Obama’s 2012 Budget: Tool Of Class War

Paul Craig Roberts
Friday, February 18, 2011

Obama’s new budget is a continuation of Wall Street’s class war against the poor and middle class. Wall Street wasn’t through with us when the banksters sold their fraudulent derivatives into our pension funds, wrecked Americans’ job prospects and retirement plans, secured a $700 billion bailout at taxpayers’ expense while foreclosing on the homes of millions of Americans, and loaded up the Federal Reserve’s balance sheet with several trillion dollars of junk financial paper in exchange for newly created money to shore up the banks’ balance sheets. The effect of the Federal Reserve’s “quantitative easing” on inflation, interest rates, and the dollar’s foreign exchange value are yet to hit. When they do, Americans will get a lesson in poverty.

Paul Craig Roberts


Now the ruling oligarchies have struck again, this time through the federal budget. The U.S. government has a huge military/security budget. It is as large as the budgets of the rest of the world combined. The Pentagon, CIA, and Homeland Security budgets account for the $1.1 trillion federal deficit that the Obama administration forecasts for fiscal year 2012. This massive deficit spending serves only one purpose–the enrichment of the private companies that serve the military/security complex. These companies, along with those on Wall Street, are who elect the U.S. government.

The U.S. has no enemies except those that the U.S. creates by bombing and invading other countries and by overthrowing foreign leaders and installing American puppets in their place.

China does not conduct naval exercises off the California coast, but the U.S. conducts war games in the China Sea off China’s coast. Russia does not mass troops on Europe’s borders, but the U.S. places missiles on Russia’s borders. The U.S. is determined to create as many enemies as possible in order to continue its bleeding of the American population to feed the ravenous military/security complex.

The U.S. government actually spends $56 billion a year, that is, $56,000 million, in order that American air travelers can be porno-scanned and sexually groped so that firms represented by former Homeland Security Secretary Michael Chertoff can make large profits selling the scanning equipment.

With a perpetual budget deficit driven by the military/security complex’s desire for profits, the real cause of America’s enormous budget deficit is off-limits for discussion.

The U.S. Secretary of War-Mongering, Robert Gates, declared: “We shrink from our global security responsibilities at our peril.” The military brass warns of cutting any of the billions of aid to Israel and Egypt, two functionaries for its Middle East “policy.”

But what are “our” global security responsibilities? Where did they come from? Why would America be at peril if America stopped bombing and invading other countries and interfering in their internal affairs? The perils America faces are all self-created.

The answer to this question used to be that otherwise we would be murdered in our beds by “the worldwide communist conspiracy.” Today the answer is that we will be murdered in our airplanes, train stations, and shopping centers by “Muslim terrorists” and by a newly created imaginary threat–“domestic extremists,” that is, war protesters and environmentalists.

The U.S. military/security complex is capable of creating any number of false flag events in order to make these threats seem real to a public whose intelligence is limited to TV, shopping mall experiences, and football games.

So Americans are stuck with enormous budget deficits that the Federal Reserve must finance by printing new money, money that sooner or later will destroy the purchasing power of the dollar and its role as world reserve currency. When the dollar goes, American power goes.

For the ruling oligarchies, the question is: how to save their power.

Their answer is: make the people pay.

And that is what their latest puppet, President Obama, is doing.

With the U.S. in the worst recession since the Great Depression, a great recession that John Williams and Gerald Celente, along with myself, have said is deepening, the “Obama budget” takes aim at support programs for the poor and out-of-work. The American elites are transforming themselves into idiots as they seek to replicate in America the conditions that have led to the overthrows of similarly corrupt elites in Tunisia and Egypt and mounting challenges to U.S. puppet governments elsewhere.

All we need is a few million more Americans with nothing to lose in order to bring the disturbances in the Middle East home to America.

With the U.S. military bogged down in wars abroad, an American revolution would have the best chance of success.

American politicians have to fund Israel as the money returns in campaign contributions.

The U.S. government must fund the Egyptian military if there is to be any hope of turning the next Egyptian government into another American puppet that will serve Israel by continuing the blockade of the Palestinians herded into the Gaza ghetto.

These goals are far more important to the American elite than Pell Grants that enable poor Americans to obtain an education, or clean water, or community block grants, or the low income energy assistance program (cut by the amount that U.S. taxpayers are forced to give to Israel).

There are also $7,700 million of cuts in Medicaid and other health programs over the next five years.

Given the magnitude of the U.S. budget deficit, these sums are a pittance. The cuts will have no effect on U.S. Treasury financing needs. They will put no brakes on the Federal Reserve’s need to print money in order to keep the U.S. government in operation.

These cuts serve one purpose: to further the Republican Party’s myth that America is in economic trouble because of the poor: The poor are shiftless. They won’t work. The only reason unemployment is high is that the poor had rather be on welfare.

A new addition to the welfare myth is that recent middle class college graduates won’t take the jobs offered them, because their parents have too much money, and the kids like living at home without having to do anything. A spoiled generation, they come out of university refusing any job that doesn’t start out as CEO of a Fortune 500 company. The reason that engineering graduates do not get job interviews is that they do not want them.

What all this leads to is an assault on “entitlements”, which means Social Security and Medicare. The elites have programmed, through their control of the media, a large part of the population, especially those who think of themselves as conservatives, to conflate “entitlements” with welfare. America is going to hell not because of foreign wars that serve no American purpose, but because people, who have paid 15% of their payroll all their lives for old age pensions and medical care, want “handouts” in their retirement years. Why do these selfish people think that working Americans should be forced through payroll taxes to pay for the pensions and medical care of the retirees? Why didn’t the retirees consume less and prepare for their own retirement?

The elite’s line, and that of their hired spokespersons in “think tanks” and universities, is that America is in trouble because of its retirees.

Too many Americans have been brainwashed to believe that America is in trouble because of its poor and its retirees. America is not in trouble because it coerces a dwindling number of taxpayers to support the military/security complex’s enormous profits, American puppet governments abroad, and Israel.

The American elite’s solution for America’s problems is not merely to foreclose on the homes of Americans whose jobs were sent offshore, but to add to the numbers of distressed Americans with nothing to lose the sick and the dispossessed retirees, and the university graduates who cannot find jobs that have been sent to China and India.

Of all the countries in the world, none need a revolution as bad as the United States, country ruled by a handful of selfish oligarchs who have more income and wealth than can be spent in a lifetime.

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.

About Luis Miranda
The Real Agenda is an independent publication. It does not take money from Corporations, Foundations or Non-Governmental Organizations. It provides news reports in three languages: English, Spanish and Portuguese to reach a larger group of readers. Our news are not guided by any ideological, political or religious interest, which allows us to keep our integrity towards the readers.

One Response to Obama’s 2012 Budget: Tool Of Class War

  1. MadeleineT says:

    When my husband was still working he paid plenty for health insurance, they paid 80% and we paid the balance if we used it, I used it once for a small operation that cost 1,800. I sill havent used it in all the years my husband has been retired, but he still pays for me , 340.00 a month, he has used it , I still haven’t or medicare which he also pays for and aarp which we paid for, he paid into his social security fund for 35 years at the same job, but took retiredment at 62, when he did get sick we found out that our insurance now only paid 20% and Medicare picked up the rest, we didn’t ask them to do that, no wonder they went broke, why did they do that? Now its an entitledment? they make it sound as if we were on the dole. We never asked for it.Now they have taken billions of dollars from it and we still are paying the same amount and we are without our full regular insurance, who never raised their premiums I might add, once about 15 years ago. They put us in this position, no one else.

    We handed every group of imigrants they brought in here a medicaid card, the Russians, the Africans, the Chinese , everyone, the Tobgoans , the samoans , the Haitians, all of them, my daughter was assistant administrator for a large Brooklyn Hospital and she handled all of them that came in. They were given everything you could think of including stores with the first 10 years tax free, and you wonder why we are now broke? How about the new Muslim population, they have medicaid , welfare and anything else they can be given, we pay. You can’t give away all of this and send jobs and industries to China and expect to have workers paying into the system, they know it won’t work, so the only conclusion I can come to is this is planned , the open borders is plannned, the world trade center was planned , the muslims coming here and still coming here was planned, the open border traveler passes and the one world bank are all planned. What I want to know is how do outsiders, no matter how much money they have, they are not Government workers and according to them they hav enothing to do with the Government, how do they get away with all of this,?

    why do we not have a Judicial watch in our Government , a house of unAmerican Activities, something to keep checks and balances and to make sure no esoteric groups are infiltrating our Government. You know the Pentagon is full of CFR members, what kind of security is that? Why do we need homeland security, what has that done for us except to remind us of Auschwitz? Why have the CFR been allowed to infiltrate every branch of Government for the last 80 years? get them out. They pass this new world order thing from Father to son as if it is their birthright and no one stops them? what are we paying taxes for? Tell them to hit the road and take the Federal reserve with them, they are all members of the CFR anyway. JFK was the only President with the nerve to dismantle the Feds and he was shot before he could finish it unfortunately.

    I’m sorry, its either our Government, we the people or its theirs, the CFR. They sit around like nincompoops in hotel rooms discussing ways to get rid of us,Mosquitos, forced abortion, whatever a diseased human mind can come up with, if I did that I would be arrested for conspiracy to commit mass murder. It’s just the same old story over and over again. They lucked out finding Obama, he was made to order and he is killing us, Americans. He gave the light bulb industry to China, and we are stuck with those mercury filled horrible looking bulbs that give me a headache, if I don’t buy them I get a fine, their favorite threat. Will they put me in Homeland security next? What have we become?

    I am no ones play thing, I’m not going to be manipulated by a buch of rich old poops who dont’ know how to live their lives or spend their money. They should be forced to pay our national debt, they are responsible for it, them and that one trick pony we call our President. All of our beautiful land put into conservation, turn it loose and let this generation enjoy it, they pick the most beautiful , pristine spots to take from us, they were pristine which means no one ever hurt them, they hurt them not us. Get rid of the green groups, we have survived for hundreds of years without them and their paid for science, but we won’t survive them now or big pharma who follow like vultures.

    Get rid of the CIA and homeland security, we would save a lot of money and also get rid of the UN and all our problems are solved, at least most of them.None of these three groups work for us,why are we paying them? Let the CFR pay them , they have the money and they work for them so let them pay. I would rather pay a House of UnAmerican activities group , now that would be worth the money.

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