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Hank Sullivan: Judging 7th District candidates
Hank Sullivan
Hank Sullivan is a Forsyth County resident, businessman, author and speaker on American history, economics and geopolitics.

In 2018, 7th District Rep. Rob Woodall almost lost his seat to a socialist Democrat. It was the most closely contested race in the country. And now, after 10 years in Congress, Woodall is stepping down, opening the seat.  

The 7th District consists of half of Forsyth County and most of Gwinnett. In 2016, Hillary Clinton won Gwinnett. Prior to that, Gwinnett turning blue was not foreseeable. 

But increasing population density is the cradle of liberalism. As counties surrounding a central city become more densely populated, they naturally take on the political attitudes of the city. The tighter people pack together, the more rules they institute, the more individual rights they infringe, the more government control they crave, the more their politicians propose government solutions, and finally, the more they come to believe more government is the answer. The result is liberalism, which explains why practically every major city is liberal. 

In Forsyth County that phenomenon is building our way from the east and south.

After the closest defeat in 2018, Democrats and their socialist kin see red blood in the waters of Lake Lanier, which geographically divides the 7th into two regions. If 7th District Republicans do not arise and vote in 2020, and instead stay home as they did in 2018, Forsyth County will likely be represented by a socialist in the next Congress. You’ve been warned.

Now I’m not endorsing any candidates running for 7th District, but I will offer my help in deciding which have the best chance of defeating the Democratic socialists at our doorstep. The major key to success is simple, the winning Republican candidate must most fervently and artfully support President Donald Trump and Trump policies. That’s it. The candidate who rides the middle ground hoping to draw purple votes from South Forsyth and Gwinnett, as Woodall did, has already lost. 

Democrats can throw more dishonest promises to those who want to hear them than any Republican might imagine, and remain consistent doing so. Republicans who resist the urge to please those confused in the middle and who stay true to Republican principles, and to Trump policies, thus gaining presidential support, can stand up to any leftist argument and win by increasing Republican turnout.

That said, beware Republicans running on the “balance the budget” platform. They likely do not understand the beast they are dealing with. Sustaining a balanced budget is not possible in a private central bank economy, which, unfortunately, is what we have in the Federal Reserve. 

When you listen to Republican congressional candidates speak, and they promote “balancing the budget” or perhaps even paying off the national debt, raise your hand and ask one question, “Do you know how our money is created?” That question will put them on the spot. If they say yes, ask them to explain, knowing that if they truly believe the federal budget can be balanced, they have no clue where dollars come from. They will likely attempt to sidestep your question or hand you a fuzzy answer and maneuver to another questioner.

That is because the answer to your question is the very reason the U.S. government can neither balance its budget nor pay the national debt. Neither are possible because dollars enter circulation, borrowed as loans, paying interest to the private banks of the Federal Reserve System. 

Importantly, because those banks do not issue dollars necessary to pay the interest, the only way for America to do so is by borrowing more and more dollars, forever. Thus, any serious attempt to lower borrowing, or even stabilize the government’s debt at any particular level, would cause a deep and irreversible recession, followed by a depression, principle and interest on each outstanding dollar of debt being constantly removed from circulation, and never replaced.

U.S. government spending is therefore not like household or business spending, not at all. This is a Keynesian, central bank economy. Under Keynes’ model, the primary source of dollar liquidity is ever-increasing government spending.  The government borrows new dollars in exchange for new bonded indebtedness. So debt grows with the money supply. But unlike households and businesses, the U.S. government has no limit to the amount it can borrow. Thus, candidates who equate federal spending with household or business spending do not understand the cards we’ve been dealt. Under this system, the government can never go broke. The banks won’t let it, regardless what it takes.

The Keynesian, central bank economy will only break down when not enough dollars enter circulation to support economic growth, while also paying the debt service owed the banks from which the dollars were originally borrowed. When insufficient dollars are borrowed into circulation, the economy contracts, resulting in a recession and eventually a depression. That is what happened in the 1930s. And when insufficient dollars are borrowed into circulation to pay the banks their loans back with interest, the banks suffer their own liquidity crisis. That is what happened in 2009.  

What I describe is why the Fed cannot raise interest rates to historically normal levels. The system is saturated with debt.  President Trump knows that, which is why he does not talk about balancing the budget. He knows it’s impossible without committing economic suicide. But solving the problem isn’t. Trump knows that also and obviously has plans to fix it in his second term. Republican candidates would be wise to pledge support for Trump to fix the system that brought about the debt. That’s really all they have to say.  

Hank Sullivan is a Forsyth County resident, businessman, author and speaker on American history, economics and geopolitics.