The 2017 Blast Off!

"But who cares? The comment I keep hearing from my Democratic friends is 'it is just money we owe ourselves.' Not really."

Get ready folks! Here it comes! Blast off! Am I talking about Elon Musk's rocket? Nope. Am I talking about Jeff Bezo's rocket? No again. I am talking about the next layer of heavy debt spending coming our way. And this traunch of debt spending could be the hit which will break the camel's back.

But who cares? The comment I keep hearing from my Democratic friends is "it is just money we owe ourselves." Not really. Much of it is borrowed from China. Another part of our debt is the cost of hyper-inflating our currency. Way too much printing press time at the Mint. And as bad as our debt has been in the past, if you bake in all the campaign promises floating around, then stand by for heavy seas.

Even without additional campaign promises should Clinton win, our national debt is going to be going up by at least 1/2 trillion dollars every year. Now if we factor in everyone of Clinton's campaign promises, our debt will go up by an additional $2T over the next decade. And that is just what we know about. It does not factor in another war, a national emergency, or wanton Congressional spending.

Would the debt be any better off under Donald Trump? That is a big unknown. However, with Hillary Clinton, it is a known. Especially if the Democrats also control the House and the Senate. Many of us have come to this realization years ago - the only thing our government does well in a bipartisan fashion is spend money. One side just tends to spend a bit more than the other. 

The conclusion I have come to is this - the typical American will not care about our debt until something bad happens. Like another market crash. Jim Rogers of the Quantum Fund and Dr. Doom (Mark Faber) are both seeing gloom and doom for the market very near term. Plus, HSBC recently issued a "red alert" for stocks. What does "red alert" mean? The possibility of a severe fall in the stock market is very high.

Many (including myself) think a major market correction might be just what we need. The longer we put this off, the worse it is going to be. We can't afford anymore big spenders in this country. That is, until our economy and debt are back in a very healthy range. And that had not happened for many a year.