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UNDERNEWS

Undernews is the online report of the Progressive Review, edited by Sam Smith, who covered Washington during all or part of ten of America's presidencies and who has edited alternative journals since 1964. The Review, which has been on the web since 1995, is now published from Freeport, Maine. We get over 5 million article visits a year. See prorev.com for full contents of our site

February 10, 2010

HOW WARS ARE RUINING AMERICA

Eric Margolis, Toronto Sun, Canada - U.S. President Barack Obama calls the $3.8-trillion US budget he just sent to Congress a major step in restoring America's economic health.

In fact, it's another potent fix given to a sick patient deeply addicted to the dangerous drug - debt.

More empires have fallen because of reckless finances than invasion. The latest example was the Soviet Union, which spent itself into ruin by buying tanks.

Washington's deficit (the difference between spending and income from taxes) will reach a vertiginous $1.6 trillion US this year. The huge sum will be borrowed, mostly from China and Japan, to which the U.S. already owes $1.5 trillion. Debt service will cost $250 billion. . .

Obama's total military budget is nearly $1 trillion. This includes Pentagon spending of $880 billion. Add secret black programs (about $70 billion); military aid to foreign nations like Egypt, Israel and Pakistan; 225,000 military "contractors" (mercenaries and workers); and veterans' costs. Add $75 billion (nearly four times Canada's total defense budget) for 16 intelligence agencies with 200,000 employees.

The Afghanistan and Iraq wars ($1 trillion so far), will cost $200-250 billion more this year, including hidden and indirect expenses. Obama's Afghan "surge" of 30,000 new troops will cost an additional $33 billion - more than Germany's total defence budget. . .

The Pentagon now accounts for half of total world military spending. Add America's rich NATO allies and Japan, and the figure reaches 75%.

China and Russia combined spend only a paltry 10% of what the U.S. spends on defense. . .

Like Bush, Obama is paying for America's wars through supplemental authorizations ­- putting them on the nation's already maxed-out credit card. Future generations will be stuck with the bill.

This presidential and congressional jiggery-pokery is the height of public dishonesty.

America's wars ought to be paid for through taxes, not bookkeeping fraud.

If U.S. taxpayers actually had to pay for the Afghan and Iraq wars, these conflicts would end in short order. America needs a fair, honest war tax.

The U.S. clearly has reached the point of imperial overreach. Military spending and debt-servicing are cannibalizing the U.S. economy, the real basis of its world power. Besides the late U.S.S.R., the U.S. also increasingly resembles the dying British Empire in 1945, crushed by immense debts incurred to wage the Second World War, unable to continue financing or defending the imperium, yet still imbued with imperial pretensions. . .

Increasing numbers of Americans are rightly outraged and fearful of runaway deficits. Most do not understand their political leaders are also spending their nation into ruin through unnecessary foreign wars and a vainglorious attempt to control much of the globe - what neo-cons call "full spectrum dominance."

If Obama really were serious about restoring America's economic health, he would demand military spending be slashed, quickly end the Iraq and Afghan wars and break up the nation's giant Frankenbanks


2 Comments:

Anonymous Anonymous said...

The central banks of Europe and America were created on the eve of World War One. Maybe we do not need them at all.

February 11, 2010 4:17 AM  
Anonymous flavian said...

The US "budget" is madness. Mad in scale, mad on what it is spent on and mad on how much debt is being created. Makes you wonder how long it can keep on keeping on before the debt totally overwhelms the US.

February 12, 2010 6:24 AM  

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