So called “tax cuts” are really spending. They have the same net effect on the budget. Classifying a certain group as “job creators” who don’t need to pay their fair share - or saying that earnings from “capital gains” deserve favorable treatment is what got us into this mess. Two presidents - George W. Bush and Donald Trump, neither of whom won the popular vote the first time - each passed tax cut bills twice that have taken us from surpluses to MASSIVE deficits in just 25 years, one-tenth of our entire US history. Think we need Democrats to control all branches of government (and that includes the compromised and corrupt Supreme Court)? Heck yeah!!! It’s not too late. Democrats got us through WWI and WWII and the Depression and the Great Recession of 2008 - we can do this too! - WaPo Comment
The news that the nation’s gross national debt topped $40 trillion for the first time on Wednesday, should have come as no surprise for anyone following the litany of fiscal fiascos of the Trumptards. This year alone, the U.S. is on track to borrow more than $2 trillion to help pay for its spending on the war of choice in Iran as well as the sweeping tax cuts that Reeps enacted in 2025 with their monstrously misnamed ‘big beautiful bill’ (BBB). See e.g.
All You Need To Know About The 'Big, Beautiful Abomination' - And Why It Must Be Slain In The House
Look, it doesn't take a Mensa level IQ to figure out which party is responsible. Given debt is accumulated through annual budget deficits - meaning government collects less than it spends - The GOP must be the party to blame given their foundational, go-to policy has been TAX CUTS. I.e. lessening revenue intake, insufficient funds to spend for anything - from defense to Social Security & Medicare. This has been on after burners since the Reagan years and the moronic use of the Laffer curve, e.g.
The Untold Story Of The Reagan Tax Cuts? Conservo Parrots Still Remain Dishonest In Disclosure
The Deficit boogeyman didn't retreat until a Democrat, Bill Clinton, narrowed and eventually eliminated the federal budget deficit through the Omnibus Budget Reconciliation Act of 1993, which raised taxes on high-earning households and capped defense spending.
But then Gee Dumbya Bush grabbed the presidency in 2000, thanks to help from the Supreme Court. He immediately destroyed the Clinton economic gains with reckless tax cuts coupled with vast military spending when he launched his war on Iraq in 2003.
As for food costs, they’ve spiraled out of control to the point most of the Middle Class has to go to dollar stores – even as gas hits over $4 a gallon. Let’s also recall that by the end of his first term the ignorant putz had increased the national debt by nearly $7.8 trillion in debt via his spending and GOP tax cuts.
And while the Neolib nabobs in the media carp about “the cost
of social safety net programs”, they’re mostly mum on how the Reeptards’
BBB bill and its cutting of nearly $1 billion from Medicaid, as well as cuts in
subsidies to the Affordable Care Act – causing millions to leave the ACA and go
without insurance. Then add potential cuts to Medicare which may require
sequestration resulting in its own cuts.
When legislation significantly adds to the national debt,
which already exceeds $36.2 trillion, it triggers “sequestration,” or
compulsory budgetary reductions. In that scenario, Medicare cuts would be
capped at 4 percent annually, or $490 billion over 10 years, the CBO reported
in response to a request from Rep. Brendan Boyle (Pennsylvania), the top
Democrat on the Budget Committee.
Make no mistake, any cut in Medicare funding would have a
chilling effect on older Americans and people with disabilities at a time when
a fast-aging population and rising health-care costs are already straining the
system. Many hospitals, especially in rural areas, rely on Medicare for more
than half of their funding
What form would such cuts take? From past proposals the most
likely are:
- Beneficiaries would cough up co-pays for each visit
(including traditional Medicare folks)
- Denial of access to most expensive options (i.e. My ER visit
due to lung issues back in February, costing $27,000, would have been
denied.)
- Limited access to needed drugs, i.e. such as my ADT chemo
drug Firmagon.
- Increased eligibility age - i.e. from 65 to 66 or 67.
- Limited primary physician (as well as specialist) access.
These are the most plausible cuts but don't assume the
degenerate Reeps would not come away with more
Even Treasury Secretary Scott Bessent - when not yapping loopy twaddle ('it will pass, nothing to fret over') has at least been more forthright than most Reeps to explain why deficits are growing. He said yesterday that spending associated with the war with Iran had forced the country to spend more on the military, and that tariff refunds had undercut the Trump administration’s progress toward reducing the deficit as a share of gross domestic product in 2025. Getting the deficits under control is a big deal, given the alternative is that the bond market will step in and act the part of parent, i.e.
Yes, the $40 Trillion national debt level is indeed “an ominous milestone for an economy that sits on a shaky fiscal foundation after decades of borrowing” in the words of one NY Times nabob. But be sure 90 percent of this is from the Reeps’ recklessness – which will now take a Dem intervention to dig out of, even partially. We will also need the non-Trump party to protect the dollar as the world's reserve currency, which currently makes up roughly 57% of global foreign exchange reserves. Central banks worldwide hold it to stabilize exchange rates, back their own currencies, and facilitate international trade. This status lowers U.S. borrowing costs but the bond market just 'broke' - with Japan dumping $26b in Treasurys while the U.S. is buying back its own bonds, e.g.
From:
EVERYTHING IS F*CKED | The Kyle Kulinski Show
This is confirmed by WSJ Finance columnist James Mackintosh ('Bessent's Treasury Play', Business & Finance, p. B1, today) noting Treasury Secretary Scott Bessent's decision to "double the size of buybacks of the longest yield Treasury bonds". Of course, this is nuts because no debtor - even a nation - buys back its own debt! But what Bessent hoped to do is avoid the "panic-level" of 5% bond yield. He succeeded given his move caused the "30-year Treasury yield to plunge a whole 0.1%." Which Mackintosh aptly referred to as "fiddling around the edges."
Of course! Because what's REALLY needed is for other nations - namely China, Japan and maybe the Saudis to buy up U.S. debt in Treasurys. Not dump them! Nor is this the first time it's happened. Recall in April last year Charlie Gasparino - FOX News Business reporter- first broke the news of Japanese bond selloffs, e.g.
Charlie Gasparino: "It is the White House who capitulated" | Media Matters for America
Excerpt:
"You know, Bessent knows this better than anybody, when you have yields on the 10-year rising to 5%, stuff starts shutting down when you have the lending market screwed up. By the way, who's dumping the bonds? Somebody asked him if it was China, right? It wasn't, it was Japan."
Mackintosh, in his WSJ piece today, goes on to note (p. B3):
"Long bonds aren't being dumped because investors are worried about inflation...It's more a nasty combination of three trends only one of which Bessent has any control over:
- Government Deficits. The U.S. government is expected by the International Monetary Fund to borrow 7.5% of GDP this year - the most in the Group of Seven developed economies.
- The AI Boom: AI companies have moved from being capital-light software specialists to capital-hungry operators of AI data centers. Tapping the bond markets is one of the ways to finance the debt. (From an Aug. 18, WSJ report (p. B1) , "nine of the biggest tech companies have $3 trillion in 'off balance sheet' commitments", according to a Journal analysis of footnotes in a recent SEC filing.)
- Geopolitics: The breakdown of the U.S. -led international order on trade (due to Trump's tariffs) is pushing other countries to be less reliant 0n cross-border supply chains.
All of this has led to a rise in inflation-adjusted real yields.
And for a look at how this Trump & Co. tomfoolery will adversely affect the nation's balance sheet (and your pocketbook) even more check out this Youtube video from Prof. Jiang Xueqin (who also forecast the U.S. would lose in the Iran conflict.)
What Happens to Your Money When the Dollar Loses Its Crown | Prof. Jiang Xueqin
Assuming we can enhance the intelligence
of the electorate enough to enable Ds back in some form of power, starting with the midterms, to halt the GOP-Trump tax cut madness, we might have a chance to save this country. There will be no 3rd chances for nation already paying dearly for electing a power mad, malignant narcissist lunatic and his axis of sycophants and suck ups - in congress and the media.
And:
If You Don't Understand Bonds, You Don't Understand Money
And:
The Bond Market Just Got WORSE
And:
TRUMP VIRAL DEBT COLLAPSE IS HERE - YouTube
And:
by Robert Reich | August 20, 2026 - 5:08am | permalink
— from Robert Reich's Substack
Friends,
The U.S. national debt has officially surpassed $40 trillion, months earlier than forecasters had expected — because of billions of dollars in lost revenue from Trump’s invalidated tariffs, Trump’s tax cuts (mostly to big corporations and the very wealthy), and the soaring costs of Trump’s war.
Trump’s hair-brained treasury secretary, Scott Bessent, says there’s nothing to worry about because the fiscal trajectory will stabilize. Investors obviously don’t believe him because they’re demanding much higher compensation for buying and holding American bonds. The yield on 30-year U.S. Treasuries hit its highest level in nearly two decades this week, reflecting those growing concerns.
And:
Vanessa Williamson on Taxes and Democracy
And:
U.S. Debt Hits $40 Trillion as America’s Borrowing Binge Continues - The New York Times
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