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Posts Tagged ‘Bankruptcy’

Doug Casey on the Debt Ceiling Farce and Why the US Should Declare Bankruptcy

Posted by M. C. on May 4, 2023

I’d like to point out that there actually have been previous defaults by the US government. For example, Abraham Lincoln, during the War between the States, defaulted by printing up so-called Greenback currency.

Roosevelt defaulted on the debt by fraudulently devaluing the dollar, raising the price of gold from $20.50 to $35, but only after confiscating it from citizens. That was a default. Then there was Nixon, in 1971, defaulting on the promise to pay foreign governments at $35 gold. Now the dollar is only worth 1/2000th of an ounce of gold.

by Doug Casey

Debt Ceiling Farce

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International Man: The US federal government has raised the so-called debt ceiling 104 times since 1944.

Shouldn’t they call it a debt target instead of a debt ceiling?

Is this whole thing a farce?

Doug Casey: The situation is completely and irredeemably out of control. It’s a farce. Quite laughable, except for the fact it’s so deadly serious.

Can they reduce the debt ceiling or the amount of debt? Or even slow down its growth at this point? No.

The situation is beyond redemption because most US government expenditures go to pay entitlements—Social Security, Medicare, Medicaid, food stamps, and numerous other types of welfare.

Those things will be very hard to cut at this point; breaking the doggy dishes of millions of corrupted Americans would cause unrest. Plus, the so-called “defense” budget, which mostly supports the military/industrial complex while fomenting conflict. It’s actually much larger than disclosed because it should include $50 billion of foreign aid, the cost of running outrageously large embassies over the world, the CIA, and black budgets of all types.

Meanwhile, all US government agencies are bent on expanding themselves. The bureaucrats who run them realize that if they don’t grow the budget every year, they reduce their chances of going from one GS level to the next. Their success is based upon managing more people and spending more money. Naturally, all these agencies grow like cancers.

As a result, the “debt ceiling” is a fiction. It will stay out of control unless there is a total reorganization of the government—which itself would be risky. And that’s not going to happen until we have a financial catastrophe that leaves absolutely no alternative.

International Man: You have previously stated the US government should default on the national debt.

What are the reasons for that?

Doug Casey: I know it sounds outrageous to propose the US government default on its national debt. Of course, they don’t think it will ever be necessary because, as several high-level government officials have pointed out, they can just print money to pay off the debt.

However, I disagree. What are the reasons for doing something as seemingly catastrophic as defaulting on the debt? I’ll give you at least five. Stick with me. Let’s conduct an outrageous but not unreasonable thought experiment.

First, barring default, future generations of Americans will be turned into serfs to pay off the debt. Profligate people have run up the debt, but everybody’s children and grandchildren are stuck with having to pay it off. That’s simply immoral. If you have any care for the future at all, future generations should be saved from becoming serfs to pay it off.

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Trump Deserves Credit for Bringing the Troops Home | The American Conservative

Posted by M. C. on June 15, 2020

But today, give credit where credit is due. Trump, the disrupter, is right to bring the troops home. And I say don’t stop until we once again have a military whose primary job is to defend America.

https://www.theamericanconservative.com/articles/trump-deserves-credit-for-bringing-the-troops-home/

Home/Articles/Politics/Trump Deserves Credit for Bringing the Troops Home

Initiating withdrawals from Afghanistan and Germany is a good step and one he should follow up on.

 

In 1988, a certain congressman from Texas ran for president on a platform of bringing home our troops from around the world. Even then, more than 30 years ago, U.S. troops were in over 100 countries, and tens of thousands were still in Europe.

That Texas congressman was my father, Ron Paul, who 20 years later ran again for the presidency and was still calling “to begin bringing American troops home from around the world—an absolute necessity if the budget is ever to be brought under control. We’re going broke and we still have 75,000 troops in Germany?”

In his best-selling book The Revolution, my father wrote: “We can either withdraw gracefully, as I propose, or we can stay in our fantasy world and wait until bankruptcy forces us to scale back our foreign commitments.”

This week, President Trump called for a modest reduction of American troops in Germany, reducing them from 34,500 to 25,000 (a great start that will hopefully lead to further reductions there). The Republican neocon caucus responded exactly as you would expect. You’d think the Berlin Wall was still in place and two million Russians were about to invade Germany. Utter nonsense.

With the Cold War now 30 years moribund, the hysteria over removing troops is ludicrous. Meanwhile the very real threat of bankruptcy and menacing debt grows each day. Just this year, the United States will add $4 trillion to the national debt. Can the Germans afford to defend themselves? Without question. Germany actually balances its annual budget every year.

Yet the U.S. still has about 170,000 troops in about 150 countries at great expense in both lives and treasure. Often that puts our soldiers on the front lines of civil wars whose origins we barely even comprehend. The U.S. also becomes allied with governments, such as Saudi Arabia, that are barbaric, despotic, and anti-American. And yet the cycle continues because the war caucus vows to never, ever let our troops come home.

President Trump is also advocating ending our nation’s longest war in Afghanistan. It couldn’t happen soon enough. The American taxpayer is paying $50 billion a year to build roads and bridges in that country, while our own nation’s infrastructure crumbles.

President Trump has also discussed having fewer troops in South Korea, and has actually forced Seoul to pay more for our presence. Possibly the best aspect of the Trump presidency, though, has been his willingness to challenge the bipartisan neoconservative consensus on forever war.

Yet critics, including myself, will admit the Trump presidency has not always practiced what it’s preached here. While Trump has consistently advocated for fewer troops in Europe, he has re-introduced U.S. troops into Saudi Arabia, a mistake that eventually will lead to more war or terrorism or both.

But today, give credit where credit is due. Trump, the disrupter, is right to bring the troops home. And I say don’t stop until we once again have a military whose primary job is to defend America.

Rand Paul is a Republican senator from Kentucky.

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EconomicPolicyJournal.com: What the JC Penney Bankruptcy Filing Really Means

Posted by M. C. on May 17, 2020

But please note, it was not COVID-19 that caused the bankruptcy but the over-the-top lockdowns of much of the country by government officials who acted with no evidence (no scientific studies) that lockdowns are a sound policy to deal with the virus.

https://www.economicpolicyjournal.com/2020/05/what-jc-penney-bankruptcy-filing-really.html

The lockdown has taken down a retail giant.

The nationwide department store chain,  J.C. Penney, filed for Chapter 11 bankruptcy protection Friday evening.

J.C. Penney has received debtor-in-possession financing of $900 million of which $450 million is new money.

J.C. Penney said it believes the new financing and cash generated from its business, is expected to be sufficient to sustain its business and restructuring needs.

But, as part of the financing, J.C. Penney must explore additional opportunities to maximize value, including a third-party sale process.

The company, founded by James Cash Penney in 1902, operated 846 department stores in 46 states as of February 1.

J.C. Penney hinted at some store closures in the bankruptcy filing but didn’t go into specifics. It is, however, possible the retail chain might not survive at all.

The department store chain was dealing with a heavy debt burden before the lockdown occurred and the shutdown of stores across a large swath of the United States did it in.

“The Coronavirus (COVID-19) pandemic has created unprecedented challenges for our families, our loved ones, our communities, and our country. As a result, the American retail industry has experienced a profoundly different new reality, requiring JCPenney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company. Until this pandemic struck, we had made significant progress rebuilding our company under our Plan for Renewal strategy – and our efforts had already begun to pay off. While we had been working in parallel on options to strengthen our balance sheet and extend our financial runway, the closure of our stores due to the pandemic necessitated a more fulsome review to include the elimination of outstanding debt,” said J.C. Penney CEO Jill Soltau in a statement.

JCP will not be the only victim of the lockdown, overall we are seeing a shrinkage of the productive capacity in the country while at the same time witnessing a massive (trillions of dollars) Federal Reserve money pump. More money floating around and fewer products and services is a prescription for accelerating price inflation.

But please note, it was not COVID-19 that caused the bankruptcy but the over-the-top lockdowns of much of the country by government officials who acted with no evidence (no scientific studies) that lockdowns are a sound policy to deal with the virus.

RW

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Gaines & Horton: It’s Time to Stop Fighting Osama bin Laden’s War

Posted by M. C. on August 4, 2019

For the dignity of servicemembers and for the future of the country, it is time to stop playing into al Qaeda’s hands.

https://www.breitbart.com/national-security/2019/03/09/robert-gaines-scott-horton-its-time-to-stop-fighting-osama-bin-ladens-war/

by Robert Gaines and Scott Horton

Osama bin Laden is long dead, but his plans live on through American foreign policy.

In 2001, al Qaeda consisted of only 400 ideologues in the far corners of the world. After the recent regime change wars in Iraq, Yemen, Libya and Syria, typical estimates place their membership at around 20,000. To top it all off, the American economy is out $5.6 trillion dollars for the whole failed project. This is not the legacy of a war to spread, or even protect, liberty and prosperity. Instead it is the legacy of an evil but gifted tactician, al Qaeda leader Osama bin Laden.

Contrary to the popular misunderstanding of al Qaeda’s motives and strategy, bin Laden and his partner Ayman al Zawahiri were not trying to scare America away with the September 11th attacks. They were trying to provoke an overreaction. Al Qaeda’s leaders wanted the U.S. to invade Afghanistan in order to bog our military down, “bleed us to bankruptcy,” and force a worn-out, broken empire to leave the region the hard way, and permanently, just as they had done to the Soviet Union in the 1980s with American support. Only then could they hope to launch the revolutions they sought in their home countries without interference from the American superpower.

Osama bin Laden’s mentor Abdullah Azzam warned in 1986 that the U.S. was on deck for expulsion from the region after the USSR. After observing the effectiveness of asymmetric war against a superior adversary, bin Laden, galvanized by the sanctions against Iraq and the U.S. occupation of the Arabian Peninsula, took up Azzam’s mission. In an early declaration aimed at the U.S., bin Laden noted that the mountainous terrain of Afghanistan helped the mujahideen defeat one of the most powerful militaries in history, and declared that he would seek to lure America to its same fate.

After decimating al Qaeda’s old guard at Tora Bora in 2001, the U.S. military could have returned home victorious. Instead, our leaders chose to follow bin Laden’s wishes by committing to an extended occupation and impossible nation-building mission – one which has lasted for more than 17 years.

The 2003 invasion of Iraq to overthrow the man bin Laden called a “socialist infidel,” Saddam Hussein, was a massive boon to the terror organization, decimating a secular government, paving the way for the creation of the first al Qaeda franchise there in 2004, radicalizing of a generation of new fighters, and proving the limits of U.S. influence in the Middle East.

America’s further regime change wars in Yemen, Libya, and Syria have been strategic victories for the U.S.’s terrorist enemies beyond the former terrorist leader’s wildest dreams.

In his journals, bin Laden was optimistic about the 2011 Arab Spring, writing that it had “opened a door for jihadists.” He wouldn’t live to see the aftermath of the U.S. and NATO-backed regime change operation in Libya, but the country remains awash in members of Ansar Al-Sharia and the Libyan Islamic Fighting Group (LIFG) that the U.S. and NATO supported in the war. Both groups are led by veterans of al Qaeda in Iraq from Iraq War II.

The jihadists empowered by the regime change in Libya quickly spread to Mali, Chad, and Niger. A new generation of Sunnis with rifles and SOCOM operators are fighting now throughout the Maghreb, Sahel, and sub-Saharan Africa.

Saudi Arabia became bin Laden’s primary target for revolution when the king allowed the American military buildup there in preparation for the first Iraq war in 1990. As a key ally and major purchaser of American weapons, the kingdom has long appeared immune from the fate of Iraq or Libya. Now that the current regime has been racked by political purges and the financial burden of a war in Yemen, it’s not difficult to see how the legions of jihadists cultivated directly and indirectly by the U.S. and Saudi Arabia itself in the recent regional wars might return and wreak havoc there.

U.S. and regional allies’ covert intervention on behalf of the insurgency in Syria backfired horribly by helping to bring al Qaeda in Iraq back to life from its previous near-total destruction by Iraqi tribal leaders during the 2007 “Awakening” in Iraq. In 2011, al Qaeda in Iraq, or the “Islamic State of Iraq,” crossed into Syria to take part in the uprising against the Ba’athist dictatorship there. In Syria, AQI/ISI began calling itself Jabhat al Nusra, then Hayat Tahrir al Sham. It remains loyal to al Qaeda leader Ayman al Zawahiri. Their group now again numbers in the tens of thousands and for the time being remains ensconced in Syria’s northwestern Idlib province.

In 2013, the Iraqi-dominated faction split from al Nusra and Zawahiri’s al Qaeda. They returned to calling themselves the Islamic State (ISIS) and consolidated control over eastern Syria. A year later, they conquered all of predominately Sunni western Iraq, declared an Islamist “caliphate,” and seized numerous fully stocked military bases left behind by the United States just three years before. As President Trump correctly said during the 2016 campaign, this disaster was the direct consequence of the previous administrations’ wars in Iraq and Syria. The loss of western Iraq to ISIS led to the launching of Iraq War III in 2014-2017 to destroy the ISIS caliphate and drive them out of western Iraq and eastern Syria.

Now that fight is over. Trump should ignore demands for the continuation of a policy which has only furthered Osama bin Laden’s original agenda.

Two wars expanded into multiple conflicts that have enveloped entire regions, costing thousands of American lives, requiring vast defense expenditures, and killing or displacing millions of civilians. Though Washington hawks insist upon indefinitely extending commitments abroad, President Trump understands the consequences of open-ended war.

For the dignity of servicemembers and for the future of the country, it is time to stop playing into al Qaeda’s hands. Trump should withdraw from Afghanistan and Syria, and end the counter-productive war on terrorism.

 

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Trapped

 

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Report: Boy Scouts of America May File for Bankruptcy

Posted by M. C. on December 13, 2018

BSA

Born 1910   DIversifiED 2018

https://www.breitbart.com/economy/2018/12/13/boy-scouts-america-considering-ch-11/

by Joshua Caplan

The Boy Scouts of America are considering filing for bankruptcy, according to a report released Wednesday.

The Wall Street Journal states leadership of the youth organization, mired in sexual misconduct litigation, hired the law firm Sidley Austin LLP to explore a wide range of options, including petitioning for relief under Chapter 11.

On Wednesday, Boy Scouts CEO Michael B. Surbaugh released a statement in response to the Journal‘s report, saying, “We are working with experts to explore all options available to ensure that the local and national programming of the Boy Scout of America continues uninterrupted.”… Read the rest of this entry »

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