For example: Unexpected expenses are non recurring unpredictable bills – Budget for these by setting aside a fixed amount each week or each month. If your property taxes are $5,200 per year, for example, set aside $100 a week. If your eyeglass exam and lens replacement cost $300 each year, set aside $25 per month.
Why do countries have a military?
Countries have a military during peacetime. Why? Do they expect wars? Maybe. But in case there is a war, armed forces are trained to be ready.
We are at war now. The world is at war with the virus! Are we ready for this war?
Trump disbanded the pandemic team in 2018.
WASHINGTON (AP) — Public health and national security experts shake their heads when President Donald Trump says the coronavirus “came out of nowhere” and “blindsided the world.”
Many authorities have been warning about the next pandemic for years and have soundly criticized Trump. The Trump administration made a decision in 2018 to dismantle a National Security Council directorate at the White House charged with preparing for when, not if, another pandemic would hit the nation.
If governments print money to pay off the national debt, inflation could rise. This increase in inflation would reduce the value of bonds. If inflation increases, people will not want to hold bonds because their value would fall…Therefore printing money could create more problems than it solves.
Trump inherited a growing economy from Obama.
He and his party cut taxes during the booming economy.
Any household knows that it is prudent to pay off loans when income is good. So trumpists did the exact opposite. National debt grew additional $4Trillion.
So the Trump administration with the support of his party behaved as if good times would last forever. But any adult who’s got a pulse knows that this is not how life works.
Any business, any family, any government should be prepared for unexpected, unforeseen occurrences, crises, i.e.The “rainy day”
A crisis, e.g. one like a pandemic, is not a matter of “if” but “when” The Trump administration has been warned of a coming coronavirus crisis and ignored it.
So the situation right now as the world is struggling with the pandemic:
Due to tax cuts Government debt is skyrocketing.
The Economy is in recession.
The Fed spent its ammunition to fight the recession because they already dropped the prime rate to zero.
In the Trump era of irrational exuberance people spent like drunken sailors.
Consumer debt is at its highest level since 2008.
Consumer debt is at an all time high.
U.S. credit card debt hit an all-time high of $930 billion.
And now that unemployment will jump how will these people be able to pay off their loans?
Well, the government will step in and absorb all debt. How will the Fed get the money? Not from taxes because “Republicans” cut taxes and unemployment is skyrocketing so people and businesses will not pay income taxes. So the Government will have to issue bonds to borrow money. But why buy bonds that have no return, pay no interest?
So the Treasure will have to print money. That most likely will lead to inflation.
Already, the national debt stands at more than $23.5 trillion and will be on track to eclipse $25 trillion. Taxpayers shelled out $574.6 billion in fiscal 2019 on interest payments for the debt and another $229.1 billion in fiscal 2020.
In short, the shock from the COVID-19 spread will blow a fiscal hole through Washington, D.C., that could take years if not decades to patch.
I am not blaming Trump and his government for the coronavirus. I hold them responsible for reckless fiscal policies like the latest unneeded tax cuts and military spending.
I hold Trump and his cabinet responsible for a botched, and frankly criminal response to the pandemic. I hold Trump’s party responsible for mindlessly supporting the disastrous policies of their president and ignoring the well being of our country.