That background confirms Druckenmiller as someone who gained both understanding and experience in handling very large sums of money in the real world. As such, he has a clear understanding of the impact the proposed $3.5 trillion “infrastructure” spending bill will have on Americans if it passes.

He has been making the rounds on Capitol Hill to warn politicians about the astronomically large spending bill. He warns they will guarantee “dire consequences” that harms low and middle-class Americans if they pass it. On July 23, 2021, he spoke with MSNBC’s Stephanie Ruhle on that topic, telling her what he’s been telling lawmakers.

What Druckenmiller Fears from Biden’s Infrastructure Bill

Here is the video of the segment:

To be sure, many people will focus on Druckenmiller’s comments describing how Darth Vader would destroy the U.S. economy by unleashing inflation through excessive spending. But he describes the real risk he sees from the infrastructure bill’s excessive spending near the end of the clip:

It’s going to cause a financial crisis. It’s going to cause inflation and nothing is going to hurt the poor more than that. And by the way, if it does, every dollar we’re spending now, that in my opinion we don’t desperately need, is not going to be available in a future crisis, whether it’s another pandemic or economic decline that’s hurting the poor or middle class.

That’s the consequence of the Biden-Harris administration’s unsustainable fiscal path. Achieving true fiscal sustainability requires treating the national debt like an emergency reservoir. Now that the crisis is past, spending growth needs to be restrained and the economy needs to grow to replenish the reservoir. Doing so will make it possible to weather the next crisis much more easily.

If there is one thing to be learned from history, it is that there is always a next crisis.

The post “Dire Consequences” for Most Americans from $3.5T Infrastructure Bill appeared first on The Beacon.

That wasn’t a mistake. The timing is part of a well-established practice by politicians called a Friday news dump. If they know the news is bad for them, they dump it on Friday, when they know the public is not going to pay much attention to it. If they think the news is really bad, they dump it on the Friday before an extended holiday weekend.

In the case of President Biden’s first budget, they must think it’s awful. Since it was already months behind schedule, there was no real urgency to release it now. After all, what difference would it make if they waited until the next Tuesday? But they made sure they released it on the Friday before a three-day holiday weekend.

How bad is it?

In terms of spending, it is perhaps one of the worst budgets ever proposed during peacetime. The Biden-Harris administration is proposing to permanently increase the U.S. government’s spending per capita by a very large margin. The chart below shows how much when compared with Uncle Sam’s spending during the last 100 years.

Before the 2020 Coronavirus Pandemic, the U.S. government averaged spending an inflation-adjusted amount of about $13,000 per American per year. The Biden-Harris administration proposes to permanently increase that by 28% to 36% even after emergency pandemic spending ends, from a low of $16,607 in 2023 up to a high of $17,707 in 2030. All these figures are expressed in terms of constant 2020 U.S. dollars.

Covering the cost of all this additional spending can only be done in two ways, by raising taxes and borrowing. The Biden-Harris budget proposes to use both of these methods. But that’s a different story for a different day.

For now, just consider how long you could sustain spending 28% to 36% more than you do today before you would run into serious financial trouble.

The post The Biden Budget: Pandemic Spending That Never Ends appeared first on The Beacon.