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Paul Craig Roberts: Our Collapsing Economy and Currency

Is the “fiscal cliff” real or just another hoax? The answer is that the fiscal cliff is real, but it is a result, not a cause. The hoax is the way the fiscal cliff is being used.

The fiscal cliff is the result of the inability to close the federal budget deficit. The budget deficit cannot be closed because large numbers of US middle class jobs and the GDP and tax base associated with them have been moved offshore, thus reducing federal revenues. The fiscal cliff cannot be closed because of the unfunded liabilities of eleven years of US-initiated wars against a half dozen Muslin countries–wars that have benefitted only the profits of the military/security complex and the territorial ambitions of Israel. The budget deficit cannot be closed, because economic policy is focused only on saving banks that wrongful financial deregulation allowed to speculate, to merge, and to become too big to fail, thus requiring public subsidies that vastly dwarf the totality of US welfare spending.

The hoax is the propaganda that the fiscal cliff can be avoided by reneging on promised Social Security and Medicare benefits that people have paid for with the payroll tax and by cutting back all aspects of the social safety net from food stamps to unemployment benefits to Medicaid, to housing subsidies. The right-wing has been trying to get rid of the social safety net ever since Franklin D. Roosevelt constructed it, out of fear or compassion or both, during the Great Depression.

Washington’s response to the fiscal cliff is austerity: spending cuts and tax increases. The Republicans say they will vote for the Democrats’ tax increases if the Democrats vote for the Republican’s assault on the social safety net. What bipartisan compromise means is a double-barreled dose of austerity.


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Paul Craig Roberts is not a libertarian

He favors the war on drugs (though he's critical of the methods the government uses to fight it), and he generally is not in favor of free markets, especially free trade. He's always writing protectionist articles. He published a book this year entitled "The Failure of Laissez-Faire Capitalism and the Economic Erosion of the West".

Why does this man have a following on the Daily Paul?

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."


This is the most dishonest statement I have ever read from Roberts...

"The US economy has two serious diseases, and neither one is too much welfare spending."

Besides the obvious mathematics involved here which is not worth noting, there is another problem with welfare spending; LIBERTY. Many of us don't agree with it and yet are robbed every year to pay for the lowest common denominator of society to procreate at unsustainable rates. Gee, America is SO much better off today /sarcasm.

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PCR tells the truth that for some is difficult to take.

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