"Another Kick in the Pants"
by Bill Bonner
Ardmore, Ireland - "Steve Hanke: "Earlier this week, the U.S. Department of Defense reported that the cost of the Iranian war was $47.1 BILLION so far. It forgot more than $5 billion required to repair damaged U.S. bases that were destroyed by Iran. When all costs are tallied, they will amount to a STAGGERING $1,000,000,000,000." Another huge and preposterous boondoggle! Another brick in the wall. Another slap in the face...another kick in the pants...another $1 trillion down the drain…and into US debt.
You may be inclined to insult the ‘pubic servants’ responsible for it — those who are supposed to be the guardians of the taxpayers’ money. But what would be the point? They respond to incentives just like everyone else. But they should never have been allowed to touch our money or our economy. They know nothing about either one of them...and are far too busy seeking power to learn. Besides, their eagerness for electoral success leads them to two catastrophes at once - towards spending money they don’t have...and making war on countries they couldn’t find even with GPS and a flashlight.
The media loves the ‘gotcha’ moments, when a MAGA supporter can’t find Iran on a map…or a Democrat can’t name his own senators. But what does it matter? Ignorance never barred anyone from the ballot box or high pubic office. And so, today, the masses head to the poling stations. And what will be the outcome? That is the strange, quietly ticking package we left you with yesterday. Today, we still cannot answer the question...but at least we can have a look at it before it explodes.
Benzinga: "Steve Bannon, a former White House chief strategist and prominent MAGA figure, predicted the Republican Party will be engulfed in a “civil war” on Wednesday, Nov. 4, the day after the midterm elections, with lame-duck fights over the debt ceiling, federal spending and AI regulation to follow.
In an interview with the Financial Times, published on Saturday, Bannon, President Donald Trump’s chief strategist in his first term, said the lame-duck session will be “so brutal,” with “monster battles” over the debt ceiling, a large spending bill, defense policy and artificial intelligence. Those battles could have implications for defense contractors, technology stocks and Treasury yields.
While the Republicans go after each other with hammer and tongs, the Democrats are sharpening their knives, too. Washington Examiner: Michigan Democrats in disarray after Haley Stevens endorses Mike Rogers…"Democrats on Sunday faced an extraordinary political display of dysfunction just two days before the midterm elections: a Democratic congresswoman endorsed the Republican nominee for Senate, was kicked out of her own state party, and watched two of her top aides resign in protest."
The Hill: "‘Disarray’ doesn’t come close to describing it - Democrats are disintegrating."
Why can’t we all just get along? Because the stakes are gargantuan. And politics is a win-or-lose game. The only time Republicans and Democrats are in harmony is when they are ripping off the public. Let’s look first at what they are fighting over.
Federal spending alone is about a quarter of the nation’s entire GDP. Add state and local spending and you get about $12 trillion of spending - more than a third of the total US output.
And then there is the portion of the economy in private hands but under the federal thumb. The biggest items in that category are education and medical care, where the politicians call the tune, but the voters pay the piper. In the housing market too, the feds play a big role - subsidizing mortgages through Fannie Mae and using their financial clout to heavily influence mortgage rates. It’s supposed to be a free country, but more than half of it is owned, leased, or twisted by political elites - and it’s up for grabs today.
Today’s elections could set in motion many different squabbles, challenges...trends and countertrends. But what they won’t affect are the two things that matter most - money and war. On those two sacred rails the whole country rides to its destruction. But at least the two parties, scratching each other’s backs with an almost indecent tenderness, are enjoying the ride.
Forty trillion dollars of debt wasn’t just discovered, like a foundling at Union Station, abandoned on an economy class seat on the Northeast Regional train. The politicians of both parties sired it, nursed it, and voted for it. It is a monster...and it is their monster.
In very round numbers, the Republican, George W. Bush increased America’s debt by $4 trillion. Obama added $10 trillion more. And then, it was Trump’s turn...adding another $8 trillion. Next up, Biden, laid on another $8 trillion...followed by Trump again, who - less than two years into his second term - has heaped on another $4 trillion. So, there you have your answer. What thing of importance is likely to change today? Nothing."
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