Hawks beware, U.S. military preparedness stands at the brink!
Watch the deficit. It currently stands at roughly two-thirds of one year’s U.S. GDP (gross domestic product), amongst the highest of any developed country.
Trump’s tax proposal, besides providing a largesse for the very wealthy, doesn’t come near collecting enough in taxes to cover the annual budget, causing the deficit to grow by leaps and bounds (one-and-one-half trillion to two trillion dollars over the decade).
Proponents say that by not taxing corporations and “pass-through” businesses, they’ll grow tax revenue.
The deficit will expand exponentially to the point that, before the decade’s end, it will EQUAL the nation’s GDP. Very Dangerous! This could cause runaway inflation. It will certainly make our Treasury bondholders nervous, indeed (China and similar sovereign wealth funds), as they begin to fear an Argentina-like default, as interest rates rise and the cost of turning over older Treasuries becomes ever more expensive over an expanding indebtedness.
What’s that got to do with our military strength? PLENTY! The Iraq war, as measured by experts across the political spectrum, has cost the U.S. three trillion dollars (including direct battlefield costs, rearming and re-equipping, returning troops, and VA services.
How did we pay for the war, a small one at that? We borrowed the three trillion (that’s three-thousand, thousand million) dollars.
Neither Bush nor Obama could balance the budget, even with yesterday’s tax rates, so the deficit grew and grew. We’re now going to blow another 1- to 2-trillion on tax relief for the rich, bringing us to a future deficit equal to the GDP.
SO WHAT? It means that there’s no more money for future wars NOR THE MEANS FOR PREPARING FOR ONE.
Another war would cost in the 5- to 6-trillion dollar range, and there is no longer that kind of borrowing capacity.
Take the South China Sea or the Straits of Malacca, two tension spots vis-a-vis China. Were things to heat up between our two Superpowers (we’re not talking war yet!), how do we pay for the costs of protecting our interests in the area? – (re-building submarine and carrier capabilities by then three to four decades obsolete).
Borrow from the Chinese? Like Hell!! Besides, with the U.S. up-the-gazoo in debt, the Chinese could easily threaten to abruptly dump their vast reservoir of U.S. Treasuries on the world market, further destabilizing the U.S. currency and bond situation. The threat of economic panic would essentially force the U.S. into a one-down situation toward any major military threat a decade from now.
North Korea, Russian-invasion of Estonia, a resurgence of the Taliban…We’d be rendered impotent despite being the the most powerful military establishment in the world, for want of the dollars to keep that establishment fighting for the two, three or more years required to win against a formidable foe. One of the most fundamental rules of warfare, across centuries and governments, is the necessity of having good credit with which to create and support large military adventures. We’re giving ours away for a bowl of porridge, to the wealthiest of our citizens!!! RMV