On Friday. Pres. Trump declared a national emergency.
Based on that declaration, the president will reallocate $6.5 billion from other government programs to fund a border wall.
In his podcast on Friday, Peter Schiff said there is indeed a national emergency, but it has nothing to do with the border.
“Of course, the real national emergency is not the lack of a wall, the failure to build a wall, but building up the national debt.”
Just last week, the US Treasury said the national debt has eclipsed the $22 trillion mark. When President Trump took office in January 2017, the debt was at $19.95 trillion. That’s a $2.06 trillion increase in the debt in just over two years.
And as Peter pointed out, this is just the tip of a huge iceberg.
“This is just a funded portion of the debt. This is where the US government sells a bond and somebody owns that bond. It doesn’t include liabilities like what the government owes for Social Security, or guaranteed bank deposits, or mortgages, or student loans, or all that nonsense. That’s not there. Those are contingent liabilities. They’re just as real. They’re not even part of the national debt.”
Peter said it’s too bad Trump doesn’t want to do anything about that crisis.
“We are headed for a train wreck in this country because of the national debt. What Trump has been building while he hasn’t been building a wall is he’s been building up the size of government, and he’s been building up the deficits that have been necessary to finance that government buildup.”
And yet nobody seems concerned. The president didn’t even mention the debt in the State of the Union address. According to a tweet by ABC White House correspondent Tara Palmeri, when asked if Trump was going to talk about the deficit, the president’s chief of staff, Mick Mulvaney, said: “nobody cares.”
A lot of people claim that we really don’t need to worry about the debt because, after all, it’s been growing for years and nothing has happened. Peter has a different take.
“Just because we haven’t suffered a crisis – yet- based on this debt doesn’t mean that one isn’t coming. In fact, there’s no way around it. It’s just a question of when. It’s not a question of if, it’s a question of when, and I think when is a lot closer than a lot of people think.”
In this podcast, Peter also covered some more negative economic news, Fed news, including the fact that the Fed is now talking about using quantitative easing “more readily” and the fact that the mainstream doesn’t know what’s going on. It’s like a deer in the headlights.
“You know what happens eventually to the deer in the headlight. He gets hit by the car and he dies.”