Impending U.S. Bankruptcy

http://atimes.com/atimes/Middle_East/JA24Ak04.html

This is a fairly long, in depth article. Lots of budgetary statistics - heavy stuff. The author, Chalmers Johnson, is the guy who popularized the concept of “blowback” in foreign policy matters.

I’m not necessarily presenting this as my personal view of what’s going to happen. I haven’t fully analyzed the article yet. I do echo his sentiments on the faulty rational behind “Military Keynesianism”, however.

What do people think? The rise in our debts and expenditures in just the last decade has been staggering. How long can the machine be kept running? How much time do we really have left before it’s no longer “business as usual”? As a young person who is just getting on his feet, I’m certainly interested in these issues. 2008 might be the first year that I could save up a decent sum of money. If that happens, I wonder what I should do with it.

[quote]Nominal Prospect wrote:
2008 might be the first year that I could save up a decent sum of money. If that happens, I wonder what I should do with it.[/quote]

Buy gold, silver, guns, ammo. Learn basic survival skills:hunting, growing food, finding water, building shelters etc. Stay out of the cities-I can’t stress that enough. The cities will either be under gang control or be militarized, not sure which would be scarier.

[quote]Rocky101 wrote:
Nominal Prospect wrote:
2008 might be the first year that I could save up a decent sum of money. If that happens, I wonder what I should do with it.

Buy gold, silver, guns, ammo. Learn basic survival skills:hunting, growing food, finding water, building shelters etc. Stay out of the cities-I can’t stress that enough. The cities will either be under gang control or be militarized, not sure which would be scarier.
[/quote]

Yeah, I’m going to be leaving the Greater Boston area at some point. Mainly because I dislike the liberals and weather here. However, I’m more interested in knowing what I should be doing in the short transition period before shit hits the fan. Let’s say you wanted to buy a car, go to college at this point (some of you probably have kids in my situation). I’m thinking of buying a used car, and I’ll probably go to a state school (UMASS). My primary goal is to pay my own way and avoid getting into debt, and I think I’ll be able to do that. Let’s say you had 15-20 grand saved up now, with no commitments. This MIGHT be my situation in a year’s time. What the hell should I do with that money? If I commit myself to getting a degree now (engineering/biochem), will it be worth it in 4 years? Or should I hold off on the education and invest the cash?

When everything truly goes to hell, I’ll (hopefully) be ready for the militia stuff. I’ll either be living in the Midwest or Northern Europe, or else I’ll be employed by the NWO.

I was raised here in Boston but I wish it had been on a farm in the rural Midwest. Nevertheless, I suspect I’ll get my chance to live on a farm before it’s all said and done.

I agree. We’re fighting on borrowed money, while already in a position where we’re incapable of fullfilling other obligations (SS and medicare is bankrupting us). We’re running debts and deficits, and watching the dollar dive. I’ve mentioned David Walker saying the exact same thing, we have a financial reckoning coming. Neither party will touch this, period. A bunch of gutless wonders.

Too bad the author turns around and embraces big government measures like universal healtch-care.

[quote]Sloth wrote:
Too bad the author turns around and embraces big government measures like universal healtch-care.[/quote]

True, he’s a leftist from Berkeley.

Where do you see yourself in 3-5 years, Sloth?

I will be 25 years old on 14 May, 2012.

“and $25.3 billion in the Department of State budget is spent on foreign military assistance (primarily for Israel, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, the United Arab Republic, Egypt, and Pakistan).”

This…this just pisses me off. Our loyalty is to this nation. We have our own problems, yet we subsidize foreign nations with the hard earned money our own people. All the while knowing what our financial situation is? It’s like we tax and borrow, to subsidize the welfare and defense of other nations (while often botching those goals). Again, where are our loyalties? It certainly isn’t with the next couple generations of Americans who’ll be paying for this crap.

[quote]Nominal Prospect wrote:
Sloth wrote:
Too bad the author turns around and embraces big government measures like universal healtch-care.

True, he’s a leftist from Berkeley.

Where do you see yourself in 3-5 years, Sloth?

I will be 25 years old on 14 May, 2012.[/quote]

I don’t know, but an Agrarian lifestyle wouldn’t be too bad. Now, if I only knew something about farming and ranching.

People who were raised on farms don’t know how good they had it…until they grow up and move to the big cities.

That kind of upbringing performs wonders for the vitality of the human body and the mind, as well.

God, who the hell would choose to raise a kid in the city, these days? You’d never be more than 10 minutes away from Dunkin Donuts or some other shit shack. Send him to public school, have his brain filled with multiculturalist nonsense and become addicted to sugary crap. What a disaster.

I consider it miraculous that I wasn’t completely ruined by public schooling and being raised in a middle class suburb of Boston. My saving grace seems to have been my European upbringing, which - naturally - I loathed as a child.

[quote]Sloth wrote:
This…this just pisses me off. Our loyalty is to this nation. We have our own problems, yet we subsidize foreign nations with the hard earned money our own people. All the while knowing what our financial situation is? It’s like we tax and borrow, to subsidize the welfare and defense of other nations (while often botching those goals). [/quote]

Or, as Ron Paul puts it, you destroy Iraqi bridges, fork money to rebuild the bridges you just destroyed, and all the while American bridges are collapsing.

[quote]Again, where are our loyalties? It certainly isn’t with the next couple generations of Americans who’ll be paying for this crap.
[/quote]

Well, they can’t vote nor can they complain. So…

Keynesianism, as an ideology, is a marvel of Orwellian doublethink mentality.

It is so preposterous on its own merits as to practically necessitate a mass conspiracy to legitimize it’s existence.

If you believe the far right, all of this has been carefully planned and implemented since the 1940’s. The same time period in which 1984 was written.

This can’t happen… can it?

http://www.atlanticfreepress.com:80/content/view/3311/81/

On a related note, but from the right.

Commentary - Doug Bandow: GOP lost in defense budget black hole

[i]WASHINGTON (Map, News) - Republicans once claimed to oppose wasteful government spending. But Republicans are now demanding ever more military expenditures, irrespective of need. Presidential candidates Rudy Giuliani, John McCain and Mitt Romney all want a major military buildup.

Romney proposes spending “a minimum of 4 percent of GDP on national defense.” Former Sen. Jim Talent and the Heritage Foundation’s Mackenzie Eaglen similarly contend that policy makers “should be judged by whether or not they support spending a minimum of 4 percent of GDP on the regular defense budget.”

Candidate Fred Thompson advocated spending 4.5 percent of GDP on the military. Mike Huckabee would trump everyone by spending 6 percent of GDP on the military: $800 billion, a 50 percent increase in current outlays.

What could possibly justify such huge increases? The economy’s size and growth are unrelated to national security threats. Between 1960 and 2005, real GDP more than quadrupled while the world grew much safer.

In fact, these conservatives sound like liberals on domestic policy: Spend as much money as possible irrespective of need or effectiveness. The U.S. currently spends roughly as much as the rest of the world combined. Nevertheless, Talent talked of “threats that are highly unpredictable and therefore, taken as a whole, more dangerous than the threats we faced during the Cold War.”

Apparently those years of defending war-ravaged allies from an aggressive Soviet Union, unpredictable Maoist China, and various European and Third World communist satellites were nothing compared with confronting Osama bin Laden with his vast legions.

Terrorism, a la 9/11, is horrid, but the potential consequences are nothing like that of even a small nuclear strike. Such terrorism is best met by sophisticated intelligence, international cooperation, law enforcement and special forces rather than huge militaries and preventive wars.

The threat of nuclear terrorism or a rogue state missile attack is real-though very unlikely-and must be guarded against. But, again, there is no comparison with the possibility of a full-scale nuclear exchange.

The potential of a destructive conventional conflict like World War II is essentially zero. There is no prospect of the Red Army rolling from Moscow to the Atlantic.

Nor is China a substitute for the Cold War. Even the “worst-case” estimate of Beijing’s military expenditures puts it at barely a quarter of American outlays. Moreover, Beijing is starting at a very low base force. Equally important, China is concentrating on deterring American intervention, not attacking the U.S. Preserving American predominance in Asia is not the same as defending America.

The spendthrift hawks worry not that the U.S. will be attacked-any aggressor would be committing national suicide-but that America will be unable to attack other countries. Rarely have Washington’s wars of choice involved vital American interests.

Talent still claimed that “it would take a lot more than 4 percent of our GDP to defend a ‘Fortress America’ an America that allows dangers to fester and grow until they are strong enough to attack us in our homeland.”

But preventive intervention in the name of promoting U.S. security almost always worsens problems. It is particularly foolish to assume that bombing will resolve “festering problems.” Iraq is an obvious case in point.

Finally, the U.S. is allied with every major industrialized state and is friendly with most regional powers that aren’t formal allies. Europe possesses a larger population and economy than America, let alone Russia.

South Korea has 40 times the GDP and twice the population of the North. Japan, Australia, Singapore and the Association of Southeast Asian Nations are capable of matching China. Why can’t America’s allies and friends defend themselves and their regions?

U.S. defense spending seems inadequate only because of America’s hyper-interventionist foreign policy. Rarely does the American military actually defend America against genuine dangers.

Too many lives and too much money are being squandered for foolish foreign crusades. What the U.S. needs is a more restrained foreign policy. That is, a foreign policy for a republic rather than an empire.

Doug Bandow, a former special assistant to President Ronald Reagan, is the Robert A. Taft fellow at the American Conservative Defense Alliance and the author of “Foreign Follies: America’s New Global Empire.”[/i]

Wasn’t the US national debt at 90% of GDP at the end of WW2? She bounced back after that alright.

What is it at right now? 40%? That’s less than half.

ElbowStrike

The numbers we keep getting about our national debt are not accurate. Attempting to blame this debt on the military is BS. The true debt is hidden by Social Security. The government will not fail to pay on the foreign debt, but may fail to pay Social Security in the future to be able to cover that other debt.

Now as the baby boom generation starts to retire, there will be a big draw on Social Security. While this has come up before, I am fascinated that nobody has realized that with lots of people retiring that this will actually create quite a number of jobs. (Which political parties will take credit for.)

The solutions to all of this are out there. It is simple economics, which nobody seems to understand.

We need to teach people how to manage money properly starting no later than junior high. Not only how to manage finances, but how to actually make money, save, invest, and become wealthy. This stuff really is not that hard.

The only problem with this idea is the fact that understanding money naturally pushes people to the right, at least fiscally. And that could motivate the left to stand in the way of such ideas.

Think about the idea of buying your next car with cash, and never having a car payment again. Does this idea sound weird to you? Some people think the only way to own a car is with a big loan, and payments. If this is the way everybody thinks, why should the government think any differently? Debt has become such a normal way of doing things people don’t even realize they could do it without the debt. Without issuing bonds to pay for something.

Back to the economy, realize that a lot of money is made during the “bad” times. Usually the average person panics, and sells off their investments to the smart person who was waiting in the wings. And this should not be confused with taking advantage of anyone. During these times people are practically giving away money.

Take the simple concept of buy low, sell high. Who the hell follows that advice? Right now gold is trading at a high price, and everyone is trying to get in. Everyone is trying to buy high. And when it plunges, they will be begging to get out, selling for a quarter of what they bought it for. Selling low. The most basic principle of the market is being ignored.

In 1987 I saw the stock market crash, and as a result was a big story about a guy who freaked out, shot his stock broker, and committed suicide. Then I saw the stock market jump dramatically in one day, recovering much of what was lost. (The company that owned Target at the time went up 25% on that day if I remember right.) A simple lack of patience cost this person his life, and the life of others.

The problem is everyone gets their financial information from the same idiots they get their information about diet and exercise from.

[quote]Nominal Prospect wrote:
What do people think? The rise in our debts and expenditures in just the last decade has been staggering. How long can the machine be kept running?[/quote]

Right now the US government is actually in better financial shape than most developed nations, particuarly European nations. Debt measured as a percentage of GDP is middling as is the annual federal budget deficit measured the same way.

If you want to see the future of the US economy take a look at the French economy. Stagnant, bureaucratic, far more debt-ridden than ours, stratified to the point where economic mobility from lower to upper classes through one’s own efforts is so brutally difficult as to be nearly impossible, etc. The unchecked expansion of government at all levels in the US, our growing disdain for businesses, out of control government regulation of all economic activity and our outrageously expensive litigiousness guarantee that there will be relatively little economic opportunity here in the future.

If you have money I suggest hookers and booze. At least you’ll have a good time and if you stockpile enough of the latter you might not be so depressed about what’s about to happen.

When the country that polices the world gets in trouble, that’s BIG trouble for the rest of the world. The world is like a slum in New York. As long as the police are strong and present, crime rates fall. Now, the police go broke and retreat to their station house or agree to police only the ‘good’ neighborhoods. The gangs and tribalists take over the rest. Chaos replaces calm.

The initial reaction should actually be good for our stock market, as capital flees to the ‘center’. Indeed, our markets are up somewhat lately. Once the center cannot hold, however (like 1929), collapse and fear follow.

I predict a booming stock market, a final peak, then a collapse. Socialism (probably global) soon follows. Let’s hope its more ‘Brave New World’ than ‘1984’.

Righttttt! So the rest of the world is one big basket case without U.S. intervention?

[quote]Headhunter wrote:
When the country that polices the world gets in trouble, that’s BIG trouble for the rest of the world. The world is like a slum in New York. As long as the police are strong and present, crime rates fall. Now, the police go broke and retreat to their station house or agree to police only the ‘good’ neighborhoods. The gangs and tribalists take over the rest. Chaos replaces calm. [/quote]

Hmmm…so the police are the good guys and everyone else is a criminal.

[quote]Jason32 wrote:
Righttttt! So the rest of the world is one big basket case without U.S. intervention?[/quote]

When Britain could no longer police the world after WWI, we got the Great Depression and WWII. Investments across the globe were ‘nationalized’, which of course ruined local economies. Capital fled to New York and we had a stock market boom, followed by the Great Depression.

Until the USA could take up the mantle of cop after WWII, the world was in pretty rough shape.

But, you go ahead and denounce the ‘cop’. Tell him he’s evil and arrogant, that international investment is really a fraud stealing ‘the peoples’ wealth. Oppose the hand that protects you while licking the hand of your destroyers (like Achmina-jihad and Hugo Chavez) — they’ll love you for it.

[quote]lixy wrote:
Headhunter wrote:
When the country that polices the world gets in trouble, that’s BIG trouble for the rest of the world. The world is like a slum in New York. As long as the police are strong and present, crime rates fall. Now, the police go broke and retreat to their station house or agree to police only the ‘good’ neighborhoods. The gangs and tribalists take over the rest. Chaos replaces calm.

Hmmm…so the police are the good guys and everyone else is a criminal.[/quote]

What’s been the fate of most of Africa since that poor continent has gone unpoliced? Are the socialist utopias, now that the Europeans have left, working out?

Care to invest your life savings in Zimbabwe? Tanzania? Kenya?

The people there thought they didn’t need capitalists, that the businesses would run themselves, that anyone can farm, that electric utilities are easily maintained as are roads.

They learned what happens when there are no police, only ‘tribes’.

They believed the socialistic-altruistic-humanitarian (Satanic) doctrine. Guess those ideas suck, eh?