President Joe Biden has put our minds at rest, assuring us that his Democratic Party's proposed $3.5 trillion (actually more like $5.5 trillion) spending bill — on top of another $trillion-plus for ''infrastructure'' — won't really cost us anything. It will just get even with those other rich guys.
Speaking at a press conference, Joe said: ''Every time I hear this is going to cost A, B, C, or D — the truth is, based on the commitment that I made, it's going to cost nothing, because we're going to raise the revenue.''
House Speaker Nancy Pelosi confidently confirmed that ''cost nothing'' meme days later when she held up her hand to form a zero.
Unfortunately, that free spending alphabet arithmetic fails to account for some key economic spoilers, namely, diminishing currency purchase power, insatiable entitlement debt addictions, and cascading Federal Reserve insolvency.
Inflationary Price Hikes for Everyone
For starters, there's no reason to believe that Democrat spendathon repayment plan — if there really is one — can find anywhere near enough money to cover its largesse. So far, tax hikes approved by the House Ways and Means Committee on corporations plus individuals earning annual incomes over $400,000 only came up with about $2.1 trillion.
Nor is there anything definitive enough on that spending side for the Congressional Budget Office (CBO) to base a clear assessment on.
Recall that Democrats had previously claimed that a $550 billion infrastructure bill was also going to be fully paid for, whereas the CBO estimated it would actually add $256 billion to deficits ... covering only about half.
What the government giveth in free money for its budget blowouts it will taketh in the form of the most insidious tax of all — rocketing inflationary prices for almost everything we all buy.
According to the Labor Department, the consumer price index rose 0.4% in September, up from 0.3% in August. This clocked an increase of 5.4% in the last 12 months, and 6.5% on an annual basis so far in 2021 as the largest year-over-year rise since 2008.
Used-vehicle prices are up 24.4% in the last 12 months; the price of new vehicles rose 1.3% in September, up 8.7% for the year; and the cost to rent a car or truck was up about 43% more than last year.
Food and energy prices rose 0.9% and 1.3%, respectively, with beef up 17.6% over the last 12 months, and fresh fish and seafood 10.7% higher; average U.S. gasoline and natural gas prices are at a seven-year high.
The September Department of Labor report also said housing costs have been soaring, with the Case-Shiller index up nearly 20% in a year as of July.
Meanwhile, as everything costs more, hourly earnings with inflation are down 1.9% since January when Joe Biden became President.
Economic Death by Entitlement
Also be assured that insatiable progressive appetites for more ''equitable'' entitlement redistribution of private savings and sweat prosperity will not end well for either you or our nation.
Whereas the Biden budget bust proposes to spend 24.5% of U.S. gross domestic product on average over the next 10 years, federal government revenues are projected to rise only to 19.7% of Gross Domestic Product (GDP) by the end of that period as rising deficits from two of the largest entitlements, Social Security and Medicare, already head toward exhaustion.
On top of this crisis, the Democrat plan would add $300 billion to Medicare entitlements which will expand automatically without requiring an annual appropriation by Congress ... plus simultaneously reduce the Social Security eligibility age to 62.
The far-left socialist ''Build Back Broke'' entitlement agenda is a power grab to create a sweeping federal authority takeover of formerly state and local roles including childcare, elder care, prekindergarten and community colleges.
Progressives know that such entitlements, once created, are almost impossible to repeal.
Although they are typically renewed every five years, all states will inevitably have to use their own revenue to support these non-''paid for'' federal mandates, as happened with the underfunded Individuals with Disabilities Education Act passed in 1975.
Federal Reserve Debt Recycling Gimmickry
The Federal Reserve owns roughly one-quarter of the federal debt held by the public on which the U.S. Treasury avoids paying interest because the vast bulk of that income on its portfolio of Treasury and U.S. government-backed securities holdings are treated as ''intragovernmental'' transactions.
Over just the past two years, the Fed acquired more than $3.3 trillion of combined federal budget deficits ($6.3 trillion) for 2020 and 2021 alone of the total $28.4 trillion public debt.
Fed remittances back to Treasury totaled $87 billion in 2020 — some 85% of the Fed's $102 billion annual interest income — and will likely exceed $100 billion in 2021.
Accordingly, since these Fed-to-Treasury remittance transaction payments and receipts are both recorded in the same category of spending in the federal budget, they have no effect on reducing the deficit.
Outside government, this would likely qualify as money laundering.
So ... the Fed, formerly headed by Janet Yellen, and Treasury now headed by Secretary Yellen, are busy trying to figure out how to make this Democrat free spending open credit trading card at least appear to work.
One idea the Fed reportedly came up with was to launch a U.S. digital currency to secure total federal government control that will enable the Fed and Treasury to block payments to politically disfavored businesses that fail to comply with mandated social equity and environmental policies to mitigate ''climate-change risk.''
The White House has also reportedly considered a plan by which the Treasury would mint bogus $1 trillion dollar platinum coins to deposit with their Fed pals — then claim liquidity.
Reader Advisory: Don't attempt this trick at home in paying your taxes with investment shares in a unicorn ranch.
Meanwhile, along with unlimited free money from Treasury Secretary Yellen, Homeland Security Secretary Alejandro Mayorkas has assured us that the southern border is securely closed, and White House Press Secretary Jen Psaki has encouraged us to understand that the Afghanistan evacuation couldn't be called ''anything but a success.''
As they say, ''What could possibly go wrong?''
Larry Bell is an endowed professor of space architecture at the University of Houston where he founded Sasakawa International Center for Space Architecture and the graduate space architecture program. His latest of 10 books, "What Makes Humans Truly Exceptional," (2021) is available on Amazon along with all others. Read Larry Bell's Reports — More Here.
© 2021 Newsmax. All rights reserved.