Tom, there is much secrecy in the application of Pentagon funds which makes it impossible to establish its budgetary spending.

Some peg the Pentagon budget realistically at the trillion per year mark.

Congressionally approved war expenditures apparently are only a part of the war's total direct costs with the Pentagon ponying up the rest from its trillion.

The big picture of national economics is hazy at best.

It's true condition is shrouded by voodoo economics. But it doesn't take an economic genius to see the incredible waste on war, (more accurately described as Iraqi occupation - the war part was over nearly five years ago) weaponry and myriad other "defense" related expenditures more accurately described as offense spending.

Meanwhile, not a lot else is being spent on this country to preserve its economic health.

Moreover. it seems like its present leaders are bent on the nation's financial destruction.

It is remiscent of what happened to the USSR when it finally was no longer able to support its hunger for world dominance.

Where do you see us headed from here?

Maggie, I was impressed with Johnson after seeing him during an appearance on one of Amy Goodman's Free Speech TV broadcasts.

Perhaps one day we will have an administration that will consider the knowledge and insight of people like professor Johnson and others who have so accurately predicted the state of the union to which we have arrived.

Unfortunately, rightists scornfully reject the input of academics as hogwash in the same fashion they reject global warming, unless of course they happen to make a rare acceptable point. You know, those traitorous commie Berkeley jerks who want to subjugate their perfect world with socialism can't be trusted.

 Saber, missed one question: Some of the funds are coming from the Pentagon budget which runs about half a trillion dollars a year.  How much is subject to debate since we're using "emergency war funds" to pay for items that will never go to the battlefield (costs that should be paid by the Pentagon) and some Pentagon funds are going into Iraq, Afghanistan, etc.

Saber, that's a huge question because money is fungible, so those particular dollars might come from anywhere.  Social Security money is treated as part of the general fund which is why the whole argument about Social Security shortfalls is so ridiculous.  Right now the GAO is anticipating that Social Security will be spending more money than it takes in in 10 years, but Congress has been siphoning money out of the system for decades.  If it is treated as general fund money during a surplus, why is it suddenly a discreet fund when it runs a deficit?  We also have the regular tax base that pays money into the system.  The rest of the money comes from borrowing from foreign nations. 

It's impossible to know which dollar goes where, but the point of funding the war off-budget is that emergency spending items aren't calculated in for the purposes of GAO projections or for things like the 10 year balanced budget requirement. 

Tom: "...war isn't a big item in the budget,  technically it's not in the budget at all. By using "emergency funding" he (and Congress BTW) can essentially run the war without having to account for costs."

Tom, help us out here. Where do the emergency funds come from which are supporting the war? Is it real cash, credit or are we just printing up currency to cover costs? Are we borrowing it from say, Social Security? Does the nation have a big reserve or slush fund stashed somewhere? Is the Pentagon funding the occupation?  I haven't heard of one "war bond" or similar instrument being offered by the government to offset military costs. On deficit spending, how does one spend a deficit?

Great thread.

Intelligent, insightfull posts by Adam, Tracy, Maggie, Tom focused on some of the disturbing realities regarding the the nation's truly sad state of affairs.

Maggie: "we continue to believe that we can compensate for the accelerating erosion of our manufacturing base and our loss of jobs to foreign countries through massive military expenditures -- so-called "military Keynesianism,"

Back in the day, manufacturing flourished during wartime economy, putting spendable dollars in the pockets of American citizens.

However, it's an entirely different day in the new global economy where America has become a consumer society producing little anymore buying essential goods from countries employing cheap labor.

We no longer produce steel, electronics, textiles, etc., etc., instead purchasing from foreign manufacturers. Therefore, the economies of other countries benefit while ours is overburdened with costs which in turn increase debt and adversely impact world currency value. And the less the dollar is worth in the world market, the higher defense costs escalate.

Our main industries are also buyers, wholesalers and distributors of foreign goods, or they produce little in the way of jobs as labor is outsourced.

The energy industry sells derivatives of foreign oil, gouging consumers for big profits which mostly don't make it back into the economic stream. The financial industry sells pie in the sky designed mostly to benefit sellers than investors, its profits a mere trickle back into the economic stream. The healthcare industry gouges consumers selling goods and services at thousands of percent markups. The stock market has become little than a casino playground for big gamblers. Overspeculation in the commodities markets serves mostly to artificially jack up the costs of essential consumer goods and causes unnecessary inflation for the jobless former manufacturing workforce now working for poverty wages in the service industry.

Capitalism as we once knew it has run amok in direct proportion to the failure of government to manage it properly. The present bastardized free market capitalist system has morphed into the country's bane and needs proper regulation control and guidance to once again serve the nation fairly and efficiently.

Unfortunately, regulation to conservatives generally translates to socialism or even communism as seen by conservative's fringes. And those fringe people are the folks who have been in charge during most of the country's fall from economic prosperity to bankruptcy promulgating the red paranoia.

The old school guys advising Bush with outdated wartime economics, promoting preemptive-strike defense policy are still at the helm of the ship of state, steering us ever perilously closer to the shoals of economic collapse.

Hopefully, their greedy, inept hands will be pried from the rudders of power before we run aground and sink into the abyss.

Adam: "We must find a way to keep kids in school and provide career opportunities for the next generations. These are not Republican issues or Democratic issues. These are American issues. We should elect people who speak honestly about what needs to be done, not partisan hacks who fritter away public trust to keep yacht owners from paying state user taxes, or propose meaningless legislation to identify and incarcerate the impoverished and outcasts among us.

Health and welfare of the common citizen should be government's first obligation, not raising campaign funds to gain name recognition for selfish designs that benefit just the few major contributors. Public financing of our election process should be job number one to remake this the intended government of the people, by the people and for the people. We do not need scapegoats, or victims. We need to listen to one another, respect one another and work with one another."

Spot on!

Tracy: "The U.S. has been victim to bad leadership under the Bush administration...Economic factors are not independent and occur in a vacuum.  What we are witnessing is due to poor decision making."

Yes, and the saddest part is, we elected this last cadre of clowns into office, with many voters inexplicably hoping for a return to Reaganomics. Was it the better of the available evils? Will we do it again?

Thanks fo mentioning the emergency funding of our 5 year old war.  Deficit spending is dangerous to the interests of Americans.  Not operating within the budget has consequences.  Afterall, we just can't go to the U.S. Treasury and print more money.  We have to borrow from the Chinese and other markets.  At the end of everything, who will own us?  All for a very unpopular war that has benefited large contractors such as Halliburton.  The average Iraqi would prefer Saddam back in power rather than the strange form of "democracy" currently in place.  Educated and wealthy Iraqis have left their homeland and are camping out in places like Syria and Jordan.  So, while we are re-building Iraq, what kind of future are we really investing in for those people? 

You are right about doctors and dentists not wanting to take Medi-cal patients.  Only 40% of all CA dentists accept Medi-cal coverage.  CDA is lobbying to retain the current dental coverage for poor Californians.  The proposal is to cut all dental coverage for all Medi-cal covered adults and to change the eligibility for children.  This in combined with a 10% cut in reimbursement to medical and dental providers will cause the state of health care in California to take a serious dive.

 Tracy, just a couple of things:  you say that the war isn't a big item in the budget, but technically it's not in the budget at all.  If it were part of the budget, Bush wouldn't be able to push for more tax cuts since the actual budget has to balance over 10 years.  By using "emergency funding" he (and Congress BTW) can essentially run the war without having to account for costs.

The other thing you mention is that dentists and doctors may no longer wish to see Medi-Cal patients if this cut goes through.  The truth is that many doctors already refuse to treat Medi-Cal patients and for some areas of medicine, finding a practitioner can be nearly impossible.

Going Bankrupt

Why the Debt Crisis Is Now the Greatest Threat to the American Republic
By Chalmers Johnson

There are three broad aspects to our debt crisis. First, in the current fiscal year (2008) we are spending insane amounts of money on "defense" projects that bear no relationship to the national security of the United States. Simultaneously, we are keeping the income tax burdens on the richest segments of the American population at strikingly low levels.

Second, we continue to believe that we can compensate for the accelerating erosion of our manufacturing base and our loss of jobs to foreign countries through massive military expenditures -- so-called "military Keynesianism," which I discuss in detail in my book Nemesis: The Last Days of the American Republic. By military Keynesianism, I mean the mistaken belief that public policies focused on frequent wars, huge expenditures on weapons and munitions, and large standing armies can indefinitely sustain a wealthy capitalist economy. The opposite is actually true.

Third, in our devotion to militarism (despite our limited resources), we are failing to invest in our social infrastructure and other requirements for the long-term health of our country. These are what economists call "opportunity costs," things not done because we spent our money on something else. Our public education system has deteriorated alarmingly. We have failed to provide health care to all our citizens and neglected our responsibilities as the world's number one polluter. Most important, we have lost our competitiveness as a manufacturer for civilian needs -- an infinitely more efficient use of scarce resources than arms manufacturing. Let me discuss each of these.

http://www.tomdispatch.com/...

Investment in infrastructure and health care is not possible when financing a $3 trillion (and growing) war.  Apparently, these are not significant lines on the budget for our government when looking to end terrorism and dictatorships in third world countries.  And, while alternative energy sources are plausible, the big oil companies will never allow themselves to lose revenue.  If you look at our hostility towards Iraq and even Iran, it is very apparent that this is a struggle to control the dominance over huge oil reserves.  Why don't we teach Iran a lesson about bowing down to the U.S.?  Probably because Russia and China are supporting Iran because they have huge oil purchase deals. 

Our health care system has been dysfunctional for decades.  It is only becoming more apparent as companies can no longer afford to pay for plans for their employees.  Managed care and HMO's were the worst things to happen to modern medicine.  Trust me, I once worked for a non-profit community health center where the doctors tried to make sure that their visits were 15 minutes or less so that they could reap a benefit from the lousy capitation rates.  But, this is not going to seriously change with the current administration or with the proposed Republican and Democratic presidental nominees.  The problem is systematic and heavily controlled by wealthy insurance companies.  And, we really cannot have too much confidence in government sponsored health care in our country.  California's governor is currently looking to balance the state budget by cutting back Medi-cal benefits from the elderly, disabled and children.  There is a proposed 10% cut to the reimbursement to physicians and dentists (who will soon not want to see these patients).  So, am I willing to hand over the quality of my children's health care to shifty American politicians?  We are not in Canada or in Europe where health care is viewed as a right for all citizens.

What adam said.  

 We need road, levee and bridge improvements. We need to address energy, water  and land use requirements. We must find a way to keep kids in school and provide career opportunities for the next generations. These are not Republican issues or Democratic issues. These are American issues.

Amen! Infrastructure expenditures by Govt are one thing that pays dividends........ and for years to come.......and I'm all for that!

Energy too!  Look into Algae, especially CO2 infused. Creates fuel similar to what normal hydrocarbons do, so no drastic infrastructure changes need be effected (like fueling stations for electric cars or even CNG vehicles). Burns just like other bio-fuels.

With respect to the article, the Republican party is suffering due to poor decision making.  The U.S. has been victim to bad leadership under the Bush administration.  The war in Iraq and Afghanistan has proved to be highly unfavorable in the eyes of Americans, Iraqis, and Afghans.  If that is not enough, don't think the Bush administration did not have something to do with the subprime mortgage fall out.  It is bad enough that the foreign policies adopted by the Republican party have been shoddy.  The domestic policies are viewed by Americans to be far worse.  The price at the pump is approaching $4 per gallon and the unemployment rate is increasing.  Economic factors are not independent and occur in a vacuum.  What we are witnessing is due to poor decision making.  The Bush administration and Congress has instituted the tax stimulus package in which all Americans will receive tax incentives in a couple of months.  I can't help but inquire whether this will benefit Americans or will it benefit China (which is likely the lender of these funds).

Is the Democratic party providing the best solution to bad Republican leadership?  I don't think this is likely.  While I am in awe of nominees such as Obama, I doubt our two party system will produce a leader to overcome special interest groups and partisanship.  I also have to wonder about history.  Any nation that became too big has always fallen (i.e. Rome, Ottoman Empire, and the British Empire).  Maybe it will soon be our turn as well.

I think both political parties are in trouble. People are growing increasingly frustrated and angry over the failure to resolve long standing problems within our country.  Everyone is weary of the blame game and name calling. The current dissatisfaction with our two party system stems from the growing failure to reach across the aisle in the name of the public good to reach compromises necessary to move the nation forward. The center has split, like a dryrot infested teeter-totter torn apart by the weight of growing extreme partisanship hanging on the ends of the political spectrum.

We need a new health care system. We need road, levee and bridge improvements. We need to address energy, water  and land use requirements. We must find a way to keep kids in school and provide career opportunities for the next generations. These are not Republican issues or Democratic issues. These are American issues. We should elect people who speak honestly about what needs to be done, not partisan hacks who fritter away public trust to keep yacht owners from paying state user taxes, or propose meaningless legislation to identify and incarcerate the impoverished and outcasts among us.

Health and welfare of the common citizen should be government's first obligation, not raising campaign funds to gain name recognition for selfish designs that benefit just the few major contributors. Public financing of our election process should be job number one to remake this the intended government of the people, by the people and for the people. We do not need scapegoats, or victims. We need to listen to one another, respect one another and work with one another. 

 You may well be the last man standing (in the crop of current  "Dem Apologist Repub only Attackers") Tom. I cannot provide a  "historical refutation of history ala Mattloch"  on that one.

However, the last part of the sentence says....."......and the Dems?"

 Chico, RonMexico was attacking.  I know you have recently chastised people for assuming a general comment applied to them, so I'm not sure why you'd do that here.

Chico, I thought you were implying that Democrats don't admit it when they screw up.  I guess I misunderstood "unlike some, I readily admit to the foibles of the current crop of Repubs.  How about you and the Dems?"

 Chico, remember how all the Democrats were saying that Spitzer should keep his job and that he'd done nothing wrong?  Yeah, me neither.
 

Which proves..........?

 Who's  "attacking"?

Just posted some names

Methinks someone overly protective-reactive?

Go ahead, have discussion.

Repubs in disarray in CA? In the phone booth?

 Chico, remember how all the Democrats were saying that Spitzer should keep his job and that he'd done nothing wrong?  Yeah, me neither.

You really think attacking Democrats over sex scandals right now is the way to go?  With Vitter and Craig still in office, Mark Foley recently out and Dennis Hastert who covered up for him just losing his seat to a Democrat.

The liberal media also skipped the story about President Bush having a male prostitute spend the night in the White House.  He denies it, but many Secret Service records show him checking in at the White House and not checking out.

So if you want to have that conversation, I'm all for it.  If you'd rather talk about the topic of the blog, I can do that too.

 Aside from the fact that, unlike some, I readily admit to the foibles of the current crop of Repubs

How about you and the Dems?

 washroom, oval orifice, DC apartment with revovling GPD

a difference with a distinction?

(GPD=Gay Prostitute Door)

"Pervert" is a rather harsh term for someone not arrested in a public washroom, don't you think?

Spam Code DC UHU, anyone there?

Someone is a tool

 Republican perverts?

bill clinton
wilbur mills
wayne hays
john young
alan howe
fred richmond
gerry studds
brock adams
jim bates
gus savage
barney frank
charles robb
daniel inouye
mel reynolds
gary condit
paul patton
bob wise
jim mcgreevey
Neil Goldschmidt
Mike Lowry
 

There are many more....................

And all the while the GOP covers up or ignores the perverts in their party.

www.armchairsubversive.com

 Ah but Ron, the Dems admit their sins so that makes it ok.

 Good lord.  Have you seen the national democratic Party?  Banging hookers for a decade. Cheating on spouses.  Smoking dope and snorting coke.  Spinning tall tales of dodging "snipers" in Bosnia to bolster foriegn policy experience.  Calling each other "Judas".  It would be hillarious, except these clowns want to decide how I spend my health care dollars...