This campaign is about living for today AND TOMORROW, instead of living for today to the detriment of tomorrow. So, it’s for people who want to live for today and tomorrow, instead of living for today to the detriment of tomorrow. Allen Buckley is simply the candidate, hoping to serve as one of the two representatives of the people of Georgia in the U.S. Senate. As an independent candidate, he is free, and will remain free, of all special interest groups. So, unlike the Republican and Democrat candidates, he won’t bow down to the drug industry or any special interest group.
How are we living for today to the detriment of tomorrow? First, look at the finances of the federal government. Financially, our country is rotting out. At a time of perhaps record prosperity, we ran a trillion dollar deficit in 2019. If our goal is to keep our nation prosperous and militarily strong indefinitely, without going bankrupt or printing an incredible amount of money, then what is now happening is pure financial insanity. This pre-coronavirus chart
supplies anticipated growth in the federal debt-to-GDP ratio—it shows where we are headed on our current path. Our system will likely collapse under the current law trajectory, where tax cuts and other goodies expire as they are supposed to by law. The (worse) Alternative Fiscal Scenario is what can really be expected—extension of expiring tax cuts, etc. take place.
Below is an updated chart, that takes into account COVID-19:
Annual federal revenue has never exceeded $3.5 trillion in any year. Total debt in June of 2020 exceeds $26 trillion. From a financial perspective, unless a significant change in course takes place, we are headed for something very bad in the near future.
In 2017, Michael Hüther, an economist working at Stanford University, aptly said: “A government loses its democratic legitimacy if it start[s] paying a too-high share of its tax income on interest.” Allen Buckley thinks he’s absolutely right. And, he believes this simple concept will dominate how the Fed acts and finances in general for the foreseeable future. While Coronavirus is bad, consider the material in the attached article, including the last sentence quote about a much worse pandemic hitting within ten years. WSJ article on Global Oubreaks, Mar 7 8 2020 (PDF) We should have much less debt than we presently have, and we need to start being prepared for potentially bad things, instead of continuing to live for today with complete disregard for the future.
The government will tremendously grow in power and size in 2020. The attached article notes past growth cases and notes the debt-to-GDP ratio could hit 130 to 140 percent–the highest ever. WSJ article Fairless and Douglas Apr 13 2020 (PDF)
While no one knows exactly what will happen, Allen Buckley thinks one of two things is very likely to occur.
First, a debt crisis is possible any time hereafter. How? Our nation is now in recession. In the past, Congress and the Fed used two levers to pull the economy out of recession—lowering the Fed’s discount rate and deficit spending. In a strong economy such as the 2019 U.S. economy, the Fed’s rate would ordinarily have been around 5 percent. However, mainly due to the large federal debt, it was below 2 percent. Roughly $5 trillion of additional debt was added due to the Great Recession. In March, the Fed rate was reduced to 0 percent. Deficit spending and money printing (Quantitative Easing–“QE”) will be the main means of fighting the recession. As noted in this chart,
the U.S. is much more indebted now than it was immediately prior to past recessions. Any time hereafter, a debt panic could occur. (The likelihood of a panic will increase as time goes by if the debt continues to grow.) In such case, a downward stock market turn would be followed by reduced spending, followed by more market reduction, resulting in a downward spiral that could possibly lead to depression.
Second, we end up like Japan—a dead economy. (Some call that “Japanification.”) The Fed could try to pull the country out—almost certainly by printing a very lot of money to buy much existing federal debt, thereby reducing interest expense and debt. For March through May of 2020, the Fed has used QE in a large way, as it has largely tracked the amount the Treasury has borrowed.
Watch for things that keep Treasury rates low being couched as something different—virtually always allegedly to help the economy, etc. Japanification followed by a debt crisis is possible. It is now clear that the Republicans and Democrats (including their candidates in this race) will do nothing about these problems except make them worse!
This situation cannot turn out good; the only question is how bad is it going to be?
How does the growing debt impact us now? This chart shows that Treasury rates track the Fed rate.
In the past, in an economy such as that experienced in 2019, average Treasury notes yields would likely have been in the 6-7 percent range because the Fed rate would likely have been in excess of 5 percent. At 6½ percent, with public debt of $20 trillion (i.e. roughly what existed in late May of 2020), interest expense would have been roughly $1.3 trillion—roughly 37 percent of total 2019 federal tax revenue. Recall the Hüther quote. At one percent, it would be less than 10 percent of revenue. So, the Fed will act to keep Treasury rates as low as possible. Consider how these things impact investments—including your investments. The entire matter is discussed in a paper that can be found on the website titled “Impacts of the National Debt.”
It is the general nature of a democracy or a republic to experience what is happening. It takes a substantial portion of the population to act unselfishly and prudently to overcome it. There is no rah-rah to this. This is simply application of the laws of finance to a debtor—although, admittedly, a very unique debtor.
If the federal government financially implodes, none of the other issues—abortion, the environment, anything, will matter. If you are wealthy, a system collapse would hit you particularly hard. So, why wouldn’t you act to prevent such from happening?
What needs to be done? We need to substantially, but not radically, change course. We need to get the debt-to-GDP ratio down below 70 percent, and keep it there. If we can balance the budget in non-recession and non-emergency years, and the economy grows (as it ordinarily does), the debt-to-GDP ratio will decrease. The federal government’s finances need to be revamped, including by using a much simpler tax system that produces balanced budgets in non-recession and non-emergency years. In the website, such a recommended system is supplied. In this regard, as an attorney/CPA, Allen Buckley has worked with the tax system for decades.
Regarding revenue and spending, the below chart shows 2019 results:
$3,472 Billion minus $4,472 Billion equals a $1,000 Billion (i.e. $1 Trillion) deficit.
The second way we are living for today to the detriment of tomorrow is by showing little concern for the environment. While the planet is, by historical standards, now relatively cool, the rate at which it has been warming in the past 150 years is off the charts. (See The Economist article in the Environment and Infrastructure section.)
We need to protect the environment in a practical manner. How? The gas tax is outdated. It needs to be replaced by an energy tax that varies the tax amount based on relative harm to the environment—more harmful fuels bear more tax than less harmful fuels. A bill that does so is included in the website materials.
Where can money be saved?
Major entitlements need to be REASONABLY (NOT RADICALLY) reduced, in a logical and fair manner. A bill entitled The Financial Sanity Act, which is designed to reasonably reduce Social Security and Medicare benefits mainly by gradually pushing back the normal retirement age to 70 and adjusting it every decade after 2039 for changing life expectancy, is included in this website.
Allen Buckley wants our country to have the strongest military—by far. But, we don’t need 800+ FOREIGN military bases, when the rest of the world combined has approximately 60. We need to prudently exit the Middle East. The war in Iraq was one of the greatest mistakes in the history of mistakes.
Allen Buckley believes in maximizing what is done through the private sector, and minimizing what is done through the public sector. In the website is a bill that, if enacted, would reduce the Executive Branch’s power.
Allen Buckley thinks we can and should reasonably cut discretionary spending and reduce healthcare costs. The following chart shows anticipated growth in major federal spending. Note the anticipated growth of major health care programs and net interest on the debt.
There are two ways to cut health care costs: The way recommended by some Democrats (Medicare for All, etc.) or reduction of the impact of the third party while creating competition and incentive for consumers to control costs. Allen Buckley believes the latter approach is the way to go. Proposals to make this happen are provided in the website materials, including the Financial Sanity Act, which eliminates tax subsidies for health insurance that is not high deductible insurance.
Many have had problems with large company service providers—promising one thing and delivering something completely different, overcharging and charging late fees when the problem was on their end. After experiencing abuse, Allen Buckley took AT&T to arbitration in 2017. Better consumer protection laws are needed. In the website is a bill drafted to protect consumers against abuse by service providers such as AT&T.
We need to enforce the immigration laws, but the laws need to be brought up-to-date, to allow a reasonable additional amount of people in annually.
Allen Buckley’s positions and proposed solutions to problems are listed on this website. Contrast the detail and actual proposed solutions to that of his opponents. Virtually all of them propose nothing. It’s like watching Let’s Make a Deal. Do you want what is behind the curtain?
Why run again? Allen Buckley doesn’t want to live in a world where the future is sacrificed for the benefit of today, and believes there needs to be an option to vote for a candidate who will offer solutions to existing problems, to permit our system to endure. This campaign offers that option.
If you think a Republican will offer and fight for financial solutions, consider David Perdue. In 2014, he ran almost exclusively on solving the financial problems. While in office, he’s done virtually nothing with respect to them except make them worse.
An effective representative is one who will fight to reasonably reduce government to produce financial sanity and act to protect the future (including the environment) while getting Georgia’s fair share of necessary federal spending.
To succeed, a team effort must be made. How can you help? Volunteer to place yards signs or otherwise participate, donate, and supply your ideas. One of the proposals to save money is to cut patent lives in half for drug companies that charge more in the U.S. than they charge abroad—based on a proposal of patent attorney Art Gardner. You won’t see a solution like that from Republicans, because they’ve sold out to the drug companies. Any help would be appreciated.
The campaign starts with absolutely no money. If enough people want to preserve the future, and are willing to make reasonable sacrifice to make it happen, it will succeed. Finally, Allen Buckley doesn’t have all the answers. But, he is grateful for the opportunity to fight for this worthy cause.