The Achilles Heel of all empires is when they go to many endless, often religious ideological wars, they go bankrupt. To paper over this, they debase the coinage and when that fails, they sell off all their assets and use up all their sovereign wealth and if that isn’t enough, they then go into debt to foreign rivals and then finally go bankrupt after a bout of hyperinflation. The US is aping Spanish Bankruptcy when the Spanish government managed by the Duke of Lerma was forced to declare a moratorium on its debts on November 19th, 1607.
When Philip III became King of Spain and Portugal in 1598, Spanish commentators were complaining that instead of being used to stimulate industry and business, the treasure from the Americas had created an attitude that held productive work in contempt, while foreigners – Genoese, Dutch, Germans – ran Spain’s trade and finance to their own profit.
The commentators wanted to see royal expenditure drastically reduced, the tax system reformed to bear more heavily on the rich, the growth of the Church checked and the improvement of industry and transport.
We do not run our own trade. No American ships ply the Seven Seas bringing goodies back to our empire. Foreign ships pour into our ports and our trade deficit, exactly like Spain in 1600, is enormous and we pay for this not with gold and silver mined by Indian and African slaves but rather, with paper IOU notes. Like 1600 Spain, the GOP wants to cut government spending while continuing ruinous wars.
Congress is paralyzed when it comes to funding activities. The GOP won’t tax those who have some wealth to tax and the poor are poorer due to the desiccation of the unions and offshoring of much of our industrial base. So, instead of anyone fixing the many things going wrong #1 of which is our endless wars and #2 is our endless trade deficits, we have this latest tricky, funky way of funding our collapsing empire: Debt Limit Showdown Spurs Debate On Trillion-Dollar Coin – Bloomberg
“A trillion-dollar currency is ridiculous,” said Chris Krueger, senior policy analyst at Guggenheim Securities LLC in Washington. “This is not something that a first-rate power should even consider.”…Krugman wrote in his New York Times blog yesterday that Obama should be willing to mint a $1 trillion coin “if Republicans try to force America into default.” Obama will “be faced with a choice between two alternatives: one that’s silly but benign, the other that’s equally silly but both vile and disastrous,” Krugman wrote. “The decision should be obvious.”
The bankers are screaming foul on this scheme which is absolutely ironic considering that they, themselves, destroyed the concept of ‘capital’ by turning to the vapid, invisible and insurmountably inscrutable Derivatives Beast to run their banking and speculative systems. Everything lies in ruins now and is kept from total collapse only by the courtesy of our trade partners who are still content to give us various goods and services in exchange for mythical, immaterial IOUs which we call ‘paper money’ or ‘credit’.
This Trillion Dollar Coin is a con, of course. But then, the entire system has been turned into a con game. The Trillion Dollar Coin is the reverse side of the Derivatives Beast. It, too, can go to Infinity while being pretty much Worthless. Chris Krueger whines that (after he and his buddies wrecked our system… ‘No first rate power should do this.’ The jerk doesn’t understand, the US isn’t a ‘first rate power’. It is going bankrupt like Imperial Spain. And Imperial Rome. And Imperial Britain. And all the others.
Here is an interesting story about what our Congress critters really do with their precious time: Call Time For Congress Shows How Fundraising Dominates Bleak Work Life
Basically, THEY SOLICIT BRIBES. Day in and day out. They have to, they have to pay for TV time since our media doesn’t serve us, it has to profit when informing us about life and death issues. They have to call and call, say, AIPAC lists or NRA lists or whatever the organization. Then there is the 1 hour ‘strategic outreach’ where they solicit bribes from rich lobbyists in a more personal, even sexually intimate way. Then, thoroughly drunk, they ‘recharge’ before collapsing in bed.
This corrupt system runs a corrupt empire and does a very bad job of it. I know from my own visits to the House and Senate, they spend most of their time terrified of being confronted by anyone. They don’t like the cold calls which the freshman have to do to learn how to solicit bribes. They prefer to spend 100% of their bribery collection time with a handful of rich people. Which is why rich people find life easier and richer and poor people are told to go to hell.
Congress, as a whole, is highly unpopular due to being out of touch with reality: Fiscal Cliff Polling Shows Little Support For John Boehner, Wider Approval For Obama Poll: Americans United In Dislike For John Boehner
President Barack Obama won a majority of support for his handling of the crisis, as 52 percent of Americans approved of his approach, while 37 percent disapproved.
John Boehner, by contrast, saw a 20-point net negative rating, with 31 percent approving and 51 percent disapproving of his handling of the deal…Just 8 percent of Republican voters approved of the way Obama was handling negotiations in a December Post-ABC survey, while in the new poll roughly one in four (23 percent) said he had done a good job. Democrats jumped from 14 to 27 percent in approving of Boehner’s handling of the issue.
HAHAHA. 52% voted for Obama and are satisfied. But only 37% of the GOP voters hate him enough to continue hating him. The other half of the GOP is sitting on its hands. Neutral. In the Northeast, many GOP creatures are stung by the inconsiderate ways of their fellow Southern Strategy colleagues. Bare minimum money for rebuilding for NY while Mississippi and Alabama still want rebuild money from Katrina.
We ARE going bankrupt. Fixing this is not so difficult, it involves stopping Pentagon wild warmongering, stopping the CIA endless assassination pogroms against Muslim civilians and of course, reforming the banking system and stopping the trade deficit. All these things Congress wants to continue to infinity, not fix. No one is bribing them to fix any of these things, of course.
P.O. BOX 483
BERLIN, NY 12022
Make checks out to ‘Elaine Supkis’
Click on the Pegasus icon on the right sidebar to donate via Paypal.