- President Bush has consistently defended
his massive $500 billion tax cuts. He has insisted that deficit spending
be a "permanent" part of the national budget. His economic plan
has eroded the confidence of central banks around the world and increased
the federal debt by a whopping $3 trillion. Still, he persists in his claim
that deficits should be an enduring function of government.
- Doesn't this confirm that bankrupting
the country is an integral part of the Bush grand strategy?
- What more proof do we need?
- Imagine someone stealing your credit
card and running up a $450,000 bill year after year and then defending
the theft as necessary to "create more jobs" as the "trickle-down"
- Would you take such a person at his word?
- Deficits are theft; and the determination
to make these lavish tax cuts for the wealthy permanent proves beyond a
doubt that it is part of a larger strategy to bring about an economic meltdown
that will change the political complexion of the country.
- What else could it mean?
- Dick Cheney recently opined, "Reagan
proved that deficits don't mean anything."
- In fact, Cheney was part of the Reagan
administration when Reagan's tax cuts created monstrous $200 billion deficits,
up 75% from 1980. The effects were devastating. Unemployment jumped to
10%, the 30 year mortgage skyrocketed to 15%, the economy ground to a standstill,
and the nation plunged into the deepest recession since the 1930s.
- Cheney fully understands the suffering
that deficits produce. Now, he wants to continue that misery as a permanent
function of government.
- Is it really so important to reward the
"fortunate 1%" that the administration would risk the economic
well-being and solvency of the nation?
- And, what is the relationship between
the ocean of debt produced by the Bush team and their strengthening of
police-state apparatus like unlimited spying on Americans, the NSS (Bush's
new Secret Police), the uniform Federal ID program, the Patriot Act, and
Halliburton's $385 million contract from Homeland Security to construct
new detention and processing facilities within the United States?
- Is the ascendancy of the police-state
intended to balance the catastrophic effects of economic destruction? Or,
do the new instruments of repression anticipate the "political turmoil"
(Warren Buffet's words) that naturally results from financial collapse?
- The Bush master-plan is no different
than the economic shock-therapy the United States has directed at the third
world for decades. The strategy is simple and straightforward, but virtually
foolproof in achieving its objectives; the crushing of the middle class
and the subsequent shifting of the nation's wealth to the "oligarchy
of racketeers" who run the system.
- The levers of power have all been faithfully
assembled by Bush operatives, while America's $3 trillion trade deficit
looms overhead like the sword of Damocles. As the underpinnings of economic
wellbeing continue to deteriorate; causing further job-flight, credit spending,
and soaring energy prices; the power-brokers at the head-of-state calmly
arrange the instruments of repression they'll need to maintain order.
- Did we really imagine the chickens would
never come home to roost?
- Regardless of what the public-relation
gurus on the business channel say, the state of the union is disastrous.
Bush has intentionally looted the treasury and torpedoed America's economic
future. Federal Reserve chief, Alan Greenspan cooperatively kept interest
rates low so the greatest swindle in history could take place while the
drowsy American public snoozed away.
- Thanks, Alan.
- Americans refuse to believe that bubbles
(housing or stock market) are brought about by the deliberate and politically-motivated
actions at the Federal Reserve.
- Everyone agrees about the effects of
high interest rates; why would there be so much uncertainty about low interest
- Just as high interest rates slow the
economy by making loans on investment more expensive; so too, low interest
rates naturally produce increased speculation by making cheap money available
to a greater number of people. Greenspan knew as early as 1996 that the
stock market was over-inflated when he warned that "there was a stock
market bubble at this point" that is "a problem we should keep
our eye on". (Remember "irrational exuberance"?) Still,
he accommodated his friends in Washington and Wall Street by waiting until
tens of thousands of Americans had lost their savings (and retirement)
before ratcheting up interest rates and cooling down the spec-market. The
final loss to investors was an estimated $7 trillion dollars, an amount
that pales in comparison to the current housing bubble which "The
Economist" calls "the greatest bubble in history". Again,
it was Greenspan who instigated the housing bubble by dropping rates to
a paltry 1.5% following the decline in the stock market. Regrettably, the
results will be even more ruinous this time.
- Never the less, low interest rates are
an effective way of creating bubbles and thereby transferring wealth from
one class to another. The other two "tried-and-true" methods
are tax cuts and hyperinflation; both parts of the Greenspan legacy. (Expect
a weakening dollar as the effects of the massive trade deficit set in)
- To argue that the Federal Reserve does
not support a political agenda that favors elite interests, is to say that
it is not a privately-owned institution (which it is) which operates in
conjunction with major investors; particularly the energy giants, the mainstream
media, arms-manufacturers, and the political establishment. The Federal
Reserve is joined at the hip with the Bush White House. In fact, the administration
is merely a reflection of the values and goals of the financial powerbrokers
at the central banks.
- Don't expect any complaints from Alan
Greenspan about the rough-treatment of prisoners at Guantanamo Bay. The
cadres of elites are of "one mind" on the current global crusade
for a new world order. If that means torturing a few thousand innocent
people; so be it.
- There are numerous signs that the nation's
free ride will soon be over. Gold is skyrocketing as perceptive investors
see the cracks and fissures appearing in the economic foundation that binds
the debtor-kingdom together. Twitchy investors are watching for news about
Iran, rebel attacks in Nigeria, or a potential sell-off of greenbacks in
China. Market analysts may feign equanimity but they are walking on the
knifes-edge expecting the worse.
- But, the worse is unavoidable; the country
is dead broke. Last year alone Americans not only spent more than they
earned for the first time since the great Depression; they also borrowed
an additional $600 billion from their home equity to pay off credit card
debt and consumer loans! This tells us that the all signs of growth in
the economy are the result of credit spending. Home equity has become the
new ATM card, demonstrating once again that the country is running on fumes.
- This quarter's slow growth of 1.1%, shows
that the well has run dry and consumer spending (which accounts for 70%
of GDP) is down for the count. Interest rates are going up, the dollar
will soon be sinking, energy costs are soaring, and the unemployment line
is getting longer.
- Time to find a nice comfy spot beneath
the freeway on-ramp...and bring your own cardboard.
- The Clinton strategy would have made
the transition more agreeable, but the result of globalization is roughly
the same. Businesses and jobs pack up and leave driving wages through the
floor, while the social safety net continues to worsen by congressional
edict. The main difference with Clinton is that he strengthened the dollar
by balancing the budget and showed little appetite for creating the police-state
apparatus that the Bush claque relishes.
- The Bush administration is preparing
for a quick but agonizing transition. They have painstakingly removed whatever
laws stood in the way of autocratic government. The courts will brandish
the rubber stamp for the supreme executive, the congress will languish
as a ceremonial institution, and the compliant media will shower praise
on the Dear Leader's iron-fisted methods of keeping the peace.
- Economic disintegration is the catalyst
for changing the fundamental institutions of government. The globalists
in the White House have played a major role in numerous coups across the
planet, all producing the same basic result; a military dictatorship with
a strongman at the head of state. America is being readied for a similar