Saturday, July 10, 2010

This is a Racism Test

Do you like him any less now?



Image

No? Then you're not a racist.

We also ask, do you like him any more now? Yes to either answer makes you racist.

I seriously doubt so many liberals would have been tripping over themselves to support and crying with tears of joy, had Obama been a white guy with the same policies they THOUGHT he had. I say that confidently because there was a white guy with the policies they projected on to Obama. There were three actually. The people who loved him wrongly assumed he was anti-war and against corporate America. There were however a few guys who really like that, Gravel, Kucinich, and Paul. But they weren't minority enough. How about Hilary, what if she had been a man? Policy-wise she'd be McCain or come to think of it Obama. For all three of them had the same policies on every major issue. What was sold in the election campaigns were image and demographic associations. It had nothing to do with substance. People pickd and image first and filled in the blank with whatever substance they wished for regardless of whether or not it actually matched reality. That's a real psychological problem. You'll see that in religion or sport fanatics too they pick a conclusion "my team/god/whatever is the best" and rationalize everything else to fit that, no matter what reality is they've got excuses for it.

A must read or a place to send Obama-ites who don't believe you to be crushed by overwhelming number of sources to back up what I'm saying

The following are all videos about the BS left vs Right paradigm focusing most on how an antiwar left voted for a pro-war Obama. It's all image and false hope. Hating republicans was more important than hating what they were doing. The same crap under a new ass hole is perfectly fine with them.

I even explained things in a cartoon that a 9 year old could understand. But see based purely on ideology they are blind. They support IMAGE not substance. And I think Nader summed it up best here




http://www.youtube.com/watch?v=MLTfix8Crdo

http://www.youtube.com/watch?v=sNZbOYuxXuw

http://www.youtube.com/watch?v=t-qwP1m6Ivw

http://www.youtube.com/watch?v=pJ7ckp0h1zI

http://www.youtube.com/watch?v=6TTIjuKWZts

http://www.youtube.com/watch?v=enZJwyuYDCU



http://www.youtube.com/watch?v=MpuT9pBv8b8

The US Treasury and the Federal Reserve are Manipulating the Gold Market

Recently we were again witness to three gold market takedowns. The first was engineered just prior to and into gold and silver options expiration. Then prior to the ETF GLD gold option expiry and the last manipulative attack commenced just prior to the dreadful unemployment housing and inventory statistics. This sort of action began in 1988 with the signing of the Executive Order by President Ronald Reagan entitled the President’s Working Group on Financial Markets,” ostensibly created to neutralize events such as the October 1987 collapse of the US stock market. Needless to say, that was not the real intention of the creation of such an order. As it has turned out the Treasury and the N.Y. Fed manipulates markets 24/7 worldwide, and they have a particular interest in the suppression of gold and silver prices; they being the antitheist of the US dollar. It should be noted that there were several times that the US Treasury and the privately owned Fed manipulated gold and silver prior to August 1988. We have found in 50 plus years of tracing this manipulative activity by the US government that it happens over and over again. There is no doubt in our minds that a great deal of what is done by government in gold and silver is done by the commercials, who privy to inside information go along for the ride. In the options operation prices are driven down for Comex options as well as GLD options, so that they expire out of the money and as well the perpetrators can cover some of their short positions. This is not difficult to execute, because other traders see what is going on and they get involved as well making the tasks easier.

This spring Andrew Maguire went public with a scam being pulled by JPMorgan Chase in the rigging of silver futures on the LBMA, an exchange similar to Comex in London. This caper was explained to the CFTC, Commodity Futures Trading Commission, months ahead of it occurring and they chose to do nothing about it. Making matters worse, when confronted with the evidence in public hearings, the CFTC didn’t want to hear about it. Maguire broke the story to others who confronted the CFTC who received lip service. The CFTC was forced to conduct a civil investigation and the Justice Department as well is conducting a criminal investigation, which we believe will go nowhere. Realizing that the CFTC, Justice, Morgan and the government are working together against the public in this matter, we are told by our sources that class action suits are being prepared and that the first one should be filed soon. It is a sad day for Americans when justice has to be forced from a corrupt government. In the end we will win but it will be a painful process.

We have found it interesting that the IMF prohibits members from tying their currencies to gold. All of you out there who believe the IMF’s, SDRs, Special Drawing Rights, will be gold backed are mistaken. This historical operating position was further proven when on August 15, 1971 the US closed the gold window. This was the advice Mr. Nixon received from Paul Volcker, who was an early member of the Trilateral Commission and is an Illuminist. Volcker has also been a leader against the US using gold in its monetary policy. Since 8/15/71 there has been an official war against gold by the elitists behind the curtain. It was that seminal event that essentially changed the future of America and the world. At that time US debt was just short of $500 billion. Today short-term debt is $14 trillion and long-term debt is $105 trillion. The engineer of the failure of the US banking system and the failure of the dollar and the rejection of it is at the feet of Mr. Volcker. What he has done to America at the behest of his Illuminist masters is reprehensible. That was eventually followed by the elimination of Glass Steagall and the looting and the collapse of our financial system. This is the result of the corruption of our system.

The result of this treachery is the coming with the complete collapse of the stock market and the end of real estate as an investment. The powers that be have destroyed a once great nation. Everywhere you look, budgets of towns, cities, counties, states and governments are in a shambles. The entire world is becoming their world. You have no doubt seen the elitists’ answer, which is we all switch to the SDR, another fiat currency, devalue all currencies versus the SDR and allow defaults among nations, just as we predicted would happen, although not in this particular way. The solutions being proffered are not solutions at all, only different methods of paying back the bankers and keeping them in business.

That keeps the leaders of the system solvent and throws the debt on the citizen. Mind you, these same bankers were the ones who destroyed our system – or better yet their system – in order to bring about world government. It should not be surprising that gold has been the investment leader.

The Illuminist bankers believe this time they are capable of shutting down the entire system and replacing it with S.D.R.s, so that they can control everything financial worldwide. This is what we have been telling the public for over 50 years and no one wanted to listen. We were called conspiracy theorists. We were dead on correct. The SDR is a stepping-stone to a world currency that can never work. Just look at the horrible results of the unnatural euro. The hunger for power, time after time, makes the rich and powerful become even more insane than they already are. G-8 is now G-20, part of the formation of amalgamation and the recognition of the failure of the euro and the EU as well. We find it ludicrous that the elitists want a broke IMF to fix the monetary system with an SDR. The same IMF that said they would never sell gold into the open market, yet that is what they are doing every day. Their plan is to back the SDR with taxes obtained from world citizens and a carbon tax. That is what the BP oil episode is all about. Don’t expect a gold or silver based currency, because that inhibits the bankers’ ability to own and run the system that has made them so rich and powerful. Sound money is something they never want to see again.

The idea of a Northern euro we believe is undoable. If the big debtors have to pay back their debt they’ll be in depression for 30 years. If they default they can return to their cheap domestic currencies, which would make their exports competitive. That Northern Union creditor group would be stuck with $2 trillion in bad paper. In addition we are very skeptical as to whether they have any gold left and if they do how much to back a new currency. The ECB probably sold off enough gold to suppress the gold price leaving the central bank with probably only 7% of the 15% they originally had. The ECB has the same situation that the Fed has, they are enveloped in debt - much of it sovereign debt. England and others have the same problem. The ECB continues to buy junk bonds because it has no choice but to do so.

These financial and economic matters are very perplexing and social and political issues complicate them. The theory of corporatist fascism, that is so prevalent in America today, has spawned an economic policy of centralism, debt and monopoly driven by the privately owned Federal Reserve, banking and Wall Street. The tune is borrow and go deeper into debt to the bankers until America is bankrupt. This last chapter will be kicked off with more taxes and more fiscal debt. This will be accompanie4d by massive unemployment and eventually a deflationary depression. The unemployment problem is being deliberately allowed to worsen both by the administration and Congress, which won’t address the real reasons our nation is in such a state of failure. What else can you call the loss of 5 million jobs from free trade, globalization, offshoring and outsourcing, which is still going on and the loss of 8.4 million via recession/depression. That is 13.4 million jobs supposedly being filled by a birth/death model and service and retail jobs with little remuneration. Those who control our government, politicians and our economy are about to kick Americans when they are down. Those who control government and their emissaries loathe capitalism and love collectivism. The average American so disgusts our controllers that, if they could they would remove 80% from society.

Is the IMF about Ready to Muscle U.S. Taxpayers?

I smell a rat.

The IMF has long been a bought, and paid for, muscle arm of the U.S. government and the banking elite.

The play goes like this. Banks loan money to third world countries that have no chance in hell of paying the money back. The IMF comes in with "austerity" programs that include heavy new tax burdens on the working class. The revenue from the new taxes will, of course, go to payoff the banking elite. It's a sick game, but the elite seem to get their jollies by pulling this scam in country after country.

It appears the elite appear to want to up the ante. It appears they are getting set to turn the guns inward and go after the hard earned money of Americans.

WaPo reports:

The United States recently opened itself to the most intense scrutiny yet by the International Monetary Fund, and on Thursday was offered a bitter pill when the agency criticized some well-defended aspects of American culture -- cheap fuel, subsidized housing, and a government retirement check.


In a broad call for U.S. financial prudence, the agency also said the Obama administration was overestimating U.S. economic growth and needed to trim government deficits by hundreds of billions of additional dollars if its announced budget targets are to be met.
The U.S. opened itself up to "intense scrutiny" by the IMF? This is like David Rockefeller opening himself up to intense scrutiny by his chauffeur.

The IMF is a bought and paid for U.S. operation. There is no "scrutiny" unless the U.S. government wants it as cover. Cover for what? Here's more from the WaPo report:

Cut Social Security. Ditch the deduction for interest on home mortgages. Tax gasoline...

The recovery is going reasonably well in the United States, the IMF said, but some of the tougher decisions remain to keep it on track.

"The risks are tilted to the downside," David Robinson, deputy director of the IMF's Western Hemisphere department, said as he presented both the IMF's annual assessment of the U.S. economy and its first-ever review of the country's financial sector....

...the agency argues that the United States needs to move more aggressively to both cut spending and raise revenue, to the tune of $350 billion or more above what the administration now plans...

Allowing homeowners to deduct their mortgage interest payments from their income taxes, for example, is a staple of U.S. housing policy, considered a way to make homeownership more affordable. The IMF came out harshly against the deduction, saying that it was part of a homeownership system that was "costly, inefficient and complex," did not demonstrably increase ownership rates compared with similar countries without the same tax incentives, and mostly benefited "the better-off."
Not good. It appears there is a serious play in motion, by the elite, to tax the hell out of Americans. The IMF is obviously the front muscle organization that is going to lead the charge. Once the mid-term elections are over, American tax payers are going to be muscled, the way the IMF now muscles third world peasants.

‘Fun to Shoot People’ General Named as New CENTCOM Commander

Mattis Will Replace Petraeus in Position Overseeing Afghan, Iraq Wars

The Pentagon has announced its selection of a replacement for General David Petraeus as Central Command (CENTCOM) Commander today, and it will be the controversial Gen. James Mattis that goes to Congress for final approval.

Gen. Mattis

Gen. Mattis, who was previously serving as Joint Forces Command chief, had been out of the headlines for a few years, but his colorful past and what Gen. Michael Hagee called his tendency to “speak with a great deal of candor” ensure that the approval process will be anything but boring.

In 2005, then Lt. Gen. Mattis spoke of his “fun” experience in Afghanistan at a forum in San Diego, describing it as “a hell of a hoot.” After laughter from soldiers in the audience Mattis went on to declare “it’s fun to shoot some people.”

Mattis continued to elaborate. “You go into Afghanistan, you got guys who slap women around for five years because they didn’t wear a veil,” adding “guys like that ain’t got no manhood left anyways. So its a hell of a lot of fun to shoot them.”

Officials attempted to explain away Mattis’ declaration at the time, and praising him as a great military leader. Gen. Peter Pace said of Mattis that “his actions and those of his troops clearly show that he understands the value of proper leadership and the value of human life.” Mattis’ most recent deployment at the time was to Iraq, where he took part in both battles of Fallujah, which left large numbers of Iraqi civilians dead.

Though Mattis’ comments garnered quite a bit of controversy at the time, just two and a half years later the Bush Administration promoted him to a four star general and gave him his current command. Though strictly speaking the transition from Joint Forces Command to Central Command is not a promotion, it is clearly the most prestigious position, as it puts him in overall charge of both the Iraq and Afghan Wars. Gen. Petraeus gave up this position to take over direct command of the Afghan War last week, after the ouster of Gen. Stanley McChrystal.

Hope and Change Fade, but War Endures

Some words have a way of enduring. Take "endure." As the Bush administration headed into Iraq in the spring of 2003, the Pentagon already had plans on the drawing board to build at least four gigantic American bases in that country and garrison them for the long haul. But when questioned on the subject, administration officials and spokespeople were eager to avoid linking the word "permanent" to those as-yet-unbuilt bases and so, for a while, referred to them instead as "enduring camps," a phrase that had a certain charm and none of the ominous overtones of "permanent base." In the end, of course, more than four massive bases were built and garrisoned. Given the slow American drawdown in that country, their fate remains unknown — and typically undiscussed in the U.S. — but as of this moment, they still "endure" and, huge as they are, they couldn’t look more permanent.

According to an agreement signed at the end of George W. Bush’s second term, all American "combat troops" are to be withdrawn from Iraq by this August, hence the U.S. military is planning to relabel any post-August "combat operations" as "stability operations." Think of that as linguistic "endurance." In the same spirit, all U.S. troops are supposed to be out of Iraq by the end of 2011, but as Tim Arango of the New York Times noted recently, "[F]ew believe that America’s military involvement in Iraq will end then. The conventional wisdom among military officers, diplomats, and Iraqi officials is that after a new government is formed, talks will begin about a longer-term American troop presence. ‘I like to say that in Iraq, the only thing Americans know for certain, is that we know nothing for certain,’ said Brett H. McGurk, a former National Security Council official in Iraq and current fellow at the Council on Foreign Relations. ‘The exception is what’s coming once there’s a new government: they will ask to amend the Security Agreement and extend the 2011 date. We should take that request seriously.’"

There is, in other words, a well-based possibility — or at least serious American dreaming — that our mega-installations in Iraq (including our nearly three-quarters-of-a-billion-dollar citadel of an embassy in the heart of Baghdad that takes more than $1.5 billion a year to run and has 1,800 private security guards) will endure.

Now, hop a couple of thousand miles to another war, Afghanistan, and a newly appointed war commander testifying before the Senate in his confirmation hearings. Responding to questions about President Obama’s previously announced decision to begin some kind of an American drawdown there in July 2011, General David Petraeus spent much time playing down the significance of that date (as did the president). He even brought up the possibility that the date could be delayed. In the process, choosing his words with care, he said this: "It is important to note the President’s reminder in recent days that July 2011 will mark the beginning of a process, not the date when the U.S. heads for the exits and turns out the lights. As he explained this past Sunday, in fact, ‘we’ll need to provide assistance to Afghanistan for a long time to come…’ Moreover, as President Karzai has recognized, and as a number of allied leaders noted at the recent G-20 Summit, it is going to be a number of years before Afghan forces can truly handle the security tasks in Afghanistan on their own. The commitment to Afghanistan is necessarily, therefore, an enduring one, and neither the Taliban nor our Afghan and Pakistani partners should doubt that." Given the history of America’s recent wars, that "enduring" couldn’t represent a more ominous choice of words.

Retired Lieutenant Colonel and TomDispatch regular William Astore takes a look at the single most "enduring" aspect of the American military scene in our time, our persistent war-making — and the war preparations that go with it. Tom

Hope and Change Fade, but War Endures
Seven Reasons Why We Can’t Stop Making War

By William J. Astore

If one quality characterizes our wars today, it’s their endurance. They never seem to end. Though war itself may not be an American inevitability, these days many factors combine to make constant war an American near certainty. Put metaphorically, our nation’s pursuit of war taps so many wellsprings of our behavior that a concerted effort to cap it would dwarf BP’s efforts in the Gulf of Mexico.

Our political leaders, the media, and the military interpret enduring war as a measure of our national fitness, our global power, our grit in the face of eternal danger, and our seriousness. A desire to de-escalate and withdraw, on the other hand, is invariably seen as cut-and-run appeasement and discounted as weakness. Withdrawal options are, in a pet phrase of Washington elites, invariably "off the table" when global policy is at stake, as was true during the Obama administration’s full-scale reconsideration of the Afghan war in the fall of 2009. Viewed in this light, the president’s ultimate decision to surge in Afghanistan was not only predictable, but the only course considered suitable for an American war leader. Rather than the tough choice, it was the path of least resistance.

Why do our elites so readily and regularly give war, not peace, a chance? What exactly are the wellsprings of Washington’s (and America’s) behavior when it comes to war and preparations for more of the same?

Consider these seven:

1. We wage war because we think we’re good at it — and because, at a gut level, we’ve come to believe that American wars can bring good to others (hence our feel-good names for them, like Operations Enduring Freedom and Iraqi Freedom). Most Americans are not only convinced we have the best troops, the best training, and the most advanced weapons, but also the purest motives. Unlike the bad guys and the barbarians out there in the global marketplace of death, our warriors and warfighters are seen as gift-givers and freedom-bringers, not as death-dealers and resource-exploiters. Our illusions about the military we "support" serve as catalyst for, and apology for, the persistent war-making we condone.

2. We wage war because we’ve already devoted so many of our resources to it. It’s what we’re most prepared to do. More than half of discretionary federal spending goes to fund our military and its war making or war preparations. The military-industrial complex is a well-oiled, extremely profitable machine and the armed forces, our favorite child, the one we’ve lavished the most resources and praise upon. It’s natural to give your favorite child free rein.

3. We’ve managed to isolate war’s physical and emotional costs, leaving them on the shoulders of a tiny minority of Americans. By eliminating the draft and relying ever more on for-profit private military contractors, we’ve made war a distant abstraction for most Americans, who can choose to consume it as spectacle or simply tune it out as so much background noise.

4. While war and its costs have, to date, been kept at arm’s length, American society has been militarizing fast. Our media outlets, intelligence agencies, politicians, foreign policy establishment, and "homeland security" bureaucracy are so intertwined with military priorities and agendas as to be inseparable from them. In militarized America, griping about soft-hearted tactics or the outspokenness of a certain general may be tolerated, but forceful criticism of our military or our wars is still treated as deviant and "un-American."

5. Our profligate, high-tech approach to war, including those Predator and Reaper drones armed with Hellfire missiles, has served to limit American casualties — and so has limited the anger over, and harsh questioning of, our wars that might go with them. While the U.S. has had more than 1,000 troops killed in Afghanistan, over a similar period in Vietnam we lost more than 58,000 troops. Improved medical evacuation and trauma care, greater reliance on standoff precision weaponry and similar "force multipliers," stronger emphasis on "force protection" within American military units: all these and more have helped tamp down concern about the immeasurable and soaring costs of our wars.

6. As we incessantly develop those force-multiplying weapons to give us our "edge" (though never an edge that leads to victory), it’s hardly surprising that the U.S. has come to dominate, if not quite monopolize, the global arms trade. In these years, as American jobs were outsourced or simply disappeared in the Great Recession, armaments have been one of our few growth industries. Endless war has proven endlessly profitable — not perhaps for all of us, but certainly for those in the business of war.

7. And don’t forget the seductive power of beyond-worse-case, doomsday scenarios, of the prophecies of pundits and so-called experts, who regularly tell us that, bad as our wars may be, doing anything to end them would be far worse. A typical scenario goes like this: If we withdraw from Afghanistan, the government of Hamid Karzai will collapse, the Taliban will surge to victory, al-Qaeda will pour into Afghan safe havens, and Pakistan will be further destabilized, its atomic bombs falling into the hands of terrorists out to destroy Peoria and Orlando.

Such fevered nightmares, impossible to disprove, may be conjured at any moment to scare critics into silence. They are a convenient bogeyman, leaving us cowering as we send our superman military out to save us (and the world as well), while preserving our right to visit the mall and travel to Disney World without being nuked.

The truth is that no one really knows what would happen if the U.S. disengaged from Afghanistan. But we do know what’s happening now, with us fully engaged: we’re pursuing a war that’s costing us nearly $7 billion a month that we’re not winning (and that’s arguably unwinnable), a war that may be increasing the chances of another 9/11, rather than decreasing them.

Capping the Wellsprings of War

Each one of these seven wellsprings feeding our enduring wars must be capped. So here are seven suggestions for the sort of "caps" — hopefully more effective than BP’s flailing improvisations — we need to install:

1. Let’s reject the idea that war is either admirable or good — and in the process, remind ourselves that others often see us as "the foreign fighters" and profligate war consumers who kill innocents (despite our efforts to apply deadly force in surgically precise ways reflecting "courageous restraint").

2. Let’s cut defense spending now, and reduce the global "mission" that goes with it. Set a reasonable goal — a 6-8% reduction annually for the next 10 years, until levels of defense spending are at least back to where they were before 9/11 — and then stick to it.

3. Let’s stop privatizing war. Creating ever more profitable incentives for war was always a ludicrous idea. It’s time to make war a non-profit, last-resort activity.

4. Let’s reverse the militarization of so many dimensions of our society. To cite one example, it’s time to empower truly independent (non-embedded) journalists to cover our wars, and stop relying on retired generals and admirals who led our previous wars to be our media guides. Men who are beholden to their former service branch or the current defense contractor who employs them can hardly be trusted to be critical and unbiased guides to future conflicts.

5. Let’s recognize that expensive high-tech weapons systems are not war-winners. They’ve kept us in the game without yielding decisive results — unless you measure "results" in terms of cost overruns and burgeoning federal budget deficits.

6. Let’s retool our economy and reinvest our money, moving it out of the military-industrial complex and into strengthening our anemic system of mass transit, our crumbling infrastructure, and alternative energy technology. We need high-speed rail, safer roads and bridges, and more wind turbines, not more overpriced jet fighters.

7. Finally, let’s banish nightmare scenarios from our minds. The world is scary enough without forever imagining smoking guns morphing into mushroom clouds.

There you have it: my seven "caps" to contain our gushing support for permanent war. No one said it would be easy. Just ask BP how easy it is to cap one out-of-control gusher.

Nonetheless, if we as a society aren’t willing to work hard for actual change — indeed, to demand it — we’ll be on that military escalatory curve until we implode. And that way madness lies.

William J. Astore is a retired lieutenant colonel (USAF) and TomDispatch regular. He has taught at the Air Force Academy and the Naval Postgraduate School and currently teaches History at the Pennsylvania College of Technology. He may be reached at wjastore@gmail.com.

Copyright 2010 William J. Astore

U.S. marks 3rd-largest, single-day debt increase

$166 billion jump spurs concerns over policy

The National Debt Clock is shown Monday, Feb. 1, 2010 in New York. President Barack Obama sent Congress a $3.83 trillion budget on Monday that would pour more money into the fight against high unemployment, boost taxes on the wealthy and freeze spending for a wide swath of government programs. The deficit for this year would surge to a record-breaking $1.56 trillion. The Debt Clock is a privately funded estimate of the national debt. (AP Photo/Mark Lennihan)
The National Debt Clock is shown Monday, Feb. 1, 2010 in New York. President Barack Obama sent Congress a $3.83 trillion budget on Monday that would pour more money into the fight against high unemployment, boost taxes on the wealthy and freeze spending for a wide swath of government programs. The deficit for this year would surge to a record-breaking $1.56 trillion. The Debt Clock is a privately funded estimate of the national debt. (AP Photo/Mark Lennihan)


The nation's debt leapt $166 billion in a single day last week, the third-largest increase in U.S. history, and it comes at a time when Congress is balking over higher spending and debt has become a key policy battleground.

The one-day increase for June 30 totaled $165,931,038,264.30 - bigger than the entire annual deficit for fiscal year 2007 and larger than the $140 billion in savings the new health care bill will produce over its first 10 years. The figure works out to nearly $1,500 for every U.S. household, or more than 10 times the median daily household income.

Daily debt calculations jump and fall, and big shifts are common. But all three of the biggest one-day debt increases have occurred under the tenure of President Obama, and all of the top six have been in the past two years - an indication of just how quickly the pace of deficit spending has risen under Mr. Obama and President George W. Bush.

"What matters is the overall trend line, and the overall trend line is shooting up," said Robert Bixby, executive director of the Concord Coalition, a bipartisan deficit watchdog group, who said it is one more reason for a fiscal wake-up call.

Fears over red ink have stalled key parts of Mr. Obama's agenda in Congress in recent weeks, including his push for another round of stimulus spending. Just last week, House Democrats had to use a tricky parliamentary tactic to pass an emergency war-spending bill, aid for teachers and new spending caps.

On Wednesday, the Congressional Budget Office said the government has recorded a $1 trillion deficit for the first nine months of fiscal 2010, which began Oct. 1. That's slightly down from 2009's record $1.1 trillion deficit at this point.

CBO said revenues are doing slightly better this year than last year, while spending is down about $73 billion, mainly because the government made giant payments last year to bail out Wall Street, but did not have similar expenses this year. Other spending is higher, including unemployment benefits, which have jumped nearly 50 percent.

Deficits are the difference between what the government raises in revenue versus what it spends each year, while debt is the accumulation of those deficits over many years.

The Treasury Department calculates the country's debt position each day, and big rises and falls are not unusual. In fact, since hitting $13.203 trillion on June 30, the figure has since slipped $25 billion to settle at $13.178 trillion as of Tuesday, the latest day for which figures are available.

June 30 is always a major day for new debt, since debt held by one part of the government to another - for example, IOUs to the Social Security trust fund - are rolled over, a spokeswoman for the Bureau of the Public Debt said.

Story Continues →

© Copyright 2010 The Washington Times, LLC. Click here for reprint permission.

Road pricing could become yet another tax

The RAC's pay-as-you-drive proposal reopens a historic can of worms, says Philip Johnston.


Road tax
The combined taxes raised from motoring are around £42 billion a year Photo: Alamy

The last time road pricing was suggested, Downing Street's website crashed as 1.8 million motorists visited it to register their opposition. But the idea has not gone away. A new report from the RAC Foundation says that charging drivers for each mile they travel is "inevitable" if future traffic gridlock is to be avoided. Stephen Glaister, the RAC's director, argues that there is no credible alternative to a "pay-as-you-drive" system in view of the rising population and the likelihood that the number of cars and lorries will grow by a third over the next 15 years.

Prof Glaister believes the public could be won over to the idea if it were combined with a judicious mix of benefits to make the initiative easier to swallow. These would include a cut in fuel duty and the abolition of road tax; guaranteed revenues for road improvements; and compensation for delays. However, the Department for Transport – which got its fingers burnt when the subject was debated a few years ago – is having none of it. It insists there are no plans to charge drivers to use existing roads (though not necessarily new ones) because they are "publicly owned and have already been paid for by the taxpayer".

Indeed they have. Many times over. Long, long ago our car tax, now known as Vehicle Excise Duty (VED), was called the Road Fund Licence. As the name suggests, it was set up in 1909 specifically to collect revenues for the roads. In the Commons, David Lloyd George, the chancellor, was asked by an opposition spokesman: "Is it intended to go to general revenue? If it is going to roads, we think it a fair proposition." Lloyd George replied: "My proposal is the whole of the moneys should go on the road."

It may be what the Welsh Wizard intended but it is not what happened. Within a few years, the Treasury started to raid the fund, blurring the link between what motorists paid and the roads they got in return. As with the National Insurance Fund, ostensibly set up to pay for pensions and welfare, road taxes became just another way of raising money for general expenditure. It stopped being called the Road Fund Licence in 1935.

Today, it is estimated that the combined taxes raised from motoring are around £42 billion a year; yet only about £10 billion is spent on new roads and maintenance. Taxing motorists is a significant source of general revenues which the Treasury, in this time of austerity, is hardly likely to give up. The question is whether road pricing would actually raise more for the Exchequer than the current tax regime.

Supporters believe that satellite tracking technology makes the concept viable and would cut congestion by about half. A government-commissioned study a few years ago suggested a charge of up to £1.34 a mile, though the price would vary depending on which road you were using and when you were travelling. So, those living in towns and cities or travelling on motorways at peak times would pay most; those in the countryside where the roads are less busy would pay a lower charge (though they tend to use the car more).

However, it is not strictly true that this would introduce a "pay-as-you-go" concept to motoring. We already pay more for travelling further through the huge amounts of duty and VAT that are raised from fuel. One estimate suggests that a distance-based element of about 5p a mile for cars is already factored into fuel tax, though this is not a formula the Treasury ever talks about. Might it not make more sense, then, to scrap the car tax entirely (winding up the expensive administration for collecting it) and load the cost of driving entirely on to fuel duty, which would also catch foreign cars in the net? Another option, used in Oregon, is to create a new payments structure where drivers pay their mileage charge when they fill up at the pump. But this still would hit people who have to travel at peak times and have no easy access to public transport. Matters are further confused by the use of road and fuel taxes to achieve environmental policy goals by encouraging low carbon emissions and greater efficiency.

The RAC report has reopened a can of worms whose lid has popped on and off many times since the 1920s. In 1964, the Smeed Committee advocated road pricing and yet here we are, nearly half a century on, still wondering what to do. Apart from public hostility, the biggest problem with road pricing schemes is that they will inevitably cost a fortune to set up and administer. By far the simplest option is to sell off the motorways and the trunk roads and charge a toll to use them. A feasibility study by NM Rothschild estimated that privatisation could raise £100 billion for the Exchequer, helping to solve the debt crisis. This is a radical idea but would only be acceptable to the motoring public if VED was scrapped, thereby taxing use instead of ownership. But you just know, don't you, that we would end up paying both.