So let me get this straight.
This country has a gigantic debt problem which is contributing to a massive annual budget deficit. The interest on the national debt takes about 10% of our annual tax and other revenues. Our national politicians have never done much about it other than to keep raising the debt ceiling and increasing the deficit. But now we’re being told our very existence is at stake if we don’t take drastic measures to decrease the budget deficit by taking on more debt and choking money out of our entitlement and income security programs so we can slow down the increase of our debt.
We’re told that President Obama and the Republicans led by John Boehner are playing a game of poker (folding, uping the ante, cards on the table, etc.) The Republicans want at least $2 trillion in spending cuts from our national budget over the next ten years or they won’t vote to authorize raising the current $14.294 trillion debt ceiling, which is limited by law. If the debt ceiling isn’t raised the government may have to default on it’s debt and shut down the government. The debt ceiling was reached on May 16th but Treasury Secretary Geithner is taking “extraordinary measures” to buy time and set a date of August 2nd for when those extraordinary measures would run their course. Extraordinary measures of course include stealing (I mean borrowing) money from programs such as Social Security, Medicare and the Federal Pension program.
Boehner and Obama did what elite Americans do when negotiating deals, they went to the golf course. That didn’t seem to do a lot of good, maybe they should go again. I’m sure their games need the work.
It seems everyone agrees it needs to be done, this reducing of our deficit so we can get debt under control. The lemmings of course are buying into it. But the devil is in the details, particularly with the entitlement programs of Social Security and Medicare, programs American citizens are entitled to based on money they pay into the systems.
The budget (for FY 2012) of the U.S. is approximately $3.7 trillion. Revenues taken in are approximately 2.2 trillion leaving a current budget deficit of approximately $1.5 trillion. Of that, approximately $2.4 trillion is for mandatory or non-discretionary spending and $1.3 trillion for discretionary spending. The mandatory spending includes Social Security, Medicare, Medicaid, Income Security programs, and the interest on the National Debt. Discretionary spending includes the budget for all federal agencies including the massive budget for the Department of Defense and all associated security and intelligence programs that keep us safe from Terrorists.
Let’s do the math: the proposal that will probably win the poker game is a $2 trillion dollar reduction package over ten years. That’s $200 billion per year. Assuming the deficit stays at $1.3 trillion or more, considering the $200 billion annual reduction, the ten year deficit, added to the current $16 trillion plus (after they raise the debt ceiling) would still add up to about $13 trillion. Therefore in ten years the national debt would be about $29 trillion notwithstanding future additional outlays.
Put bluntly, this poker game ain’t shit. It will do virtually nothing in the scheme of things to change our deficit or debt problems. The whole thing appears to be a scam to start the ball rolling on reducing our entitlement programs. A bipartisan approach as directed by the national and international central bankers to take down the domestic programs of this country just as is being done in other western countries.
Look what they’re trying to do. The discretionary budget is hard to reduce unless DOD, Security and Intelligence are cut and they’re aren’t going to do that. Total non-defense, security and intelligence budgets are in the neighborhood of $400 billion and they’ve been continually cut for the last twenty years. The percentage that can be cut at this point is very small. They can’t cut the interest on the national debt (approximately $260 billion) because the bankers run the place. That leaves Social Security ($720 billion), Medicare ($460 billion), Medicaid ($275 billion), and the Income Security programs ($580 billion), totaling about $2 trillion per year. Where else are they going to cut if they don’t cut Defense, Security, and Intelligence programs?
The Social Security and Medicare programs take in revenue via taxes, which is why they’re called “Entitlement” programs. Citizens are entitled to those benefits because they paid taxes to receive them. Both programs run relatively small deficits and could use tweaking, but certainly aren’t the primary reason for the budget deficit and definitely not the reason for the large national debt. The only reason the oligarchy is trying to go after these programs is to eventually privatize the programs and increase the wealth of the ruling elite. There is no other reason because the citizens pay taxes that pay for these programs.
We’re not sure yet what the $2-4 trillion dollar package that will be agreed upon by our democratic political representatives will include. But it has to include major cuts to the “Income Security Programs” or the “Entitlements programs” or both because there just isn’t room for enough reductions without including defense, security, and intelligence programs. Those programs are estimated to be as much as $1.2 to 1.5 trillion per year, as much or more than Social Security, Medicare, and Medicaid combined.
We have a huge problem with the national budget. The national debt is another thing. We a lot of money but who do we owe it to? The Constitution of the United States does not mention that this country must borrow money at interest from private individuals in order to run this country. But that is what we do.
Unlike most countries, federal law requires Congress to authorize the government to borrow any money that is needed to pay for the programs Congress has passed. As the national debt has grown, the Treasury has periodically bumped against the debt limit or debt ceiling, as it is doing now.
The Federal Reserve System has to go. It is a private bank run by private investors. American citizens can’t even get in on the deal.
The Federal Reserve Act stipulates that the stock of the Federal Reserve Banks cannot be bought or sold on any stock exchange. It is passed on by inheritance as the fortune of the “big rich”. Almost half of the owners of Federal Reserve Bank stock are not Americans.
The Empire has to go as well. This country is not spending $1.2 to 1.5 trillion per year to keep citizens safe from terrorists, that is a big lie. This country is a military Empire just as the Roman Empire. And just as the Roman Empire, this country as we know it is going to go down if we don’t stop U.S. imperialism. The overall welfare of the citizens of this country is going to continue to plummet if we don’t stop this inane human madness.
The entire discussion of what cuts to make and how to bring the national debt and budget deficit under control is missing the point. The two major problems facing the entire planet are what we need to address, the international central banking system and the United States military Empire. If not, the rich will continue to get richer and the poor will continue to increase with no safety nets to help.