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Americans hoped until the last moment that the US government would save them from the threat hanging over the US economy, but it didn’t happen. The crisis that’s loomed over the US economy is now reality. After fruitless attempts to secure cooperation from the US Congress to cut the budget deficit, President Obama imposed across-the-board cuts. By presidential order, budget cuts will slash spending by 1.2 trillion dollars (37 trillion Roubles. 920 billion Euros. 800 billion UK Pounds). This will spell major disaster for millions of Americans. Hundreds of thousands of federal workers will be out of work, still hundreds of thousands more will lose their medical coverage and social benefits. Schools and day-care centres will close, which will see teachers swell the ranks of the unemployed. Job cuts amongst air traffic controllers will upset normal air travel and the public won’t be able to take tours of the White House. Sadly, this doesn’t exhaust the list of evils due to fall on the heads of ordinary Americans.
The reason for such extraordinary measures was a crippling 17 trillion USD (525 trillion Roubles. 13 trillion Euros. 11.4 trillion UK Pounds) federal government debt and an annually-increasing budget deficit. This disproportionately-huge debt and the government’s annually repeated failure to keep within budgetary limits is largely the result of excessive military spending. Once the Republican administration of George W Bush took office in 2001, it resumed the arms race that ended with the conclusion of the Cold War. Immediately, growing debt replaced deficit-free budgets. By the time that Barack Obama arrived in the White House, the debt had mounted to 13 trillion USD (400 trillion Roubles. 10 trillion Euros. 8.7 trillion UK Pounds). Nevertheless, the arms race didn’t stop. As military spending in Fiscal Year 2013 exceeded 630 billion USD (19.5 trillion Roubles. 500 billion Euros. 425 billion UK Pounds), the US federal debt continues to increase. According to the US Department of the Treasury, the US federal debt may hit a whopping 19 trillion USD (586 trillion Roubles. 14.6 trillion Euros. 12.75 trillion UK Pounds) in the foreseeable future.
However, the US government will do everything possible to mitigate the effects of sequestration. In a search for a solution to this situation, President Obama put forward a plan of far-reaching savings, including the abolition of the substantial Bush tax breaks for major corporations and the richest individuals. Given that large corporations and the “Billionaires Club” account for the bulk of national wealth and yearly revenues, this Democratic proposal was bound to ease the growing US federal debt, if not help the ailing US economy.
However, Obama had no such luck. The Republican-dominated Congress continued to dig in its heels obstinately. Negotiations lasted for many weeks. The President tried to reason with them, he even offered concessions to them, and he sometimes blustered, but nothing worked. The debate continued literally until the last minute, until, on the night of 1 March, President Obama ordered a compulsory reduction in government spending by 85 billion USD (2.6 trillion Roubles. 65 billion Euros. 57 billion UK Pounds), the consequences of which are hard to foresee at present. In its present configuration, the US Congress is mostly an élitist club of ultra-right conservatives, which makes it unable to express the interests that benefit the greater American society. Now, congressmen approve exorbitant military spending, launch unlawful bills like the Magnitsky Act, and doggedly stick to Cold War stereotypes. Big Business interests dictated the budget sequester provoked by the US Congress; as many of the lawmakers take its money, ergo, they serve its ends. In addition, it runs counter to US national interests; it may have serious consequences for the welfare of the USA and for the global economy. Apparently, it looks like those who consider themselves the American national élite couldn’t care less.
9 March 2013
Valentin Zorin
A View from Moscow
Voice of Russia World Service
http://rus.ruvr.ru/2013_03_06/Respublikanci-v-Kongresse-SSHA-ne-pozvolili-predotvratit-sekvestr/
Editor’s Note:
Let’s keep it simple. American war expenditures are 46 percent of the world total. If we cut it in half, it’d still dwarf the next-nearest rival (the PRC) by THREE TIMES. Most of this money is either spent on pointless adventuring in foreign parts or its outright boodle and corruption (the US Congress is well-known for having been a world-class champion in graft since the time of Mark Twain). For instance, the USA spends BILLIONS on “private for-profit armed corporations” to guard convoys and facilities in combat zones; we should be using regular troops to do so (regular troops are more disciplined and accountable than private mercenaries are… but the US government uses mercs to avoid the political fallout from having to reinstitute conscription in a time of “war”).
The American national interest would be best-served by the defence of the maritime lines of communications of the so-called Anglosphere (USA, UK, Canada, Australia and New Zealand), which would require a ocean defence belt based on the GIUK Gap-British home islands-Gibraltar-Azores line in the Atlantic zone and the Aleutians-Guam-Australia line in the Pacific zone. The only Continental navies that have bases outside of the GIUK Gap/English Channel choke-points are France, Spain, and Portugal (all American allies at present). Note well that the Anglosphere home defence isn’t based on the army, as is so on the Continent or in Russia, China, and India, but on the navy. That is, NATO is completely irrelevant to American home defence… the wars on the Asian mainland only knackered the US economy (as General Omar Bradley famously put it, it was “the wrong war, at the wrong place, at the wrong time, and with the wrong enemy“)… they didn’t add one whit to American national security. The only thing that the Bush Wars did was to transfer an obscene amount of dengi to the already-rich.
In short, the Republican drive for global hegemony, to make the world safe for unrestrained corporate profit, provoked and precipitated the current financial crisis. After all, grounded people know that you don’t go to war and CUT taxes (that is, the Republicans increased war spending exponentially, but cut the revenue flow to pay for it… DELIBERATELY). That’s what the Republican Party did… such reckless and notional foolishness had the inevitable result; it crashed the economy. Reflect on this… the Right stands for personal gain above all else… that means that they’re unpatriotic to the bone, and that they’re grasping cretins. Ironic, ain’t it… those who wrap themselves up the most in the flag are the least patriotic. Don’t forget, Willy Romney was an unrepentant draft dodger and Paul Ryan refused to serve in the forces. In the end, most leftists are more patriotic… but the corporate media says otherwise. Whom do YOU believe? Do you believe what the corporate media tells you, who owe their well-compensated jobs to toeing the “party line” of the plutocrats, or, do you believe the reality that’s in front of your face? Do choose well…
BMD
Matviyenko Sez Cuba and Russia Ties on the Upswing
Tags: Business and Economy, Cuba, Cuban, Cuban Revolution, Cubana, Economic, economic blockade, Economic development, economic indicators, Economic policy, economics, economy, Fidel Alejandro Castro Ruz, Fidel Castro, fidel castro ruz, Havana, National Assembly of the People's Power, political commentary, politics, Raúl Castro, Raúl Modesto Castro Ruz, Russia, Russian, Russian history, Soviet Union, United States, USA, USSR, Valentina Matviyenko
THIS is what HH thinks of El Comandante… any questions? He’s certainly not buying the lying rightwing twaddle that Potapov and Paffhausesn are peddling…
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During her official visit to Cuba, Valentina Matviyenko, chairman of the RF Federation Council, met with Cuban President Raúl Modesto Castro Ruz and Juan Esteban Lazo Hernández, the President of the Cuban National Assembly of the People’s Power, and said that relations between Russia and Cuba are having a renaissance. Matviyenko praised the expansion of bilateral partnership, trade, economic, scientific, and humanitarian cooperation between the countries. She told reporters on the flight back to Moscow, “Our delegation came to Havana to upgrade and boost parliamentary cooperation between our two countries. We discussed a number of issues during a two-hour talk, including Fidel Castro’s health. The Comandante is feeling OK; he’s following a strict régime under tight medical supervision”.
Matviyenko also said that apart from being an important strategic partner, Cuba’s also a good and reliable friend, noting, “Our countries have special bonds of fraternity and mutual respect; Russia has very warm and sincere feelings for Cubans. We love our Cuban friends and are ready for cooperation. Havana and Moscow became close allies under Fidel Castro… 2013 marks 50 years since his first visit to the USSR… Moscow and some other Russian cities noted the event. Now, bilateral cooperation is on the rise, mainly focused on trade and economy. Although last year’s trade turnover accounted for only some 220 million dollars (6.93 billion Roubles. 172 million Euros. 145 million UK Pounds), there’s a great potential for expansion”.
The streets of Havana have many signs of long-lasting friendship, such as Soviet-made cars. Despite Cuba’s turn to foreign investors, the USA doesn’t want to lift its sanctions, so, Havana eyes working with Russia. Lazo, the president of the Cuban National Assembly of the People’s Power, spoke about the prospects of bilateral energy cooperation, thinking that Russia could help in constructing new units and supplying equipment for Cuban power plants built with Soviet aid. Havana also expects Moscow’s help in exploring oil in its Gulf of Mexico wells and further construction of refineries. Russian investment in Cuba’s oil sector is important; at present, only Zarubezhneft does so, but other Russian companies shall also join in. Cuba also eyes cooperation with Russia in nickel production, tourism, and agriculture as well as seeking help to refurbish and upgrade the Mariel and Santa Cruz del Norte power plants.
Russia and Cuba are long-term partners. For instance, Cubana de Aviación uses Russian Tupolev Tu-204 planes. Cuba has imported some worth 12 million USD (378 million Roubles. 9.4 million Euros. 7.9 million UK Pounds) worth of power plant equipment from Russia in the last three years and has recently resumed purchase of Russian tractors. Russian tourists are also contributing to Cuba’s economic revival… some 90,000 holidaymakers from Russia visited the Island of Freedom last year.
19 May 2013
Aleksei Lyakhov
Lada Korotun
Voice of Russia World Service
http://english.ruvr.ru/2013_05_19/Russia-Cuba-ties-are-seeing-renaissance-official/