideas for how to pay for a big permanent tax cut, leave your comments below.
Republicans are moving on a health care reform bill while Democrats in the Senate like Bernie Sanders say it won’t see the light of day before they even know what it is according to a report on Market Watch (link above).
I find that exceedingly rich that Democrats who secretly worked their own health care bill and infamously said you have to pass it to find out what’s in it, are now complaining about transparency:
A government shutdown is coming straight at us like a freight-train and Congress better do something fast. David Stockman told CNBC (link above) that in this government where the system is determined to unseat President Trump, it’s unlikely that both parties will come together to raise the debt ceiling.
Government Shutdown Coming Fast
The first estimate was that the government would run out of money by November but lower than expected tax receipts have pushed that date up to August. August is just 7 weeks away.
All these baseless accusations about Russia are coming from both Establishment Democrats and Republicans who are using the mainstream media to try and impeach President Trump. If the government can waste this much time on something so absurd, they are, quite frankly, all a bunch of morons.
It feels like we’re more of a primitive tribe than we are a powerful constitutional government.
David Stockman told CNBC, “I don’t know what Wall Street is smoking. They ought to be getting out of the casino while it’s still safe.”
The Dodd Frank Wall Street Reform and Consumer Protection Act took a hit this week after the House passes a bill that guts many parts.
The House passed a bill called the Financial Choice Act that would allow banks to opt out of some regulations if they hold enough capital and would repeal the Volcker rule that barred banks from speculative trading.
One key component of the bill that I like is that banks will no longer be bailed out with tax payers funds as they will be forced to go through bankruptcy like any other industry.
Repeal the Dodd Frank Wall Street Reform and Consumer Protection Act
President Trump promised to repeal the Dodd Frank Wall Street Reform and Consumer Protection Act because it’s bad for business and in particular for small banks.
One of the original authors of the legislation, Jeb Hensarling (Republican from Texas) said Dodd Frank is a major factor in limiting GDP growth in the wake of the financial crisis.
Banking stocks are surging higher on news of the House bill but most see little chance of it passing in the Senate. Still, stock traders figure that even a watered down Senate version is better than what we currently have.
Listening to James Comey testify before Congress, something clear emerged: what a drama queen! Even the Democrat globalist controlled CNN (link above) wrote an article that lacks in credible new information or smoking gun.
James Comey Drama
Comey admitted that when he was asked by the President to remain behind after a meeting of White House and national security official, he was paranoid about what was going to happen and so he decided to keep a close record of the meeting.
Check out what Comey told Congress:
I knew something was about to happen, that I needed to pay very close attention to.
Maybe that’s Comey’s guilty conscience for lying to the President of the United States about whether or not he was being investigated! He was appointed by a Democrat with Democrat biases, Trump should have fired him on day one of his Presidency like I said back in January. It’s the same reason why Trump needs to fire Janet Yellen. Reality check President Trump: You fire everyone that was appointed by a Democrat. Never, ever, go full retard on the idea you are all going to work together.
Then Democrat controlled CNN writes:
In essence, this comes down to a showdown between two versions of the same events — one offered by Trump, the other presented by the respected FBI director whom he fired.
That’s not objective news reporting, that’s a subjective smear in an attempt to constantly plant in the public’s mind that James Comey is good, Trump is bad. Notice how CNN says Comey is “respected”. Really? The only reason why Democrats are now respecting Comey is that their trying to impeach the President and override the will of the American people. Want proof? Here are Democrats less than a year ago calling for Comey’s resignation:
Democrats wanted Comey fired last year when it suited their interests. But now that President Trump fired Comey, well now Comey is the most respected person ever.
It’s all about information wars and the manipulation of the public so that the corrupt Judicial branch can attempt to remove Trump from office.
James Comey said nothing of importance before Congress IMO. It’s a disgruntled former Federal employee airing the grievances of his employer. It’s girly. I once read a business article that talked about how usually when you fire a man, the guy just leaves. But often when you fire a woman, you get a long parting letter filled with rambling grievances. Comey went girly.
Come on Democrats, I double dare you to try an impeachment over Comey’s testimony. Come on globalist Republican establishment types like John McCain and Paul Ryan, please join the Democrats in trying to override the will of the American people using the judicial branch of government. I look forward to the Democrat party and their Republican allies of losing even more congressional seats.
President Trump has honored his campaign promise to pull the US out of these globalist run bureaucracies that tax Americans in the name of bad effects of climate change (see Washington Post link above). You go honeybadger Trump! Trump supporters finally have something to be happy about again.
Effects of Climate Change, Who Cares?
We all want a clean environment for ourselves and future generations but Democrats under the Obama Administration destroyed our economy and middle class in an attempt to control the effects of climate change. With $20 trillion in debt and most Americans struggling just to keep a roof over their heads and food on the table, it’s criminal that US citizens are taxed and those tax dollars are sent to a non-elected globalist run bureaucracy of socialists whose goal is to create a one-world order.
The message is not that we don’t care about the environment. The message is that America has been run into the ground by decades worth of rule under Republican and Democrat administrations that milked the US tax payer for hundreds of billions of dollars while crony environmental capitalists like Elon Musk made a fortune. The message is that free handouts from America are over because we are on the verge of bankruptcy after decades of high taxes and jobs shipped offshore to places like Mexico and China.