Posted tagged ‘Iraq’

US Deficit Over $1 Trillion for the First Time Ever

July 13, 2009

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AP WASHINGTON – Nine months into the fiscal year, the federal deficit has topped $1 trillion for the first time.

The imbalance is intensifying fears about higher interest rates and inflation, and already pressuring the value of the dollar. There’s also concern about trying to reverse the deficit — by reducing government spending or raising taxes — in the midst of a harsh recession.

The Treasury Department said Monday that the deficit in June totaled $94.3 billion, pushing the total since the budget year started in October to nearly $1.1 trillion.

The deficit has been propelled by the huge sum the government has spent to combat the recession and financial crisis, combined with a sharp decline in tax revenues. Paying for wars in Iraq and Afghanistan also is a major factor.

The country’s soaring deficits are making Chinese and other foreign buyers of U.S. debt nervous, which could make them reluctant lenders down the road. It could force the Treasury Department to pay higher interest rates to make U.S. debt attractive longer-term.

“These are mind boggling numbers,” said Sung Won Sohn, an economist at the Smith School of Business at California State University. “Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run.”

Government spending is on the rise to address the worst financial crisis since the Great Depression and an unemployment rate that has climbed to 9.5 percent.

Congress already approved a $700 billion financial bailout and a $787 billion economic stimulus package to try and jump-start a recovery, and there is growing talk among some Obama administration officials that a second round of stimulus may be necessary.

This has many Republicans and deficit hawks worried that the U.S. could be setting itself up for more financial pain down the road if interest rates and inflation surge. They also are raising alarms about additional spending the administration is proposing, including its plan to reform health care.

President Barack Obama and other administration officials, including Treasury Secretary Timothy Geithner, have said the U.S. is committed to bringing down the deficits once the country has emerged from the current recession and financial crisis.

As if a deficit of more than $1 Trillion wasn’t bad enough, “Debt Day” (the point in the fiscal year when government spending exceeds revenue) was less than three months ago. Zero to -1 Trillion in less than three months.

How much deeper in debt can we go? A lot deeper if the federal government insists on going through with Cap & Trade, Universal Health Care, and maybe – just maybe – another round of stimulus.

Shhh – you can almost hear the Chinese from here…Spend, baby, spend!

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Obama Plans to Slash the Federal Deficit in Half

February 22, 2009

Hey America, watch me pull a rabbit out of my hat!

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Tuesday night, February 24th, President Obama will address a joint session of Congress and is expected to lay out his plan to cut the federal deficit in half by the end of his first term.

This ought to be good. I’ll be parked in front of C-Span with my popcorn because this speech is guaranteed to be good for some laughs. I really want to know how the man who spent nearly a trillion dollars we don’t have earlier in the week thinks he can cut the deficit in half along with “plans to broaden health care coverage to eventually insure everyone. Moving the country toward greener energy sources. Expanding education opportunities. Overhauling financial industry regulation“.

I want to know how a man who a few short months ago said deficits don’t matter can now say “We can’t generate sustained growth without getting our deficits under control,” with a straight face.

It will all be just a lot of hot air, I’m sure since the plan rests “on the assumption that the economy recovers from the current slump” and does not consider “additional spending on economic stimulus or bailouts of the financial or other sectors“.

Where will the money come from? “Winding down the war” in Iraq, eliminating Bush’s tax cuts on families earning more than $250,000 a year (raising their tax rate from 35% to 39.6%), increasing the capital gains tax by 5%, closing corporate tax “loopholes” and taxing the earnings of hedge fund managers as normal income rather than as capital gains. 

Not mentioned, of course, is that while “winding down” in Iraq, Obama is “winding up” in Afghanistan and Pakistan. Obama authorized 17,500 additional troops to Afghanistan just a few days ago and The Raw Story reported yesterday that Obama is expanding miliary operations in Pakistan.

There is also no mention of how businesses – especially small businesses – might be able to create jobs when suddenly faced with a much higher tax bill. Common sense says higher taxes will lead to more layoffs and more businesses closing down completely.

Obamanomics. It will make you laugh till you cry.

Afghanistan Surge

January 27, 2009

Biden warns of higher US death toll Afghanistan

WASHINGTON – Vice President Joe Biden says the nation should expect more U.S. military casualties as the Obama administration plans to send additional troops to Afghanistan.

Pentagon officials say they plan to send up to 30,000 additional troops to the Afghan war, where the Taliban is resurgent and violence has been on the rise. The request for more troops from military commanders was endorsed by the Bush administration and has been favored by the Obama government, too.

Biden said Sunday that additional U.S. forces will be engaging the enemy more. Asked if that means the U.S. public should expect more American casualties, the vice president said: “I hate to say it, but yes, I think there will be. There will be an uptick.”

Biden spoke on CBS’ “Face the Nation.”

Source: http://news.yahoo.com/s/ap/20090125/ap_on_go_pr_wh/biden_afghanistan_1

It will be interesting to watch all the liberals who so loudly criticized George W. Bush’s “troop surge” in Iraq defending and applauding Obama’s “troop surge” in Afghanistan.

“Meet the new boss
Same as the old boss…”

One Giant Rez

January 6, 2009

The following article by William N. Grigg is lengthy but well worth your time to read. The historical background is not only interesting, it may be your blueprint for survival in an uncertain future. This is highly recommended reading.

One Giant Rez

What’s happening in my country is also happening in your country…. You don’t even know it, but you’re the Indians of the 21st Century, and that’s very sad.” – Russell Means, Indian Activist and Facilitator of the newly created Independent Republic of Lakota

A century after Wounded Knee, the same American Leviathan that had starved the Sioux into submission imposed a murderous embargo of Iraq that would last for more than a decade and kill hundreds of thousands of children. After using starvation and the denial of medical necessities to soften up the Iraqis, the Empire – already bogged down in Afghanistan — launched an invasion Iraq.

And as Scott Horton of AntiWarRadio points out, wherever the Empire deploys its legions abroad, the territory not under imperial control is referred to as “Indian country.” With entirely unwarranted optimism, most Americans assume that this only applies abroad. But every once in a while – as at Ruby Ridge or Waco – the Empire offers a bloody reminder that Wounded Knee remains the official template for dealing with any resistance, foreign or domestic.

In a fascinating interview with Scott Horton, Indian activist Russell Means describes how the American Indian Reservation System has been the incubator for totalitarian social engineering programs both here and abroad. The subjugation of the American Indian, he warns, provided the model for the ongoing dispossession of the American middle class.

As the financial system implodes, inhabitants of our de-industrialized country are having what remains of our wealth confiscated in order to serve the interests of the most corrupt elements of the ruling elite. The sky is thick with portents of impending military rule in order to suppress any organized resistance to this unprecedented plunder.

We will know that the Wounded Knee option is on the table when our rulers demand of us what they required of the conquered Sioux: The surrender of our personal firearms.

It is a glorious fact that America’s private gun owners possess more firearms than the combined armies and police forces of the entire world. It is that fact, and perhaps it alone, that explains why the Regime hasn’t succeeded — yet — in transforming our country into one giant Rez. We should never assume that this cannot change, in a hurry.

Read the full article…