In 2013, when the government was “shut down,” my pastor mentioned the standoff in his weekend message. He said, “Of course we’re going to pay the debt back. That’s what we do.” He rarely says anything about politics. But at this moment, he was trying to build a case for extending the debt to care for vital services and people. He used this analogy:

Suppose a thousand people are on a cruise ship and it runs out of fuel. It is adrift and the situation is getting dangerous. Although we may not like credit card debt, if the only way to get fuel to the ship was for everyone to get out their credit card and take on some debt, in order to buy fuel, it would make sense to go into debt to get everyone home safely.

Later that week, I wrote my pastor a letter. I pointed out it was mathematically impossible to pay back $17.2 trillion—now $20 trillion! I then used this analogy:

We’ve been on a cruise ship partying as if we were in the Caribbean, but we hit an iceberg in the Arctic. As our ship is listing, we see the U.S.S. Federal Reserve coming to our rescue. In an attempt to help, it fires three torpedoes (QE1, 2 and 3). We see the torpedoes race toward us. We can either brace for impact or get into lifeboats.

This past week, our government once again punted the debt football. The debt ceiling was not raised—that’s good. But with the help of the media, the expectation is it will be raised. We’re told this is no big deal. “Of course we’re going to pay the debt back. That’s what we do.” Like the character in Naked Gun, our political overlords said, [“Nothing to see here.”]

So what will the Trump administration do? Goldman Sachs’ Treasury Secretary, Steven Mnuchin, is pleading with Congress to raise the debt ceiling ASAP. Mnuchin wrote to Congress, “I respectfully urge Congress to protect the full faith and credit of the United States by acting to increase the stator debt limit as soon as possible.” In the meantime, he announced he will use phony accounting methods to keep the spending on track. [1]

For his part, President Trump has been focused on his First 100 Days, to the exclusion of the debt ceiling. Last Thursday, the President presented his skinny budget. He is rearranging the deck chairs on the Titanic. His budget does not plug the deficit spending.

Based on 2016 actual revenues and outlays, 82% of the government’s income was used for mandatory spending and interest on the debt. [2] President Trump’s [“Budget Blueprint to Make America Great Again,”] deals only with the remaining 18% of revenues. The result is more deficit spending.  

This shouldn’t be a surprise. In his campaign, he pledged to go deeper into debt to get out of debt. President Trump is quick to acknowledge his new budget doesn’t deal with Obamacare Repeal and Replace, tax cuts or new infrastructure spending. The big ticket items are yet to come.

I willingly voted for Trump. The Russians didn’t make me do it. President Trump is a far superior choice to Secretary Clinton. But Trump has become the captain of the Titanic, after it hit the iceberg. The ship of state is at a 45 degree angle and three torpedoes are racing toward us. The ship’s crew is organizing daily activities for our entertainment. With the help of the media, our government marches forward as if there is not a crisis. There is.

When reality hits, I’d rather have a President Trump than a President Clinton. Thank you God!

I’m preaching to the choir. I assume you agree with me. Hopefully, I’m just confirming what you already know or have been suspecting. If you are struggling to accept my premise, I suggest you do more study. I suggest you think for yourself. Your financial future depends on it.

Within 24 hours of Trump’s budget release, the swamp dwellers began their opposition. [3] It is noteworthy even a skinny budget, that doesn’t cut deficit spending, can’t be embraced by the GOP. [4]

It may be several weeks or months before the debt ceiling is officially raised. It was raised 18 times under President Reagan, eight times under President Clinton, seven times under President W. Bush and five times under President Obama. Since March 1962, the debt ceiling has been raised 74 times. [5] The “ceiling” has no significance. Politicians tell us it has great significance—it provides negotiating power. LOL! Since 1962, the national debt has grown from $298 billion to $20,000 billion. These “negotiating powers” have really worked! [6]

If you don’t already know it, the Federal Reserve is the enabler of our spending-addicted politicians. [7] The Fed prints the money; Congress spends it. It doesn’t matter which party is in charge. [8] Our national debt climbs toward infinity.

There may be moral voters who think we will be good for our promises. But in Washington DC, our overlords laugh at such naïve voters [jump to minute 9:00]. Our blue and red progressives are bellied-up to the bar and Chairperson Yellen pours the shots. “Annnnothr round, pleeeassse,” say the drunken sailors (my apology to sailors).

President Trump has experience with defaults. He’ll get to use that experience in office. The next debt ceiling will point us to $25 trillion. The Congressional Budget Office has their eye on $29.4 trillion by 2027. [10] That’s before any of Trump’s big spending plans.

In the late 1980’s, Trump said, “Cash is king.” He was referring to real estate investing. It seems likely in his first term, cash won’t be king as more debt is accumulated, more money is printed, and the dollar’s purchasing power shrinks. I suggest you find a lifeboat.

“Dollar” Bill is a real guy, with real knowledge on our nation’s financial calamity, and real solutions for what must be done to dig ourselves out of the hole we are in. Due to his career, Bill must remain “disguised” to protect his position. “Bill” loves America, sees the impending cliff we are all headed towards, and hopes that by sharing his inside knowledge of the failed monetary policy in our nation, that a fiscal “nuclear” event can be minimized.