Disaster Casino Capitalism have converted USA into a Military Empire in Total Servitude of International Zionism Part 2

Today the two largest holders of US Treasury debt are the Federal Reserve and the Social Security Trust Fund.
The Wall Street gangsters sighed for relief over the last minute debt ceiling agreement. This shows how short-term Wall Street’s outlook is. All the October agreement did was to push off the crisis to January and February. The “debt ceiling agreement” did not produce a new debt ceiling that would last beyond February, and it did not resolve the large difference between federal revenues and expenditures. In other words, the can was again kicked down the road. A repeat of the October fiasco won’t play well.
According to reports, not only are foreign governments, such as China, ceasing to buy US Treasury debt, China has started to sell off its holdings, substituting gold in the place of US Treasury debt. The Fed can purchase a larger supply of bonds is by printing more money, that is, by more quantitative easing.
To get out of dollars requires that the dollar proceeds from selling Treasuries, US stocks and US real estate be sold in the currency markets. The selling of dollars drives down the exchange value of the US dollar and results in rising US inflation. The Fed can print money with which to purchase Treasury debt, but it cannot print foreign currencies with which to purchase dollars.
The decline in the dollar’s exchange value and the domestic inflation that results will force the Fed to stop printing. What then covers the gap between revenues and expenditures? The likely answer is private pensions and any other asset that Washington can get its hands on.
Initially, private pensions will be taxed at a rate to recover the tax-free accumulation in the pensions. The second year a national emergency will be used to confiscate some share of pensions. Those relying on the pensions will find themselves with less income. Consumer spending will decline. The economy will worsen. The deficit will widen.
You can see where this is going, and there seems to be no way out. Policymakers, economists, and corporation executives are in denial about the adverse effects of offshoring, which they still, despite all the evidence, maintain is good for the economy. So nothing will be done about offshoring. Republicans will blame the budget deficit on welfare and entitlements, and if those are cut consumer spending will decline further, widening the budget deficit. Inflation will rise as incomes fall, and social cohesion will break down.
Obamacare, as is widely reported, is causing employers to shift their work forces from full time to part time in order to avoid costs associated with Obamacare.
America is in the toilet, and the rest of the world knows it. But the neocons who rule in Washington and their Israeli ally are determined that Washington start yet more wars to create lebensraum for Israel.
Early in the 21st century the liberal Democrat Senator from New York, Chuck Schumer, and I coauthored an article in the New York Times about the adverse effects on the US economy of jobs offshoring. 

The Coming Grand Bargain of Neoliberals

But the real intent behind the government shutdown was to cut “entitlement” programs such as Social Security, Medicare, and other public services. The Democrats are allowing themselves to be “wagged” because they fully agree with the Republican’s neoliberal agenda.
The essence of neoliberalism can be reduced to the following: government should be used exclusively to help big business and the wealthy with tax cuts, subsidies, privatizations, anti-labor laws, etc., while all government programs that help working and poor people should be eliminated. It’s really that simple.
In practice, Obama’s neoliberalism is blatant: after bailing out the banks he continues to approve of the printing of thousands of billions of Federal Reserve dollars to give to the wealthy and big banks who are racking in record profits, while the jobs crisis is ignored and public services slashed on a state by state level without hope of a government bailout.
Since Obama has been in office, a shocking 95 percent of income gains went to the richest 1%. This is not the blind hand of the free market, but government policy, which can be adjusted to reflect the priorities of working people.
The first steps of the coming Grand Bargain have already been taken: the “sequester” — massive cuts to national social programs including Medicare — have been extended as a result of government shutdown “negotiations.”
Neoliberalism has already advanced on a state-by-state basis in the U.S., with Democrat and Republican governors in bi-partisan agreement that has drastically cut education and other social services, attacked the wages and benefits of state workers, while lowering the state taxes on the wealthy and corporations.
For example, Social Security and Medicare are two bedrock social programs that constitute a major piece of U.S. budget spending, affecting hundreds of millions of people.
Margaret Thatcher and Ronald Reagan’s free market capitalism ushered in the neoliberal transformation of the U.S. Reagan and Thatcher targeting labour unions for destruction, lowering tax rates for the rich, and preaching the virtue of neoliberal “trickle down” economics by implementing the neoliberal shock doctrine.
Naomi Klein’s book, “The Shock Doctrine,” tells in gruesome detail the brutality that has accompanied the “implementation” of neoliberal reforms across the globe over the last 30 years.

The Speculative Endgame of USA

The “shutdown” of the US government and the financial climax associated with a deadline date, leading to a possible “debt default” of the federal government is a money making undertaking for Wall Street. A wave of speculative activity is sweeping major markets.
The uncertainty regarding the shutdown and “debt default” constitutes a golden opportunity for “institutional speculators”. Those who have reliable “inside information” regarding the complex outcome of the legislative process are slated to make billions of dollars in windfall gains.
Speculative Bonanza
Most of the key actors in the US Congress and the Senate involved in the shutdown debate are controlled by powerful corporate lobby groups acting directly or indirectly on behalf of Wall Street. Major interests on Wall Street are not only in a position to influence the results of the Congressional process, they also have “inside information” or prior knowledge of the chronology and outcome of the government shutdown impasse.
Derivative Trade
The major instrument of “secure” speculative activity for these financial actors is derivative trade, with carefully formulated bets in the stock markets, major commodities –including gold and oil– as well as foreign exchange markets.Moreover, Wall Street speculators also influence the broader public’s perception in the media.
At a recent conference hosted by the powerful Institute of International Finance (IIF), a Washington based think tank organization which represents the world’s most powerful banks and financial institutions:
“Three of the world’s most powerful bankers warned of terrible consequences if the United States defaults on its debt, with Deutsche Bank chief executive Anshu Jain claiming default would be “utterly catastrophic.”
What these “authoritative” economic assessments are intended to create is an aura of panic and economic uncertainty, pointing to the possibility of a collapse of the US dollar.
Capitalism in the 21st century is no longer based largely on profits resulting from a real economy productive process, windfall financial gains are acquired through large scale speculative operations, without the occurrence of real economy activity.
The “too big to fail banks” are the architects of economic chaos as well as the unspoken recipients of billions of dollars of stolen taxpayers’ money.

Disaster Casino Capitalism have converted USA into a Military Empire in Total Servitude of International Zionism Part 5
Disaster Casino Capitalism have converted USA into a Military Empire in Total Servitude of International Zionism Part 4
Disaster Casino Capitalism have converted USA into a Military Empire in Total Servitude of International Zionism Part 3
Disaster Casino Capitalism have converted USA into a Military Empire in Total Servitude of International Zionism Part 2
Disaster Casino Capitalism have converted USA into a Military Empire in Total Servitude of International Zionism part 1