March 17, 2010
In economics, austerity is when a government reduces its spending and/or increases user fees to pay back creditors. Austerity is usually required when a government’s fiscal deficit spending is felt to be unsustainable.
|Riot Police clash with rioters during a demonstration against the Greek government’s austerity plan in Athens Thursday, March 11, 2010.|
Austerity measures have been implemented in Greece as a result of the economic mess they have fallen into, or should I say they have been pushed into. The people of Greece have taken to the streets in protest as their government has decided to make them pay for the plundering of their wealth and retirement. Greece is now under intense pressure from the EU, International Monetary fund, European Central Bank, and financial institutions to lower its budget gap, which is currently an estimated 12.7% of GDP last year.
If austerity is a measure taken by governments to reduce spending when a governments’s spending is felt to be unsustainable, then where does that leave the United States?
Austerity measures are typically taken after a government’s bond rating is downgraded, making it more expensive to borrow money. Government bonds are typically downgraded when debt grows substantially as a portion of GDP. Government debt grows as spending exceeds tax revenue. Such excess occurs when tax rates are cut or kept low while government spending is increased. Such excess can also occur when the economic activity stagnates or decreases, such as in a recession, thereby reducing the government’s tax revenue.
Does this not describe America? We are being threatened with AA status from AAA rating, Our Current total credit-market debt stands at more than 340 percent of total GDP, The debt ceiling is at $14 Trillion, meanwhile the Fed keeps rates low. Our unemployment levels are unsustainable and growing despite what the “official” unemployment rate says, and America’s economy is stagnate.
This is from the Telegraph.co.uk :
The credit ratings agency cautioned that if the US were to grow at slower pace levels than expected, the largest economy in the world’s already-extended finances could be over-stretched, in turn damaging its AAA credit rating.
Were the US to lose its AAA rating, it could cause further financial damage, by increasing the cost of borrowing money, a necessary evil for a country predicted to have a $1.56 trillion (£980bn) budget deficit this year.
According to the Wall Street Journal, a VAT (Value Added Tax) may be imposed upon Greeces’ citizens in order to pay their debt.
Since the EU issued its rhetorical support for Greece on Feb. 12, EU members including Germany and France have demanded that Greece take further steps to close its budget gap before they commit to any specific financial support for the country. The new measures are likely to include an increase in the current value-added tax rate of 19%, more cuts in civil service entitlements, and higher duties on luxury items, like boats and expensive cars.
Glenn Beck and Bill O’reilly apparently work for the EU now and have decided that Austerity should come to America as well to pay for the crimes of Wall Street and The Fed:
During this interview, Glenn was asked by Oreilly if America was in decline. Glenn responded by saying that America will either “reset” or “restore” itself. He then went on to say that if we reset ourselves as a nation, we will reset as something “unrecognizable”. This reminded me of an Alex Jones Show (October 19, 2009) where Lindsey Williams was interviewed by Alex. Lindsey explained that he talked with an insider oil company CEO who has attended G8, G20, Bilderberg meetings etc. One of the things told to Lindsey by the insider was
“within two years you will not recognize America.”
Glenn then says “We need to RESET”. Reset as opposed to restore? If we were to restore the country wouldn’t that mean restoring the Constitution? Isn’t that what our founding fathers instituted? Instead Glenn goes on to say that as a nation, we will either cease to be, or we will reset! No room is left for restoration! This adds New meaning to the Obama campaign slogan “Change we can believe in!”
- A d v e r t i s e m e n t
Glenn also states that it should be by constitutional amendment! No mention of investigating FRAUD in the FEDERAL RESERVE, or GOLDMAN SACHS!!! No, but he is willing to have Americans fit the bill!!!
Austerity in my opinion, is just another type of bailout where the Wall Street Banksters fill their coffers, and the people pay in the form of taxes to shore up the debt, or lose their shirts! It’s time for Americans to stand up now, and demand an audit of the Federal Reserve before we have to take to the streets like those in Greece who have said enough is enough!
The desire of Global Elitists through the last century – men and women such as Marx, Lenin, Mao, Hitler,Blavastky, Huxely, the Rothchilds, the Rockefellers, Maurice Strong, Bush family, Soros, and many others in the Elite bent on establishing a New World Order,- are now seeing the final stages of their dream unfolding. Soon, as nations lose confidence in all paper currencies (by design), there will be a call to establish a global currency that will be purely electronic, and headed by the International Monetary Fund and World Bank. A cashless society – and every transaction recorded. It’s up to us to stop it.
With the debt ceiling at 14Trillion, and a power-hungry Administration hell-bent on breaking the American people with National healthcare – it seems to me that our Fiat currency should instead be printed with the words:
“IN AUSTERITY WE TRUST“.