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Stimulating an Already Expanding Economy: Republicans Try For 4% GDP Growth

2018-02-09

Republicans have passed a tax bill that allows deficits of “less than” $1.5 trillion over ten years, followed by agreeing on a spending bill that guarantees those deficits will be more than a trillion dollars in the next year alone.

Their purpose is to stimulate the economy, at the risk of raising inflation.  They are gambling that inflation will be manageable if the salary of the typical American worker is kept from increasing unduly.  Suppression of wage raises is behind their destruction of unions and confiscation of tips.  High medical expenses are another way to keep workers from making or keeping too much money.

The Republicans have realized that stock market gains are not as reliably profitable to the idle rich as the locking in of 10-year Treasuries at greater than 3 percent (after inflation) yields.  Ten year Treasuries are sold in the market, not released by the Treasury at a fixed rate, and they are sensitive to fears of inflation.  Their levels rise reliably as the economy improves.  Most importantly, Treasuries are guaranteed to pay off, unlike the risky stock market.

If the economy improves enough, the Republicans think they will be forgiven for collusion with Russia.  They will not be forgiven for racism, sexism, militarism, suppression of free speech, spying on the opposition, and violence against those who speak out.  They will particularly not be forgiven for abrogation of the Constitution.

 

(photo “money laundering” courtesy of pixabay.com and johnhain)

 

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