01/29/09

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There is a difference between increasing government spending and going into deficit during a recession or depression to create jobs and growth, then going into deficit by cutting taxes to a special interest group such as the wealthy during a period of economic prosperity.

Many countries continue to increase their Debt and claim that it is not important because of the GDP to Debt ratio. Some governments use this Economicism, premise, or pretense to further cut taxes to the wealthy and corporations, which further increases their Debt, that is then redistributed to the general public, the middle class and low income families, and this makes the middle class “poorer”. Politicians and some economists that support them claim that the tax cuts that make the wealthy wealthier and the added debt that makes the middle class "poorer" drives the Economy and that the resulting GDP is higher and therefore the resulting deficits and added Debt do not matter. This is not based on economic reality or fact. What is economic reality is that the debt is increased, the wealthy become wealthier because of the tax cuts, and the middle class are made "poorer" because the resulting debt is redistributed to them. Another economic fact is that the middle class is the real economic engine that drives the economy as also stated in the video by US President George Bush himself on July 15, 2008. If for example a government were to drastically cut taxes to the middle class the GDP would be much higher, temporarily, but would eventually result in an Economic collapse. This kind Economicism is what has caused the current economic crisis.

Another reality is that politicians cater to special interest groups to be reelected and one special interest group that has tremendous power are the wealthy and corporations. But in some cases, and this is my belief, they can commit crimes, a fraud, and this is what I believe the George Bush administration and it's economic policy has done. George Bush stated several times that tax cuts to the wealthy and corporations results in growth and prosperity for the United States. This is false, what it has done is create huge deficits, since the 2001 tax cuts, and this makes the United States and the People of the United states "poorer" but makes the wealth, the special interest group that the Bush family are also part of, wealthier through the tax cuts. Deficits also have the usual effect of reducing a countries currency value, such as the US dollar. This reduces the purchasing power of the United States and the People of the United States, making them also "poorer".

Another economic reality is that the middle class as a collective also has a lot of economic power. One economic theory is that the middle classes economic power needs to be weakened by indebting it in order to leave it at the mercy of the wealthy and corporations. An example of power and the lack of power is that in the US, what many consider to be the richest country in the world, thousands of people are dying because they do not have basic medical care and there are millions of homeless people. A current political debate in the US was that one politician wanted basic medical care while another claimed it would be too expensive. The economic reality is that tax cuts to the wealthy have increased the debt by over 3 Trillion dollars for a total of almost 4 Trillion dollars since the 2001 tax cuts. The same politician who claims that it would be too expensive, budget constraints, would like to increase these tax cuts that would further increase the yearly deficit and total debt.

The US economic crisis was caused by the added debt and the increased deficits, an average of over 450 Billions since 2002 or 2001 tax cuts, that caused the US dollar to fall making goods more expensive. One common distortion or propaganda is that oil is the cause of the US economic crisis. The cost of Oil did go up in the US, like all other goods, because of the falling US dollar. When the US dollar falls commodities like oil are used as a hedge by investors to protect them selves from the falling currency causing the price of oil to go up. Speculation, like a possible disruption or war with Iran, also increases the cost of oil.

You should note that creating chaotic systems or deregulating systems, like the banking industry, so that they become chaotic is also a tactic used by organized crime to hide the crimes they commit. Laws, regulations, and rules also give law enforcement officials something to work with when crimes are committed or when complaints are filed. Without laws, regulations, and rules the crimes committed do not match the definition of a crime, such as the the crime and definition of a criminal fraud for example.

3rd quarter 2008: -0.5 percent
2nd quarter 2008: +2.8 percent

December 1, 2008 the word recession does not reflect the reality of the US economy.

The USA Fraud page

The Current Debt	The Newest Page and Information - Conclusion page
USA 9,537,495,474,288.77 Date 07/28/2008 (9537 Billion or 9.537 Trillion)  ▪ Biggest Contributor to the Debt: George Bush Republican  ▪ George Bush: (3866 Billion or 3.866 Trillion) Canada 467,268 Million Date 03/31/2007 (467 Billion)  ▪ Biggest Contributor to the Debt: Brian Mulroney Conservative  ▪ Brian Mulroney: (291 Billion)	Economic Crisis Video The Economic Crisis is the newest page and information.  • What caused the current economic crisis.  • The video of economic information and the Senate hearings.  • Summary and Comments on the video.  • The US Economic Dooms Day Scenario.  • How Governments Affect Speculation and the Price of Oil.  • The Oil Business FAQs latest Q. What do you mean by economic fact or reality? A. The dynamic (change) between the US dollar and the added debt and deficit is an economic fact and reality. The added debt caused the depreciation of the US dollar. Another economic reality and fact is the current US economic crisis.
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If you have comments, feedback, or suggestions that you would like to send about this website, deficits, debt, or the economy please use the contact form. Note that not all fields are required and most are optional. You can also use this email address. TheDeficits@gmail.com Cut Your Food and Energy Costs by 30% - 50% Something You Can Do During Periods of Uncertainty and Insecurity Its always a good idea to have a small reserve or food provisions incase of emergencies or a disruption and even more so during periods of economic uncertainty. It's been a government recommendation for a long time and aimed at all kinds of emergencies or events. Having a small food reserve can give you the psychological feeling that you have taken some kind of action and it can also make you feel more secure and safe. The best food items are the ones you can keep for several months and years like canned goods, rice, pasta,  and dried goods such as beans (protein). Bottled water is also usually recommended. Note: Emergency provisions are about lasting a few days to give government action time to fix any disruptions. For example when hurricane Katrina hit new Orleans one of the things they quickly ran out of was bottled water. Its a safety measure. So basically it's like a storm, a financial storm, that's coming so take safety measures and precautions. Hurricane and Earthquake area's are more familiar with this. If the storm passes you can always give it to a charitable organization of your choosing at Christmas or after winter. Storm Coming, A Financial Storm - Take Safety Measures and Precautions Promoting and Advertising Feel free to use the jpg image or files in the publishing section to place ads in a news paper of your own choosing. If you do not wish to place the ads your self but wish to sponsor an ad through us please contact us at TheDeficits@gmail.com	If you would like to help us promote our website you can use the following jpg picture. You or you and a group of friends  can put the jpeg and adobe files in a news paper of your own choosing. You can place the jpeg on website or in emails to your friends. Image (jpg) that can be used for different websites: Right click and save the image above. (see the Publishing page for more info and adobe pdf files used in some news papers already)