Economist Steve Moore was on with Steve Bannon and his War Room this morning and he discussed the economic consequences of the Democrats’ massive spending policies.
Economist Steve Moore reported this morning on the War Room with Steve Bannon the following:
“You gotta pay the piper at some point,” Moore told War Room, Wednesday.
Moore, the chief economist at Freedom Works and close advisor to President Trump, said it will take generations just to pay the interest on the $28 trillion debt.
“We’re just going to be paying more and more of our taxes in the next 25 years…to pay this off,” he said.
Moore explained the current monetizing of the debt, where the federal reserve pays for the debt by printing money.
“That’s what third world countries do,” Moore said. “That’s what Argentina and Bolivia do.”
Moore began his interview talking about earmarks in the bills which are basically bribes to Congress to entice them to approve bills. Then he discussed the massive $6 trillion in spending since COVID began. Not only is there massive spending but there is also a $2 trillion tax hike coming down the pike.
Americans in the future will only be able to pay the interest on the debt as interest rates rise like in 3rd world countries.
The new debt that American politicians are accumulating with massive spending bills (another $4 trillion coming in Biden Climate and Infrastructure bills) is not sustainable. The world markets are not big enough to purchase bonds issued to cover the debt. This is why it has to be monetized by the government. Moore explained what this is:
Monetising the debt – you pay for the debt by printing more money.”