Americans, beware of economic doom!

The statistics are hair-raising. The national debt of United States currently stands at $ 12 trillion which if divided on a population of 300 million comes roughly to $40,000 for every man, woman and child in America. The budget deficit for the year 2009 is estimated to be an all time high at $1042 billion. The cost for both Iraq and Afghanistan war in 2010 would be around $ 1046 billion. In 2014 America’s debt-to GDP ratio would reach 108 percent. By 2019 payments on the federal debt would rise to $799 billion.

China and Japan are the two biggest creditors of United States, thus far holding 798 billion and 751 billion worth of U.S. Treasury securities. The trade deficit that was zero in 1991 soared to 763 billion in 2006. If this trade deficit is not checked, by 2030 it will rise to 15 percent of the GDP or $ 5 trillion annually. By November 2009 the mortgages of 16 million Americans were upside down. So far 100 banks have close their business, 416 are at risk of bankruptcies. By 2013, the projected losses on account of bounced real estate loans will be 600 billion. The acute economic downslide places the United States in a risky situation of losing reserve currency status of dollar as well as its superpower status.

There is growing loud thinking that the United States has already lost its superpower status. It is being feared that America’s economy that is in extreme dire straits, would impinge on its superpower status. Besides, its leadership in the field of science and technology would be prodigiously hampered due to the paucity of funds. It is surmised that the China and Japan will outpace United States in the scientific research. There is also a very potent apprehension that since United States would need more credits from Japan and China; these countries could also influence America’s foreign policy and her conduct of external affairs.

The European Union, a conglomeration of 27 countries is emerging as a strong economic contender or rival of the United States. EU’s common currency Euro is 1.5 times stronger than the US dollar. It means one has to pay 1.5 dollar to buy one Euro. EU is world’s single largest market with a population of 500 million individuals. United States war bill will astronomically soar if it decides to expand its war on terrorism to Yemen and those pockets where the terrorists are resettling. A military action against Iran preceded by clamping of sanctions and embargoes on that country would not be a one sided affair. Like the Somali pirates a similar kind f blockade can be mounted by Iran in the Strait of Harmus which might lead a calamitous conflagration in the area between the United States and west on one side and Iran on the other. Bu the paramount question is that in the face of a crumbling economy and much dependence on foreign loans, would this be a rational or the prudent course to adopt? Will not the armed standoff, if not the actual engagement, spell further disaster for the American economy? Read more of this post

How US, UK lost Iraq, Afghan war?

Wars are planned, financed and fought by governments, not by groups or ordinary people. Wars are based on political agendas and they long for complete control over resources, people and territory. Most wars would have multiple reasons, domestic, foreign and global outreach. The American-led wars in Iraq and Afghanistan are fought to maintain US domination worldwide, to occupy the untapped natural resources of the Middle East, in particular oil and gas, and to protect the value of American dollar as a stable international reserve currency. In September 2000, the proactive policy paper written by the neoconservative intellectuals to envision the “Project for the New American Century” (PNAC): sets the milestone, seeking American domination over the rest of the world powers and to meet its energy needs, plans to occupy by force all the oil resources in the Arab Middle East. The blueprint supports military occupation of the oil-exporting Arab countries and regime change where it is necessary – to fulfill the PNAC policy aims of global domination. Centuries ago, German historian Carl Von Clausewitz wrote On War: “War is not merely a political act but also a real political instrument, a continuation of political commerce, a carrying out of the same by other means.” The wars are declared by few and not the majority masses. The small ruling elite who plans and wages war is often afraid of citizenry reaction and refusal to accept the rationality of a war. Throughout history, European nationalism institutionalized the doctrine of war as a necessity to promote national interest and racial superiority over “the other” by using war as a means to that end. Most proponents of wars have used “fear” as one of the major instruments of propaganda and manipulation to perpetuate allegiance from the ordinary folks to the elite warmongers in a crisis situation. Sheldon Richman (“War is Government Program” ICS, 05/2007), notes that “war is more dangerous than other government programs and not just for the obvious reason – mass murder….war is useful in keeping the population in a state of fear and therefore trustful of their rulers.”



Ordinary citizens do not have passion for war as it disturbs their safety and security, and destroys the living habitats. The ruling elite, the actual warmongers, force people to think in extreme terms of hatred and rejection of others so that people would be forced to align with the rulers to support and finance the war efforts. Sheldon Richman describes how Herman Goering, Hitler’s second in command, understood the discourse of war making: “Of course the people don’t want war but after all, it’s the leaders of the country who determine the policy, and it’s always a simple matter to drag the people along, whether, it’s a democracy or a fascist dictatorship or a parliament or a Communist dictatorship.” (Sheldon Richman, “War is Government Program”)


Paul Craig Roberts (“The Collapse of America Power”: ICS, 03/2008), attempts to explain how the British Empire had collapsed once its financial assets were depleted because of the 2nd World War debts. Correlli Barnett (The Collapse of British Power, 1972) states that at the beginning of the WW2, Britain had limited gold and foreign exchange to meet the pressing demands of the war. The British Government asked the U.S. to help finance their ability to sustain the war. Thus, ‘this dependency signaled the end of British power.’ For its draconian wars in Iraq and Afghanistan, America is heavily dependent on China, Japan and Saudi Arabia. It is well known that American treasury owes trillions of dollars to its foreign debtors and therefore, its financial dependency is increasingly becoming an obvious indicator of the end of American global hegemony and wars in Iraq and Afghanistan. Now that the US financial system has broken down and some of the leading banking institutions have gone into bankruptcy, the roller coaster repercussions can be seen across the American economic, social and political spectrum of life. Under the Bush administration, American capability and vitality has shrunk and in fact appears to be dismantled as a superpower in global affairs. It is no wonder that other nations of world no longer seem to take the U.S. and its traditional influence, seriously.

In the collapse of American power, Paul Craig Roberts stated: “Noam Chomsky recently wrote that America thinks that it owns the world. That is definitely the view of the neoconized Bush administration. But the fact of the matter is that the US owes the world. The US “superpower” cannot even finance its own domestic operations, much less its gratuitous wars except via the kindness of foreigners to lend it money that cannot be repaid. It is undeniable that the US is “bankrupt” because of the on-going wars in Iraq and Afghanistan. David M. Walker Comptroller General of the US and Head of the Government Accountability Office (December 2007). reported that “In everyday language, the US Government cannot pass an audit.”


Did the US hegemonic war achieve any of its set goals for world domination? Have the US and UK Governments secured any viable hydrocarbon energy routes to ensure their depleting gas and oil stocks and the much planned control over the Arab oil reserves? Is the US dollar still a welcomed international currency used by the world nations?


Mike Whitney quotes the retired U.S. Army General Ricardo Sanchez challenging the prevailing notion of the Bush Administration “Mission accomplished” in Iraq, when he asserted that the occupation of Iraq is a “nightmare with no end in sight.” The General claimed that the US administration is “incompetent” and “corrupt” and that the most American people could hope for under the present circumstances is to “stave off defeat” in Iraq war.


America and Britain appear lost, not knowing how to come out of the self-engineered defeat in wars against Islam. Both superpowers are led by ignorant and arrogant elite not having any knowledge to fight the wars except thinking big and jumping here and there to demonstrate their material possessions and transitory power. They even do not know the enemy and do not have one, well defined in their plans to fight against. Masses have sympathi
es with the true believers and the Islamic Resistance appears to have lost nothing. Taliban or other mujahideen fighting against the aggressors know their enemies and enjoin support of the masses without bribes and bank balances. They had no banks to declare bankruptcy and no Bush and C heney to go down in disgrace. The Mujahideen remain intact and active on all the fronts even buying weapons from the US and Russia to fight against them. American, British and Russian business establishments know well how to trade in global arms market. America and Britain lost the wars , the day they invaded Iraq and Afghanistan.


As a declining superpower, the US is extremely nervous not knowing how soon it could be replaced by smaller nations of the developing world or a combination of new emerging economic powers such as China, India and others. America is in desperate need of a Navigational Change. President Obama got elected with the moving slogan – “Yes We Can.” Would President Obama know how to make a navigational change when there is nothing left to navigate for Change?

—Dr Mahboob A Khawaja

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