The Nonsense battle over the "debt ceiling"

I’ll discuss the criminal bond rating agencies in Part 2 below.

First, let’s look behind the scenes of this “budget crisis” charade…

PART 1

Obama and the Republicans both want to slash social programs, because both want the favor of Wall Street. They’re like two military commanders who fight a common enemy (i.e. the US masses) but disagree over how to destroy the enemy.
 
The debt ceiling has been raised many times in order to facilitate drastic increases in military spending, drastic tax cuts for the wealthy, and drastic bailouts of Wall Street gamblers. Since 2000 the USA has accumulated nearly as much debt as the USA’s gross domestic product ($14.3 trillion). None of that debt has come from “entitlement” programs, since those programs are funded by taxes deducted from paychecks. All the debt has all come from the wars, the bailouts, and the tax cuts for the rich.
 
Now – suddenly – Obama and the Republicans both claim that the debt ceiling will reach a “crisis” by August 2nd unless social programs are cut.
 
Republicans want to cut social programs by $2.4 trillion, in order to score points with Wall Street against Obama. However Obama outflanked them by demanding a $4 trillion cut in social programs, thereby becoming more Republican than the Republicans. Obama praises Ronald Reagan, and wants to slash Social Security benefits, despite the fact that Social Security contributes nothing to the debt or the deficit.
 
Hence Obama has usurped the Republican agenda, and won Wall Street’s favor. That’s why Republicans are angry with him. (It’s also why Obama will be re-elected.) Wall Street contributors have promised more than twice the money for Obama’s reelection campaign than they have promised for all Republican candidates combined. You can see why Republicans are pissed.
 
To make the masses accept his $4 trillion cut in social programs (“change we can deceive in”) Obama has proposed new taxes on the wealthy -- which is a total sham. The suggested tax revenue to be collected from the wealthy will be only $1 trillion, leaving $3 trillion that Obama will cut from social programs. Further, the purported $1 trillion new taxes on the wealthy will not come from higher tax rates, but from narrowing tax loopholes for large corporations. This will not cost corporations one penny, nor will it bring one penny of revenue to the government, since Obama will cut tax rates for those same corporations even lower than they are now. (Many corporations already pay less than zero taxes.) Obama will close the loopholes, but lower the tax rates. He is even proposing a “tax holiday” for corporations so they can transfer trillions of their financial reserves from overseas banks to the USA without being taxed.
 
The plutocracy regards the closing of tax loopholes as a trivial inconvenience. They like Obama’s plan to cut $4 trillion from social programs. Obama is winning. His re-election is assured.
 
So why does he seem testy?  Why, for example, did Obama angrily walk out of a meeting with Republican leaders on 13 July when the discussion to raise the debt ceiling broke down? Lashing out at the House Majority Leader Eric Cantor (R-VA) [an ultra-militant Jew], Obama said, “don’t call my bluff,” adding that he would veto any short-term bill that Cantor sent him.
 
Obama is angry because he must not only please Wall Street, but also trick the masses into accepting a $3 trillion cut in social programs. Obama’s fake tax increases on the wealthy are central to his lie. However Tea Party elements of the Republican Party oppose any change in taxation, even fake changes, and are thus depriving Obama of his camouflage. Obama has Wall Street, but he is worried about the masses, who might wake up to his game. That’s why Obama is angry with the Republicans. 
 
Meanwhile military spending continues to set records year after year, while the media plays its part by falsely scaring the masses about this “looming debt crisis.”
 
So the choice is between Republicans, who want $2.4 trillion cut from social programs, and Obama, who wants to cut $4 trillion. Obama’s evil is almost twice that of Republican evil, yet average Americans continue to see Obama as the lesser of two evils. The media advances this lie because Obama is Wall Street’s boy, and Wall Street owns the media.
 
PART 2
 
To help fuel the fake hype over this “debt crisis,” the corrupt bond rating agencies have threatened to downgrade US Treasury bonds if the White House and Congress do not reach a deficit reduction deal and debt ceiling increase by August 2nd. 

This is a lie, as are the “budget crisis” and “debt crisis.” The purpose of these lies is to force cutbacks in Medicare, Medicaid, and Social Security.
 
The ratings agencies would be destroyed if they were ever to downgrade US Treasuries as they falsely threatened to do. Their executives would be arrested for having fraudulently upgraded the ratings of worthless derivatives and securities that Wall Street peddled to the rest of the world.
 
The US government will never default on its bonds, because the bonds, unlike those of Greece, Spain, and Ireland, are payable in US currency. No matter what happens, the Federal Reserve will continue to purchase the Treasury’s debt.  If Goldman Sachs is too big to fail, then so is the US government.
 
Social Security is solvent.  It does not add one penny to the national debt, since Social Security money is not borrowed. It is deducted from paychecks. Money for Medicare is also deducted from paychecks (2.3 percent of every paycheck). Medicare expenditures are coming close to exceeding the tax revenue coming in, but politicians and pundits are lying when they blame the US budget deficit on “entitlement programs.”
 
The deficit is caused by the wars, the Pentagon, the bailouts, and the tax cuts for the wealthy. The total military / security budget is $1.2 trillion, which constitutes three fourths of the federal budget deficit, and at least $4 trillion of the national debt.
 
“Entitlements” (e.g. Social Security) are funded by payroll taxes. By contrast, wars and bailouts are funded by borrowing, i.e. debt. To continue this evil, the government wants the American masses to pay via slashed social programs.  
 
The Bush regime told Americans that the Iraq war would cost $70 billion at most, and would be paid for with Iraq oil revenues. When Bush’s chief economic advisor, Larry Lindsay, said the war would cost $200 billion, Bush fired him. Now the war has cost $4 trillion – so far.  This means that ongoing wars and occupations have already eaten up the $4 trillion that Obama wants to cut from social programs.
 
The way to get the budget under control is to stop the endless wars -- wars that will sooner or later end in a nuclear confrontation.
 
Recovery from this Depression is not possible, since American jobs have been given to foreign sweat shops.  Our GDP, consumer purchasing power, and the tax base have been sent abroad, in order to boost the profits of Wall Street, shareholders, and corporate CEOs.
 
When goods and services produced offshore come back into America, they arrive as imports. This worsens the trade balance, weakens the dollar’s exchange value, and causes consumer prices to rise higher for impoverished Americans. 
 
The US economy is driven by consumer demand, but there is no longer any demand. We have mass unemployment, declining wages, and consumer debt burdens so high that consumers cannot borrow to spend. There is nothing to drive the economy. We are dying.
 
Washington’s response is to accelerate our death via increased military spending, slashed social spending, and slashed taxes for the rich.  Cutting Medicare, Medicaid, and Social Security, forcing down wages by destroying unions and by offshoring jobs (which causes a labor surplus and lower wages), and driving up the prices of food and energy by depreciating the dollar further erodes consumer purchasing power. 
 
The Federal Reserve can print money to rescue the criminal financial institutions, but it cannot rescue the American consumer.
 
Even Obama’s “deficit reduction” is a lie.  If Obama gets his $4 trillion “deficit reduction.” it does not mean that the current national debt will be $4 trillion less.  The “reduction” simply means that the growth in the national debt will be $4 trillion less than otherwise.  The national debt will continue to explode, regardless, because of the off-shoring, the endless wars, the endless bailouts of Wall Street, and the ever-bigger tax cuts for corporations and the wealthy.
 
Part 3
 
All nations and empires become doomed when a financial oligarchy seizes control of government.
 
Here’s how it works…
 
When moneyed interests take control, the government maximizes short-term profits for the rich at the expense of the nation’s economy. This impoverishes the masses, which delights the rich – but it also debases the nation’s currency abroad, and its social contract at home. The Ship of State starts to sink. When the Ship becomes half submerged, denial no longer works. The rich start grabbing all the food and supplies, all the lifeboats, the life vests – everything.  They deprive the ship’s passengers of the means to keep the ship afloat. This causes the ship to sink even faster, which causes the rich to grab even more. The rich also send out ordinary passengers as pirates (that is, the rich start endless wars of conquest), but the ship continues to sink.  Many of the regular passengers (i.e. those in the media, the military, and elsewhere) champion the rich, thereby hastening the ship’s doom.
 
Then we all drown. 
 
Passengers on the ship are divided into [1] the rich, [2] myriad servants of the rich – e.g. politicians, media pundits, and so on [3] the general masses who sit and stare at the rising water, and [4] those of us -- e.g. WUFYS -- who call out, “We must work together, or we are all doomed!”
 
It was the same way when the Sumerian Empire died, the Roman Empire, the Egyptian Empire – all empires fall when the rich take control. Always there are voices that sound the alarm, but always they are ignored. It’s the way of mankind. As nature has a food chain, so does human society. When predators at the top consume everything, the system collapses.

1.  The banks can give back the nearly 1 trillion they got during the "bailout". 

2.  Axe the FED and start printing interest free money.

3.  Cut off Israel's welfare

4.  Defense budget only for defense of the US, not for phony wars.

5.  High tariffs on products from any company that sends jobs overseas

Won't happen, though