It’s definitely long overdue. We MUST get our finances in order and the best way to start imho is to start with foreign policy. Then a complete overhaul of the federal budget. It is a wildly complicated process, but if not now, when ? We are functioning as if inflation and wild deficits and debt are inconsequential. Great piece.
I don't disagree that reducing foreign policy spending is an ingredient in bringing sanity to our overall budget spending, but a small one. ( It's about 1% of total US federal budget and roughly 3% of discretionary spending.) Entitlement spending (60-75% of total budget) reform is the only way to truly bring sanity back to national finances. You are more likely to get Spain to double it's defense spending than to get our politicians to put any of our sacred cows on a diet.
Totally agree. I think to make any progress people need to see we are limiting foreign aid so they might accept some reductions at home. The whole safety net backdrop in America is so far out of control it’s ridiculous.
With family in both Germany and Spain, I can only say that you’re absolutely correct. Merkel has earned a special place in the afterlife and it’s not good. Spain is a pendulum and one becomes dizzy watching its long time identity crisis inflict itself on domestic and foreign affairs. It’s high time an attempt to smack Europe into reality has been made. We are not the global sugar daddy and I’m glad the WEF (originally a good idea in its earlier forms) has had its teeth pulled. In a minute I’ll get on my soapbox, so maybe it’s a good idea to stop here and go make the coffee. Thank you for a good piece this morning, Peter.
👍👍 Great post, Peter! The rich friend analogy is spot on for the US-Europe relationship. Unfortunately, your observation regarding the degree of difficulty in reversing the behavior of the non rich friends is also spot on. It’s likely that France, Germany and the UK have been lost to Islamists as a result of incomprehensible immigration policies. This is compounded by the green energy delusions pursued by the incompetent leaders such as Merkel and Macron, driving industry out of their countries. What’s the US to do?🤷♂️🤷♂️ Pray that the electorate has the capacity and will to change course?? Feels like such a long shot that bookies in Vegas probably wouldn’t even give odds on it happening….
That's a start. Unfortunately, the existing debt will remain and in fact, keep growing. The only way the Treasury can manage it is to issue new debt to cover the ever increasing interest payments.
I was saying this 35 years ago. Even back then, Southern France was being Isamified, the nascent EU was showing itself incapable of managing a continent with dozens of competing interests and cultures, and NATO had served its purpose. The Soviet bear was gone, replaced by a rag-tag bunch of kleptocratic countries. Of course, it wouldn't be long before Europe proved incapable of cleaning up its backyard, as the Balkans War spiraled into a larger conflict.
Anyway, we bailed them out in the aftermath of WWII. Their ungrateful response is reason enough to cut Europe loose and let them deal with their problems without our input. Bring home the thousands of servicemen stationed there.
Mark Steyn foresaw this twenty years ago, when he published America Alone. Back then, I recall concluding that one might disagree with some of his predictions, but the demographic trends he detailed were an irrefutable warning.
It’s definitely long overdue. We MUST get our finances in order and the best way to start imho is to start with foreign policy. Then a complete overhaul of the federal budget. It is a wildly complicated process, but if not now, when ? We are functioning as if inflation and wild deficits and debt are inconsequential. Great piece.
I don't disagree that reducing foreign policy spending is an ingredient in bringing sanity to our overall budget spending, but a small one. ( It's about 1% of total US federal budget and roughly 3% of discretionary spending.) Entitlement spending (60-75% of total budget) reform is the only way to truly bring sanity back to national finances. You are more likely to get Spain to double it's defense spending than to get our politicians to put any of our sacred cows on a diet.
Totally agree. I think to make any progress people need to see we are limiting foreign aid so they might accept some reductions at home. The whole safety net backdrop in America is so far out of control it’s ridiculous.
Clearly, entitlement reform has to happen. It *will* happen one day, because Herbert Stein's law, and the longer they wait, the messier it will be.
With family in both Germany and Spain, I can only say that you’re absolutely correct. Merkel has earned a special place in the afterlife and it’s not good. Spain is a pendulum and one becomes dizzy watching its long time identity crisis inflict itself on domestic and foreign affairs. It’s high time an attempt to smack Europe into reality has been made. We are not the global sugar daddy and I’m glad the WEF (originally a good idea in its earlier forms) has had its teeth pulled. In a minute I’ll get on my soapbox, so maybe it’s a good idea to stop here and go make the coffee. Thank you for a good piece this morning, Peter.
👍👍 Great post, Peter! The rich friend analogy is spot on for the US-Europe relationship. Unfortunately, your observation regarding the degree of difficulty in reversing the behavior of the non rich friends is also spot on. It’s likely that France, Germany and the UK have been lost to Islamists as a result of incomprehensible immigration policies. This is compounded by the green energy delusions pursued by the incompetent leaders such as Merkel and Macron, driving industry out of their countries. What’s the US to do?🤷♂️🤷♂️ Pray that the electorate has the capacity and will to change course?? Feels like such a long shot that bookies in Vegas probably wouldn’t even give odds on it happening….
Oh, I think Western Europe is cooked. We should pivot to prioritizing relationships with the Eastern European nations that "get it."
95% of what Trump says and does is crap. This issue - getting firm with NATO partners - falls into that 5% bucket of good stuff.
We had TWO constitutional amendments dealing with Prohibition - too bad we cannot have just ONE dealing with a balanced budget.
Unfortunately, there are times when a nation might need to borrow. Beyond that, they'd use it as an excuse to hammer us with a national VAT.
What is your recommendation to migrate towards federal fiscal responsibility?
1 - eliminate baseline budgeting, which is an evil way to ensure government keeps growing.
2 - freeze all discretionary spending at current levels.
3 - massive entitlement reform, based on a path to individual accounts.
4 - a real DOGE effort, fixated first on fraud.
That's a start. Unfortunately, the existing debt will remain and in fact, keep growing. The only way the Treasury can manage it is to issue new debt to cover the ever increasing interest payments.
Gosh I wish we could elect Representatives & Senators who would make that happen!
Hear, hear!! I enthusiastically agree! 👏🏻👏🏻👏🏻👏🏻👏🏻👏🏻🏆🏆🏆🏆🏆
I was saying this 35 years ago. Even back then, Southern France was being Isamified, the nascent EU was showing itself incapable of managing a continent with dozens of competing interests and cultures, and NATO had served its purpose. The Soviet bear was gone, replaced by a rag-tag bunch of kleptocratic countries. Of course, it wouldn't be long before Europe proved incapable of cleaning up its backyard, as the Balkans War spiraled into a larger conflict.
Anyway, we bailed them out in the aftermath of WWII. Their ungrateful response is reason enough to cut Europe loose and let them deal with their problems without our input. Bring home the thousands of servicemen stationed there.
Mark Steyn foresaw this twenty years ago, when he published America Alone. Back then, I recall concluding that one might disagree with some of his predictions, but the demographic trends he detailed were an irrefutable warning.