Submitted by Eric Peters, CIO of One River Asset Management
“President Trump’s leadership is working. China wants a different American President,” declared Mike Pence, firing up his base into the mid-terms home stretch.
“Chinese security agencies have masterminded the wholesale theft of American technology,” continued our VP. “Worst of all, China has initiated an unprecedented effort to influence American public opinion, the 2018 elections, and the environment leading into the 2020 presidential elections,” Pence explained.
“Beijing is also using its power like never before. China now spends as much on its military as the rest of Asia combined, and is prioritizing capabilities to erode US military advantages on land, at sea, in the air, and in space,” he warned, without mentioning that America’s annual military budget exceeds the combined spend of China, Russia, Saudi Arabia, India, France, Britain and Japan.
America’s 2018/2019 budget deficit is forecast at $985bln (22% of the $4.4trln federal budget). We’ll borrow those $985bln dollars, spend $610bln on our military, pay $390bln in interest on our $16trln debt, and still come up $15bln short.
A decade of 0% interest rates allowed America to borrow without consequence. Payback time is just starting. Next year’s interest expense will be a stunning 50% higher than 2017 thanks to rising interest rates and still-expanding budget deficits.
Interest payments on the US federal debt will overtake Medicaid expenditures in 2020 and our entire military budget in 2023. The CBO forecasts $915bln in annual interest expenses by 2028.
“Understanding the Chinese propaganda efforts is going to be key,” advised our vice president, spinning voter’s attention away from the threats within, to those from without.
And on cue, the story broke across countless media outlets, an outrage first discovered in 2015 but conveniently surfacing just now: “Chinese Spies Snuck Chips Into CIA, US Military, Commercial Servers, Leaving Them Open To Infiltration And Compromising America’s Technology Supply Chain.”
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