La tarcoteca

By Pablo Heraklio & cols. Tarcoteca @

martes, 12 de julio de 2011

Unpayable debt of the United States, USA bankrupt,ghetto-country.

Blog el salmon

USA arises again raise the debt ceiling of the Federal Reserve. The present is situated in 14'3billion $ (14'3x10 ^ $ 12), being legally passed in May.

The Center for Budget and Policy Priorities, an independent budget analysis, predicts that overall deficit for 2012 states will add 103 billion dollars, slightly less than in 2011 (140thousand millions) and 2010 (191thousand millions), the absolute record since the Great Depression of the 30's. Between 2008 and 2010, the federal government plugged more than a third of the state holes through the bailout approved by the crisis. The plan ended in late June.

Since Nixon overturned the gold parity in the early 70's the currency production has not ceased. There are so many dollars that neither themselves know how many dollars have product. There are so many as grain of sand in the desert.
The value of money is fiduciary, that is, the state is guaranteeing that the title has the value it represents. So, because of mass production, based on debt and speculation on the currency, since then has lost its value by 40% compared to the rest. As fiducidiary the state commits to paying the debt generated. As guaranteeing 800 bilions dollars already has been injected from the Federal Reserve as, but arriving at certain points should yield assets, businesses or territory, such as Greece or Argentina. Yet China, through its rating agency Dagong has qualifying degrading the quality of goberment bonds of public debt from AA/Negative to A+/negative. They see some problems to be paid, so will not invest so much as before. But why china don't believe in USA recovery? Thee source of debts.

40% of the debt is attributed to private companies, becouse of the hyper-consumerism and debt. Economical grow without fisical grow. Banks have generated bebt providing cheap credit that could not be paid. Not only the family, the entire society has lived on credit for more than 30 years. They brewing crisis 10 years refinanced, this is by investing in debt, increasing the percentage. But it is unpayable debt. Speculation created makes the value of goods and services decreased by the uncertainty that the price marked is real or not.
Relocated companies send thousands of employees to the street. As revenues continue to decline.
Companies are getting smaller, business groups of 5-10 people who manage a trade mark, investing groups. But the product charge to a company of the 3rd world or emerging country, thereby increasing national unemployment. Despite of tariffs is U.S.a major consumer of Chinese products, its biggest rival in the world thanks to this label which falsely described the products as americans.Unemployment has risen to 10%. Increased unemployment, reduced purchasing power and favor raising and over most opponents. Eagles of business.
During the process, as speculative value, significant transactions are made in fiscal paradises so less taxes are collected.
Finally the big companies do not pay taxes. Boeing, Citibank or Bank of America, among thousands of others, do not pay it for 3 years, hoping to attract the attention of investors, as in Ireland.
The day they want to recover the companies should be requalified and auditored again to know thieir real price. That day we take a surprise, as seen in Greece, becouse the lay of speculation will fall and could be see the purchase value.

To U.S. foreign wars do not come free, is blamed by 10 to 50% of the debt:

During the last decade have spent 444 billion dollars in Afghanistan, and a total of at least 1.3 billion on the wars in Iraq and Afghanistan. This year only spending in Afghanistan is about 119 billion (since 2010, spending on the war is over in Iraq.) The government spends a millions of dollars a year for each soldier deployed in Afghanistan, CBS News estimates.

Has it been beneficial or harmful? The weapons lobbies, which are the oil ones, believed that controling 1st producer of opium and the 2nd oil reserves in the world will secured the hegemony secured for the foreseeable future. USA has spent between 10% and 50% of its energy, of his money to keep these two occupations. War is profitable: enter, take and go. But the business of the occupation can not be enough becouse creates a 10to 50% debt to the country that practice.
The normal practice has been the installation of military bases in other countries. But agreed basis, as in Puerto Rico, Mexico, Colombia or all of the Middle East. USA has over 800 military bases arranged along the world in general were not given many problems. With 55 bases and 600 outposts (control points, barracks, offices, arsenals, ports and prisons) in Iraq, which maintains a population of 60,000 soldiers. In Afghanistan, speech bases and outposts (idem) add 700. If we add to construction, equipment, maintenance person, plus subsidies of dead, wounded and maimed. Spend!

The debt, which currently stands at 139% of GDP will increase by about 10% each year until put no remedy. The states are getting the hardest hit. Minnesota has filed for bankruptcy, leaving some 22,000 officers on the doll. California, Illinois, Florida and New York have been suffocated in debt due to the housing bubble. It is estimated that next year could be 150,000 plus fired, they would join the 650,000 laid off since 2008.
USA already had its own rescue plan in 2008, it was agreed injection of 800 billion of these 150billion went to direct rescue of the states.
Now the government withdraw the assistance arises that has not sent to these states.

The fragility of the system relies on human greed. But advocates of the system, the idealists, theorists and economists that believe that ths system works or is the best possible, or are liars or are idiots.
If you have an economy based on consumption keeps production. If you facilitate loans to ensure the consumption-production. If further increase household debt to maintain social order. If you allow speculation. If you have a society based on the sale and do not control the prices are going to have problems.
The country's debt is large, from families to states and private companies. Refinancing the debt does not end the problem, and eventually postponed it worse. The problem is that the goods or services is not received and the debt will never be paid.
The state is the guarantor of the price of money, but if you cut their power, their actives, cut atributions, employees, you are subtracting confidence in the state, so that depreciates. China has lost confidence that the debt will be pay off, so that they have corrected on the risk rating of the bond debt.
The hyper-consumerism and debt and lead to speculation and refinancing, creating unpayable debt. In their search for cheap goods, they consum products of the adversary, China, like it were Americans.
The quest for greater economic yield decapitalized the companies and relocated factories in emerging countries, thier competitors.
The debt of the war shows the strength of the arms lobby. Shows that this, oil and opium are ths same bussines, hence the interest in this resources and not others.
The state is willing to fall and firm bankruptcy if this does not diminish their investment in arms or do not touch private property. Cut in public what it takes. Hence his stubbornness to keep the occupied territories. But even if the state falls and only remaining state employees of the Federal Reserve to make dollar flood the world, debt will grow to engulf them. It seems that everything's up in the past passes bill: consumer and military.

If the U.S. is in a situation so bad, why still the benchmark?
USA controls the internet with 4 of 4 IP managers worldwide, 50 telecommunications satellites declared. Owns 50% of patents worldwide. It has 33% of the billionaires and 80 of the 100 most wealthy and influential in the world. Controls NATO, the UN, the IMF. The global oil benchmark, Brent, is in dollars. Their sphere of political influence is still very wide, including: the whole of Europe, Morocco, Egypt, israle, Saudi, South Africa, Turkey, Tibet, Thailand, South Korea, Philippines, Japan, Australia, Mexico, Colombia, Bolivia.
Despite of all things are not going well. At least not to all people, and threatens to become a country ghetto. It appears that have created a monster that threatens to swallow. With the first state to bankruptcy and five more incubating a chain reaction to start.
But what gives the real value is its army. That is the value of its currency. It ensures that ships are moving, which circulates oil and energy is not depleted. Therefore, although its disintegration from the inside, will not fall without dragging everything with his fall.
If U.S. does not recover from the army part of the invested in recent years, even cutting the other two sources of debt, it will continue to grown and virtually the economy will never recover the increasing benefits.
Topple once Germany and Japan in the war. Russia economically. Let's see what they do with China.

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