The REAL story on the Debt Ceiling deal
The liberal media is crowing about some kind of "victory" on the debt ceiling deal.
Of course McConnell and Boehner agreed to raise the debt ceiling without pre-conditions.
Since when did they do anything against large Corporate interests?
ALL major policies by both parties are designed to further the Corporate Takeover of America and are against the interests of the American economy and over 99% of Americans.
BOTH parties agree on the following major policies:-
$1.3tn of annual Corporate Welfare.
Astronomical levels of military spending (higher than Bush).
TPP & TAFTA "trade" deals which are designed to subjugate National Sovereignty in favor of large Corporate interests.
NSA mass surveillance and the gradual erosion of civil rights as defined in the Bill of Rights (not much is left) - designed for domestic control and to suppress domestic political dissent.
Quantitative Easing which gives free money to the big banks to bail them out & give them more money for speculation which increases inflation.
$1tn has also been loaned to the ECB to bail out Europe's banks.
The current financial and monetary system, designed to enrich financial elites at the expense of the rest.
The nett effect is to enrich the top crony 0.1% at the expense of the rest - the middle class is getting wiped out and there is very high real unemployment.
Current policies will lead to massive debts - deficits of over $3tn a year and a National Debt of over $40tn by 2023.
It will lead to the US Dollar losing Reserve status, which will cause economic carnage.
America's problems are easy to fix.
Neither party is remotely interested in fixing them.
It would hurt the profits of their large Corporate donors.
Major Policies
Corporate Welfare
The continuation of the spending of over $1.3tn a year on Corporate Welfare.
This continues the trend of enriching the the top 0.1% cronies while impoverishing the rest.
It has a devastating effect on the U.S. economy and the living standards of over 95% of Americans.
http://ian56.blogspot.com/2013/10/the-disastrous-fiscal-cliff-backroom.html
Foreign Policy and War
America's Foreign Policy is specifically designed to create more hatred, war and conflict around the world.
This increases global arms spending, to the benefit of the arms companies.
It also benefits the banks as it leads to higher deficits.
The American government is now spending $1.2tn a year on the military or 8% of GDP.
For comparison China is only spending 2% on it's military or just over $100bn a year on it's million strong army that is mostly used for domestic control.
Obama is now spending more on the military than even Bush did.
Arms Spending
http://ian56.blogspot.com/2013/10/in-light-of-current-debt-crisis-who.html
Drones
The drone warfare program is specifically designed to recruit more Islamic Extremists and Terrorists
Witness Malala's recent comments to Obama in the White House and the Yemeni testimony to Congress in April 2013.
http://ian56.blogspot.com/2013/07/the-purpose-of-drone-warfare-program-is.html
Trans Pacific Partnership deal (TPP)
This deal currently being negotiated in secret between 12 Pacific Rim countries is specifically designed to further the interests of crony Corporations at the expense of National Sovereignty and America's economy.
The Trans-Pacific Partnership: The Most Sinister Corporate Power Grab Yet
http://ian56.blogspot.com/2013/10/the-trans-pacific-partnership.html
Only 5 of the 29 clauses in TPP are actually about trade.
The rest are about enhancing Corporate profits and power.
It is also about restricting communications and the information available on the internet.
A similar deal to enhance Corporate power is also being negotiated between the U.S. and Europe - it's called TAFTA.
http://www.globalresearch.ca/the-us-eu-transatlantic-free-trade-agreement-tafta-big-business-corporate-power-grab/5352885
NSA Mass Surveillance and civil rights
The REAL purpose of NSA Mass Surveillance is to undermine democracy in America & the West to promote the interests of large crony Corporations
http://ian56.blogspot.com/2013/09/the-primary-purpose-of-nsas-mass.html
America is tearing down all the laws that protect it's citizens (the Bill of Rights) in a so called pursuit of some mythical devil, the American government itself has promulgated - Islamic Terrorism.
In reality the laws are being torn down to subjugate Americans themselves.
At some point in the future the government is expecting some push back from ordinary Americans in the form of mass demonstrations as a result of their continuing impoverishment - similar, but more intense, to the protests that have already started in Greece, Spain, Italy and Portugal.
http://ian56.blogspot.com/2012/11/obamas-civil-rights-violations.html
Quantitative Easing
This gives free money to the big banks to bail out their insolvent balance sheets and increase their profits from speculation, at the expense of higher inflation, lower GDP growth, higher unemployment and the impoverishment of 99% of Americans.
This money is also being used to bail out the 500+ insolvent European banks (about $1tn so far - around another $20tn is required in Europe to bail out all their insolvent banks and governments).
At some point in the future the Federal Reserve private bank will ask U.S. taxpayers (via the Treasury) to pay for the Federal Reserve's multi trillion dollar losses that they are sure to accrue from their policies.
http://ian56.blogspot.com/2013/02/there-is-no-way-out-for-federal-reserve.html
How Quantitative Easing raises inflation and lowers GDP growth.
(There is still a billion or so over supply of people in the global labor market as a result of globalization, so Western wages are more or less stagnant, hiding most of the inflationary effects.)
http://ian56.blogspot.com/2013/01/the-2tn-of-excess-bank-reserves-is.html
There are still a billion or so over supply of people in the global labor market as a result of globalization, so Western wages are more or less stagnant, hiding most of the inflationary effects - for the time being.
http://ian56.blogspot.com/2013/01/a-global-economic-summary-why-paul.html
The Monetary System that has been in place since 1913
This system was set up so the big banks could charge interest on the money the government borrowed. (Instead of the government issuing it's own money for it's borrowings at zero interest as was previously the case and could become the system again.)
The Income Tax was also set up in 1913 as the means for the government to raise the revenues required to pay this interest.
The biggest scam in the history of mankind
What Everybody Needs to Know About the Federal Reserve private bank
http://ian56.blogspot.com/2013/07/what-every-student-and-citizen-in.html
Superb educational video of how the world & politics really work
http://ian56.blogspot.com/2013/03/connecting-dots-this-guy-is-awesome-at.html
The NETT Result of these Major policies
The Nett result of these policies is the impoverishment of the American people, the enrichment of the crony top 0.1% and the relative decline in America's wealth, economy and power.
Household median incomes are now back to 1995 levels and rapidly falling.
When there was REAL economic growth in America in the 1950's and 1960's and there were low government deficits and little money supply expansion, EVERYBODY'S income and standard of living rose dramatically.
When economic growth is fuelled by an exponential rise in debts and money supply expansion (as from circa 1980) only the rich benefit.
The total amount of debt (the total money supply) rose from about $6tn in 1980 to $68tn in 2007.
Total money supply 1970 to 2012
While the Federal Reserve continues to pump out $1tn of new money a year, inflation of the money supply has "stopped working".
The government is still borrowing heavily, but people and Corporations are not - bank loan books are not increasing exponentially as they did in the past.
Real median wages are declining rapidly in the West.
In America they are now back below the level of 1970.
Real wages are at record lows, while Corporate profits are at record highs
The top 1%'s share of national income is at highs not seen since the late 1920's
There is no longer any control over Executive Pay.
This steals corporate profits from the owners of companies - owners like pension funds of ordinary people and investment funds.
Real Unemployment is Very High
The headline number reported in the media is 7.3%.
U6 unemployment is at 14%
This includes people who can no longer claim unemployment but want to work and part time workers that want full time work
http://www.shadowstats.com/alternate_data/unemployment-charts
REAL unemployment is at 23% - this includes people that have given up looking for work because well paid jobs are just not available.
They would work (in a decent paying job) if they could.
Most of the jobs that have been created during Obama's first term are low paid or part time jobs.
http://www.nytimes.com/2012/08/31/business/majority-of-new-jobs-pay-low-wages-study-finds.html?_r=0
Real Inflation is dramatically under stated in official numbers
Real CPI is now at 9% using 1980 models - not the official 2%.
If we use the inflation models that were in place in 1990, the current inflation rate is about 6%.
The truth is probably somewhere between 6% and 9% or at least 3 times higher than the reported official numbers.
All governments lie about the true rate of inflation - it makes them look better.
The American government just lies more than most with their hedonic adjustments etc.
America's lost decade
The number of people on Food Stamps is now 47 million or nearly 1 in 6 of the population.
One child in four is now in a Household claiming Food Stamps.
http://ian56.blogspot.co.uk/2012/11/the-number-of-people-on-food-stamps.html
The Medium Term Future
(With current policies)
A huge increase in government spending, deficits and the National Debt
By 2023 :-
Spending is expected to be around $6tn a year
The deficit will be $3tn+ a year
The National Debt will be $40tn+ or 250% of GDP
The Replacement of the US Dollar as the Global Reserve Currency
China is already working on plans for this, in an economic coalition with the BRICS
When the dollar loses it's reserve status it's value will halve within a short while, causing the price of all imports to double.
Wages in America will remain roughly static - there will still be an over supply of basic labor.This will cause economic carnage - Americans will no longer be able to afford to buy imported goods.
History is littered with examples of a country's currency halving in value in a short period of time.
It has always caused high price inflation, mass unemployment, mass poverty and economic carnage.
Other countries will no longer accept payment for their goods (imports) in increasingly worthless US Dollars - they will demand payment in Gold or some other hard asset (e.g. America's oil reserves longer term).
The current circa $600bn trade deficit that America currently has with the rest of the world, will have to adjust to zero within a short period - America does not have enough Gold to run a trade deficit for very long.
If the government continues to live beyond it's means and the Federal Reserve's printing presses continue to roll, there will be hyper inflation - as per the recent case of Zimbabwe and the case of the Weimer Republic after WW1.
So basically the U.S. government can choose to live within it's means now, to prevent the loss of Reserve Status, or it will be forced to do so after the rest of the American economy has been devastated.
The above chart drastically under states America's rapid decline, the estimates are from 2009.
America's share of global GDP was already down to 21.5% at the end of 2011. Read more at :-
So why isn't the media actively engaged in questioning the government and raising all these problems?
The Corporate owned media is part of the same Corporate controlled system.
It is relatively easy to solve ALL of America's problems
Neither party is remotely interested in solving anything, it would harm the profits of their large Corporate sponsors, at least in the short term.
These are the steps that need to be taken.
Start by :-
cutting $1.3tn a year of Corporate Welfare
lowering taxes on the lower paid
lowering taxes on small and medium sized businesses
get bottom up spending again
get recruitment going again
Reinstate the Bill of Rights.
Reinstate the Rule of Law on large Corporations and wealthy elites.
Break up the Corporate cartels.
End the Federal Reserve system.
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