militarization

The Fiscal Cliff Hoax - Our Collapsing Economy and Currency

fiscal cliffOriginally published by Institute for Political Economy

Is the “fiscal cliff” real or just another hoax? The answer is that the fiscal cliff is real, but it is a result, not a cause. The hoax is the way the fiscal cliff is being used.

The fiscal cliff is the result of the inability to close the federal budget deficit. The budget deficit cannot be closed because large numbers of US middle class jobs and the GDP and tax base associated with them have been moved offshore, thus reducing federal revenues. The fiscal cliff cannot be closed because of the unfunded liabilities of eleven years of US-initiated wars against a half dozen Muslim countries–wars that have benefited only the profits of the military/security complex and the territorial ambitions of Israel. The budget deficit cannot be closed, because economic policy is focused only on saving banks that wrongful financial deregulation allowed to speculate, to merge, and to become too big to fail, thus requiring public subsidies that vastly dwarf the totality of US welfare spending.

The S&P Debt Downgrade: What It Means

EisenhowerOriginally published by OpEd News.

On Friday, August 5, the credit rating agency, Standard & Poor's, downgraded US debt from AAA to AA+.

Gerald Celente's view that S&P's downgrade of the US Treasury's credit rating reflects a loss of confidence in the political system was confirmed by the rating agency itself. S&P explained the downgrade as the result of heightened political risks, not economic ones. The game of chicken over the debt ceiling increase and the GOP's ability to block tax increases indicate that "America's governance and policymaking is becoming less stable, less effective, and less predictable"

The reduction in the government's credit rating to AA+ from AAA is a cosmetic change. It remains a very high investment grade rating and is unlikely to have any effect on interest rates. It is revealing that despite the downgrade, US bond prices rose. It was stocks that fell. The financial press is blaming the stock market decline on the bond downgrade. However, stocks are falling because the economy is falling. Too many jobs have been moved offshore.

The Decline and Fall of the American Empire

Originally published on OpEdNews

The 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.
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What 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 debt?

Every country in the world now worries about the judgment and sanity of the country with the largest nuclear arsenal in the world.

This 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.

To 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 its wars.

That the American press ever took this highly-hyped "crisis" seriously merely demonstrates their prostitute status.

Outsourcing the Pentagon

Did you know the Pentagon has issued 161,711 waivers to avoid buying American? buyamerican.jpg That it has cost us 620,000 manufacturing jobs and $53.5 billion dollars since 2007? So says a new report from the House of Representatives Buy American Caucus Chair, Chris Murphy.

Today, Congressman Chris Murphy, Chair of the House Buy American Caucus, was joined by local manufacturers and advocates for American manufacturing to unveil a report showing that federal policies of the Department of Defense are costing as many as 620,000 American manufacturing jobs. By issuing over 161,000 waivers to the Buy American Act, the Department of Defense has sent $53.5 billion to overseas contractors since 2007.

How in God's name could the Pentagon do this, considering the United States has a massive jobs crisis and that is, after all, U.S. taxpayer money. First, the Buy American act allows exceptions.

The Buy American Act, which has governed federal procurement since 1933, is full of loopholes and exceptions that allow billions of dollars to flow out of the country each year. Two of the biggest loopholes allow for waivers for any product that is to be used overseas, or for products in which the Department of Defense finds that there are no domestic suppliers.

But wait for it, the DoD is claiming there are no domestic suppliers when in fact there are. Some American Business are screaming political bloody murder as loud as they can about the Pentagon snub too.

Conservative Rule Costs U.S. $27 trillion

Is there a way to actually place a dollar amount on how much conservative rule has cost America? Stirling Newberry has offered a “back of the envelope” estimate of the costs of four consequences of conservative rule the past 28 years:

over-financialization of the American economy, the waste of privatized health care, over militarization of the American economy, and the externalization of global warming.

The total cost of conservative rule, in today’s dollars, is a staggering $27 trillion, nearly twice the total output of the entire U.S. economy for an entire year.