Libya disarmed its WMDs at the request of the US. Now Gaffadi must be wondering why he did.
SYNDICATED COLUMN: Thrifty Families and Other Lies
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Like Their Government, Americans Live on Debt
his State of the Union address President Obama repeated this ancient canard: “We have to confront the fact that our government spends more than it takes in,” he said. “That is not sustainable. Every day, families sacrifice to live within their means. They deserve a government that does the same.”
Republicans have used this “families balance their budgets, so should government” line for years. Now Democrats are doing it too. Everyone is jumping aboard the pseudo-austerity bandwagon. (Why pseudo? Neither party really wants to balance the federal budget because it can only be done by bringing home the troops, shrinking the Pentagon by 90 percent, ending corporate welfare, and soaking the rich—i.e. major campaign donors—with higher taxes.)
The family budget talking point is a fascinating meme that reflects a rarely considered national blind spot. As with other cases of mass denial (we think we’re generous do-gooders around the world, foreigners see us for the crazy mean torturers we also are), we give ourselves more credit than we deserve.
We Americans value thrift and personal responsibility. We believe we should live within our means. These cultural ideals stem from our Puritan history.
But we don’t live up to our ideals. Not even close.
Americans are up to the ears in debt.
Four out of five individuals have at least one credit card. The average family has an outstanding balance of $10,700. It spends 21 percent of its monthly income to pay interest on that balance.
The average American family has assets: It owns a house worth $160,000. But it owes $95,000 to the bank. As the housing market continues to crash, equity shrinks.
Our average family’s savings are virtually nonexistent: $3,800 in the bank, no retirement account whatsoever (for half of families, average retirement savings $35,000 for the other half), no mutual funds, no stocks, no bonds.
The claim that American families live within their means is a joke.
To be fair, it’s not entirely their fault. The typical American family only earns $43,000. It’s hard to buy much of anything, much less the house that embodies the American Dream, with that. And it’s impossible to save.
So they/we borrow.
As grim as a life of indebted servitude may seem, imagine what the American economy would look like if families really did live within their means, spending no more than they earned. No debt. No credit.
Markets for big-ticket items—homes, automobiles, major appliances—would crash and burn. Countless businesses would go under.
According to the National Association of Realtors 23 percent of homebuyers paid cash in January. That’s more than ever before but that still leaves at least 77 percent relying on mortgage financing. (Why “at least”? Most “cash” transactions include money borrowed from banks and credit unions.) Take 77 percent of purchasers out of the buy side of the equation and million-dollar homes would be worth five figures.
Pop! Credit is the biggest bubble of all.
If credit went away, most Americans’ biggest asset would vanish. Everyone would be “under water” to their lenders. The burbs would soon look like Afghanistan.
The same goes for cars: At least 88 percent of buyers take out a loan.
What would happen if these buyers had to save actual cash money before they could hit the showroom? They wouldn’t buy a car. Air would get cleaner but the economic collapse that began in 2008, which has put one out of five Americans out of work, would accelerate dramatically.
Two-thirds of the U.S. economy directly relies on consumer spending. People can only purchase goods and services using one of three sources: income, savings or credit. As we’ve seen, the average American family doesn’t have savings. Its income has been falling since 1968.
That leaves credit. If consumer credit vanished, the corporato-capitalist system currently prevailing in the U.S. would deteriorate from its current, merely unsustainable form into total chaos. Without credit cards and other loans citizens would seethe, trapped between the mutually irreconcilable forces of falling wages and the aggressive advertising and marketing of products they would never be able to afford. There would only be two possible long-term outcomes: revolution, or the ruling classes would be forced to pay substantially higher wages to workers. To corporate elites, the latter choice would be too unpalatable to countenance.
The typical American family cannot live within its means because it cannot earn enough to sustain its lifestyle. Were it to downgrade its living standards to a level it could afford, there wouldn’t be enough consumer spending to drive the economy. This would force further personal austerity. Eventually we’d all be living outside.
You know what’s funny? Unlike the American family, the U.S. government can spend less than it earns. It can increase revenues by raising taxes. Unlike families, it spends trillions of dollars on stuff—wars—that it doesn’t need and actually makes things worse.
It could even use its power to force employers to pay workers what they deserve. If the government did that, families might not need credit.
They could (finally) live within their means.
(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)
COPYRIGHT 2011 TED RALL
Foreign Policy
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America’s strategic interests are at odds with its purported values. Then how exactly do our values manifest themselves?
That’s What Happens
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Libyan opposition fighters ask the US for help, but are they sure they really want it?
Lifecycle of U.S. Foreign Relations
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How the U.S. interacts with other nations depends on what stage of development its government–and geology–is in.
SYNDICATED COLUMN: Hope and Change? Not for Americans
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Turmoil from Mideast to Midwest
If irony were money we’d be rich.
“You’ve got to get out ahead of change,” President Obama lectured a week ago. “You can’t be behind the curve.” He was, of course, referring to the Middle East. During the last few weeks there has been a new popular uprising every few days: Tunisia, Egypt, Yemen, Jordan, Bahrain, Libya.
And now, Wisconsin.
In Madison, where a new Republican governor wants to gut the rights of state workers to form unions and negotiate for higher wages, tens of thousands of protesters have filled the streets and sat in the State Capitol for days. “It’s like Cairo has moved to Madison these days,” said Congressman Paul Ryan (R-WI).
Revolutionary foment is on the march around the globe, but Mr. Hopey Changey is nowhere to be found now that it’s here in the U.S. Whatever happened to “get ahead of change?” What’s good for the Hosni isn’t good for the Barry.
Deploying his customary technocratic aloofness in the service of the usual screw-the-workers narrative, President Obama sided with the union-busters: “Everybody has to make some adjustments to the new fiscal realities,” he scolds.
“Everybody,” naturally, does not include ultrarich dudes like our multi-millionaire president. Obama, who declared a whopping $5.5 million in annual income for 2009 (the last year available), has neither reduced his salary nor donated a penny of his $7.7 million fortune to the Treasury to help adjust to those “new fiscal realities.”
Hard times, doncha know, are for the little people. “We had to [my italics] impose a freeze on pay increases for federal workers in the next two years as part of my overall budget freeze,” said Obama. “I think those kinds of adjustments are the right thing to do [in Wisconsin].”
“Had to.” Interesting pair of words. They imply that there was no other choice. What a brazen lie.
Three more words: Tax. The. Rich. Rich people and corporations are making out like bandits. If they paid their fair share, there’d be no need to cut budgets.
“Adjustments.” How bloodless. For normal people, Herr President, losing two percent of one’s pay is not a mere adjustment. It hurts.
Obama’s grandstanding had-to freeze on federal pay will save $5 billion over two years. Which is nothing. That’s what the Pentagon chucks down the Iraq and Afghanistan ratholes in a single week.
The federal deficit is $14 trillion. That’s $14,000 billion. Obama’s federal pay freeze, which amounts to a piddling four hundredths of one percent, is empty symbolism.
As the striking members of the PATCO air traffic controllers union learned in 1981, higher wages and working conditions are for foreigners, not Americans. Ronald Reagan had nothing but praise for Solidarity in Poland (declaring that “the right to belong to a free trade union” was “one of the most elemental human rights”).
At the same time he was defending Polish workers Reagan fired all of America’s 11,345 striking air traffic controllers and ordered their union decertified.
All political systems are built on contradictions that eventually lead to their downfall. The U.S. relies on a whopping chasm between soaring rhetoric (freedom, democracy, individual rights) and brutish reality (preemptive war, supporting dictators, torture, spying on citizens)—a gap that is so wide and so glaring that it is amazing anyone ever takes the propaganda seriously.
A recent report in The New York Times slathers on a rich quadruple serving of syrupy irony. The Obama Administration asked the CIA to prepare a secret memo about the revolutions in the Middle East, specifically analyzing “how to balance American strategic interests and the desire to avert broader instability against the democratic demands of the protesters.”
What, exactly, are those “strategic interests”? Business. Dictators cut sweetheart deals with big corporations that donate to the Democratic and the Republican parties.
Democracy—real democracy, the kind people are fighting for in Bahrain and Madison, is incompatible with free-market capitalism.
Which is what union members in Wisconsin, as well as those of us who don’t belong to unions but understand that we would be working 100-hour weeks in death-trap factories without them, see clearly. The American Dream is just that— a dream. And it’s not for Americans.
Obama’s statement about the Arab autarchies is astonishingly tone deaf to realities here at home. “I think that the thing that will actually achieve stability in that region is if young people, if ordinary folks, end up feeling that there are pathways for them to feed their families, get a decent job, get an education, aspire to a better life,” he said. “And the more steps these governments are taking to provide these avenues for mobility and opportunity, the more stable these countries are.”
Well, yes.
According to a recent Bloomberg National poll, most American adults believe that their children will have worse lives than they do.
That’s true even about those who have all the so-called advantages.
At this writing the unemployment rate for recent college graduates is 80.3 percent.
How will they pay their loans?
The rate is even higher for other young adults.
In a way, the unemployed and underemployed should thank Obama and the plutocrats he helps protect. The ruling classes’ shortsighted refusal to give up some of the loot they’ve stolen will soon bring about the real changes Americans require and deserve.
(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)
COPYRIGHT 2011 TED RALL
Inspiring Indeed
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Wealthy (clueless) Americans claim to approve of the liberation movements sweeping the Middle East. Are they high?
Give Up
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Egypt’s caretaker military government is urging pro-democracy strikers to get back to work in order to save the economy. But whose economy is it?
SYNDICATED COLUMN: America Against the People
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Why Is Obama Coddling Egyptian Dictator?
Here is Egypt, America’s neo-con dream come true. Democracy! In the Middle East! And it isn’t costing us a single soldier. You’d think American policy makers would be pleased as punch. So why are they messing it up?
At first glance the uprising in Cairo and other Egyptian cities puts the United States in an awkward spot. We’ve propped up Hosni Mubarak for three decades. If we cut him loose, our other pet dictators will stop trusting us. If we don’t, all that yapping about democracy and freedom rings hollow. Which do we choose, our purported principles or our actual allies?
Actually, it’s not that hard. We lost the trust of our puppet tyrants when Saddam dropped through the trap door. We lost the people with a zillion CIA-backed coups, not to mention the $37 billion we’ve paid to Mubarak. The dictator’s wealth is estimated at $40 billion. That’s right: no one dime of U.S. foreign aid made it to the Egyptian people.
The Obama Administration has an easy way out. They can disavow the policies of the past 30 years, policies they merely inherited. The president can make a clean break, announcing that he is cutting off U.S. funding to the Mubarak regime until things settle down. Then shut up.
Simple. Yet the president is handling this Middle Eastern crisis with all the class and diplomacy of a George W. Bush.
There’s the arrogance. On Fox News he agreed with Bill O’Reilly that he doesn’t want the Muslim Brotherhood to take over. “I want a representative government in Egypt,” Obama said. Dude, it doesn’t matter what you want or what we want. What matters is what the Egyptians want.
There’s the shortsightedness. Like previous presidents, Obama doesn’t understand that repression isn’t a synonym for stability.
There’s the failure to recognize the broader implications. Hated for Egypt’s joint blockade with Israel of the Gaza strip, Mubarak is viewed throughout the Muslim world as the embodiment of American-funded corruption. Obama’s refusal to cut him loose fuels radical Islamists’ argument that the U.S. will never allow the Palestinians to live with dignity.
Last but not least, there’s that classic Cold War-era mistake: backing the wrong side. In this case, Mubarak’s new vice president Omar Suleiman. Since 1993 Suleiman has run Egypt’s feared Mukhabarat intelligence agency. He is Egypt’s chief torturer.
As head of the General Intelligence Directorate Suleiman was the Bush Administration’s main liaison and coordinator for its “extraordinary rendition” program. Victims of extraordinary rendition are kidnapped by CIA agents and illegally transferred to other countries for the purpose of being tortured.
According to experts on the war on terror, Suleiman is a torturer’s torturer, a hard man who sets a high bar—from which he hangs his bleeding victims. Personally.
One of the CIA’s victims was Mamdouh Habib, an Egyptian-born Australian citizen. U.S. agents bought him from Pakistani intelligence and shipped him to Egypt. “In Egypt,” reports Lisa Hajjar for Al Jazeera, “he was repeatedly subjected to electric shocks, immersed in water up to his nostrils and beaten. His fingers were broken and he was hung from metal hooks. At one point, his interrogator slapped him so hard that his blindfold was dislodged, revealing the identity of his tormentor: Suleiman. Frustrated that Habib was not providing useful information or confessing to involvement in terrorism, Suleiman ordered a guard to murder a shackled prisoner in front of Habib, which he did with a vicious karate kick.”
Ibn al-Sheikh al-Libi was a former trainer in the Afghan jihadi camps who famously “confessed” a connection between Saddam and Al Qaeda while under torture in one of Suleiman’s dungeons. Colin Powell cited al-Libi’s “information” in his 2003 speech of lies to the U.N. arguing for war against Iraq.
Note the word “was.” Al-Libi died in a Libyan prison in 2009.
Evan Kohlmann, a terrorism analyst for NBC News, cites a classified source: “Al-Libi’s death coincided with the first visit by Egypt’s spymaster Omar Suleiman to Tripoli. “The Egyptians were embarrassed by this admission [that he had lied under torture…Omar Suleiman saw an opportunity to get even with al-Libi and traveled to Tripoli. By the time Omar Suleiman’s plane left Tripoli, Ibn al-Sheikh al-Libi had committed ‘suicide’.”
Suleiman’s fearsome resume may come as a surprise to you. But Egyptians know all about him. Headlines like ” Obama Backs Suleiman – Led Transition ” (from the New York Times) aren’t making us more popular.
(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)
COPYRIGHT 2011 TED RALL
