Adonis Diaries

Posts Tagged ‘money printing

Is the US readying for another preemptive war? The capitalist system will confirm it by electing Mitt Romney 

The presidential candidate Romney boasts that, as governor of Massachuset State, he balanced the State budget, as he managed to balance the budget of his multinational company. As if balancing State’s budget is the same as balancing Federal budget!

These balancing gimmicks in Federal budgets have been disposed of six decades ago: Once the federal government want more spending leeway, all it has to do is preparing to lunch a preemptive war so that Congress and Senate sign to increase the level of budget deficit.

Basically, the money printing machines in the Federal Reserve start churning out worthless dollars 24 hours a day, increasing inflation and abusing the tax paying citizens in additional disbursement from their pocket.

The only worthy statements in these debates are acknowledgment that the US sovereign debt has reached $16,000 billion (a number no president in exercise would have admitted), and that no matter who is elected for the next term, the deficit will shoot to $20 trillion. An amount that represents a third of the total federal worth in State property, which will have to be sold in order to pay back the national debt…

The role-playing of the two parties, Democratic and Republican, in the last 6 decades are as evident as finger prints in the US capitalist structure.

Let’s start from somewhere and comprehend this vicious cycle on how the US citizens are being played in this ping-pong game.

After each calamity, usually a major preemptive war (outside US boundaries), the middle class shifts: 10% ease their financial status toward the richer classes, and the remaining 90% descend to the lower level of middle class opportunities.

The mostly unemployed lower middle class citizens are ready to join the armed forces or enlist in order to secure a job and health insurance for their family members…and they are the most vocal in encouraging another round of preemptive wars…

One president throw money at the Defense department to replenish the weapons warehouses of all kinds of necessary arms and ammunition, and ordering the chief of staff to set up a wra-game planned for the next war field…

Congress and the Senate had agreed to increase the level of federal budget deficit so that the government can start borrowing money to cover the intended deficit.

Usually, the war ends with the US military withdrawing after several years of harrowing calamities, deaths, collateral damages in civilians, handicapped soldiers, physically and mentally…And who win?

The richest classes get richer, and the top 100 US companies (mostly the weapon and communication industries,  heavily subsidized by the federal government, stay afloat) since there are no market for their “specialized” products that need special permission for export…

The next president is required to just play the “balancing budget” at the higher deficit level, not repaying a dime from the original national debt… and licking the wounds, and providing job opportunities, and sustaining the social acquisitions…

The capitalist system knows better not to abuse the citizens repeated in preemptive wars: This term is for the US to focus on its internal problems…And the cycle is repeated ad nauseum…

While Greece has already sold almost all its State properties in order to pay back its sovereign debt, followed by Portugal, Spain, Ireland, Italy…the US keep accumulating national debt with every presidential term, regardless of the political party…

Who is purchasing States properties? Mainly two kinds of money:

1. China and India sovereign saved funds, from the blood and sweat of their little people, working as slaves in sweat shop factories and fields…

2. The US and multinational financial companies, paid for from the “others people” pocket-money. And who are these “others people” pocket-money?

How the US keeps increasing its sovereign debt as if it is of no consequence, and nothing to it?

They are the 10% of the richest people from every other countries: They buy US federal bonds…The return is minimal, but that is the price these “other” rich people have to pay in order for the US financial establishment to “acknowledg or accredite” that they are indeed and “actually rich people“.

Strong with this “admission”, the “other rich people” can invest and develop “on credit”, money from other people pockets, the way capitalist system function…Transfering useless paper money and purchasing real properties…

Note: And what about the sovereign funds of the absolute Saudi Arabia, and the Gulf Emirates?  These funds are basically US reserved funds to dip in, when Congress is in the mood of confronting the Executive administration.

What is the definition of a State: Beside Taxing the people?

Money printing is meant to facilitate internal commerce and expanding trades.  Taxing people for doing business in the Land is viewed as a logical and reasonable endeavor.  Consequently, the more a State print fictitious money, not covered by gold or anything of sustainable values, whatever tax is collected will never be enough to catch up with inflation.

Karl Marks wrote: “Tax is the foundation of a State”.

Sound correct, but I like to get to the root of the taxing concept.

What if “Printing money is the basis for any State“?  In any case, the State is imposing and collecting taxes as an indirect way of demanding a sizable percentage for the money printing monopoly.

We all know from movies and stories that mafia and gangs gather taxes from private enterprises, in return for providing security…

What kinds of security is needed when the gang has the sole monopoly of force in the region? Obviously, mafia and gangs are not in the business of providing health and social security for the people:  People have got to scramble for such kinds of luxuries.

Question:  What can be a discriminating factor between a gang with monopoly of force  and a State that does not consider offering health and social security to its citizens as an integral part of its business?

You may know the revolutionary adage: “No taxing without representation”.

What about the larger majority who pay taxes but are not equitably represented?  Is it the more you pay taxes the better representation you are entitled to?

Is it the better you transfer and turn-over printed money (financial institutions), the more eligible you are to represent the government interests? Is that the way it works?

If we turn the adage around and say: “No representation without paying taxes“; would that sentence smack as conservatism, and a pretty fair concept, socially and organizationally?  For example, if you are in the tax bracket of people earning less than the minimum yearly cut-off level for not paying taxes, would you feel very ashamed to demanding reforms and changes, simply because you didn’t contribute to the State’s treasury?  Is it the way it works?

For example, people in the oil rich producing countries of absolute monarchies and oligarchies (such as Saudi Arabia, Gulf Emirate States, Kuwait, Qatar, and even in Iran and Libya…) don’t have to pay taxes and the cost of gas for cars is minimal because the government do not take any percentage on gas consumed…  By the by, these regimes got it in their mind that their “citizens” are not entitled to significant representation at any level in the government.   Things are changing now in the Arab World.

If the population need social and health security, would these programs be categorized as charity programs in the budget?  

Or only the 20% of the poorest classes in the population should feel gratitude for their bigger brothers in their capability of turning over more money?

Is it how people are currently feeling in Europe with gimmicks of balancing budgets problems? 

People are demonstrating in mass and turning violent, because the governments are playing stupid by eliminating social and health programs, while giving bonus gifts to multinational corporation in tax laws.

The US has been imposing to the least developed States, in the last two decades, the economics constraints of the “Washington Consensus” ideology of the World Bank that says:  “Least developed nation governments should not invest their budgets on health and social programs, and they have to open their markets to foreign products, goods, and money…”

Least developed nations were demanded to just open up their markets to foreign trades and loosen up all laws on the flow of money handled by financial multinationals.

The Republican party in the US, and their allies, want to balance an impossible budget with their fundamental ideology that says: “It is not the business of a State to extending health and social benefits of any kinds to communities.”  Should a State governance emulates how gang operates?

What about privatizing the printing of money and eliminating the concept of State?

Anyway, the powerful financial institutions in the USA have de facto privatized the printing of money.

Four years after the financial crisis, and no resolutions have been contemplated or executed.




March 2023

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