The US has
every characteristic of a failed state.
The US
government’s current operating budget is dependent on foreign financing and
money creation.
Too
politically weak to be able to advance its interests through diplomacy, the US relies on terrorism and military aggression.
Costs are
out of control, and priorities are skewed in the interest of rich organized
interest groups at the expense of the vast majority of citizens. For example,
war at all cost, which enriches the armaments industry, the officer corps and
the financial firms that handle the war’s financing, takes precedence over the
needs of American citizens. There is no money to provide the uninsured with
health care, but Pentagon officials have told the Defense Appropriations Subcommittee in the
House that every gallon of gasoline delivered to US troops in
Afghanistan costs American taxpayers $400.
“It is a number that we were not aware of and it is worrisome,” said Rep. John Murtha, chairman of the subcommittee.
According
to reports, the US Marines in Afghanistan use 800,000 gallons of gasoline per
day. At $400 per gallon, that comes to a $320,000,000 daily fuel bill for the
Marines alone. Only a country totally out of control would squander resources
in this way.
While the
US government squanders $400 per gallon of gasoline in order to kill women and
children in Afghanistan, many millions of Americans have lost their jobs and
their homes and are experiencing the kind of misery that is the daily life of
poor Third World peoples. Americans are living in their cars and in public
parks. America’s cities, towns, and states are suffering from the costs of economic
dislocations and the reduction in tax revenues from the economy’s decline. Yet,
Obama has sent more troops to Afghanistan, a country half way around the world
that is not a threat to America.
It costs
$750,000 per year for each soldier we have in Afghanistan. The soldiers, who
are at risk of life and limb, are paid a pittance, but all of the privatized
services to the military are rolling in excess profits. One of the great frauds
perpetuated on the American people was the privatization of services that the
US military traditionally performed for itself. “Our” elected leaders could not resist any opportunity to create
at taxpayers’ expense private wealth that could be recycled to politicians in
campaign contributions.
Republicans
and Democrats on the take from the private insurance companies maintain that
the US cannot afford to provide Americans with health care and that cuts must
be made even in Social Security and Medicare. So how can the US afford
bankrupting wars, much less totally pointless wars that serve no American
interest?
The
enormous scale of foreign borrowing and money creation necessary to finance
Washington’s wars are sending the dollar to historic lows. The dollar has even
experienced large declines relative to currencies of Third World countries such
as Botswana and Brazil. The decline in the dollar’s value reduces the
purchasing power of Americans’ already declining incomes.
Despite the
lowest level of housing starts in 64 years, the US housing market is flooded
with unsold homes, and financial institutions have a huge and rising inventory
of foreclosed homes not yet on the market.
Industrial
production has collapsed to the level of 1999, wiping out a decade of growth in
industrial output.
The enormous
bank reserves created by the Federal Reserve are not finding their way into the
economy. Instead, the banks are hoarding the reserves as insurance against the
fraudulent derivatives that they purchased from the gangster Wall Street
investment banks.
The
regulatory agencies have been corrupted by private interests. Frontline reports that Alan Greenspan, Robert Rubin, and Larry
Summers blocked Brooksley Born, the head of the Commodity Futures Trading
Commission, from regulating derivatives. President Obama rewarded Larry Summers
for his idiocy by appointing him director of the National Economic Council. What
this means is that profits for Wall Street will continue to be leeched from the
diminishing blood supply of the American economy.
An
unmistakable sign of Third World despotism is a police force that sees the
public as the enemy. Thanks to the federal government, our local police forces
are now militarized and imbued with hostile attitudes
toward the public. SWAT teams have proliferated, and even small towns now have
police forces with the firepower of US Special Forces. Summons are increasingly
delivered by SWAT teams that tyrannize citizens with broken down doors, a $400
or $500 repair borne by the tyrannized resident. Recently a mayor and his family were the recipients of incompetence
by the town’s local SWAT team, which mistakenly wrecked the mayor’s home,
terrorized his family, and killed the family’s two friendly Labrador dogs.
If a town’s
mayor can be treated in this way, what do you think is the fate of the poor
white or black? Or the idealistic student who protests his government’s
inhumanity?
In any
failed state, the greatest threat to the population comes from the government
and the police. That is certainly the situation today in the USA. Americans
have no greater enemy than their own government. Washington is controlled by
interest groups that enrich themselves at the expense of the American people.
The one
percent that comprise the superrich are laughing as they say, “Let them eat cake.”
Paul
Craig Roberts [email
him] was Assistant Secretary of the Treasury during President
Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has
held numerous academic appointments, including the William E. Simon Chair,
Center for Strategic and International Studies, Georgetown University,
and Senior Research Fellow, Hoover Institution, Stanford University. He was
awarded the Legion of Honor by French President Francois Mitterrand. He is the
author of Supply-Side
Revolution : An Insider’s Account of Policymaking in Washington; Alienation
and the Soviet Economy and Meltdown:
Inside the Soviet Economy, and is the co-author with Lawrence M.
Stratton of The
Tyranny of Good Intentions : How Prosecutors and Bureaucrats Are Trampling the
Constitution in the Name of Justice. Click here for
Peter Brimelow’s Forbes Magazine interview with Roberts about the recent
epidemic of prosecutorial misconduct.