Friday, April 3, 2026

Trump requests $1.5 trillion for Department of War in FY 2027

Link: https://www.whitehouse.gov/wp-content/uploads/2026/04/budget_fy2027.pdf

I can't copy and paste from the document and I don't want to retype it.  On page 59 it says they are requesting $1.5 trillion, which is a $441 billion increase from FY 2026.  But then it says "base discretionary budget authority" is $1.1 trillion, and $350 billion in additional resources for "increasing access to critical munitions and further expansion of the defense industrial base".

On page 83, it says the FY 2026 enacted amount was $1,009 billion with an increase of $440.9 billion to $1,450 billion.

There was already $155 billion allocated in FY 2026 for Working Families Tax Cut Act Funding.  This amount will be cut to zero and then the new resources will be $350 billion.  So the next increase will "only" be $195 billion.

Where did the WFTCA money in 2026?  Supposedly for tax cuts to middle-class people.  And now that will be taken away.  So effectively raising taxes on the middle class to pay for the new funding.

Thursday, April 2, 2026

Financial Repression

 

Source: https://www.youtube.com/watch?v=-P0g3ETHPg0

This easy to understand video explains how the government can slowly get out of debt, that is, reduce the debt to GDP ratio.  Just pay interest at a lower rate than inflation.  They did it after WW2.  Easy.  It's called inflating away the value of the debt through financial repression.

The only problem is the people who are relying on their savings in the bank and on interest on bonds who will get hurt.  But everyone else benefits from this strategy.