The Love Chronicles, An Economy Destroyed

Posted: July 25, 2011 in News and politics

An Economy Destroyed: The Enemy is

I had the good fortune to have a story sent to me that perfectly
describes how I feel and what I think is going on. I did not have the words to
say it as eloquently, or the knowledge to put the ideas together as well as Dr.
Paul Craig Roberts, the author of the article that is to follow:

“Recently, the bond rating agencies that gave junk derivatives
triple-A ratings threatened to downgrade US Treasury bonds if the White House
and Congress did not reach a deficit reduction deal and debt ceiling
increase. The downgrade threat is not credible, and neither is the default
threat. Both are make-believe crises that are being hyped in order to force
cutbacks in Medicare, Medicaid, and Social Security.If the rating agencies downgraded Treasuries, the company executives
would be arrested for the fraudulent ratings that they gave to the junk that
Wall Street peddled to the rest of the world. The companies would be
destroyed and their ratings discredited. The US government will never default
on its bonds, because the bonds, unlike those of Greece, Spain, and Ireland,
are payable in its own currency. Regardless of whether the debt ceiling is
raised, the Federal Reserve will continue to purchase the Treasury’s debt. If
Goldman Sachs is too big to fail, then so is the US government.There is no budget focus on the illegal wars and military
occupations that the US government has underway in at least six countries or
the 66-year old US occupations of Japan and Germany and the ring of military
bases being constructed around Russia.The total military/security budget is in the vicinity of
$1.1-$1.2 trillion, or 70% -75% of the federal budget deficit.In contrast, Social Security is solvent. Medicare expenditures
are coming close to exceeding the 2.3% payroll tax that funds Medicare, but
it is dishonest for politicians and pundits to blame the US budget deficit on
“entitlement programs.”

Entitlements are funded with a payroll tax. Wars are not funded.
The criminal Bush regime lied to Americans and claimed that the Iraq war would
only cost $70 billion at the most and would be paid for with Iraq oil
revenues. When Bush’s chief economic advisor, Larry Lindsay, said the Iraq
invasion would cost $200 billion, the White House Moron fired him. In fact,
Lindsay was off by a factor of 20. Economic and budget experts have
calculated that the Iraq and Afghanistan wars have consumed $4,000 billion in
out-of-pocket and already incurred future costs. In other words, the ongoing
wars and occupations have already eaten up the $4 trillion by which Obama
hopes to cut federal spending over the next ten years. Bomb now, pay later.

As taxing the rich is not part of the political solution, the
focus is on rewarding the insurance companies by privatizing Medicare at some
future date with government subsidized insurance premiums, by capping
Medicaid, and by loading the diminishing middle class with additional Social
Security tax.

Washington’s priorities and those of its presstitutes could not
be clearer. President Obama, like George W. Bush before him, both parties in
Congress, the print and TV media, and National Public Radio have made it
clear that war is a far more important priority than health care and old age
pensions for Americans.

The American people and their wants and needs are not represented
in Washington. Washington serves powerful interest groups, such as the
military/security complex, Wall Street and the banksters, agribusiness, the
oil companies, the insurance companies, pharmaceuticals, and the mining and
timber industries. Washington endows these interests with excess profits by
committing war crimes and terrorizing foreign populations with bombs, drones,
and invasions, by deregulating the financial sector and bailing it out of its
greed-driven mistakes after it has stolen Americans’ pensions, homes, and
jobs, by refusing to protect the land, air, water, oceans and wildlife from
polluters and despoilers, and by constructing a health care system with the
highest costs and highest profits in the world.

The way to reduce health care costs is to take out gobs of costs
and profits with a single payer system. A private health care system can
continue to operate alongside for those who can afford it.

The way to get the budget under control is to stop the
gratuitous hegemonic wars, wars that will end in a nuclear confrontation.

The US economy is in a deepening recession from which recovery
is not possible, because American middle class jobs in manufacturing and
professional services have been offshored and given to foreigners. US GDP,
consumer purchasing power, and tax base have been handed over to China,
India, and Indonesia in order that Wall Street, shareholders, and corporate
CEOs can earn more.

When the goods and services produced offshore come back into America,
they arrive as imports. The trade balance worsens, the US dollar declines
further in exchange value, and prices rise for Americans, whose incomes are
stagnant or falling.

This is economic destruction. It always occurs when an oligarchy
seizes control of a government. The short-run profits of the powerful are
maximized at the expense of the viability of the economy.

The US economy is driven by consumer demand, but with 22.3%
unemployment, stagnant and declining wages and salaries, and consumer debt
burdens so high that consumers cannot borrow to spend, there is nothing to
drive the economy.

Washington’s response to this dilemma is to increase the
austerity! Cutting back Medicare, Medicaid, and Social Security, forcing down
wages by destroying unions and offshoring jobs (which results in a labor
surplus and lower wages), and driving up the prices of food and energy by
depreciating the dollar further erodes consumer purchasing power. The Federal
Reserve can print money to rescue the crooked financial institutions, but it
cannot rescue the American consumer.

As a final point, confront the fact that you are even lied to
about “deficit reduction.” Even if Obama gets his $4 trillion “deficit
reduction” over the next decade, it does not mean that the current national
debt will be $4 trillion less than it currently is. The “reduction” merely
means that the growth in the national debt will be $4 trillion less than
otherwise. Regardless of any “deficit reduction,” the national debt ten years
from now will be much higher than it presently is.”

Dr. Roberts was Assistant Secretary of the US Treasury, Associate Editor of
the Wall Street Journal, and professor of economics in six universities.

This is the best article I have read so far, stating what I believe to be the unvarnished truth. This reasoning is one reason why I have always balked at the idea that we need to kick back entitlements, they are not the reason we are in debt, as a matter of fact, as was stated, Social Security is solvent and will continue to be. Medicare has been and is solvent, but will have some problems in the
future, but this does mean that entitlements are not in any way responsible for the national debt. They are funded, let’s say that again, they are funded with a payroll tax. It is the crime perpetrated by Wall Street, the pork barrel politics, the wars which
fatten the purses of the elite rich, and put us in debt. Any politician who makes any remark about entitlements being responsible in any way for our present debt situation is either in on it and a liar and a thief, or so ignorant he or she actually believes and eats at the trough this swill is poured into, in both cases making them totally unsatisfactory representatives of the American people.  This is presented by a man who is eminently qualified, just look at the past job history I provided for you at the end of his article. To me this is common sense and should not be up for debate, the facts have always spoken for themselves, why we put up with it is complicated. Mostly because we are used to being controlled and told what to do by the wealthy around us who spend a lot of money to prove to us they are above average honest folk who have our best interests at heart. Ok, if you believe that, I have an Aunt who owns a Gingerbread house in the Black Forest and wants all of you to visit as soon as possible! I hope you got the point, if not I am just wasting my time.  Vote, and vote them all out, and be vocal, write your state representatives, all of them, not just your senators or your chosen party, if you have one. There are 65% of you who are not voting. First we need to let politicians know we get it and they had better get it if they want to get elected. To start, we need to vote out all incumbents as a testament to our disgust at how they do not represent us.  Then we need to change how we get qualified candidates on the ballot, but that is a blog of another day!

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