1888PressRelease – To finance the end of last year’s budget for public spending, the government has borrowed 0.46% dollars of new debt increasing the federal Government deficit to 1 Trillion 352 billion USD. The federal Government has added another debt obligation of 1 Trillion 819 billion USD during the last Twelve months. The impending recession is a direct threat to the U.S. economy and domestic life in 2013.
In 2012 in the USA the unemployment rate was reduced to 7.7% from 7.9% which occurred for many reasons. Some notable reasons are reduction in registrations with the unemployment agency which is a fallacy since the reduction can’t be attributable to Job creation. There is no positive sign that there will be economic recovery in 2013. Many believe public spending will continue to increase compared to income generated thus exploding public debt.
The USA Fiscal cliff debate is a minor case. The major problem the USA faces is its continued printing of money to finance its debt; this fiscal practice has and continues to create a major inflation problem and seriously burdens its citizens. Why can’t the U.S. create jobs rather than continue to borrow money for its daily substance? U.S. needs to review its major domestic economic and foreign policies. Its continued domestic policy has fostered a dependency that is causing the country to approach bankruptcy and possible insolvency.
Further, foreign policy needs to be changed because U.S. continues to develop military bases around the world which are very expensive to maintain. This all occurs while the U.S. has stifled with domestic production and exports making it rely heavily on imports mainly produced in China. Russia and China are not spending money to create military bases around the world which is inconsequential to this debate; the issue I believe lies in research and development. U.S. products are very appreciated around the world but the U.S. needs to change or review its approach.
The 19th century is different than 21st century. Communication and technology and the advancement of the Internet has reduced the world and made it possible to interact with each other while being thousands of miles away. This technological advancement has allowed smaller less endowed countries to even the playing field with their larger counter parts by producing technology driven products and services to market worldwide. The U.S. continues to invest in defense. In fact, the U.S. defense budget is greater than several European countries including Russia collectively. Why is this necessary?
According to Dr. Mehenou Satu Amouzou the U.S. has been a mirror referenced as a template by other countries for Technology, Scientific Research, Education, Economy, Military, etc. for many decades. The U.S. was a country of excellence; the most powerful and rich. For the past 100 years U.S. debt has been growing faster than previous historical numbers largely due to its participation in wars (World War I, World War II, the Korean War, the Vietnam War, Iraq War I, Iraq War II, Libya War, Syria War and etc.) expenditures have outpaced revenues during these times without reference to human casualties and other consequences. Appropriation to military expense is larger and has surpassed all budgets for other industries managed by federal executive departments including Health and Human Services, Education and Energy.
Just a few months ago, at the border between San Diego, California and Mexico; the US border patrol building collapsed due to lack of control and inadequate maintenance. We are lucky that there were no deaths. As U.S. cities and states continue to collapse due to dilapidation and require immediate funding U.S. government is cutting budget allocations to these institutions. Again, the culprit is military spending. The U.S. has stretched itself with close to 900 military bases around the world. Does the U.S. have the financial capacity to support and maintain these many Military bases? We do not think so!
The problems we are facing are redundant and largely caused by the mismanagement of fiscal policy. There U.S. we believe should reallocate spending from military initiatives and place a large significance on foreign policy and technological competition. Today, U.S. Policies foreign and otherwise are antiquated and dismal. Military spending and lack of domestic progressiveness is closing down the U.S. Retailers prevail while manufacturing and service related companies and corporation implode. The country has fallen prey to outsourcing and importing. Further, companies that have survived this internal cold period have decided to relocate to foreign countries causing more unemployment and less domestic product to service its citizens and export.
Some of the long term economic effects of the previous mentioned inferior policy initiatives are more than 60 million homeless including foreclosures in the past ten years. The middle class in the U.S. has disappeared into extinction like the dinosaurs. The loss of homes caused a trickle effect leading to undesirable credit scores leading to increasing debt from increased credit card use and unfair lending practices. The middle class was the base of this country and now resides in abject poverty. One of seven families live on food stamps, one out of six children has one meal a day.
College graduates who once owned homes now find it a reasonable option to return home to live with their parents. 75% of college graduates cannot find a job in their field. They have accepted working for minimum wages making it impossible to service their debt. More important to the U.S. economy, these young minds have been placed in a downward monsoon. College graduates in this country cannot dream or become ingenuous because their creative is smothered by the need to service debt; credit card debt alone is approaching interest rates of 29%. The domestic economy suffers from this loss. There are no more leaders of tomorrow.
Education is the basis for economic development and is the future for any country. We know there is no free education; even if the student is a scholar with paid tuition. Today the average college graduate receives a degree and exits college with $150,000 debt. This number includes student loans, credit cards and incidentals. Receiving minimum wage employment in lieu of their chosen field is a cause from remuneration. These children were bamboozled by politicians and tempted by chance to live the American dream. Debt increases from inability to service, creativity diminished by lack of chance and increased stress; this is a recipe for disaster. We are leaving next generations with insurmountable chance for survival. These generations are approaching food stamps and public assistance. Is this government financial capable to sustain an entire generation on public assistance?
Today world is like “Airplane without the Pilot”. How a great nation like the USA could become a plane without a pilot? What has happened? Today fixed income Social Security is subject to become taxable income! Nobody thought such could ever happen. The government is to collect billions of dollars annually by taxing Social Security. This is the remedy the U.S. government implores to eradicate this country’s decaying economy; to take money away from those who have worked their entire lives in search of a dream. Even in retirement their dreams remain nightmares. Now we have college graduates and senior citizens living on food stamps and public assistance. Is war and military dominance worth the demise of mankind? The poverty war should take precedence to all other wars.
For Dr. Amouzou war’s never rebuild a country or an economy. Any and all wars make less than 1% of the population richer while destroying the lives of the remaining 99% worldwide. Let’s take this example, the war in Iraq and Afghanistan has cost an average of 2.5 to 3 Trillion Dollars USD with casualties including loss lives, corroded lands and waters and other contaminations which may last for 50 to 100 years. The consequence of war far outweighs any positive attributes. As of today the real unemployment rate is double digits. I believe the only hope; as I have stated before in previous articles is to review and change current policies pertained to monetary appropriation and spending, expansionism vision and Foreign Policy.
The U.S. can once again become a great nation if research and development become more important than military spending. The U.S. can once again become a great nation if domestic and foreign policy review takes precedence to band aid tactics like taxing Social Security. A change is Foreign policy alone can increase relations with other countries based on mutual respect and need for valuable resources. In turn, increased exportation for the U.S. can occur.
The current U.S. diplomacy doesn’t privilege a direct contact with foreign nationals. The actual diplomacy is based on third party contact, except during the cold war. Here the U.S. and Former Soviet Union decided to meet directly three to four times or more a year to continue discussions managing the two countries’ Nuclear War Heads. The need for directness here is evident; any miscommunication could result in the deaths and destruction of many. Today there is much propaganda surrounding North Korea’s readiness to launch nuclear offense against its neighboring countries but there is hunger, economic, and depression wars.
Regarding the war against the offshore account; U.S. citizens have an average of more than 100 Billion deposits in oversea banks. With effective domestic and foreign policy this money could be brought back. Of course U.S. Congress would have to implement certain effective armistice programs. An example may be setting a flat tax rate of 20% within six month as encouragement to comply. The influx of this additional tax revenue can be offset by job creation and subsidy programs. These are opening discussions that should be expounded on in the future but the platform and podium should be open at this critical juncture to begin to repair a badly abused economic infrastructure.
For more information from Dr. Amouzou please see his previous articles:
• “The Perspective on Global Economic and Financial Status for 2013 and its
impact on the future of the global economy?”
• “Could the World and the European Financial Systems Survive This World War III Financial crisis or it is the end of the Western Civilizations?”
• “Corruption and Development in The Developing Countries”
• “The World Financial Honey Moon is over: Debt Crisis Continues to Wage War on Economy Policy”
• “European Central Bank’s Outright Monetary Transactions (OMT): The Bazooka Approach”
Dr. Amouzou received his Master in Business, from the European Advanced Institute of Management, also a Certificate in Finance and Investment in Paris, France. He completed his Post Graduation work in Political Strategy, International Relation and Defense Strategies and earned his Ph.D. in International Finance.
Contribution to this article and the aforementioned series was made by Byron K. Belser. Mr. Belser assists Dr. Amouzou; he holds a Masters of Arts degree in Development Economics & a Law degree.
Raymond West from West Petroleum International LLC; FPSF (Fundacion Paraiso Sin Fronteras) & Nkrumah Amouzou Production.