‘S & P warned several weeks ago that it could downgrade U.S. debt if a deficit-reduction plan being negotiated by congressional leaders fell short of a $4 trillion, 10-year package. And the $2.1 trillion to $2.4 trillion deal that was eventually brokered fell far short of earlier goals.’
Along with the tax that came from repugnants display of ‘willful blindness’ or imbecility in stonewalling ‘new taxes’ during the protracted posturing that resulted in the credit rating downgrade-caused higher bond interest rate and pass-along to businesses and individuals as higher borrowing costs, the criminal social safety net cuts impaling the least of our People with lowered Quality of life and shortened Longevity, the continued criminal levels of militarist spending, the continued corporatist welfare to the upper class whose sole greed interest in profits is justification of keeping trillions of dollars out of the economy to put people to work, the fifty corporations formerly known as States have been set along a path to steeper, more frequent, more pervasive collapse.
The Results of the Sell-out to Raise Debt Ceiling and it’s wake of downgrading U.S. debt:
° The underclass, meet your overclass: the children you elected, their financial, elitist bankster underwriters own you completely, representing not the People, only representing the one-tenth of one percent of the U.S. population comprised of the 400 ruling oligarchs and 16 corporations that control you and their socialized economy. You are fooled again by these ruling circles privatizing losses and socializing profiteering for themselves.
°Six wars and 1000 militarist U.S. bases. The military’s economic control is not to be questioned in subjugating People at home and around the world. Certainly not by the cowed, seduced by consumerist desire, sedated by Big Pharmaceutical, dumbed down by mainstream media, made sick by the health-care-is-a-profiteering-privilege, not-a-Right healthcare industry, and made sicker and infertile by monsanto, the uranium/nuclear industry and other genetically-modified organisms. This military omnipotence serves only for their own profiteering for, by, and of one-tenth of one percent. Toxic and contaminated air, water and soil are the results.
°post peak oil + wall street allowed to speculate with 10% not 100% leverage + us foreign policy of greed, oppression and violence + us war machine + us fed printing trillions of worthless dollars + climate disruptions + the world stops paying the bil for the us war machine + china cashes out it’s bonds in us dollars = h-y-p-e-r-i-n-f-l-a-t-i-o-n !
http://cnsnews.com/sites/default/files/imagecache/medium/images/OBAMA%20TOAST%20HU-WHITE%20HOUSE.jpg image blocked by firedoglake is found at: China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills Friday, June 03, 2011 By Terence P. Jeffrey
An alternative (as of today yet not determined) to the U.S. dollar as the world monetary reserve currency – has been floated by goldman sach’s (er – U.S. plutocratic government’s) Tim Geithner to the Chinese.
‘At the end of March 2011, by which time the Chinese had dropped their Treasury bill holdings 97 percent from their peak, the publicly marketable segment of the U.S. national debt had almost doubled from August 2008, hitting $9.11 trillion. Of that $9.11 trillion, $5.8 trillion was in intermediate-term Treasury notes, $1.7 trillion was in short-term Treasury bills; $931.5 billion was in long-term Treasury bonds, and $640.7 billion was in TIPS (Treasury Inflation-Protected Securities).’
This is it! All Fall Down. Dumping the dollar by China is part of the bilderberg script to set a new world currency divorced from the dollar’s acceleration toward hyperinflation – we have to have each other through an indefinite difficult Revolutionary period. You can not eat precious metals…
China has, in effect defaulted on the U.S. debt. The only-corporatist-representing (not People) U.S. congress has no choice in the matter so the August 2, 2011 deadline to raise the debt limit is made moot by China’s initiative for a new global reserve currency completely ‘unhitched’ from the dollar.
Once fait accompli – some accurately predicted by April 2011 to coincide with China’s dollar dumping – the worthless U.S. fiat paper currency will experience a logarithmic increase in inflation – hyperinflation – and exact a devastating toll on the civil order – the upside is that with no way to finance the U.S. military installations around the world – a profoundly shrunken, retrenched U.S. military will result, since China divested itself of reliance on the dollar: the World is tired of Paying the Bill for the U.S. Military.
Shrunken U.S. militarist spending including cutting out the stealth and black-ops budgets will balance the greatly scaled down U.S. budget! Stopping the profiteering U.S. military spending will balance the budget without the billionaire class shredding our social fabric.
Wars on war, wars on terror, secret wars, drone wars, wars on al-Qaeda – an known, but virtual CIA asset database, a war on drugs, a war on workers, a war on the environment, after a few hundred wars, why, pretty soon, you’re talking about serious, real U.S. empire collapse and species Mass Extinction!
Economist Michael Hudson in this video World Tired of Paying Bill for U.S. Military at 7:20 puts it succinctly: foreign payment of U.S. debt is at the end – and who is expected to finance U.S. debt? The U.S. worker. The U.S. worker who has seen their middle class standing removed by cascading bubbles collapse and human rights reversed. Right-to-work states replace right-to-strike states. No one can make ends meet. The billionaire class is ratcheting down 99.9% of the populous. So the sequence will be played out by scattered outbreaks underway of the world Peoples Revolt spreading, taking hold and toppling the U.S. government – already scheduled by the repugnant-controlled House of Corporations, er House of Representatives (not the Peoples’ House these days) bristling with threats to shut down the federal government from March 4, April 8, April 14 and now the debt ceiling deadline of May 16, 2011 and August 2, 2011. This debt ceiling ‘raising’ charade is only good until after the November 2012 elections.
Theoretically, under a full government shut down, all federal-issued benefits will stop: Unemployment benefits, Food Stamps to 43 million Americans, Social Security Benefits returning the tax-payer’s much needed own earnings, all Section 8 rental vouchers for the poor, U.S. Military men and women veterans and currently serving with many in combat – truly a military garrison separated from society, their families and loved ones. With no fare home. U.S. government seduction and sedation of it’s populous, once ceased, will unleash waves of uprisings and revolts.
Either from continuing high inflation leading to hyperinflation or from a cessation of government-provided wages or benefits, a Revolution is overdue and coming. FEMA camps and ‘fusion centers’ will be overwhelmed with martial law being declared. it simply gets worse before it gets worse in the collapsed U.S. empire. Now add the factor of a softened and weakened populace from years of lethal, radioactive carcinogenic isotopes spewing from Fukushima’s 6 reactor set – eclipsing Chernobyl to a footnote. Not one million but at least a magnitude higher. 10 million would low ball the number of fatalities over the next 25 years from this bilderberg operation.
Better to have a government afraid of you rather you cowering before the government.
The dollar is now ‘programmed’ to disappear as a fiat world reserve. Relocalized currencies in a relocalized, balkanized U.S. will take up the vacuum. The U.S. federal reserve will end it’s 100 year plus run as a private institution profiteering by selling debt to the U.S. government. The fed will effectively end or continue as smaller, region-wide state-owned bank insurers of deposit-holders.
Worldwide, more reliance will be on the Chinese yuan Renminbi and the euro dollar against the backdrop of an experimental global currency brought into the financial markets. It seems regional currencies like the yuan and the euro dollar will play a larger role than when the dollar was the world currency.
‘It is simply BECAUSE you cannot eat gold, cannot fill your gas tank with gold, etc. that governments will be more concerned about regulating high oil, wheat, and soy prices. If gold has no real benefit to the masses, the political consequences of high gold prices are less significant.
In other words, $20 wheat means blood in the streets. $2,000 gold only makes for pithy headlines, and its significance is easily dismissed when highly regarded sages like Warren Buffet dispute the notion of holding precious metals (never mind he bought oodles of silver in the late 90s).
We’ll talk about this much more on this later, especially why the euro will likely fall first, and how the renimbi will continue to rise as an alternative reserve currency.’
‘OTC markets are the key to reduce carbon emissions and we need more “fiscal consolidation” and “increased transparency” indeed to do it. Otherwise they were watching the straw in the eyes of others, but not the beam in their own eye.
If someone wants to audit the Fed, what will need first is to change the moto and search something banks seems to understand very well: the carbon footprint. And this is a really pretty one:’
Go Green – Audit, Nationalize the Fed!
On April 18, 2011, wall street tanked on news that Standard and Poors ‘lowered the outlook’ for the long-term U.S. debt and the U.S. government bond rating, a downgrading of the AAA debt rating is threatened but was not yet a fait accompli. The debt remains unaddressed and is unsustainable. Rampant hyperinflation is approaching with continued U.S. insistence on being able to pay on it’s debt, quantitative easing, speculation, and war spending.
When in December 2008, 60 Minutes correspondent Lesley Stahl asked Saudi Oil Minister Ali al-Naimi how much it cost Saudi Arabia to produce one barrel of oil, he didn’t blink: “Probably less than $2 to produce a barrel.” If it costs only $2 to produce a barrel of oil, then why do we pay over $105 a barrel?
Wall Street, Big Oil, President Obama, the Fed, environmentalists, the EPA have all been accused of pinching hardworking Americans at the pump.
But there is a much more important player that gets much less attention: OPEC.
The difference between the $2 cost to produce a barrel of oil and the end consumer cost over $105 shows that hyperinflation is already acting on the economy.
Like it or not, the bill for keeping the Persian Gulf monarchies in power is now being footed by every American. Every time we fuel our car we send an extra 35 cents per gallon, or roughly $6 per fill up, to the Save the King Foundation. Since oil goes into everything we buy from food to plastics, this adds about $1,500 annually to the expenditures of the average American family.
Paradoxically, we are forced to fund social programs for other nations at the very same time we are engaged in a heated debate about cutting social services and entitlement programs at home. It is a sad state of affairs that in the 21st century the world’s most strategic commodity is still being controlled by a cartel.
Cartels, by definition, exist to maximize the profits of their members. OPEC members, which last year raked in $1 trillion in oil revenues, are doing that masterfully.
No amount of U.S. drilling or efficiency measures will change that. The cartel’s financial needs will drive it to respond to counter moves by its clients: When we drill more oil at home, OPEC can drill less to return to a tight supply-demand relationship. When we use less, OPEC can drill less.
To change this vexing dynamic, consumers must be able to substitute for petroleum by purchasing competing fuels, like alcohol fuels, biodiesel, natural gas or electricity, if they are less costly on a per mile basis. But as long as our vehicles are able to run on nothing but oil, keeping oil monarchs on their throne will remain our national side job.
Here’s the ruling 400 elite formula at play:
quantitative easing > increased money supply > monetizing the debt = hyperinflation > increasing the debt
‘ALMOST everyone takes it for granted that a failure to raise the debt ceiling will eventually force the United States to default on its Treasury debt. This notion is superficially puzzling. The question is addressed in this week’s issue of The Economist. I’ll dig into it a bit more here.
The federal government now has to borrow about 40 cents of every dollar it spends. A prolonged inability to meet 40% of its obligations would sow economic disarray, trigger litigation, and eventually raise doubts about its ability to meet any obligations. Illinois’s gaping CDS spreads suggest its inability to pay non-interest bills factors into the market’s assessment of its ability to service bond debt. Failure to raise the debt ceiling need not entail default; but it would still ding Uncle Sam’s credit rating.’
Obama – belying all credibility one expects from a nobel peace prize winner, the continuing bush potus Is a bilderberg stooge – six wars – the poor are given Death Sentences while the rich are rewarded for not balancing the budget.
Obama’s ‘compromise’ is coming to ‘unify’ an amerika of spineless democrats and racist repugnants – fact is the duopoly is both racist and spineless – the difference in party label is name only.
For thirty years the democrat has allowed the repugnant spend until the cows come home and be blamed for it. this ‘willful blindness’ political theatre duopolist instruction is given by the illuminati for the simple purpose to enslave. it worked. People have the right to overturn these inequities.
Spineless democrats and racist repugnants opted to spend 40 cents of every dollar on the debt and 50 cents of every dollar on militarism – the voiceless do not have Lobbys – so the deathers and the birthers have given Death Sentences to those dependent on medicare and social security. My estimate of Osama’s continuation in bankrupting the failed U.S. empire is over 10 trillion and growing, Obama’s continued corporate welfare neo-liberal domestic and foreign policies.
Full support of the U.S. war machine represents the U.S. government buy-in of a 10 trillion dollar bankruptcy – a bankrupting that Osama of London promised if the U.S. did not meet his three original demands 1) removal of U.S. military from Saudi Arabia 2) end to the bombing of Iraq and UN sanctions imposed against Iraq after Gulf War I 3) stop all aid to Israel – the first two demands were addressed after Gulf War II…
More than 50 cents on every worthless dollar is misspent of U.S. militarist adventures to secure an unsustainable oil-based economy whether for war or domestic consumption.
The U.S. makes up 4.5% of the world population and has no human right to spend more than that percentage of the total world military spending on U.S. military spending.
If China’s military spending was tied to their population: .2 * 2.1 trillion dollars (total world military spending) = 421 billion dollars allowed but 2011 military spending was under 380 billion.
If the rule was applied to the us, then 0.045 * 2.1 = 100 billion not the 1.2 trillion dollars actually appropriated and supposedly spent – about 8% of current unsustainable spending.
We can do this: reduce U.S. military spending to 8% of current levels by stopping all militarist adventures, shuttering all 1000 U.S. military installations and balance the budget – pay off the debt quickly.
An immediate 40% reduction is required and desired by higher-ups in the U.S. military and other leaders such as Alan Grayson and Dennis Kucinich… out 18 months, another 40% reduction in U.S. militarist adventurism will be due – to be followed by another 12% reduction in July 2014 – achieving an overall 92% reduction, for the benefit of domestic and international sustainable, steady-state economic interests. a relocalized U.S. will then join the international community of nations.
this table found at The debt ceiling and default is blocked by firedoglake:
“The helpful table from Lou Crandall of Wrightson ICAP shows that in every month this year, projected cash receipts comfortably exceed interest payments; the narrowest margin comes in November, when receipts exceed interest by $131 billion.
What this clearly means is that Treasury can easily remain current on existing debt, provided it is willing to suspend some non-interest outlays. Does it have the authority to do so? What is the relative seniority of creditors of the United States government? States often specify the relative seniority of their bondholders either in their constitution or statute; in California, for example, bond holders stand ahead of all creditors except schools. Illinois has remained current on its bond debt while racking up some $6 billion in unpaid bills to other creditors.
I have yet to find a similar ranking for the federal government. This should not be surprising; the United States has never defaulted. There is the fourteenth amendment to the constitution which says: “The validity of the public debt of the United States… shall not be questioned.”
Shut Down the Bilderberg-Rothschild-Rockefeller-Bush-Clinton Mass Annihilation Extortion of every nation’s finance portfolios by HAARP Teasing Earthquakes Syndicate! Shut Down all Oil-Gas-Coal-Nuclear Power! shut down the us war machine! our world Peoples’ Permanent Revolution! General Strike! Issue the arrest warrants for the entire 400 family ruling elite and try them for crimes against Humanity – putting this entire planet’s plant and animal species, including the human species, in the inexorably-driven Anthropogenic Era, of this, the Sixth Great Extinction.