Debt “agreement” cuts $1.5 trillion over ten years, while leaving in place the existing budget that borrows 1 trillion a year for ten years.
The net debt INCREASE is 8.5 trillion.
The US Government at it is formed at present, and dominated by a two-party system that shuts out all common sense while embracing Big Oil, Wall Street, and the Military-Industrial-Congressional Complex (MICC), is incapable of governing Of, By, and For We the People.
S&P got it right. The truth at any cost lowers all other costs.
It is obvious that this man has no clue. We are developing fighters
(F-22/35) that have no threat that cannot be handled by the F-117 (which is the be all to end all) but we are dangerously close to imploding if more budget cuts come our way? Strengthen the force, reduce the technology (which doesn't work in most cases) and let's put DoD on the right path, defense of the Nation (and not police force of the world)……
Leon Panetta Hypes al Qaeda to Ward Off More Defense Cuts
Steve Clemons
The Atlantic, 6 August 2011
EXTRACT:
It seems that one week, al Qaeda is on the run and “near collapse” and the next, al Qaeda remains the reason why the US needs to continue to spend hundreds of billions of dollars on a Pentagon designed to fight the wrong wars. This is irresponsible hyping of a threat to justify massive defense spending during a period of real fiscal stress.
Phi Beta Iota: Daniel Ellsberg had it exactly right when he lectured Henry Kissinger in the 1970's on Viet-Nam:
The danger is, you’ll become like a moron. You’ll become incapable of learning from most people in the world, no matter how much experience they have in their particular areas that may be much greater than yours” [because of your blind faith in the value of your narrow and often incorrect secret information].
Panetta would be well-served by attending to what Bob Seelert, Chairman of Saatchi & Saatchi Worldwide (New York) has to say:
When things are not going well, until you get the truth out on the table, no matter how ugly, you are not in a position to deal with it.
New York Mayor Michael Bloomberg announced a $127.5 million plan Thursday to help young black and Hispanic men. The effort includes money from financier George Soros and his philanthropy.
Koko signs: Smart men both, but neither of them has a holistic understanding of system design. In the jungle, connectivity matters. King of the Reflexive Practice Jungle, Dr. Russell Ackoff, would say this is a magnificent example of doing the wrong thing righter. Paying to connect these young men to a broken system makes no sense–funding them to build a new system to displace the broken one–now that is reflexivity. Good intentions, bad design. We have just two questions.
1. Has anyone asked the young men what they want?
2. In the context of a city failing the resilience test and likely to experience near-catastrophic unemployment in the middle class over the next ten years, is there a strategy for resilience?
At the time of the July edition of Mazz-INT Blog, the government was tied in a knot over coming to grips with how to get long term spending under control so there would be the political conditions to raise the debt ceiling on August 2nd; NATO forces were engaged in a seeming stalemate in Libya to remove Gadhafi from power; there was rising concern about corruption in the Karzai “government” in Afghanistan; near open confrontation between Islamabad and the Washington over continuing US unilateral drone attacks against Al Qaeda and Taliban leadership inside of Pakistan; and the US Intelligence Community (IC) was finishing a quiet but well deserved victory lap for taking out Osama bin Laden. As August begins I am happy to report that Bin Laden remains dead —– with increasingly negative impacts for Al Qaeda, but little else as changed.
So what to discuss with you that is worth your time? As Eddie Layton, Nimitz’s N2 throughout WWII, was famous for saying “the biggest alligator is the one closest to you” which means to me the debt crisis and its impact on the on the IC. As I write this on 31 July, the Executive and Legislative branches are struggling to figure out how to raise the debt ceiling so the US government will not be in default on August 3rd when you are likely to be seeing these ramblings. So let’s focus on how debt crisis will likely impact the IC.
There are numerous misleading and misinformed assertions being made about the defense spending parts of the debt deal.
The White House's “fact sheet” asserts a $350 billion savings in the “base defense budget.” The $350 billion in defense savings that the White House declares apparently uses a different “baseline” (basis of comparison) and pretends that a two year cap the bill establishes on “security” spending will extend to ten years. Most misleading of all, it assumes that all savings in the “security” category (which includes DOD, DOE/nuclear weapons, all State Department related spending, Veterans Affairs, and Homeland Security) will occur only in DOD spending. In fact, the “security” category was designed to broaden the base for “defense” cuts and to lessen the impact on DOD. The undocumented $350 billion in “security” savings will actually translate into lesser reductions in DOD spending, but the amount is unknown. The actual amount will be decided by Congress in the future.
America owes foreigners about $4.5 trillion in debt. But America owes America $9.8 trillion.
Phi Beta Iota: Details below. The lies and misrepresentation from all sides in Washington are reprehensible. The distance between the truth and those in power has never been greater. It turns out the US owes the largest chuck (30.3%) to the US Treasury and the Social Security fund; next up is 6.6% to US households, and then a plethora of banks and funds that could easily be stiffed for a year.
