According to all accounts the
In normal life a borrower who must appeal to creditors makes every effort to bring order to his financial affairs. But not the Bush regime.
The out-of-pocket costs of Bush`s Iraq war are about $600 billion at the present moment, a figure that increases by millions of dollars every hour.
In addition, there are the much
larger future costs that have already been incurred,
such as long-term care for the wounded and disabled
US soldiers, the replacement costs of the used up
equipment, interest payments on the war debt, and
the lost economic use of the resources and manpower
squandered in war. Experts estimate that the
already incurred out-of-pocket and future costs of
Even these costs might be small
if an article by Richard LaMountain in the November
is accurate. According to
To avoid the immigration that
would be problematic for US civil liberties, the war
must end. The war must also end in order that
The budget authority for the
annual out-of-pocket costs of the war have been
rising by $150 billion per year, an addition to the
budget deficit that must be financed by borrowing
abroad. A sane person might think that a
government, such as the
Instead the Bush regime has
been struggling all year with the
The Korean War ended 55 years
ago, and the
A country that must go hat in hand to its creditors must first look to where costs can be cut. Annual military spending of $700 billion is certainly a good place to start.
It is not too late for the
The world does not want to
bring us down in this way. Our creditors would
like to preserve as much as possible the values of
their trillions in US dollar assets. This is
easier done if the dollar remains the reserve
currency. Therefore, the
This is what the plan must be: A declaration that repudiates the neoconservative goal to achieve US hegemony over the world; a budget that reduces annual US borrowing needs by several hundreds of billions by ending the Afghan and Iraq wars, by closing overseas military bases, and by cutting military spending; a new corporate tax system that brings back American jobs, manufacturing capability, and export potential by taxing US corporations` worldwide profits according to the value-added in the US.
Such a plan would demonstrate
Such a favorable outcome
requires that the government in
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. He is the author of Supply-Side Revolution : An Insider`s Account of Policymaking in Washington; Alienation and the Soviet Economy and Meltdown: Inside the Soviet Economy, and is the co-author with Lawrence M. Stratton of The Tyranny of Good Intentions : How Prosecutors and Bureaucrats Are Trampling the Constitution in the Name of Justice. Click here for Peter Brimelow`s Forbes Magazine interview with Roberts about the recent epidemic of prosecutorial misconduct.