Buelahnomics: Why The US Has Gone Broke
Posted by buelahman on June 14, 2008
B’Man: You hear me discussbitch about ‘Big Money’ and ‘Big Military’ and all the other ‘Bigs” listed over in the category section. These ‘Bigs’ are the owners of America and what drives everything our government does and is beholden to. What was once ‘for the people’ & ‘by the people’ is now for the Ultra rich and their new corporate citizenship mentality.
However, one of the biggest ‘Bigs’ we have is ‘Big Military’ (aka the military industrial complex) and how this ‘Big’ is probably the leading cause for our country’s demise from ‘leader’ of the ‘free’ world to ‘enforcer’ of the ‘invaded’ world. As with each and every other empire throughout history, this incessant drive towards more military spending as some economic sustaining entity, will simply cause our financial destruction. Essentially, we end up spending money on stuff that never gets used and take away from our own infrastructure and manufacturing base.
As a redneck, I can’t explain it completely, but I do read alot about the subject and found this article that breaks this down as well as any I have read in some time. It is worthy of a full read, but I want to point out some key points for a rednecks education…
Why the U.S. Has Gone Broke
by Chalmers Johnson
…There are three broad aspects to the U.S. debt crisis.
First, in the current fiscal year (200
we are spending insane amounts of money on “defense” projects that bear no relation to the national security of the U.S. We are also keeping the income tax burdens on the richest segment of the population at strikingly low levels.
Second, we continue to believe that we can compensate for the accelerating erosion of our base and our loss of jobs to foreign countries through massive military expenditures — “military Keynesianism” (which I discuss in detail in my book Nemesis: The Last Days of the American Republic).
By that, I mean the mistaken belief that public policies focused on frequent wars, huge expenditures on weapons and munitions, and large standing armies can indefinitely sustain a wealthy capitalist economy. The opposite is actually true.
Third, in our devotion to militarism (despite our limited resources), we are failing to invest in our social infrastructure and other requirements for the long-term health of the U.S. These are what economists call opportunity costs, things not done because we spent our money on something else. Our public education system has deteriorated alarmingly. We have failed to provide health care to all our citizens and neglected our responsibilities as the world’s number one polluter. Most important, we have lost our competitiveness as a manufacturer for civilian needs, an infinitely more efficient use of scarce resources than arms manufacturing.
B’Man: Our country’s elite, who are in government or control those that are, have grown to be so focused on protecting their stuff that we have insane tax codes in place that are ruining many facets of social assistance. But, more than that, we have completely turned into the “complex” of building our economy from weapons and thus becoming implementers of war and carnage (while still calling ourselves “Christian”, I might add).
Fiscal disaster
It is virtually impossible to overstate the profligacy of what our government spends on the military. The Department of Defense’s planned expenditures for the fiscal year 2008 are larger than all other nations’ military budgets combined. The supplementary budget to pay for the current wars in Iraq and Afghanistan, not part of the official defense budget, is itself larger than the combined military budgets of Russia and China.
Defense-related spending for fiscal 2008 will exceed $1 trillion for the first time in history. The U.S. has become the largest single seller of arms and munitions to other nations on Earth. Leaving out President Bush’s two on-going wars, defense spending has doubled since the mid-1990s. The defense budget for fiscal 2008 is the largest since the second world war. Before we try to break down and analyze this gargantuan sum, there is one important caveat. Figures on defense spending are notoriously unreliable. The numbers released by the Congressional Reference Service and the Congressional Budget Office do not agree with each other. Robert Higgs, senior fellow for political economy at the Independent Institute, says: “A well-founded rule of thumb is to take the Pentagon’s (always well publicized) basic budget total and double it.” Even a cursory reading of newspaper articles about the Department of Defense will turn up major differences in statistics about its expenses.
Some 30-40% of the defense budget is ‘black, ‘” meaning that these sections contain hidden expenditures for classified projects. There is no possible way to know what they include or whether their total amounts are accurate. There are many reasons for this budgetary sleight-of-hand -including a desire for secrecy on the part of the president, the secretary of defense, and the military-industrial complex - - but the chief one is that members of Congress, who profit enormously from defense jobs and pork-barrel projects in their districts, have a political interest in supporting the Department of Defense. In 1996, in an attempt to bring accounting standards within the executive branch closer to those of the civilian economy, Congress passed the Federal Financial Management Improvement Act. It required all federal agencies to hire outside auditors to review their books and release the results to the public. Neither the Department of Defense, nor the Department of Homeland Security, has ever complied. Congress has complained, but not penalized either department for ignoring the law. All numbers released by the Pentagon should be regarded as suspect. In discussing the fiscal 2008 defense budget, as released on 7 February 2007, I have been guided by two experienced and reliable analysts: William D Hartung of the New America Foundation’s Arms and Security Initiative and Fred Kaplan, defense correspondent for Slate.org. They agree that the Department of Defense requested $481.4bn for salaries, operations (except in Iraq and Afghanistan), and equipment.
They also agree on a figure of $141.7bn for the “supplemental” budget to fight the global war on terrorism - - that is, the two on-going wars that the general public may think are actually covered by the basic Pentagon budget. The Department of Defense also asked for an extra $93.4bn to pay for hitherto unmentioned war costs in the remainder of 2007 and, most creatively, an additional “allowance” (a new term in defense budget documents) of $50bn to be charged to fiscal year 2009. This makes a total spending request by the Department of Defense of $766.5bn. But there is much more. In an attempt to disguise the true size of the U.S. military empire, the government has long hidden major military-related expenditures in departments other than Defense. For example, $23.4bn for the Department of Energy goes towards developing and maintaining nuclear warheads; and $25.3bn in the Department of State budget is spent on foreign military assistance (primarily for Israel, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, the United Arab Republic, Egypt and Pakistan).
B’Man: With the gas prices at $4.00/gallon and are GOING to rise more, we are in for a very fast fall, folks. The people in control don’t want you to know how close to devastation we are, for when America realizes it, she will shut totally down, causing even more failure within the Big Money system.
Think about how much fuel the Iraqi invasion requires while the price is continually rising (and I would bet, highly elevated prices). Keep in mind that the $4 mark is based off of $90.00/barrel of oil and we just went to around $138/barrel. When the prices catch up, we will be, at least, at $5.00/gallon and likely to be around $6.00/gallon before the summer ends. People are so slow to bitch to those who can help. We bitch at each other about it and shrug, “What are we gonna do?” Then we get into the car and drive off, forgetting that doom is impending.
But it isn’t just us rednecks that can’t drive far or even afford to drive to work any longer. The cost of fuel for food delivery will skyrocket. The cost of fuel to run equipment to gather the crops will skyrocket (making groceries skyrocket even more than we have seen).
People that need to fly will be less able to afford it, even if the airlines make it without total bankruptcy (several have already gone bust), for their costs are skyrocketing, as well. All forms of transportation will skyrocket, for they can’t bear the entire fuel burden when they are so competitive to begin with.
Plastics are made of petro-chemicals, so even packaging and everything that is made of plastic will skyrocket.
So, why has the US gone broke? Because we are run and controlled by corporate interests protected by those we elected who get most of their campaign contributions from these same entities that run the country. GE owns the media which lies to us about the truth AND is heavy into Military and nuclear. Same for others. Vested interests cause them to lie and keep silent about the lies of the administration.
They will pillage what they can… to hell with us, the real Americans.
Posted in B'Man's Rants, Big Media, Big Military, Big Money, Big Oil, Iraq War, Neocon Criminals, REAL State of the Union | No Comments »
