Bush’s Tyranny for a Bankrupt Nation
By Mike Whitney
President Bush has consistently defended his massive $500
billion tax cuts. He has insisted that deficit spending be a
“permanent” part of the national budget. His economic plan has
eroded the confidence of central banks around the world and
increased the federal debt by a whopping $3 trillion. Still, he
persists in his claim that deficits should be an enduring
function of government.
Doesn’t this confirm that bankrupting the country is an integral
part of the Bush grand strategy?
What more proof do we need?
Imagine someone stealing your credit card and running up a
$450,000 bill year after year and then defending the theft as
necessary to “create more jobs” as the “trickle-down” theorists
Would you take such a person at his word?
Deficits are theft; and the determination to make these lavish
tax cuts for the wealthy permanent proves beyond a doubt that it
is part of a larger strategy to bring about an economic meltdown
that will change the political complexion of the country.
What else could it mean?
Dick Cheney recently opined, “Reagan proved that deficits don’t
In fact, Cheney was part of the Reagan administration when
Reagan’s tax cuts created monstrous $200 billion deficits, up
75% from 1980. The effects were devastating. Unemployment jumped
to 10%, the 30 year mortgage skyrocketed to 15%, the economy
ground to a standstill, and the nation plunged into the deepest
recession since the 1930s.
Cheney fully understands the suffering that deficits produce.
Now, he wants to continue that misery as a permanent function of
Is it really so important to reward the “fortunate 1%” that the
administration would risk the economic well-being and solvency
of the nation?
And, what is the relationship between the ocean of debt produced
by the Bush team and their strengthening of police-state
apparatus like unlimited spying on Americans, the NSS (Bush’s
new Secret Police), the uniform Federal ID program, the Patriot
Act, and Halliburton’s $385 million contract from Homeland
Security to construct new detention and processing facilities
within the United States?
Is the ascendancy of the police-state intended to balance the
catastrophic effects of economic destruction? Or, do the new
instruments of repression anticipate the “political turmoil”
(Warren Buffet’s words) that naturally results from financial
The Bush master-plan is no different than the economic
shock-therapy the United States has directed at the third world
for decades. The strategy is simple and straightforward, but
virtually foolproof in achieving its objectives; the crushing of
the middle class and the subsequent shifting of the nation’s
wealth to the “oligarchy of racketeers” who run the system.
The levers of power have all been faithfully assembled by Bush
operatives, while America’s $3 trillion trade deficit looms
overhead like the sword of Damocles. As the underpinnings of
economic wellbeing continue to deteriorate; causing further
job-flight, credit spending, and soaring energy prices; the
power-brokers at the head-of-state calmly arrange the
instruments of repression they’ll need to maintain order.
Did we really imagine the chickens would never come home to
Regardless of what the public-relation gurus on the business
channel say, the state of the union is disastrous. Bush has
intentionally looted the treasury and torpedoed America’s
economic future. Federal Reserve chief, Alan Greenspan
cooperatively kept interest rates low so the greatest swindle in
history could take place while the drowsy American public
Americans refuse to believe that bubbles (housing or stock
market) are brought about by the deliberate and
politically-motivated actions at the Federal Reserve.
Everyone agrees about the effects of high interest rates; why
would there be so much uncertainty about low interest rates?
Just as high interest rates slow the economy by making loans on
investment more expensive; so too, low interest rates naturally
produce increased speculation by making cheap money available to
a greater number of people. Greenspan knew as early as 1996 that
the stock market was over-inflated when he warned that “there
was a stock market bubble at this point” that is “a problem we
should keep our eye on”. (Remember “irrational exuberance”?)
Still, he accommodated his friends in Washington and Wall Street
by waiting until tens of thousands of Americans had lost their
savings (and retirement) before ratcheting up interest rates and
cooling down the spec-market. The final loss to investors was an
estimated $7 trillion dollars, an amount that pales in
comparison to the current housing bubble which “The Economist”
calls “the greatest bubble in history”. Again, it was Greenspan
who instigated the housing bubble by dropping rates to a paltry
1.5% following the decline in the stock market. Regrettably, the
results will be even more ruinous this time.
Never the less, low interest rates are an effective way of
creating bubbles and thereby transferring wealth from one class
to another. The other two “tried-and-true” methods are tax cuts
and hyperinflation; both parts of the Greenspan legacy. (Expect
a weakening dollar as the effects of the massive trade deficit
To argue that the Federal Reserve does not support a political
agenda that favors elite interests, is to say that it is not a
privately-owned institution (which it is) which operates in
conjunction with major investors; particularly the energy
giants, the mainstream media, arms-manufacturers, and the
political establishment. The Federal Reserve is joined at the
hip with the Bush White House. In fact, the administration is
merely a reflection of the values and goals of the financial
powerbrokers at the central banks.
Don’t expect any complaints from Alan Greenspan about the
rough-treatment of prisoners at Guantanamo Bay. The cadres of
elites are of “one mind” on the current global crusade for a new
world order. If that means torturing a few thousand innocent
people; so be it.
There are numerous signs that the nation’s free ride will soon
be over. Gold is skyrocketing as perceptive investors see the
cracks and fissures appearing in the economic foundation that
binds the debtor-kingdom together. Twitchy investors are
watching for news about Iran, rebel attacks in Nigeria, or a
potential sell-off of greenbacks in China. Market analysts may
feign equanimity but they are walking on the knifes-edge
expecting the worse.
But, the worse is unavoidable; the country is dead broke. Last
year alone Americans not only spent more than they earned for
the first time since the great Depression; they also borrowed an
additional $600 billion from their home equity to pay off credit
card debt and consumer loans! This tells us that the all signs
of growth in the economy are the result of credit spending. Home
equity has become the new ATM card, demonstrating once again
that the country is running on fumes.
This quarter’s slow growth of 1.1%, shows that the well has run
dry and consumer spending (which accounts for 70% of GDP) is
down for the count. Interest rates are going up, the dollar will
soon be sinking, energy costs are soaring, and the unemployment
line is getting longer.
Time to find a nice comfy spot beneath the freeway on-ramp…and
bring your own cardboard.
The Clinton strategy would have made the transition more
agreeable, but the result of globalization is roughly the same.
Businesses and jobs pack up and leave driving wages through the
floor, while the social safety net continues to worsen by
congressional edict. The main difference with Clinton is that he
strengthened the dollar by balancing the budget and showed
little appetite for creating the police-state apparatus that the
Bush claque relishes.
The Bush administration is preparing for a quick but agonizing
transition. They have painstakingly removed whatever laws stood
in the way of autocratic government. The courts will brandish
the rubber stamp for the supreme executive, the congress will
languish as a ceremonial institution, and the compliant media
will shower praise on the Dear Leader’s iron-fisted methods of
keeping the peace.
Economic disintegration is the catalyst for changing the
fundamental institutions of government. The globalists in the
White House have played a major role in numerous coups across
the planet, all producing the same basic result; a military
dictatorship with a strongman at the head of state. America is
being readied for a similar transformation.
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