Re: The Wealth Gap and the Collapse of the U.S.
“Military Spending is INCREASING Unemployment and REDUCING GDP”
by George Washington“I have written extensively on the fact that this is not a normal cyclical recession, and we’re not in the type of “jobless recovery” which we’ve had a couple of times in the last 50 years. Unemployment will continue rising in America for some time, which will make a real, sustainable recovery very difficult.
The heads of two Federal Reserve banks are now saying something similar: Janet Yellen, president of the Federal Reserve Bank of San Francisco, and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, warned that rising unemployment could crimp consumers, restraining the recovery. Consumer spending accounts for about 70 percent of economic activity.
But instead of doing anything to encourage a sustainable recovery in employment – such as rebuilding America’s manufacturing base, or breaking up the too big to fails so that the smaller banks have a chance to grow and lend more to individuals and small businesses – the government has simply thrown money at the banks.
Moreover – contrary to what you might have heard – PhD economist Dean Baker pointed out yesterday that America’s massive military spending on unnecessary and unpopular wars actually lowers GDP and increases unemployment: Defense spending means that the government is pulling away resources from the uses determined by the market and instead using them to buy weapons and supplies and to pay for soldiers and other military personnel. In standard economic models, defense spending is a direct drain on the economy, reducing efficiency, slowing growth and costing jobs…..
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Most US citizens are just now beginning to grasp how completely all institutions in their state have passed into the hands of the corporate, “kleptocratic” elites. The commonwealth is being destroyed by the activities of the banksters of Wall Street, the authors of the financial melt-down. They are pundering the public treasury or using the military to assure their ownership of the US oil beneath the sands of Iraq while still others seek an outlet to the sea for the oil and gas of formerly Soviet central Asia via Aghanistan’s Helmand province and Pakistani and Iranian Baluchistan. In addition to this, the detestable insurance corporations are assuming the power to compel the citizenry to gain even the most minimal access to medical care at exorbitant cost.
…and the U6 statistics, until Bill Clinton’s regime the classic measure of unemployment, now hover near 18%.
The US population has had in the past few months a first rate lesson in civics. Until November of 2008 they had hope that some change in this dismal equation could be accomplished via the formal political process. This misplaced optimism is now gone.
The failure of the corporate state to attain legitimacy, in terms of popular support is now complete. I meet Democratic Party stalwarts every day who now apologize to me for their refusal to listen to my skepticism about Barack Obama and the rest of their misleaders.
Defectors from the International Energy Agency at the United Nations have spoken to the British Guardian newspaper revealing how the USA has used every means to prevent accurate reporting of oil production — we are now at, or more probably, have passedpeak oil production. A figure of 82 or 83 million barrels per day seems to be the limit, not the 102 mbd hitherto spoken of as possible.
This fact is of cardinal importance to the rational understanding of US policy.…