Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Redefining Political Economy, Globalization & Business Models Consequent on Corona Virus Pandemics - 9th Apr 20
Plus500 Rreview - 9th Apr 20
Gold Price Closely Tracks Debt-to-GDP Ratio - 9th Apr 20
Gold, Silver and Rigged Market Socialism - 9th Apr 20
Going to School in Lockdown Britain, Dobcroft Sheffield - 9th Apr 20
Amazon Face Masks to Protect Against Covid-19 Viral Particles N95, FPP2, PM2.5, for Kids and Adults - 9th Apr 20
Is Natural Gas Price Ready For An April Rally? - 8th Apr 20
Market Predictions And The Business Implications - 8th Apr 20
When Will UK Coronavirus Crisis Imrpove - Infections and Deaths Trend Trajectory Analysis - 8th Apr 20
BBC Newsnight Focuses on Tory Leadership Whilst Boris Johnson Fights for his Life! - 8th Apr 20
The Big Short Guides us to What is Next for the Stock Market - 8th Apr 20
USD Index Sheds Light on the Upcoming Gold Move - 8th Apr 20
The Post CoronaVirus New Normal - 8th Apr 20
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Cut the Debt by Ending the Empire - Bring the Legions Home

Politics / US Politics Oct 05, 2013 - 10:34 AM GMT

By: LewRockwell

Politics

Eric Margolis writes: NEW YORK – “Banana Republicans,” sneered the Democrat’s leader, Senator Harry Reid. It’s not certain if Reid was comparing his conservative Republican opponents to monkeys or citizens of a Central American banana republic.

Either way, Reid’s nasty remark captured the bitter animosity surging through the US Congress as the mighty United States faces running out of money on 18 October.


Legislators in the House and Senate are at one another’s throats. President Barack Obama blames conservative “tea party” Republicans for trying to defund his signature health care legislation, and for opposing a raising of the US national debt ceiling – meaning Washington’s ability to borrow more money.

Christine Lagarde, head of the IMF, warns of a possible US default in which it fails to make good on its outstanding bonds. This would be financial nuclear war: world markets would go into panic and banks would face runs or collapse. The 2008 crash would look puny by comparison.

If Congress does not approve raising the debt ceiling, now at $16,699 trillion, the government will supposedly grind to a halt. Over 100,000 non-essential workers have already been temporarily laid off. We are told the US faces financial Armageddon.

Wait just a minute. But this time, they are speaking sense. Someone has to put a foot on the nation’s financial breaks. At least they have the guts to do what mainstream politicians do not: oppose the financial, military-industrial complexes and say no to ever bigger government.

America has got to clean up its dire financial mess. The 2008 crash was a warning. The United States has become deeply addicted to debt at all levels. The nation’s leading industry is now finance which keeps further addicting the country to the opiate of borrowed money.

The latest example of this fatal addiction was the failed attempt by the Federal Reserve to slow and then end what is euphemistically called “quantitative easing(QE)” – printing more and more money, then injecting it into the economy as a form of financial amphetamine.

This sleazy financial ploy, a usual recourse of bankrupt Third World countries, gives stock markets a phony boost. But the effort last month by the Fed to slow down QE caused a near panic on markets and was quickly abandoned. The temporary cure has become addictive.

The Tea Party rebels are telling the country that its bloated, corrupted finances have to be reined in. The deficit is caused by Washington spending far more than it collects in taxes. So spending must be slashed to bring it into line with revenue, and maybe taxes raised as well.

Military spending is the obvious target. The US accounts for almost half of the world’s total military expenditure. America’s close allies in Europe and Asia make up another 25%. The United States has no serious strategic enemies that can be identified.

The Pentagon’s annual budget, close to $1 trillion with foreign wars and black programs included, is not for defense of North America but designed to impose US military domination over large parts of the globe. But the US tax base cannot support such global ambitions – even when the cost is obscured by borrowed money. The wars in Iraq and Afghanistan were both wages on borrowed money.

Just as Europe has been undergoing the agonies of cutting spending, so must the US take bitter medicine. Its absurd tax code must be rationalized and made fair by cutting all loopholes. Farm subsidies and special benefits for ethnic minorities dropped. Wall Street, which has virtually taken over the government, must be curbed.

In 2007, the national debt stood at 36% of gross domestic product. Six years later, it’s now 75%. The US is fast bankrupting itself. Only the money-lenders and their corrupt politicians they own will benefit.

Break our addiction to debt demand the tea party stalwarts. Break our addiction to war add libertarians. Between unstoppable debt and endless wars we are being driven to ruin.

Will this happen? Not likely. Some fancy way will be found around the debt ceiling issue and the chariot of the borrowed money juggernaut will keep rolling on.

Eric Margolis [send him mail] is contributing foreign editor for Sun National Media Canada. He is the author of War at the Top of the World and the new book, American Raj: Liberation or Domination?: Resolving the Conflict Between the West and the Muslim World. See his website.

Copyright © 2013 Eric Margolis

http://www.lewrockwell.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules