RON JOHNSON DISCUSSES THE ROLE OF THE CENSORED MEDIA IN HIDING FROM THE US PUBLIC THE LOOMING COLLAPSE OF THE US DUE TO ITS GROWING DEBT
ALSO OBSERVES CONGRESS AND SENATE ARE NOT SCRUTINIZING TRUMP S BIG BEAUTIFUL BILL, BASICALLY CONTINUES BIDEN S OVERSPENDING
TAX CUTS THREATEN THE US GOV S ABILITY TO SERVICE ITS GROWING DEBT JUST LIKE TRUMPS TARIFF BLOCKADE
FAILS TO MENTION THE ROLE OF THE PRIVATE FED RESERVE IN A BIG RED FLAG!
FAILS TO MENTION THE SCALE OF THE PUBLIC MISTRUST AFTER THE COVID JAB HARMS, CLEAR ALSO IN THE LOW UPTAKE OF COVID BOOSTERS
SAYS HE IS PESSIMISTIC ABOUT THE FUTURE OF THE USA, HAS GOOD REASON TO BE
Ron Johnson discusses the pending economic and financial castrasophe of the exponentially growing US debt, interest rates and inflation.
"The CBO’s current projection adds around $22 trillion over the next 10 years, resulting in total debt of approximately $59 trillion—134% of GDP—in 2035. "
https://www.ronjohnson.senate.gov/2025/5/the-ugly-truth-about-the-big-beautiful-bill
He discusses the massive increase in spending during the engineered covid crisis on the USA which is continuing under Trump and which is funding the deep state.
However, Ron Johnson does not discuss the root cause of the debt which is the private Federal Reserve.
He mentions the claim that the US debt at a mere 37 trillion is small compared to the wealth of the USA.
But the wealth of the US is inflated by inflated house prices, stock market etc as Art Laffer seems to claim.
This paper wealth is not a measure of capacity of the US to service its debt.
It is largely a financial bubble, which can also burst.
The key figure is how much income, revenue, wealth does the US gov need to use every year to service the interest payments
That, as a proportion of tax revenue.
There is a parallel with day to day debt.
For example, person who has a job and earns 100K, takes on a mortgage of 30 K per year for a house of 1 million.
That person loses their job, gets a new job with just 20K.
They still have a house with a value of 1 million in theory in the short term.
But in practise, they are going to lose their house in the medium term because they cannot service their mortgage payments.
Similarly, the real world US economy (manufacturing, services etc) must produce enough stuff and taxes to service the ever growing debt.
That is why Trump s approach to tariffs is so disastrous.
The stated objective is to bring back manufacturing.
But it has achieved the opposite by design or sheer stupidity.
The US economy is highly dependent on inexpensive imports.
Businesses import loads of stuff as part of their supply chain.
America s military industrial base is also outdated. Its exports of weapons are under threat.
There are not enough workers due also to the covid jab disablities.
When Trump s trade war wrecks the US economy or imposes extra costs on business by blockading vital imports, and causes inflation, he is making it harder and harder to service the US debt.
The mere uncertainty of Trump s tariffs is creating a cost for businesses which cannot plan.
Plus, there is no end in sight to the blockade.
We are now hearing from Scott Bessent that China may not resume its exports to the USA when the current temporary deal ends.
That would be a catasrophe for the real world economy.
While businesses in China get cash free grants to invest, expand, innovate, US businesses do not.
Already, deep in debt, businesses must either spend more from savings, cut profits or take up new loans to spend more and with no clarity as to what they may earn.
https://www.youtube.com/shorts/jjlRh-120V0
The Ugly Truth About the "Big Beautiful Bill"
May 12, 2025
Originally appeared in The Wall Street Journal
The “One Big Beautiful Bill” that Congress is working on is certainly big, but beauty is in the eye of the beholder. Too often the reality of these budget debates gets obscured in details, politically charged issues and demagoguery. Let me attempt to clarify the current discussion by focusing on the most important facts and numbers.
In fiscal 2019, federal outlays totaled $4.45 trillion, or 20.6% of gross domestic product. This year, according to the Congressional Budget Office’s January 2025 projection, total outlays will be $7.03 trillion, or 23.3% of GDP. That’s a 58% increase over six years. The CBO projects federal outlays will total $89.3 trillion across fiscal 2026-35. Much of the blame goes to pandemic spending, but lockdowns are long over. There’s nothing now to justify this abnormal level of government spending. Pathetically, Congress is having a hard time agreeing on a reduction of even $1.5 trillion from that 10-year amount. That’s a 1.68% cut—a little more than a rounding error. My guess is that much of that minuscule decrease will be backloaded to the end of the 10 years for which Congress is now budgeting, increasing the probability those savings will never be realized.
Other than during World War II, the increase in spending we’ve experienced over the past six years is unprecedented. After the war, Congress and President Truman understood the importance of returning spending to normal levels. In 1941, total outlays were $13.7 billion, or 11.7% of GDP. They peaked in 1945 at $92.7 billion, or 41% of GDP. That was a 577% increase, 10 times as large as what we experienced with the pandemic. Yet by 1948, federal outlays were $29.8 billion and back to a little over 11% of GDP.
Since 1948, government has steadily grown, and spending as a percentage of GDP has more than doubled. That level far exceeds the size and scope of government the Founders envisioned. In 1930, prior to President Franklin Roosevelt’s New Deal, federal outlays were 3.5% of GDP, while state and local expenditures were 9.1%. That was the foundational premise of America and the 10th Amendment—a limited federal government with most governing occurring close to the governed at the state and local level.
That vision of limited federal government is now unattainable, but returning to a reasonable pre-pandemic level of spending is doable. The economy is no longer forcibly shut down. Congress should at least be able to bring spending back to its 2019 share of GDP, which would total $6.47 trillion next fiscal year. This would be $838 billion below the CBO’s current fiscal 2026 spending projection of $7.29 trillion. Returning federal outlays to 20.6% of GDP would save $8.4 trillion over 10 years. That’s a lot better than the current paltry goal of $1.5 trillion.
It’s essential that Congress deviate from its current path. Under every scenario now being considered, federal debt continues to skyrocket from its current level of almost $37 trillion. The CBO’s current projection adds around $22 trillion over the next 10 years, resulting in total debt of approximately $59 trillion—134% of GDP—in 2035. That projection assumes an automatic tax increase will occur in 2026 when provisions of the 2017 tax cuts expire, increasing revenue from 17.1% of GDP in fiscal 2025 to an average of 18.1% over the next 10 years. With the CBO projecting 10-year GDP at $373 trillion, that 1% increase represents $3.7 trillion of additional revenue and lower debt.
No one can accurately predict the dynamic economic effects of changes in tax law, tariffs and the current trade war. But by repealing the automatic tax increase, adding $1.5 trillion in additional tax cuts, pumping around $340 billion into additional border and defense spending, and reducing other spending by at most $1.5 trillion, the One Big Beautiful Bill will almost certainly add to our deficits and debt. I doubt Mr. Trump’s voters expect us to continue spending at President Biden’s levels, which led to the inflation they elected Republicans last year to stop. I doubt, too, that Trump voters will be elated to see the GOP embrace Democratic policies and priorities—including ObamaCare, which seems to have found new life under the name “Medicaid expansion.” And I can’t imagine that they want Republicans to increase annual deficits. That’s why I can’t support this bill as it’s currently being discussed and doubt that it will pass the Senate.
It’s also why I’m asking the president and congressional leaders to reconsider a multistep strategy on budget reconciliation. By immediately passing a bill based on the Senate’s original budget resolution, we can fund border security and defense priorities and bank $850 billion in real spending reductions. The next step would be to pass a bill that extends current tax law to prevent the automatic 2026 tax increase, and avoids default by including a smaller increase in the debt ceiling that maintains the pressure and leverage to achieve future spending reductions.
With those goals achieved, sufficient incentive would remain to address President Trump’s tax proposals focusing on working men and women and the already-expired business tax provisions of his 2017 tax law. It would also give us the time to simplify and rationalize the tax code, and go line by line through the entire federal budget to uncover, expose, and eliminate the hundreds of billions of dollars of waste, fraud, and abuse that the DOGE effort has shown exists. If we don’t, America is headed off a cliff.
Mr. Johnson, a Republican, is a U.S. senator from Wisconsin.
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