The corrupt and incoherent President Biden is a permanent insult to democracy and the world which has to engage with him. As a result his country is in what could be a terminal state of economic and geopolitical decline and potentially engaged in three or four destructive wars (against Russia, China, Iran and, through Israel, with world wide Islamism). There is even a direct connection between the latter and the US southern border crisis as Islamic enemies infiltrate the USA. Here the US authorities warn who to look out for:
US STATE RISES ECONOMY FALLS
As with all governments who fail and destroy the wealth creating, market constrained private sector from which they glean their tax revenues, the US Government resorts to State created non jobs – plus in the case of the USA today the “non consumable” products of the extremely expensive military sector!
The perennial lie of the political class is that STATE spending is “public spending” whereas the only meaningful public spending is the spending by the public in the private sector. The public’s spending on the “products” of the State are controlled and demanded by the State. Only in the private sector are the producers effectively controlled by the public (who can stop spending until prices fall or switch to alternative suppliers) – although in the increasingly corporate Statist economy where privileged largely non tax paying big corporations rule, the State increasingly combines with corporations to frustrate the public.
The decline of the US economy is now to be seen in the private sector as the State piles on State funded and protected jobs. The September employment figures in the USA show the process:
As a result the American consumer is struggling, as shown by these record defaults on car payments. There are over 305m cars in the USA at 900 per thousand population!
USA EXPONENTIAL DEBT RISE
The U.S. is now adding debt at an exponential rate. The U.S. racked up its first $10 trillion in debt over the course of 232 years. Following the Great Financial Crisis, it added another $10 trillion in just nine years. The next $10 trillion took only four years. The U.S. has added $2 trillion in debt in the last four months and the total national debt is now approaching $34 trillion which would be 130% of projected GDP for 2023 (roughly the same as the basket case Italy!) And Biden keeps on borrowing and spending – proposing another $100bn on Ukraine, Israel, Taiwan and America’s greatest internal crisis – the mass invasion across its southern border.
The need to rein in the grotesque inflationary money printing of the COVID years, the costs of the Ukraine fiasco, the billions spent on the fatuous “Inflation Reduction Act” and the beginning of the vote buying period in the run up to the 2024 Presidential election has meant 11 interest rate rises since March 2022. The dangerous result of suddenly discovering prudence inevitably means an over reaction and now money supply has suffered its biggest contraction ever.
And as a result bankruptcies have risen steeply to levels not seen (with the exception of the COVID lockdowns) since the great financial crisis of 2008-2009:
So having spent like a drunken banker as growth returned, the USA has record debts just as it descends into recession and commits spending to more wars – the worst possible combination.
THE USA FINANCES ITS ENEMIES AND IS NOT SURE WHERE ITS FRIENDS ARE
While accusing Iran of funding terrorist groups throughout the Middle East (including Hamas in Gaza) the USA recently released $6 billion of Iranian funds frozen in western banks since sanctions were applied in 2018. In return Iranian prisoners were released to the West. In 2016 President Obama had given $400m to Iran to halt nuclear weapon development.
No doubt these vast sums will have been used to fund the enemies of Israel and the USA in the Middle East.
In addition we know from images of Hamas’s newly acquired weaponry that US armaments supplied to Ukraine (through their corrupt multi sale criminal networks) have found their way to the Middle East. Only in the last few weeks have US legislators set up some perfunctory checks on money and weapons supplies to Ukraine. And Biden would not have done that without Republican demands.
The simplistic view of the world from Washington DC and hence the dangerous naivety of US Foreign policy is reflected in the inability of most Americans to find Ukraine on the map and the inability of even the CNN network to locate Israeli cities in Israel. A CNN map showed Tel Aviv in the Golan Heights (Syria) whereas it is on Israel’s west coast and showed the town of Sderot (which is just East of Gaza) in the West Bank.
So the world sees US internal bankruptcy, international ignorance, disastrous leadership and the rapid decline of the US Dollar as the chief reserve currency:
No wonder when the USA accounts for 42% of the entire world’s budget deficits even though it accounts for only 25% of the world’s total GDP.
The combination of economic collapse, financial mismanagement on a gargantuan scale, collapsing faith in the Dollar and an invasion by declared enemies on the southern border while pursuing geopolitical domination through expensive wars, all with the weakest political leadership in the history of the USA, is a disaster for the West and a source of massive instability for the rest of the world.
Just as Israel is beset by war on 6 fronts (Hamas in Gaza, Houthi in Yemen, Iran, Syria, Hezbollah in Lebanon, Arab West Bank) so the USA is fighting multiple wars – brought on by its imperial overreach and in Ukraine demonstrating its weakness to its enemies.
Dangerous times need wise leaders “speaking softly but carrying a big stick” (Theodore Roosevelt) not an American political class squeaking aggression everywhere but in what looks like terminal economic and geopolitical decline.
