In a US Debt Default scenario, the left argue that payments to Social Security recipients and the active and veteran military would be the first casualties. Why don’t they mention welfare programs? Government payrolls? Aide to other countries? The Federal Budget is made up of mandatory and discretionary spending. Social Security and Medicare come under the Mandatory heading while defense, Aide, education, science and the environment are Discretionary.
SO THEY LIED.
In fiscal year 2022 the feds spent $6.27 trillion on income of $4.9 trillion leaving a deficit of $1.37 trillion – a hole that represents 28% of revenue. What has Biden done to mitigate spending and bring it in line with receipts? NOTHING. And that’s the deadlock. Where did it go?
During 2021 fiscal year during the height of the Pandemic, the government spent $6.8 trillion which included $1.1 trillion pandemic costs, paycheck protection CoVid = $290 billion, $733 billion in CoVid recovery payments and credits, and Unemployment due to CoVid of $392 billion. All of these disappeared in the 2022 budget. But the impact left Taxpayers holding 100% of federal debt compared to an average of just 46% for the previous 50 years!
Before the Pandemic, total outlays in 2019 were $4.44 trillion – a full $2.4 trillion LESS. Why are we still paying for the Pandemic? Or is it simply Pentagon math?
In case you were concerned about how the money is spent, the government website detail has this opening statement: The U.S. government has spent $3.61 trillion in fiscal year 2023 to ensure the well-being of the people of the United States. But the vast majority of spending is for funneling wars, paying illegal immigrants, climate Change, and Fake diseases that are none of our business!
The actual numbers are still not available although dialogue attempting to support opaque spending reveals a few nuggets:
Healthcare spending is clumped in with NIH and CDC – with an interesting stipend – HIV/AIDS spending by the Department of Health. Code for money given to Bill Gates. In 2022, the budget claims foreign aid to Syria amounting to $774 million despite Syria receiving $-0-. Where did it really go? In FY 2021, Jordan was allocated $1.65 billion – $1.2 went thru USAID. Sortof…
USAID is the bucket for all unaccounted aide. With a budget of just under $50 billion in 2023, they awarded $9.71 billion. Between 2020 and 2023 – USAID’s budget was raised 92%. According to the detail of awards paid out, USAID’s largest benefactor by far is Chemonics – a for-profit company that is embroiled in controversies:
- 2016 – Chemonics was given $37 million to promote a program in Afghanistan to help find employment for women. The program funding was bumped to $90 million with a success rate of 55 women total over 3 years… A cost to find employment for 55 = $1,636,363 per woman.
- 2015, they awarded $9.5 billion to prevent; Aids/HIV, Malaria, and TB – in Africa. Thru Bill Gates. ONLY 7% of the shipments actually arrived at their destination. Chemonics supported the White Helmets in Syria… while we routinely bombed Syria!
- 2014 Chemonics was given $501 million which was used to build 3 model homes in Africa to teach students how ‘low cost’ housing can help mitigate climate change… At a cost of $167 million apiece.
This is just a small representation of how Foreign Aide Money is spent – USAID Budget = $50 billion. Foreign Aide could easily be wholly and completely eliminated given that it has little to do with Aide and everything to do with subsidizing for-profits. Including those who claim they are working globally to ‘advance equity’. The catchall phrase of nothingness.
Just as the $200 billion allotted for Ukraine was mostly spent on reimbursing the DoD for military equipment – foreign aide isn’t foreign and it isn’t aide – it is a sinkhole of propping up fake and corrupt for-profit entities, money laundering, and Big Guy Pay Days.
According to The Mises Institute, a debt default would be minimal in the short term and quite positive for Americans in the long term. The federal borrowing or debt has been manageable simply because of low interest rates. But the Biden Handlers decided to hike rates artificially and now sit on insurmountable interest payments. At the behest of Federal Reserve Chairman – Jerome Powell – who is unavailable because his first priority job is with BIS – Bank of International Settlements.
BIS is the host bank for all western countries managing the laundering, the mafia cartel, and the trafficking payments from prostitution, child trafficking, the drug trade and every nefarious transaction we blame on China.
In fact, the accumulation of debt was triggered by the Military Industrial Complex in their expansion and exponential rise of global wars during the Bush administration.
According to Mises, a debt default would be favorable because: “…our own government has spent the money so poorly that no coherent argument can be made that justifies paying them back. They would just continue in their profligate ways. As for Wall Street, they’ve lived on corporate welfare long enough to justify their taking a one-time bath.”
This unbridled spending by the military in its quest for wars, coups, and global power would necessitate a skidding halt leaving oil tracks by tires. Climate Change is another created myth of spending. The Department of Education has effectively lowered the US quality of education every single year despite pouring more and more money into that sinkhole.
Should the US decide to call it a day and Default – countries holding the most US Treasuries would likely stumble and fall as well: Japan, China, UK, Belgium and Luxembourg. Giving the BRICS an enormous advantage in the short term as the dollar continues to tumble… However on a longer forward term the Budget would have to be slashed to actually BALANCE.