Economic Overview

[JRSWRITER]

POSITIVELY BLACK
Junious Ricardo Stanton


“WASHINGTON (AP) - The U.S. trade deficit, propelled by a record foreign oil bill, surged to $54 billion in August, the second highest level in history. The politically sensitive deficit with China hit a new high as American retailers upped their orders for cell phones, toys and televisions. The Commerce Department said the August trade deficit in goods and services was 6.9 percent higher than a $50.5 billion imbalance in July. A small 0.1 percent rise in exports was dwarfed by a 2.5 percent jump in imports. For the year, America's trade deficit is running at a record annual rate of $590 billion, 19 percent higher than the previous record, last year's $496.5 billion imbalance. Imports climbed 2.5 percent to a record $150.1 billion in August, reflecting a 12.2 percent jump in petroleum shipments, which rose to a record $15.6 billion last month�

As we assess our overall situation, psychologically, emotionally, physically and our perceptions of our total security we have to conclude things are not good. We have a government that used subterfuge and deceit to launch an uncalled for and immoral war while engaging in reckless and irresponsible policies at home. While those who say voting is a waste of time make saying the process is flawed and has been co-opted and corrupted by special interests and multinational corporate conglomerates, we must face the certain facts. We must realize voting does impact local conditions and we must also understand our options are extremely limited. Other than voting or abstaining, the choices facing the masses are few. Realistically we must admit as bad as conditions are, Joe and Jane Sixpack are not going to take to the streets in massive demonstrations let alone engaging in revolutionary activities. The federal government has driven the white radical militia movement underground, the radical religious fanatics and Neo-Cons have set the present agenda for the nation, thus far the left is proving to be effete caricatures of dissent and the African oriented ethnocentric movement has not been able to effectively galvanize or mobilize resources to do the things black nationalists and Pan-Africans have been talking about for the past hundred years. The ruling plutocrats are able to further their global agenda only because they have perfected the tactic of divide and rule. They adroitly keep the masses at each other’s throats, distrustful of each other, anxious and reactionary while they and their stooges continue to rip us all off and tighten the noose around all our necks.
The latest economic reports are a case in point. By all indicators, the federal budget deficits which hit a record $413 billion is causing concern because Bush and Co do not want to raise the $7.4 trillion (that’s with a “T�) debt ceiling prior to the November 2 election. So to avoid that, they are raiding the federal employee’s pension fund! This can not be good news for federal employees. But the federal government is not doing anything many state and local governments haven’t been forced to do to stave off insolvency due to the poor economy. Last year for example Indiana raided their state employee’s pension fund borrowing money to “balance� their state budget. A Bloomberg report dated October 14, 2004 stated, “The U.S. government reached the $7.384 trillion legal limit on how much it can borrow, forcing the Bush administration to shuffle funds among accounts and prompting fresh Democratic criticism of the president's economic policies. To avoid exceeding the cap, the Treasury said it would temporarily suspend contributions to a government pension program. The department's plan to announce new debt sales in early November won't be affected. Congress isn't expected to increase the amount of debt the Treasury can sell to fund approved government spending until sometime next month.�.
As alarming as this is it gets worse. Most Americans don’t realize the US trade deficit is widening which means we are importing more goods from other nations than they are importing from the US. This means less profits, more job lay-offs and spiraling unemployment. These facts are reflected in the latest US Commerce Department reports. But all we get from Bush is his mantra, “the economy is growing� “my tax cut policies are working� The only thing growing is the list of lies Bush tells! If two of the main sources of revenue for the federal government are taxes (which Bush has cut) and tariffs from imports (which are down) a high school student could educe why the federal government is in financial trouble. Couple these facts with the added astronomical costs, waste and fraud being generated by the wars in Iraq, Afghanistan and Columbia (what, you didn’t know US Special Forces have been in Columbia for years?) You can see why we are in deep do-do. Add to this picture a shaky national pension situation and the overall picture becomes evan more grotesque. The Pension Benefit Guaranty Corporation, the government agency created to guarantee pension funds is itself woefully underfunded and is being called upon to prop up the pension funds of distressed industries like the airlines (US AIRWAYS and United Airlines who are facing bankruptcy) and domestic steel. “The PBGC has suffered a $15 billion downturn in its financial health since 2000, moving from a $9.7 billion surplus three years ago to a $5.4 billion deficit by April. To blame is a surge in pension-plan terminations, with private companies that can't meet their pension obligations ending their plans and turning over their pension assets to the PBGC, which then continues paying retirees.� (The Miami Herald July 24, 2003) To make matters worse I recently read a blurb that revealed, “On June 17, 2004 the PBGC reported that companies with underfunded defined benefit plans had a total shortfall of about $278.6 billion which is down from a shortfall of $305.9 billion reported in 2003. The report only included companies with more than $50 million in underfunding. If all underfunded defined benefit plans were included in the report, the total shortfall would significantly exceed $278.6 billion.� What does all this mean? It means we are being bamboozled and duped, lied to and played big time! The AmeriKKKan people better wake up quick, fast and in a hurry, demand the truth as harsh as it may be from their politicians, demand reform, hold them accountable and take to the streets if they are not responsive.