Corrupt criminal cabal

The International Monetary Fund is now leaning on the United States to start taking measures towards cutting the deficit. In a Telegraph article they link this move to the recent massive sell-off by what used to be the largest hold of US bonds, Pimco. However, Pimco’s sell-off is just a symptom of the disease that is the private Federal Reserve and their corrupt practices.

The budget has grown exponentially recently and Washington has yet to put forth any plans to impact it in any meaningful way. The bipartisan agreement reached to avoid a Government shut-down on Friday was essentially the removal of a drop of water from a sea of debt.

The private Federal Reserve is supposed to be responsible for assisting in these matters but they have only compounded the problem. In fact, they have made it a great deal worse through their practice of quantitative easing. Quantitative easing is nothing more than printing worthless money in order to postpone a monetary collapse worded in clever terms used by economists to give it some legitimacy. Printing fiat currency by the billions and pumping it into the economy does nothing other than bring down the value of the currency already in circulation.

This principle is quite a basic economic reality and relates closely to the concept of supply and demand. When there is a large demand and short supply, the given item rises in value. When there is less demand and excess supply, the value of the item goes down. This principle quite obviously correlates to the circulation of currency as well. If suddenly the money supply jumps by 200% it will inflate the currency a great deal by creating more currency with the same amount of physical asset backing the piece of paper. In the case of the private Federal Reserve, this physical asset is – nothing.

We are no longer on the gold standard so there is no real intrinsic worth to a dollar bill anymore, it is only worth however much it will buy you at any given time. This fluctuation is inflation and deflation and currently we are witnessing massive inflation. This is because a single dollar will buy less food, less oil, less gold, and less silver than it would only a few years ago. Bernanke and the corrupt banksters controlling the Fed will continue to deny the reality of inflation because most Americans don’t even know how the monetary system works or that bills are printed out of thin air with no worth behind them.

The Financial Times reports,

The US lacks a “credible strategy” to stabilise its mounting public debt posing a small but significant risk of a new global economic crisis, says the International Monetary Fund.

Indeed that is unfortunately the case but the next paragraph reads,

In an unusually stern rebuke to its largest shareholder, the IMF said the US was the only advanced economy to be increasing its underlying budget deficit in 2011 at a time when its economy was growing fast enough to reduce borrowing.

The remark that our economy is growing fast enough to reduce borrowing is beyond me. In the article the IMF also claims that the American economy is strong enough to raise taxes and put austerity measures in place. FT also manages to miss the entire nature of the cause of the deficit, or more likely they deliberately misstate the causative factors,

Having narrowly averted a government shutdown last week through a deal with congressional Republicans to cut $38.5bn in spending from this year’s budget, Mr. Obama will today unveil his plans to rein in America’s long-term deficits, which are driven by popular programmes like Medicare, Medicaid and social security.

Blaming the long-term deficit on social services is absolutely ridiculous. The United States Government Accountability Office explained that they could not even audit most of the Federal spending,

The U.S. Government Accountability Office (GAO) cannot render an opinion on the 2010 consolidated financial statements of the federal government, because of widespread material internal control weaknesses, significant uncertainties, and other limitations.

“Even though significant progress has been made since the enactment of key financial management reforms in the 1990s, our report on the U.S. government’s consolidated financial statement illustrates that much work remains to be done to improve federal financial management.

The main obstacles to a GAO opinion were: (1) serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable, (2) the federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies, and (3) the federal government’s ineffective process for preparing the consolidated financial statements.

Clearly the problem does not stem from the programs that save peoples’ lives and blaming it on them is pure military-industrial propaganda.

Now some are using this growing deficit to attempt to remove the social safety net that is intrinsic to the American way of life. For instance, Bill Gross, the manager of the aforementioned Pimco is quoted in the Telegraph article,

“Without attacking entitlements – Medicare, Medicaid and Social Security – we are smelling $1 trillion deficits as far the nose can sniff,” Mr Gross said in the firm’s monthly outlook.

Apparently cutting off the medical care for senior citizens on a fixed income who have spent their entire life working hard and contributing to Social Security in order to be taken care of later in life is more important than cutting back the “defense” budget. I say “defense” because we aren’t defending anything by bombing no-name militants in Pakistan and Afghanistan or sending hundreds of Tomahawk cruise missiles into Libya.

Calling it a defense budget is a very effective way to divert most Americans from realizing that there is absolutely nothing we are defending against and that we are spending a great deal of our budget on growing the wealth of a few while subjugating foreign nations to the will of the UN and NATO.

Renaming the Department of War to the Department of Defense is another clever way to make ignorant people think that we are defending against some kind of dangerous enemy instead of waging unnecessary wars and imposing our imperial will onto the war to keep the military-industrial complex alive.

This absurd spending along with the tax loopholes companies like GE utilize to get out of paying the majority of the taxes that average working Americans are saddled with needs to be curbed long before we cut “entitlement” programs. A 70-year-old grandmother deserves to get medical assistance before we pay private contractors to torture “terrorists” in secret prisons. There are so many real entitlement programs that benefit the absurdly wealthy and corporations allowing the Federal Government and their corporate cronies to shut down competition and consolidate power.

Cutting the social safety net that keeps many Americans alive before examining CIA and Pentagon spending is a direct attack on the poor and working people of America. Republicans seek to destroy every positive program we provide for our citizens while simultaneously giving corporations even more profit. This is the MO of the GOP and it is far from effective as we have seen throughout American history.

Democrats, on the other hand, seem to be repulsed by any spending cuts which are an absolute necessity if we want our wonderful country to continue to function as it has. Neither party is railing against the billions being spent in Libya, secret prison construction, the TSA, or the QE policy of the Fed. Why? They both have the same goals in mind, consolidating power and wealth while destroying the American middle-class. Neither party has put forth a viable plan and both parties have blatantly ignored the real issues that are bringing down our economy and devastatingly devaluing the US Dollar.