As the US faces massive deficits and the wealthy continue to raid both the Federal and State coffers unchecked. As the social “safety net” is ripped to shreds and the assault continues on the middle class globally. The most defenseless and poor of the world are bearing the brunt of this unchecked greed, power, and hubris, the facts are most grossly distorted.
In the US, but in other countries as well, the mantra is the social programs will be the downfall of the fiscal equation and are the cause of the current financial crisis. In the US, it is Social Security, Medicaid, and Medicare will be the ruin of life as we know it. That is the biggest lie of all!
Consider this from Sherwood Ross who heads a public relations firm “for good causes” and also runs the Anti-War News Service. You can reach him at firstname.lastname@example.org if you would like more details.
“As long as the $1.2-trillion annual budget for the military-security complex is off limits (to cutting), nothing can be done about the US budget deficit except to renege on obligations to the elderly, confiscate private assets (which includes the physical gold and silver hoarding that is afoot)or print enough money to inflate away all debts,” Paul Craig Roberts, former Assistant Treasury Secretary under President Reagan warns.
In an article titled “Stealing from Social Security to Pay for Wars and Bailouts,” published in the April issue of the “Rock Creek Free Press” of Washington, D.C., Roberts says that Republicans are calling Social Security and Medicare “entitlements”—making them sound like welfare—when, in fact, workers over their lifetimes have contributed 15 percent of all their earnings to the payroll tax that funds these benefits and have every right to them.
And far from Social Security being in the red, between 1984 and 2009, Roberts writes, “the American people contributed $2-trillion…more to Social Security and Medicare in payroll taxes than was paid out in benefits” but “the government stole” that sum to fund wars and pork-barrel projects!
What’s more, under one realistic estimate, far from crashing into the red, “Social Security (OASDI) will have produced surplus revenues of $31.6-trillion by 2085, Roberts says.
Americans, apparently, are unaware of how the federal government’s illegal, foreign wars sap the economy and rob every household. The Iraq war cost alone is 20 percent of the size of last year’s entire U.S. economy. Instead of investing that sum at home, “which would have produced income and jobs growth and solvency for state and local governments, the US government wasted the equivalent of 20% of the economy in 2010 in blowing up infrastructure and people in foreign lands,” Roberts says.
“The US government spent a huge sum of money committing war crimes, while millions of Americans were thrown out of their jobs and foreclosed out of their homes,” he added. Viewed another way, the Pentagon continues to expand and put people to work to modernize its 700-800 bases abroad in order to dominate every corner of the globe while public works and public employment in America are going into the toilet.
“When short-term and long-term discouraged workers are added …the US has an unemployment rate of 22%,” Robert says. A country with that large a percentage out of work “has a shrunken tax base and feeble consumer purchasing power.”
The U.S. media, he claims, is only reporting one-third of the real cost of the wars, leaving out the sums needed for “lifelong care for the wounded and maimed, the cost of lifelong military pensions of those who fought in the wars, the replacement costs of the destroyed equipment, the opportunity cost of the resources wasted in war, and other costs.”
President Obama’s budget, if passed, doesn’t reduce the deficit over the next 10 years by enough to cover the projected deficit in the fiscal year 2012 budget alone, the financial authority writes. “Indeed, the deficits are likely to be substantially larger than forecast,” as the military-industrial complex “is more powerful than ever and shows no inclination to halt the wars for US hegemony,” Roberts says.
Add to this the fact that the FED is sitting on its largest excess reserve in history Federal Reserve Aggregate Reserves, over $1.4 Trillion dollars and corporate cash reserves are at historical levels, one really must start questioning what is really afoot here.
Understanding this reality exposes the PTB and their political hacks for what they really are up to in this effort to strip governments and make them appear inept. Don’t buy it.
If you look at the so-called “budget crisis” in Wisconsin, New Jersey, etc, these so-called large deficits are equal to the tax breaks passed into law for corporations and the wealthy. Just do the math. Just do the math.
There is no question the US government will have ongoing deficits of $1.3 to $2.2 trillion annually for some time to come. If this is the case there is no chance of the debt of government ever being paid. That means official devaluation and default, although it will be done jointly by many countries. The US debt limit will be raised. The Republicans are playing politics and remember the same group of thieves overwhelmingly controls both parties. It will also be interesting to see how, before the end of the year, the Treasury places more than $2 trillion in bonds. We bet the Fed buys about $1.7 trillion. This has to push up real interest rates by ½% to ¾% by the end of the year and the same should happen in 2012. Foreigners and even PIMCO does not want to purchase Treasury bonds, notes and bills. In order to entice such buyers, yields will have to move up a point now and a point later. As part of that sequence of actions by buyers quantitative easing would have to end, as well as stimulus, and budget deficits would have to be cut realistically, not by $33 billion paltry dollars. Incidentally GDP growth under those circumstances would be minus 3 to minus 6 percent. The Fed has little trouble holding up and manipulating the short end of the bond market, but the long end is another matter. It is not only QE2 and manipulation, but also the Fed’s continuing to purchase CDO’s and MBS, which are toxic waste from banks to get the debt off of banks’ books and to liquefy them. The purchase of US dollar denominated bonds, especially Treasuries, is coming to an end. We cannot expect the Fed to continue indefinitely to do what it is doing. It can only end in hyperinflation. We might add that JPMorgan Chase soon will forge a civil settlement concerning fraud relating to CDOs and MBS. Again no jail time; it is a national disgrace. Those people should have been prosecuted criminally. As you can see money buys everything. If QE3 is implemented, and we believe it will be, classical economics says the result, hyperinflation, is inevitable.
I would contend hyperinflation is already here, given the price of oil and food commodities. These are the factors that is flaming the fire of global revolution, which will soon be in a town near you. There is an ancient saying that states, “if a man cannot choose the manner of his living, he will choose the manner and time of his death.”
There is time, very little time, but still time to wake up as a people and demand fiscal responsibility and regulations; time to legislate a re-distribution of the wealth that has been illegally taken from the people. The time has come to begin the criminal investigation of those banksters, politicians and lobbyists who have perpetrated this fraud and corruption on the people of the world.