So, if the polls are to believed and that is not a given, the Republicans are set to now take the House and the Senate. This will bring the Republicans back into control of the legislative branch and put a check on any further progress for the Biden Admin agenda. I personally think that is a plus.
But in spite of the political philosophy I prefer of small government and maximum Freedom for the Citizenry, I don't see it costing less. Certain social programs, like Social Security and Medicare have baked in expenses and a Cost of Living Adjustment Provision that ensures they rise along with the increasing retirees collecting. While that is going on, the contributions are diminishing and the system is on track to go bust by 2035 or so. Military expenditures normally rise when the Republicans are in control but Biden has done himself proud on that count and given Busch a run for his money...I should say our money. Other odds and ends almost come to naught but the on that is rising in Interest on the National Debt. The Federal Reserves current hawkishness raising interest rates to reign in Inflation is making that expense a real contender. Here's one take by a humorously named group, the Committee For a Responsible Federal Budget...lol. https://www.crfb.org/blogs/just-how-big-are-federal-interest-payments.
When the interest rates hit 4.5% which is more less where they'll be in a few weeks, the annual interest to service the US National Debt will be approaching $500 Billion. Is that sustainable? I suppose but without other reductions in spending this will require a return to loose monetary policy, reads as PRINTING MORE MONEY OUT OF THIN AIR. This is going to happen no matter which party is in control. The Republicans have had the distinction of biggest deficits under Busch and the actual only surplus under Democrat Bill Clinton. It is note worthy that this surplus was developed in cooperation with a Republican controlled Legislature. That suggests that a split Executive and Legislative Branch is helpful in containing spending. Maybe we'll get to see that again for 2 years if the Red Wave holds. Of course, some things are already set and will take a lot of rolling back. Will Biden go along? That's doubtful. It will become a central issue in the 2024 Presidential election claiming we need a Republican President. If that turned out to be Trump, well, he is big spender so the jury is out on that one.
In my opinion, we need a balanced budget amendment and while we're in that mood let's put in a term limit amendment. Enough of the 30 year career politicians. Oh, and why not make all government employees able to be fired. The deep state might chill some if that were the case. The way I see it, this shadow government along with the Federal Reserve is the real governing body. Obviously they do whatever they like, even when illegal so without t the DOJ taking action we get more of that. It's quite a viscous circle.
The chances of a balanced budget are very very slim under either party. The partisan nature of politics has become a civil war of sorts. Who's winning? Not sure but we the People are Losing!
Yes, the Red Wave may arrive. But red or blue, all waves have the potential to wash away common sense.
I'll be watching election night, but can't say there is hands down reason to celebrate yet.
Best,
Donn Marier
Dm-Your Own CFO