AUDIO "America's Fiscal Collapse - Obama's Budget Will Impoverish America

**ginge51** · March 17, 2009, 01:17 PM

"America's Fiscal Collapse - Obama's Budget Will Impoverish America"
with economist and author, Michel Chossudovsky

Guns and Butter, KPFA

The administration's 2010 budget will entail the most drastic curtailment in public spending in American history, leading to social havoc and the potential impoverishment of millions of people. Defense spending and bank bailouts will consume all government revenue resulting in fiscal collapse that will lead to the privatization of the state.

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To consult Michel Chossudovsky detailed article on the process of fiscal collapse, click below:

America's Fiscal Collapse
- by Michel Chossudovsky - 2009-03-02

Excerpt

At first sight, the budget proposal has all the appearances of an expansionary program, a demand oriented "Second New Deal" geared towards creating employment, rebuilding shattered social programs and reviving the real economy.

The realities are otherwise. Obama's promise is based on a mammoth austerity program. The entire fiscal structure is shattered, turned upside down.

To reach these stated objectives, a significant hike in public spending on social programs (health, education, housing, social security) would be required as well as the implementation of a large scale public investment program. Major shifts in the composition of public expenditure would also be required: i.e. a move out of a war economy, requiring a movement out of military related spending in favour of civilian programs.

In actuality, what we are dealing with is the most drastic curtailment in public spending in American history, leading to social havoc and the potential impoverishment of millions of people.

The Obama promise largely serves the interests of Wall Street, the defence contractors and the oil conglomerates. In turn, the Bush-Obama bank "bailouts" are leading America into a spiralling public debt crisis. The economic and social dislocations are potentially devastating.

Obama's budget submitted to Congress on February 26, 2009 envisages outlays for the 2010 fiscal year (commencing October 1st 2009) of $3.94 trillion, an increase of 32 percent. Total government revenues for the 2010 fiscal year, according to preliminary estimates by the Bureau of Budget, are of the order of $2.381 trillion.

The predicted budget deficit (according to the president's speech) is of the order of $1.75 trillion, almost 12 percent of the U.S. Gross Domestic Product.

War and Wall Street

This is a "War Budget". The austerity measures hit all major federal spending programs with the exception of: 1. Defence and the Middle East War: 2. the Wall Street bank bailout, 3. Interest payments on a staggering public debt.

The budget diverts tax revenues into financing the war. It legitimizes the fraudulent transfers of tax dollars to the financial elites under the "bank bailouts".

The pattern of deficit spending is not expansionary. We are not dealing with a Keynesian style deficit, which stimulates investment and consumer demand, leading to an expansion of production and employment.

America's Fiscal Collapse

http://www.globalresearch.ca/index.p...t=va&aid=12674

This guy knows what he is on about....
Scarey indeed.

The audio clip is in the link.

**Sphere** · March 17, 2009, 01:49 PM

Important topics of discussion, but not intellectually objective arguments.
For a example:

The budget diverts tax revenues into financing the war.

Really what Obama suggested in his 2010 budget proposal is including the war spending in the actual budget instead of using the Bush strategy of passing suplimental spending bills that don't show up in the budget, and simply become debt. It's a fairly common sense and honest way of going about it in my opinion.

Also, calling the bank "bailout" program as spending is bending the situation. The government is buying into companies, and handing out loans on rather good terms for the government. If there is a recovery, and these institutions return to profitability, the US tax payer would more than likely come out ahead. If some of these institutions become "zombies" like in Japans lost decade, then the US would stand to lose money. But in any event, the bank bailouts are investments (i.e. the treasury owns shares in companies, or hold loans that are charging interest) with tax payers money, not just cutting checks to bankers.

The real critiques should focus on the entitlement, education and healthcare program spending, all of which are still very up in the air, and the costs of which could vary widely. This is were policies and plans need to be done right or there could be problems. The rest is political fluff used for effect, not meaningful discussion.

**IrishHitman** · March 17, 2009, 01:58 PM

If his background is right, this guy is much more left-wing than I expected...

Mind you, Obama's plan was bound to impoverish America anyway.
So was the Republican plan as well...

**Simplicio** · March 17, 2009, 02:07 PM

Eh, America's so much in debt as of now (and is increasingly so) that I wouldn't be surprised if it goes completely down the crapper.

**Last Roman** · March 17, 2009, 02:38 PM

so on one side we have some people crying about how Obama is planning a socialist take over, than we have this guy who thinks the Obama administration will privatize the government to such an extent, that society will break down.

**lordoftheT** · March 17, 2009, 02:40 PM

Well to be fair our government does have an unfortunate habit of trying to take the worst parts of both systems.

**Erik** · March 17, 2009, 03:07 PM

Of course, running a 600-800 billion dollar deficit in good times, for years on end, has nothing to do with this looming collapse.

**awisler** · March 17, 2009, 04:05 PM

So, where do we go after this? Which country are the TWcenter players heading off to for refuge?

But seriously, that was an interesting article, when the numbers comparing predicted spending to predicted revenue showed up...man just makes it seem absurd.

**Zephyrus** · March 17, 2009, 08:59 PM

Originally Posted by awisler

So, where do we go after this? Which country are the TWcenter players heading off to for refuge?

But seriously, that was an interesting article, when the numbers comparing predicted spending to predicted revenue showed up...man just makes it seem absurd.

Makeitupaswegoalongistan.

I also recommend to everybody to look up gerard celente in youtube. He's been correct quite a few times as well.