Ted Bauman Blog | Washington Is Creating A Perfect Economic Storm | Talkmarkets
Editor, The Bauman Letter
Contributor's Links: Banyan Hill Publishing

Ted Bauman joined Banyan Hill Publishing in 2013 and serves as the editor of The Bauman Letter, Plan B Club and Smart Money Alert, specializing in asset protection, privacy, international migration issues and low-risk investment strategies. He lives ... more

Washington Is Creating A Perfect Economic Storm

Date: Monday, February 12, 2018 6:52 PM EST

Washington Economic Storm

I grew up in a conservative political household.

My parents met as members of an early ‘60s organization called Young Americans for Freedom. They went on to have careers in politics and government service. The high point of their political lives was the Reagan administration of the 1980s … the culmination of decades of effort to put a “true” conservative in the White House.

The core beliefs that defined their version of conservatism included anti-Communism, right to life for the unborn and a limited role for government.

Those were long-term goals. The issue that dominated their day-to-day political activities — and our dinner-table discussions, as I recall — was the federal government’s fiscal policy … above all, debt.

Given the behavior of congressional Republicans in recent months, it’s clear that my parents’ brand of conservatism has disappeared. The combination of unfunded tax cuts and last week’s deficit-busting budget deal worries them greatly.

It should worry you too … in fact, our irresponsible representatives in Washington are creating a perfect economic storm.

Just When Things Were Looking Better

Thanks to our representatives in Washington, we face a future of higher interest rates, a falling dollar and falling stock prices.

Over the last six weeks, Congress has added trillions of dollars to future federal budget deficits. The Tax Cuts and Jobs Act passed at the end of December added an estimated $1.5 trillion to 10-year deficit projections. Last week, Congress and President Donald Trump added another $300 billion to that figure with a budget deal lasting until 2019.

The nonpartisan Committee for a Responsible Federal Budget forecasts that the federal deficit could hit $1.2 trillion next year.

The Congressional Budget Office forecasts a doubling of federal deficits as a percentage of gross domestic product (GDP) in the next few years, reaching as high as 7% to 8% in some estimates.

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