Stealing from Social Security to Pay for Wars and Bailouts

[sce56]

Stealing from Social Security to Pay for Wars and Bailouts

by Dr. Paul Craig Roberts

Global Research, March 9, 2011


The American Empire is failing. A number of its puppet rulers are being overthrown by popular protests, and the almighty dollar will not even buy one Swiss franc, one Canadian dollar, or one Australian dollar. Despite the sovereign debt problem that threatens EU members Greece, Ireland, Spain, and Portugal, it requires $1.38 dollars to buy one euro, a new currency that was issued at parity with the US dollar. The US dollar’s value is likely to fall further in terms of other currencies, because nothing is being done about the US budget and trade deficits. Obama’s budget, if passed, doesn’t reduce the deficit over the next ten years by enough to cover the projected deficit in the FY 2012 budget. Indeed, the deficits are likely to be substantially larger than forecast. The military/security complex, about which President Eisenhower warned Americans a half century ago, is more powerful than ever and shows no inclination to halt the wars for US hegemony.

The cost of these wars is enormous. The US media, being good servants for the government, only reports the out-of-pocket or current cost of the wars, which is only about one-third of the real cost. The current cost leaves out the cost of life-long care for the wounded and maimed, the cost of life-long 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. The true cost of America’s illegal Iraq invasion, which was based entirely on lies, fabrications and deceptions, is at least $3,000 billion according to economist Joseph Stiglitz and budget expert Linda Bilmes. The same for the Afghan war, which is ongoing. If the Afghan war lasts as long as the Pentagon says it needs to, the cost will be a multiple of the cost of the Iraq war. There is not enough non-military discretionary spending in the budget to cover the cost of the wars even if every dollar is cut. As long as the $1,200 billion ($1.2 trillion) annual budget for the military/security complex http://www.tomdispatch.com/blog/175361/ is off limits, nothing can be done about the U.S. budget deficit except to renege on obligations to the elderly, confiscate private assets, or print enough money to inflate away all debts.

The other great contribution to the US deficit is the offshoring of production for US markets. This practice has enriched corporate management, large shareholders, and Wall Street, but it has eroded the tax base, and thereby tax collections, of local, state, and federal government, halted the growth of real income for everyone but the rich, and disrupted the lives of those Americans whose jobs were sent abroad. When short-term and long-term discouraged workers are added to the U.3 measure of unemployment, the U.S. has an unemployment rate of 22%. A country with more than one-fourth of its work force unemployed has a shrunken tax base and feeble consumer purchasing power.

[handmade34]

1. ....

[Newest Reality]

2. And that's not all ...

Not only did the wealthy never receive a tax increase, they and their corporations went on to create legislation that exempted them from paying any tax whatsoever. The Wealth Creator and Holder act was a sight to behold and the logic behind it was that by creating or holding a certain amount of wealth, you were already contributing greatly to society.

That didn't matter much though, since education as it was once known had been transitioned rapidly over to privately owned schools which served as corporately controlled training centers for America Inc., formerly the United States. The Supreme Board of Directors had unanimously ruled, (oddly, all their decisions were unanimous) that all public education would be best served by being placed in the hands of the ruling business parties.

The children were taught that their civic duty was to serve the best interests of the corporations that provided so much for them and served their needs. This included the privilege of great sacrifice and high taxation. It was pushed as a moral issue that brought honor to those who were fortunate enough to be associates of America Inc. While the 50% income tax was considered to be rather generous and the 35% value added tax on goods was a bargain, the State Boards all provided public barracks for living should the cost of serving become too difficult to meet for some patriotic associates. In America Inc. all was good and everyone had a job, well, except those who were executed for refusing, or being unable to, participate in the wonderful common good as corporate workers.

[Diclotican]

3. sce56

sce56

Then, the US empire wil expire, as every empire over the last couple of 1000 years have expired when they are not longer suported by economy... When the tax base is eroding, then the whole ground for the Empire is breaking off... As it did when the Roman Empire also was seeing a lot of eroding of their tax base.. Or every another empire who have tried to rule the world as we know it.. As long as the economy is STRONG, then the empire can rule.. But when they overstrech, and the economy are not longer strong, even the biggerst empire wil breake, and go down the dust bin.. In the best of situations, the empire wil shrunck to the "main" country, like UK, France and Belgium have managed to do it, today smaller country, with "good" conections to some of the older colonies.. As UK where the Queen still are the nominal Head of State for more than 30 independed nations even today.. Or they can breake down totaly, like it did with the Roman Empire, who first in the 1800s was making Italy an independed whole nation... Or most other empires who have ruled large areas.. Every empire have had their "bang", and then fade away.. The lucky ones managed to stay afloat and to be current, as many of the europeans country have managed to do.. But others, have not been that lucky..

I hope US wil not go the way of the Roman Empire.. Even tho most americans would deny they are a Empire, in fact many of them, wil claim that since US was an colony itself, it can't be a empire itself, it IS an empire.. I hope US can manage somehow, to get down from the "we have to spend money on Weapons regardness of what else" to a place, where america can be trusted again, as a partner.. US is still a country who have a lot to give to the rest of the world.. You don't need to police the world as under the cold war.. If you don't have the money, don't spend it.. It's a old word of wice from my old folks.. And it still works, and can also work for nations.. Don't spend more money than you have... Even try to spend a little less than you actually have, so you can spend some of it to something you want/need in the future..

The World need US to counter the rest of the big players.. But we do not need a economical canibal who wil try to starv everyone so a elite can get enough money.. Sooner or later the reality wil came down to most americans, that the reality is that most peopole wil never be millionars or billionars.. You might be grown up to the fantacy, thast with some extra work, everyone can be rich.. But the fact is, as we in europe have understand it for eons.. Most peopole wil never be rich, maybe little better off than your parents, but rich is for the few.. Most of us, wil manage to live our life in some degree of wealth, but never rich.. Maybe pay down our house and then live long enough to enjoy it all..

I hope US can get out of Iraq, and Afghanistan (I hope Nato wil manage to get out of Afghanistan all togheter in a few years time)and that NATO wil again be a alliance who are intended to defend their core interest.. Not to play The US tool box when needed.. And then told to shut up as they was told when GWB was in power. Something most NATO members (with the exceptions of the new members from 2000 forward) was not to pleased to hear.. And some even told it public.. As germany did when Rumsfelds was told he was lying by then defence Minister Fisher.. Something the old hawk was Not Pleased to hear..

US are in deep economical troubles, and I do not know how to even start to fix the troubles.. If you had slashed the Pentagon budget with 50 percent, most of the economial troubles would maybe be better off.. Or at 15-25 percent.. For the foresable future.. Military spending is by its nature wastefull. And some of the programs the Pentagon have, is indeed wastefull with doubtfull useable for the rest of the country..

Diclotican

[sce56]

4. Evening Kick

[democracy1st]

5. kick

[Keith Bee]

6. Yes indeed

[The Wizard]

7. The road to empire

is paved with failed republics that were bankrupted by foreign military adventures.

[NorthCarolina]

8. K&R