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Midnight in America

That dark title comes from Peter Schiff, the investment analyst and libertarian ninja. His article’s conclusion:

Ronald Reagan was the last Republican president who was swept into office promising great change. He made good on his “Morning in America” promises to cut taxes and regulations. But he failed in his promises to reduce spending. …[and now after others did even worse,] the economy of 2016 has far deeper problems than the economy of 1980. Reagan’s morning now looks more like Trump’s midnight.

Trump did not make this mess, but he will likely be in office to clean it up.

The question is: Will President-Elect Trump be able or willing to clean it up? As Schiff puts it:

…as bleak as the picture Trump painted of the current state of the U.S. economy, it was not bleak enough. Before things can actually get better, they must first be allowed to get much worse. Decades of government promises to supply voters with benefits taxpayers can’t afford must be broken, starting with many of the promises Trump made himself to get elected.

(Emphasis added) That has been my chief criticism of Romney (in 2012) and of Trump all along: Although they were “truthier” with the voters than their Democratic opponents, they still didn’t tell voters nearly enough of the truth.

After eight years of President Obama, we now have a national debt of $19.8 trillion by official figures; and something far north of $100 trillion when you include the “unfunded liabilities” (the future benefits promises that the government should report, under proper accounting standards – and does not). States, and especially their pension funds, also face a great crisis where they won’t come close to meeting their future promises. This is all very different from when Reagan took office.

Based on his speeches about “infrastructure” spending and his past track record, Trump’s first instinct might be to run up the U.S. debt up to even greater heights than Obama has. But at some point, Trump’s deficit spending will hit a wall: a full-on recession (it’s overdue) and a new financial crisis, wherein world markets simply won’t allow the United States to carry on as before.

What happens then? Will Trump give Americans the bad news about serious cuts to their benefits and hopes? Or will Trump flounder, protect special interests – maybe hyperinflate the dollar – and allow events to destroy him and us?

Anyway, it’s been fun to watch the left-wing butthurt over President-Elect Trump these last few days; but realism compels me to start being a wet blanket again. America’s problems, especially its debt problems, are beyond anything that even Trump had acknowledged.

He won’t be able to fix them by magic. And in a way, left-liberals are right: the next four years will be awful, for many.

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12 Comments

  1. D)oes … N)ot … C)ompute :

    http://i.imgur.com/4uc5elc.jpg

    Poor anti-America fascist moles.

    I’d almost feel for them, despite their bank account and stocks.

    Comment by Cyril — November 12, 2016 @ 7:38 am - November 12, 2016

  2. More relevant to your post:

    you make a great point.

    They are men and they are topics. For some pairs of those, you better listen, when there are words of warnings.

    Peter and the actual state of the economy that isn’t the mainstream one / commented on by arrogant numbskulls a la Paul Fraud Krugman is one of those pairs.

    Beyond the unambiguous stance of Trump on the 2A, I regard this as the second most important thing where Trump must clearly position himself, if he really is more honest, by any significant measure, than the leftist gangsters who preceded him.

    That is, will he, or not, have enough balls to give the american people the full assessment of how bad things are already, and how much worse they will likely have to go, first, anyway, before the same economy gets a chance to do what the democraps have thoroughly forbidden it : start recovering, finally.

    Comment by Cyril — November 12, 2016 @ 8:09 am - November 12, 2016

  3. Moby, scrawny hipster icon, writes an open letter to America, lol.

    http://www.breitbart.com/big-hollywood/2016/11/10/moby-open-letter-america-fck-wrong/

    Here’s a comment left for that article:

    Clearly, you are still confused regarding the truth about our great republic and what we value. For too long, people like you have looked down upon red-blooded Americans; especially those from the mid-west (or as you derisively refer to it, “fly-over country”). What you saw on Tuesday was the result of a new awakening that began with the TEA party and will not end any time soon. The truth is that we are sick of you people pretending like you are somehow better than us.

    ● We are sick of you getting rich off of us and then turning around and spitting in our faces.
    ● We are sick of you trying to destroy the free market system that made you rich in what I believe is an effort to make certain that no one can rise to compete with you.
    ● We are sick of the foreign worldview you try to foist upon our youth including my generation (Millenials).
    ● We are sick of you continually promoting the murder of the unborn.
    ● We are sick of you promoting transgender “rights” without a care for how it effects real people.
    ● We are sick of your horrible movies, subpar music, and your hideous “fashion sense.”
    ● We are sick of you claiming First Amendment rights whenever you want the right to poison our minds with pornographic images/video, but then denying those same rights to those who oppose you.

    I could go on and on for hours about your idiocy, but I have better things to do than trying to talk sense into those who have none. If you hate this country so much, feel free to get the hell out.

    Comment by pawfurbehr — November 12, 2016 @ 8:28 am - November 12, 2016

  4. pawfurbehr, thank you for finding and posting that.

    It’s too easy to lose sight of the greatness of the American people.

    Comment by innocent bystander — November 12, 2016 @ 10:03 am - November 12, 2016

  5. “decades of government promises..” that’s not government that’s decades of politician promises. it is time to identify the real culprit.

    Comment by salg — November 12, 2016 @ 11:41 am - November 12, 2016

  6. There are some difficult truths to be faced but I can’t help but notice that We The People have spent decades severely punishing anyone that dare speak the truth.

    Take Social Security, for example. Attempts to gradually move the age a few months (over decades) are met with hysteria from politicians and old people whose benefits won’t be touched. Of course, given ZIRP and certain economic realities, SS had become an even greater component of most people’s retirements(*) so we’re painted into a corner. (See Derb’s first item at the link.)

    It’s likely that Trump will wind up presiding over some sort of economic calamity (as would Hillary) and he will take the blame for it.

    The trick will be to blunt the sharp edges as much as possible. This will be difficult as there are too many people that profit from misery and strife. Given the left’s reaction to the election, Trump will have difficulty moving even on things that Occupy Wall Street and Tea Partiers agree on (bankster bailouts, for example).

    http://johnderbyshire.com/Opinions/Culture/unpleasanttruths.html

    * Retirement is a fairly recent concept but few people remain healthy enough, physically or mentally, to work until they drop dead.

    Comment by KCRob — November 12, 2016 @ 12:09 pm - November 12, 2016

  7. 5.“decades of government promises..” that’s not government that’s decades of politician promises. it is time to identify the real culprit.

    That real culprit is the vast majority of the American people. Politicians didn’t make these expensive, and ultimately undeliverable, promises in a vacuum.

    Comment by Ilíon — November 12, 2016 @ 1:44 pm - November 12, 2016

  8. Crooked Eye CLinton would have taken us to war with Russia to try to hid the deficit. TRUMP has said before that we are in a bubble, spoke of auditing the FED, and reinstating banking Glass Steagal. I am certain he is preparing for it but his main effort now is getting to inauguration without Obama giving Clinton a blanket pardon.

    Comment by Steve — November 12, 2016 @ 8:10 pm - November 12, 2016

  9. You can’t have an entitlement society with an entitlement mentality and expect those that are the beneficiaries to not feel entitled. For the past 8-15 years there’s been the subtle promotion of the concept that government can do whatever it is we wish it to do and there is no downside to those actions, financially-speaking. Someone else will pay for it, whether it be “the rich”, “evil corporations” [without an understanding of how corporations operate and are taxed], or magical Leprechauns and unicorns.

    A presidential candidate who, some are now assuring us, “would have won” had not he been stymied by the Evil Queen, owes his popularity to his support of all sorts of government giveaways and promotions. Until this mentality is fixed, there will always be more expectations than can be realistically fulfilled.

    Comment by RSG — November 13, 2016 @ 4:51 am - November 13, 2016

  10. KCR and RSG, exactly. Now, if people’s unrealistic expectations are a moving car… they’re going to hit a wall (reality), sooner or later. I’ve been wrong again and again, about the timing. But I have to venture a guess and I still think the moment is coming relatively soon.

    What has “saved” us in the last 8 years is a steady flow of real goods from China which makes up our deficits / our profligate ways. As, in real terms, it represents us consuming Chinese savings. That situation can’t go on forever. It leads us to one of the following moments.

    1. The moment where China has internal problems (a bad recession) and shuts off the flow.
    2. The moment where we realize that China owns us now and we decide to rebel against China – so that, among other events, China shuts off the flow.
    3. The moment where China realizes that they own us now and orders us to be reasonable and get back to work (exporting real goods to them).

    In all variations: car meets wall, bus goes off cliff, etc. In real terms, the U.S. starts working and saving again – and the real goods don’t flow to our retirees or our bureaucrats or welfare recipients. They flow to China or, at best, to rebuilding our own real capital (reversing the Rust Bowl).

    The political point is that suddenly, a LOT of welfare/disability recipients and basement-dwellers and Wall Street financiers and would-be retirees and government employees and “service employees” and “average consumers” will find that they’re Wile E. Coyote, standing on nothing but air.

    Comment by ILoveCapitalism — November 13, 2016 @ 8:22 am - November 13, 2016

  11. ILC: I think it was Herbert(?) Stein that said if something can’t go on forever, it will stop.

    One way or the other.

    Comment by KCRob — November 13, 2016 @ 10:59 am - November 13, 2016

  12. […] Midnight in America […]

    Pingback by GayPatriot » Leftism can make you suicidal — November 14, 2016 @ 12:58 am - November 14, 2016

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