Bernanke: We Must Raise Taxes and Cut Services • Sane People: No, We Need to Stop Endless Bail Outs, Imperial Adventures and Fraudulent Schemes → Washingtons Blog
Bernanke: We Must Raise Taxes and Cut Services • Sane People: No, We Need to Stop Endless Bail Outs, Imperial Adventures and Fraudulent Schemes - Washingtons Blog

Thursday, April 8, 2010

Bernanke: We Must Raise Taxes and Cut Services • Sane People: No, We Need to Stop Endless Bail Outs, Imperial Adventures and Fraudulent Schemes

This week, both Bernanke and Volcker called for tax increases. Bernanke has also raised the possibility of reductions in entitlements such as Medicare and Social Security.

As I pointed out last June:

When the International Monetary Fund or World Bank offer to lend money to a struggling third-world country (or "emerging market"), they demand "austerity measures".

As Wikipedia describes it:

In economics, austerity is when a national government reduces its spending in order to pay back creditors. Austerity is usually required when a government's fiscal deficit spending is felt to be unsustainable.

Development projects, welfare programs and other social spending are common areas of spending for cuts. In many countries, austerity measures have been associated with short-term standard of living declines until economic conditions improved once fiscal balance was achieved (such as in the United Kingdom under Margaret Thatcher, Canada under Jean Chrétien, and Spain under González).

Private banks, or institutions like the International Monetary Fund (IMF), may require that a country pursues an 'austerity policy' if it wants to re-finance loans that are about to come due. The government may be asked to stop issuing subsidies or to otherwise reduce public spending. When the IMF requires such a policy, the terms are known as 'IMF conditionalities'.

Wikipedia goes on to point out:

Austerity programs are frequently controversial, as they impact the poorest segments of the population and often lead to a wider separation between the rich and poor. In many situations, austerity programs are imposed on countries that were previously under dictatorial regimes, leading to criticism that populations are forced to repay the debts of their oppressors.

The IMF has already performed a complete audit of the whole US financial system, something which they have only previously done to broke third world nations.

Al Martin - former contributor to the Presidential Council of Economic Advisors and retired naval intelligence officer - observed in an April 2005 newsletter that the ratio of total U.S. debt to gross domestic product (GDP) rose from 78 percent in 2000 to 308 percent in April 2005. The International Monetary Fund considers a nation-state with a total debt-to-GDP ratio of 200 percent or more to be a "de-constructed Third World nation-state."

Martin explained:
What "de-constructed" actually means is that a political regime in that country, or series of political regimes, have, through a long period of fraud, abuse, graft, corruption and mismanagement, effectively collapsed the economy of that country.

Given that experts on third world banana republics from the IMF and the Federal Reserve have said the U.S. has become a third world banana republic (and see this and this), maybe the process of turning first world into the third world is already complete.
But raising taxes and paring social services are necessary to dig us out of the debt hole, right? And we needed to spend that money to stabilize the economy, right?

Well, while the economy has admittedly stabilized for billionaires, it hasn't for anyone else. And see this, this and this.

And as I wrote last month:

House majority leader Steny Hoyer - a close ally to President Obama - says the U.S. needs to raise taxes and cut spending .

As Agence France-Presse reports:

The United States must embrace a blend of tax increases and spending cuts to rein in its deficit or face a potentially crippling debt crisis like the one in Greece, a top US lawmaker warned Monday.

"It is enough to look across the Atlantic at Greece's extreme economic crisis and understand: It can happen here. If we don't change course, it will happen here," said Democratic House Majority Leader Steny Hoyer...

"It seems to me that the only solution that can win the support of both parties is a balanced approach: one that cuts some spending and raises some revenue while avoiding extremes in either direction," he said.

Of course, many others have warned of the massive debt overhang in the U.S. as well.

But why aren't our government "leaders" talking about slashing the military-industrial complex, which is ruining our economy with unnecessary imperial adventures?

And why aren't any of our leaders talking about stopping the permanent bailouts for the financial giants who got us into this mess? And see this.

And why aren't they taking away the power to create credit from the private banking giants - which is costing our economy trillions of dollars (and is leading to a decrease in loans to the little guy) - and give it back to the states?

If we did these things, we wouldn't have to raise taxes or cut core services to the American people.
And if there's any shortfall, all we have to do is claw back the ill-gotten gains from the fraudsters working for the too big to fails whose unlawful actions got us into this mess in the first place. See this, this, this, this and this.


  1. The US Government is not talking about cuts to the military industrial complex, taking back the Fed, or collecting from Banksters, because other that a few choice voices, the US government is the Banksters and the Military Industrial Complex. Secondly, the primary rise in cost of imperialistic adventures is the privitization of soldiers and their suppliers. Third, I am surprised that there is no mention of the explosion in "intelligence" spending and it's justification, or more over, the complete lack of investigation into what may prove to be false flag events that have provided the justification. What would you do for a few trillion dollars if you killed people and or managed these adventures fron inside the US government for a living? I bet you would want a growth orientated business.

  2. Taking from the poor is far easier than taking from the rich. It wont be long before those with nothing come to take back what has been stolen from them. Our government would do well to look back to the historical record before stealing anymore from the poor of this nation.

  3. "You say you want a revolution...."

  4. Not much mentioned about all the unnecessary embassies and military bases all over the world. Would foreign policy collapse if we only had one embassy for, say, France and Spain? And while we are at it, why not consider the totally crackpot idea of consolidating some of the states within these United States? We know that would be of benefit, because each such consolidation would eliminate two U.S. Senators....can't go wrong there, can we?

  5. Maintaining the status quo, even enhancing its iniquity, is very expensive work. It takes great and extensively-studied genius.

    Stop complaining, plebians. You are -after all- led by the best and the brightest.

    Be thankful compassionate and learned economists have seen fit to support -at-fantastic-expense- the ridiculous price of housing, -so the bankers can sell and finance-again their foreclosure properties for something more than the dollar they would otherwise fetch in a truly free marketplace.

    Your higher taxes -meant-to-spread-the-wealth-around -will certainly cheer the stock market, until such time as the next avalanche of naked shorts rakes the table clear of its ill-gotten gains.

    God Bless America, -home of the brave, and land of the free, at least for those who can afford it and have no scruples about the jackboot of the credit economy they keep pressed hard against your forced-closed throat.

    The meritocracy of your befouled Enlightenment has proved itself just another bearded, toothless hag.

    Hail Lady Liberty!

    Strand straight and tall in New York Harbor. Shine your bright beacon at the harbor entrance to the city that greed, corruption, oppression, empire and rank murder made rich.

  6. I'm all for cutting the budget.

    Let's start with the cushy retirement and health care that Congress gets.

    Let's make this cut ...RETROACTIVE!!!

  7. There are 3 main problems as I see it:

    1) Psychopaths : The world follows their rules.

    2) Usury : It's just stealing. Takes many forms.

    3) Ignorance : of the top 2.

    Usury is the tool of psychos, take that away and their funding source is gone.

    The same Congress that outlawed incandescent light bulbs might as easily outlaw interest.

    Money is not a commodity. Usury kills.

  8. man you guys speek some powerfull words , but.
    words are worthless without action. i find it hard to believe that any who have posted on this page have the curage or the valor to lay their life and personal safety on the line to enforce your ideals. we americans live an accesavely cushy life . look at our over abundance of fat and out of shape citazans. heres a better way for all you bloggers and random site posters ... get off your asses , turn off the computer and telivisions. and go out side into the streets and say theese words with your mouth. i do and will continue to do so . it gets positave responces from my fellow americans let me tell you. the ones that don't have their faces glued firmly to a video screen that is. typing is not doing.. watching tv is not saving our country . bloging is not saving our country . we need to get bodies into the streets and in their faces. protest is contagious. but it wont start its self. your computer wount start it for you .

  9. Get out of Iraq and Afghanistan and close some of our 800+ military bases around the world. That will save trillions at least. If we have reached the economic status of a "de-constructed third world nation," we don't have the money to be the police of the world.


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