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Hurtling Toward Bankruptcy

February 3, 2019

HURTLING TOWARD BANKRUPTCY

The federal government owes people almost $22 trillion. That means that American taxpayers owe people almost $22 trillion. That’s because the federal government has no money of its own. The money it gets comes entirely from American taxpayers. That’s what the IRS is for — to make certain that everyone sends his required amount of taxes to the federal government to enable it to cover its expenditures.

According to usdebtclock.org (which is an Internet spectacle worth looking at), federal tax revenue amounts to around $3.3 trillion. The amount of federal expenditures is over $4.1 trillion. That means that almost another trillion dollars will be added to the government’s debt load, making it $23 trillion. 

The share of the debt for a U.S. citizen amounts to more than $219,000. For a U.S. family, its share of the debt is more than $856,000.

This is what is occurring year after year, thanks to the massive welfare-state, warfare-state way of life that conservatives and liberals have foisted upon our nation.

Some statists argue that it’s all no big deal. They say that since we are all Americans, we owe all that debt to ourselves. That ignores the fact that there are individual and institutional creditors who have loaned money and expect to be paid back. The fact that some them are Americans is irrelevant. They expect their money, which means that the federal government will have to tax American citizens to get it. Thus, we don’t owe all that money to ourselves. One group is owed the money and American taxpayers are on the hook for repaying it.

Moreover, the debt is also held by foreigners, all of whom expect to be repaid in full the money they loaned to the federal government. One of the principal creditors is Communist China, whose regime was one of the big lenders for President George W. Bush’s invasion and occupation of Iraq.

 …click on the above link to read the rest of the article…

Why The Empire Never Sleeps: The Indispensable Nation Folly

May 16, 2018

Why The Empire Never Sleeps: The Indispensable Nation Folly

Like the case of Rome before it, the Empire is bankrupting America. The true fiscal cost is upwards of $1.o trillion per year (counting $200 billion for veterans and debt service for wars), but there is no way to pay for it.

That’s because the 78-million strong Baby Boom is in the driver’s seat of American politics. It plainly will not permit the $3 trillion per year retirement and health care entitlement-driven Welfare State to be curtailed.

The Trumpite/GOP has already sealed that deal by refusing to reform Social Security and Medicare and by proving utterly incapable of laying a glove politically on Obamacare/Medicaid. At the same time, boomers keep voting for the GOP’s anti-tax allergy, thereby refusing to tax themselves to close Washington’s yawning deficits.

More importantly, the generation which marched on the Pentagon in 1968 against the insanity and  barbarism of LBJ’s Vietnam War have long since abandoned the cause of peace. So doing, boomers have acquiesced in the final ascendancy of the Warfare State, which grew like topsy once the US became the world’s sole superpower after the Soviet Union slithered off the pages of history in 1991.

Yet there is a reason why the end of the 77-year world war which incepted with the “guns of August” in 1914 did not enable the world to resume the status quo ante of relative peace and prosperous global capitalism.

To wit, the hoary ideology of American exceptionalism and the Indispensable Nation was also, ironically, liberated from the shackles of cold war realism when the iron curtain came tumbling down.

Consequently, it burst into a quest for unadulterated global hegemony. In short order (under Bush the Elder and the Clintons) Washington morphed into the Imperial City, and became a beehive not only of militarism, but of an endless complex of think-tanks, NGO’s, advisories and consultancies, “law firms”, lobbies and racketeers.

…click on the above link to read the rest of the article…

Two Elephants In The Room That The GOP Has Completely Forgotten

February 5, 2018

Two Elephants In The Room That The GOP Has Completely Forgotten

The US economy is threatened by two giant problems which cause all others to pale into insignificance. We are referring to a rogue central bank that has become an absolute enemy of capitalist prosperity and a fiscal doomsday machine that is hostage to the ceaseless budgetary demands of the Warfare State, the Welfare State and the Baby Boom’s demographic imperatives.

Needless to say, both ends of the Acela Corridor are completely oblivious to these twin menaces. Indeed, they are the proverbial elephants in the room, thereby giving rise to a considerable irony: To wit, the GOP party of the elephant, which is supposed to be the palladium of financial rectitude in American politics, has forgotten about them completely.

For instance, in his triumphalist SOTU, the Donald didn’t utter so much as a single syllable about the Fed, the budget, entitlements, the $1 trillion per year deficits looming ahead or the nation’s soaring public debt.  Yet after omitting virtually everything which counts, he went on to crow about how he is making America Great Again (MAGA) by making better trade deals and borrowing untold sums from future generations.

That is to say, when he did veer into fiscal territory it was to demand repeal of the sequester caps, which are the one thing that has slightly braked runaway spending, and to boast about his own favorite deficit financed twins: The $1.5 trillion tax cut already passed and the additional $1.5 trillion infrastructure boondoggle he proposed to lob on top.

Oh, and there was also his $33 billion Mexican Wall, 5,000 new border patrol agents (in  addition to 20,000 already) and Federalization of two purported crises—the opioid epidemic and gangs like MS-13—-which should be a matter for local government, if the latter have any purpose at all.

…click on the above link to read the rest of the article…

America’s National Debt Bomb Caused By the Welfare State

February 11, 2016

AMERICA’S NATIONAL DEBT BOMB CAUSED BY THE WELFARE STATE

The news is filled with the everyday zigzags of those competing against each other for the Democrat and Republican Party nominations to run for the presidency of the United States. But one of the most important issues receiving little or no attention in this circus of political power lusting is the long-term danger from the huge and rising Federal government debt.

The Federal debt has now crossed the $19 trillion mark. When George W. Bush entered the White House in 2001, Uncle Sam’s debt stood at $5 trillion. When President Bush left office in January of 2009, it had increased to $10 trillion. Now into seven years of Barack Obama’s presidency, the Federal debt has almost doubled again.

And it is going to get much worse, according to the Congressional Budget Office. On January 26, 2016, the CBO released it latest “Budget and Economic Outlook” analysis for the next ten years, from 2016 to 2026.

Continuing Deficits and Growing National Debt

The economists at the CBO estimate that the Federal budget deficit for the fiscal year, 2016, will be $544 billion, or $105 billions more than Uncle Sam’s budget deficit in fiscal year 2015. And each year’s budget deficit will continue to be larger than the previous year from here on. Indeed, the CBO estimates the Federal government’s annual deficits will once more be over $1 trillion starting in 2022 and thereafter.

Between 2016 and 2026, the Federal debt, as a result, is projected to increase by a cumulative amount of almost $9.5 trillion, for a total national debt of around $30 trillion just ten years from now.

The reason for the continuing ocean of Federal red ink is the fact that while government revenues are projected to be around 49.5 percent higher in fiscal year 2026 ($5,035 trillion) than in fiscal year 2016 ($3.376 trillion), government spending will be over 63 percent more in fiscal year 2016 ($6,401 trillion) than in fiscal year 2016 ($3,919 trillion).

…click on the above link to read the rest of the article…

Verging on Plutocracy? Getting Real About the Unelected Dictatorship

November 20, 2015

Verging on Plutocracy? Getting Real About the Unelected Dictatorship

plutocrat

In politics as in medicine, excessively mild remedies are typically based on overly placid diagnoses. Look, for example, at the highly esteemed Columbia University historian Eric Foner’s recent letter of congratulations and advice to Democratic Party presidential candidate Bernie Sanders in The Nation. As I have argued in a previous CounterPunch essay, Foner’s missive failed to correct Sanders on the candidate’s incredibly tepid and watered-down definition of democratic socialism as little more than a Scandinavian welfare state. It sent Eugene Debs spinning in his grave when it argued that “socialism today” is about “the need to rein in the excesses of capitalism.” Those were the exact same words used by Hillary Clinton in the first Democratic Party presidential debate, reflecting on what she feels is occasionally necessary to preserve the profits system and what she felt should never be confused with socialism.

There’s one part of Foner’s letter that I forgot to mention in my previous essay even though it is intimately related to his alignment with milquetoast radicalism and Hillary’s fake-progressive corporatism. It comes at the beginning of the letter’s sixth paragraph, when he says that contemporary socialism seeks “to empower ordinary people in a political system verging on plutocracy.”

I’m all for and indeed about empowering ordinary people, but I had to stop and read that statement a second time and ask myself: did the nation’s leading left-liberal historian really just describe contemporary U.S. politics as merely verging on plutocracy? You don’t have to be a radical Marxist to think that’s pussyfooting around the matter. Over the past three plus decades, liberal mainstream political scientists Martin Gilens (Princeton) and Benjamin Page (Northwestern) reported last year, the U.S. political system has become “an oligarchy,” where wealthy elites and their corporations “rule.”

…click on the above link to read the rest of the article…

Culture of Cruelty: the Age of Neoliberal Authoritarianism

October 23, 2015

Culture of Cruelty: the Age of Neoliberal Authoritarianism

criminal-record-3

George Orwell’s nightmarish vision of a totalitarian society casts a dark shadow over the United States. As American society has moved from a welfare to a warfare state, the institutions that were once meant to limit human suffering and misfortune and protect the public from the excesses of the market have been either weakened or abolished.[1] With the withering, if not evisceration, of the social contract, the discourse of social responsibility has been removed from the principles of democratic reform. Relegated to an object of disdain by right-wing extremists, the legacy of democratic principles now withers under a social order marked by a hardening of the culture and the emergence of an unprecedented survival-of-the fittest ethos. This is a mean-spirited ethos that rails against any notion of solidarity and compassion that embraces a respect for others. The consequences of this emerging authoritarianism speak to a different experience of total terror in the 21st century.

The basic elements of this new neoliberal authoritarianism can be seen clearly in the ongoing and ruthless assault on the social state, unions, higher education, workers, students, poor minority youth, and any vestige of the social contract. Free market policies, values, and practices with their emphasis on the privatization of public wealth, the elimination of social protections, and the deregulation of economic activity now shape practically every commanding political and economic institution in both countries. Markets now use their economic and ideological resources to weaponize and militarize all aspects of everyday life, increasingly held in place by a culture of fear, a pedagogy of repression, a banal celebrity culture, game show aesthetics, and a politics of precarity, control, and mass surveillance.

…click on the above link to read the rest of the article…

Alexis Tsipras—-Angel Of Mercy Or “Trusty” Of The Keynesian Central Bankers’ Debt Prison?

June 23, 2015

Alexis Tsipras—-Angel Of Mercy Or “Trusty” Of The Keynesian Central Bankers’ Debt Prison?

Greece, Europe and the world are being crucified on a cross of Keynesian central banking. The latter’s two-decade long deluge of money printing and ZIRP has generated a fantastic worldwide financial bubble, and one which has accrued to just a tiny slice of mankind. That much is blindingly evident, but there’s more and it’s worse.

The present replay of high noon on Greece’s impossible mountain of debt clarifies an even greater evil. Namely, that the central bank printing presses have also utterly destroyed the fundamental requisite of fiscal democracy.

To wit, in the modern world of massive, interventionist welfare states, fiscal governance desperately needs an honest bond market. The latter is the only mechanism capable of taming the modern state’s primal urge to entitle, transfer, indulge, placate, subsidize and spend without the parallel pain of a commensurate burden of taxation.

Soaring bond yields and the fear of losing debt market access, therefore, are the one force that can cause the politicians, thieves and charlatans who man the machinery of democracy to sober-up and acknowledge the facts; and then to weigh the difficult options and tradeoffs, congeal a consensus and close the deal.

This proposition is based on experience, not theory——even though the logic of bond market discipline is unassailable. Approximately 33-years ago, in fact, I was part of a small group of White House staff who talked Ronald Reagan into the impossible. That is, into signing not only a giant tax increase bill at the dark bottom of the 1982 recession, but to actually embrace several more such measures over the course of the subsequent three years. When the dust settled, these so-called “tax grabs”  took back fully 40% of his cherished and sweeping 1981 tax reduction.

 

…click on the above link to read the rest of the article…

American Exceptionalism and the Entitlement State

January 21, 2015

American Exceptionalism and the Entitlement State

If social policy were medicine, and countries were the patients, the United States today would be a post-surgical charge under observation after an ambitious and previously untested transplant operation. Surgeons have grafted a foreign organ — the European welfare state — into the American body. The transplanted organ has thrived — in fact, it has grown immensely. The condition of the patient, however, is another question altogether. The patient’s vital signs have not responded entirely positively to this social surgery; in fact, by some important metrics, the patient’s post-operative behavior appears to be impaired. And, like many other transplant patients, this one seems to have effected a disturbing change in mood, even personality, as a consequence of the operation.

The modern welfare state has a distinctly European pedigree. Naturally enough, the architecture of the welfare state was designed and developed with European realities in mind, the most important of which were European beliefs about poverty. Thanks to their history of Old World feudalism, with its centuries of rigid class barriers and attendant lack of opportunity for mobility based on merit, Europeans held a powerful, continentally pervasive belief that ordinary people who found themselves in poverty or need were effectively stuck in it — and, no less important, that they were stuck through no fault of their own, but rather by an accident of birth. (Whether this belief was entirely accurate is another story, though beside the point: This was what people perceived and believed, and at the end of the day those perceptions shaped the formation and development of Europe’s welfare states.) The state provision of old-age pensions, unemployment benefits, and health services — along with official family support and other household-income guarantees — served a multiplicity of purposes for European political economies, not the least of which was to assuage voters’ discontent with the perceived shortcomings of their countries’ social structures through a highly visible and explicitly political mechanism for broadly based and compensatory income redistribution.

 

…click on the above link to read the rest of the article…

Inner City Turmoil and Other Crises: My Predictions for 2015

January 10, 2015

Inner City Turmoil and Other Crises: My Predictions for 2015

If Americans were honest with themselves they would acknowledge that the Republic is no more. We now live in a police state. If we do not recognize and resist this development, freedom and prosperity for all Americans will continue to deteriorate. All liberties in America today are under siege.

It didn’t happen overnight. It took many years of neglect for our liberties to be given away so casually for a promise of security from the politicians. The tragic part is that the more security was promised — physical and economic — the less liberty was protected.

With cradle-to-grave welfare protecting all citizens from any mistakes and a perpetual global war on terrorism, which a majority of Americans were convinced was absolutely necessary for our survival, our security and prosperity has been sacrificed.

It was all based on lies and ignorance. Many came to believe that their best interests were served by giving up a little freedom now and then to gain a better life.

The trap was set. At the beginning of a cycle that systematically undermines liberty with delusions of easy prosperity, the change may actually seem to be beneficial to a few. But to me that’s like excusing embezzlement as a road to leisure and wealth — eventually payment and punishment always come due. One cannot escape the fact that a society’s wealth cannot be sustained or increased without work and productive effort. Yes, some criminal elements can benefit for a while, but reality always sets in.

…click on the above link to read the rest of the article…

Ron Paul 2015 Predictions: Inner City Turmoil and Other Crises

January 9, 2015

Ron Paul 2015 Predictions: Inner City Turmoil and Other Crises

If Americans were honest with themselves they would acknowledge that the Republic is no more. We now live in a police state. If we do not recognize and resist this development, freedom and prosperity for all Americans will continue to deteriorate. All liberties in America today are under siege.

It didn’t happen overnight. It took many years of
neglect for our liberties to be given away so casually for a promise of security from the politicians. The tragic part is that the more security was promised — physical and economic — the less liberty was protected.

With cradle-to-grave welfare protecting all citizens from any mistakes and a perpetual global war on terrorism, which a majority of Americans were convinced was absolutely necessary for our survival, our security and prosperity has been sacrificed.

It was all based on lies and ignorance. Many came to believe that their best interests were served by giving up a little freedom now and then to gain a better life.

The trap was set. At the beginning of a cycle that systematically undermines liberty with delusions of easy prosperity, the change may actually seem to be beneficial to a few. But to me that’s like excusing embezzlement as a road to leisure and wealth — eventually payment and punishment always come due. One cannot escape the fact that a society’s wealth cannot be sustained or increased without work and productive effort. Yes, some criminal elements can benefit for a while, but reality always sets in.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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