Nearing the fiscal death of US power

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PITY THE NATION WHOSE GOVERNMENTS, BANKS, AND BIG CORPORATIONS SELL HER PEOPLE TO THE DEVIL – OUT OF SHEER GREED

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SIMPLE DEFICIT MATHS

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by Gulam Mitha
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This shortfall of $20 billion in the chart below is for the day of 3rd August 2011 (the day when US credit rating would drop from AAA to AA. Typically, the shortfall (budget deficit)—what Sam brings in and what it pays out—is $4 to 5 billion daily or $1.5 trillion annually. That’s everything including war expenses in Iraq, Afghanistan, Libya and to maintain numerous bases all over the world, paying salaries, social security, etc.

The current US deficit has hit a cumulative $12 trillion, and its GDP is $14 trillion. Its annual budget (what it projects to bring in and spend) is $3.5 trillion but it actually spends $ $5 trillion!!! 30% more than what Sam rakes in. So it borrows and issues IO US (treasury bonds) that carry a specific interest rate.

 Its like your budget is $100 but you spend $130. To cover the shortfall, you keep borrowing from the bank, your relatives or friends and writing them IOUs and keep paying interest. A day will come when the interest payments reach $100. Then what do you do?

a)      Cut your expenses as per the donkey’s scheme?

b)      Give more to the rich in taxes as per the elephant’s scheme so they can create more jobs (a big fat lie)?

c)       Commit suicide?

d)      Murder?

 ISN’T ALL OF THE ABOVE WHAT THE US IS DOING?

THE US FAILED TO LEARN THE HISTORIC LESSON FROM SOVIET UNION WHEN IT WAS EXITING AFGHANISTAN in 1988—   ELEVEN YEARS LATER IT SPLIT AT ITS SEAMS.

BUT Russia survived as it has huge energy reserves.

JUST LIKE THE SOVIET UNION, USA IS ALSO IN DIRE STRAITS SINCE IT VENTURED INTO AFGHANISTAN AND IRAQ IN 2001 & 2004. WHAT WILL THE USA BE 11 YEARS LATER?

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THOSE THAT DO NOT LEARN FROM HISTORY ARE DESTINED TO REPEAT IT

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I pity this nation whose people I so fondly admire.

Their governments, banks, medical system, energy and big corporations have sold them to the devil out of sheer greed.

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Published in: on 18/07/2011 at 5:39 pm  Comments (9)  
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9 CommentsLeave a comment

  1. Its naïve to compare the economy of U.S. with that of the former U.S.S.R. or to suggest that Afghan war created a situation due to which the later had collapsed and so would the U.S. In contrast it was Islam which was catalyzed by the west itself, to cause the USSR to collapse. Now the same forces are having an open field to kick all those who are thinking that they have defeated a super power in the past and now it is the turn of the second [and the only super power now] to collapse at their hands.

    • The Mujahideen financed by the US, trained by CIA-ISI, did cause collapse of the Soviet Union. But to think that the same forces have an open field now and therefore are kicking out the former Mujahideen, now rebranded as Taliban in Afghanistan, is just a wishful approach opposite to what’s happening on ground, in that country.
      The US, in spite of its massive force along with NATO units in last ten years has not been able to defeat the ragtag army of the Taliban. Despite US drone attacks, despite ISAF’s most modern, most deadly, precision targeted war gadgetry, Taliban forces have not only not surrendered but offered tough resistance to an extent that the US and NATO forces are now forced to hold peace talks with the same Taliban whom they consider as enemy.

      Although best solution for the US and Europe is of course to vacate Afghanistan [I, however, doubt that US would ever do this. Some token withdrawal of US units as well as of Europeans might take place but by and large efforts will continue to install a pliant regime in Afghanistan which will accept US presence either on Afghan soil itself or somewhere near that country].

      A complete US drawdown without the proper follow up mechanism, however, will again plunge that country into confusion and chaos [as it experienced in the post Soviet occupation period]. This is a possibility that of course presets a nightmarish scenario for the neighbouring states particularly Pakistan.

      So the best course would be on following lines:-

      1. Installation of interim government setup in Afghanistan which should comprise of Taliban, Non Pashtun Afghan representatives and Technocrats.
      2. Formation of Afghan Grand Council [or Qaumi Jirga] which should frame a new constitution of the country and which would hold the national popular elections on adult franchise
      3. A neutral, independent Afghanistan and its reconstruction by the world community.
      4. Regional power like Russian, China and Afghanistan’s neighbours like Iran, Pakistan and India should be guarantors of above arrangements.

  2. Tewari are you stalking Nayyer Hashmi?

  3. It is not only with Dr Nayyer but all of those who know the weakness of their faith but are hesitant to accept it in public .My comment always to hit such people so that they could shed their dillema and could be a force to reform their community .

    • Anil, Your comment and your words do not even aim to properly spell what u want to convey – what to speak of hitting me, myself, my faith.

    • @ Dr. T-E-WAR-I, My dilemma is not my faith; for its my very faith which allows me tolerate the very “fine” language you use against those with whom you do not agree. BUT the language you are using bespeaks of the “tolerant” Hindutva mind itself .

  4. It is the motivation and deliberate negligence of the impacts of radical thoughts of Islam that has pushed the entire community in to the hell . Still there is no hope because those who can handle the crisis are themselves indulged in a game to prove that their products have defeated the two super powers of the world .It is the motivation and deliberate negligence of the impacts of radical thoughts of Islam that has pushed the entire community in to the hell . Still there is no hope because those who can handle the crisis are themselves indulged in a game to prove that their products have defeated the two super powers of the world .

    • Looks the keys of your machine are kaput as its turning out words and sentences in a great repeat.


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