Saturday, October 12, 2013

The Government Shutdown Follies

American politicians have made much hay over the alleged shutdown in Washington with both sides screaming that America cannot default on its debt. The truth of the matter is that America has defaulted many times on its debt and will continue to do so.
Jim Grant of the Interest Rate Observer newsletter opined in the Washington Post the above argument, noting that not only did the US government default on its debt during the early years of the republic, but more recently during the administrations of Franklin Roosevelt and Richard Nixon.
When Roosevelt abrogated the gold clauses in contracts and revalued the dollar from 1/20 to 1/35 ounce of gold, he defaulted on US debt and integrity. It is no surprise that a mass murderer such as FDR would do such a thing, but it demonstrates conclusively that defaulting on debt is the American way. It is the ultimate hubris of power to which attaches few consequences. After all, America has always found eager buyers of its debt, even if increasingly the number of buyers is limited to the Federal Reserve.
Another disgusting aspect of the debt follies is the scare mongering of both branches of the Nazi Party. The government is supposedly shut down, yet of the 800,000 out of 2.9 million employees originally placed on furlough, 400,000 were immediately recalled to help the Pentagon spread more of its international terrorism and drug trade. One way or another the drones will keep flying, dissidents will be persecuted, and drugs pushed.
So 1/7 of the US federal government work force is on furlough, and most of it is to inconvenience ordinary Americans who use public facilities such as parks. We hardly call this a shutdown.
The money changers have elevated debt into money. The great reason for the massive expansion of the US government and its gargantuan deficits is to serve banksters. Each new dollar of debt is money in their gold lined pockets. We know that Speaker Boehner is no foe of banksters, so the reasons for the debt charade are more obscure than meets the public eye.
The Nazis learned the power of fear mongering, so we suspect that more deprivations of liberty and societal regimentation are on their ways. But on the way to realizing that dream, life must be made more difficult for those in the bottom strata of society. The Nazis will do anything to pauperize people who have become pathetically dependent upon public largesse - banksters excluded.
The real goal of the follies is to reduce entitlements and the inflation formula used in cost of living adjustments about which the government lies so egregiously. While the top 7% have seen their incomes grow 28% over the last 5 years, the bottom 93% have seen theirs shrink 4%. And make no mistake, the Democrats and Republicans are united in seeing this asymmetry grow.
While the Nazis want to enlarge the wealth of the 1%, they want to extend the working age and default on promises they have made over a century - acts which affect the bottom 93%. Standards of living are falling. The caste society has arrived.
We agree with Margaret Thatcher that the problem with socialism is that you eventually run out of other people's money, but that is only true of the plutocrats who will soon exhaust the meager resources of the poor as they steal from the poor to give to the rich. After all, wars of imperial aggression must be financed.
We assure you that the follies are highly scripted - it is a public spectacle to hide the fact that the powerful will continue to prey upon the weak - in other words the politicians and plutocrats will continue to oppress the people and poor.

Copyright 2013 Tony Bonn. All rights reserved.

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