United States Government and its presstitute media have wasted time and
energy creating hysteria over a non-existent "debt ceiling crisis." After
reading the "news" in the Ministry of Propaganda and witnessing the
stupidity of the US government, the rest of the world is struck
dumbfounded by the immaturity of the "world's only superpower."
kind of superpower is it, the world wonders, that is willing to go to
the eleventh hour to convince the world, which holds its banking
reserves in US Treasury debt, that the US government will default on the
country in the world now worries about the judgment and sanity of the
country with the largest nuclear arsenal in the world.
is the achievement of the Republicans, who took an ordinary commonplace
increase in the debt-ceiling limit, an event that has occurred
routinely many times over the course of my life, and turned it into a
crisis threatening the world financial system.
be clear, there was never any risk whatsoever of US default, as
President Obama has power established by President George W. Bush's
Presidential Directive 51 to declare default a National Emergency and to
set aside the debt-ceiling limit and Congress' power of the purse, and
to continue to issue the debt necessary to fund the US government and
That the American press ever took this highly-hyped "crisis" seriously merely demonstrates their prostitute status.
US public debt is rising too rapidly against US GDP, although it is
still below the percentages during World War II. The problem that is
ignored by the idiots in Washington and the presstitutes is that the
debt is rising relative to the economy because the economy is not
rising, but war expenditures are.
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Why is the economy not rising?
is not rising, because it has been off-shored. What formerly was US GDP
produced in Gary, Indiana, St. Louis, Detroit, Silicon Valley, and
other US locations
is now GDP for China, India, Indonesia and other countries where
manufacturing labor and professional services can be hired below US
What happens with off-shoring? The answer is clear. US GDP, consumer
income, career opportunities, and tax base leave the country. Corporate profits and bonuses rise due to the lower labor costs.
Who is this good for?
answer is that it is only good for Wall Street, corporate shareholders,
and corporate management. Their incomes go up, and the GDP goes down
along with the employment opportunities of Americans and the tax base for government.
The other destroyer of American economic prospects was the deregulation of
the financial sector. Economists theorized that markets were
self-regulating and created the illusion that greed was never a
problem. This was music and dollars to Wall Street's ears. Federal
Reserve Chairman Alan Greenspan and the Wall Street-owned US Treasury
jumped on board. Those, who like Brooksley Born, were empowered by US
law to regulate derivatives, were driven out of office by the Federal Reserve Chairman, the US Treasury Secretary, and the Securities and Exchange Chairman.
institutions freed from Glass-Steagall, freed from capital
requirements, and freed from oversight, immediately took debt leverage on highly unrealistic bets to amazing heights. When the schemes
collapsed, the Federal Reserve lent US and foreign banks $16.1 trillion
dollars, a sum larger than the US national debt and larger than the US
Where did the Federal Reserve get $16.1 trillion to lend? The Fed created it out of thin air with a stroke of a computer entry.
While the Federal Reserve created $16.1 trillion in new loans for private banks, the bailed out banks bulldoze the foreclosed homes
of the evicted Americans.
So in America, the light unto the world, American citizens are thrown out
of their homes in order that banks can bulldoze their homes.
Only in America does this makes sense.
it is not only Americans who are being made homeless by US policies.
Afghans, Pakistanis, Iraqis, Yemenis, Somali, Libyans are also consigned
to homelessness by American policy. Moreover, America's wars against
these peoples, together with the supporting military/security budget,
account for 75% of the US budget deficit. Indeed, the cost of these
wars exceed the planned future budget savings from the debt limit deal.
other words, the cost of the wars that make millions of foreigners
homeless use up revenues that the federal government could have used to
keep Americans in their homes and teachers in the schools. As much as
many Republicans profess to be concerned about the US public debt,
Republicans were not sufficiently concerned to address their issue by
cutting back the $1.2 trillion military-security budget or by raising
the low tax rates on the mega-rich.
Look at these July 30 headlines, just two days prior to the default deadline, from the online group, Stop NATO:
US Military To Be Based In Australia To Confront China
Call To Expand American Counterinsurgency Operations In Philippines
US Could Upgrade Polish Warships For Baltic Sea
Bulgaria: Pentagon Continues Upgrading Military Bases
US Uses Romanian Air Base To Supply Afghan War
America's Africa Partnership Station In East Africa
Mongolia: US Leads NATO, Asian NATO Allies In Military Exercise
Libyan War: Over 17,000 NATO Air Missions, Nearly 6,500 Strike Sorti
The Big Picture: War on Libya is War on Africa
in the world is a country facing bankruptcy and default doing
conducting military exercises in Mongolia and Central Asia? What is the
North Atlantic Treaty Organization, designed to counter a Soviet thrust
into Western Europe, doing in Mongolia?
are these military expenditures necessary, but not expenditures to keep
America's homeless population from rising while homes are destroyed?
do not the Republicans listen when mega-billionaire Warren Buffet says
that the tax rate on his massive income is lower than the tax rate on
his secretary's income?
answer is that the Republicans have an agenda: War. And Republicans
want to fund this war, not by taxing high incomes but by cutting support
programs for the down and out.
cut to the chase: Even if all the cuts actually happen, the weakening
economy will result in new deficit projections that will wipe out the
expected savings from the debt limit agreement.
What then will the government do?
US policymakers comprehend that the economy has been moved offshore and
take steps to bring it home, there will be no solution to America's
debt problem or to its unemployment problem.