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Could austerity measures happen here in the US?

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posted on May, 7 2010 @ 05:18 PM
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I kept hearing the phrase Austerity Measures but I was clueless to it's meaning. So I looked it up.


In economics, austerity is when a government reduces its spending and/or increases user fees to pay back creditors. Austerity is usually required when a government's fiscal deficit spending is felt to be unsustainable.



Should this happen in the US?


Austerity measures are typically taken after a government's bond rating is downgraded, making it more expensive to borrow money. Government bonds are typically downgraded when debt grows substantially as a portion of GDP. Government debt grows as spending exceeds tax revenue. Such excess occurs when tax rates are such that revenues are kept low while government spending is increased. Such excess can also occur when the economic activity stagnates or decreases, such as in a recession, thereby reducing the government's tax revenue.

Banks, or inter-governmental institutions such as the International Monetary Fund (IMF), may require that an indebted government pursue an 'austerity policy'. This typically occurs when the government must refinance loans that are about to come due, for which the government cannot pay. The government may be asked to stop issuing subsidies or to otherwise reduce public spending. When the IMF requires such a policy, the terms are known as 'IMF conditionalities'.



Looking at the above I kept asking myself are we on the road to this?
What would happen if it did?


Development projects, welfare, and other social spending are common programs of spending for cuts. Taxes, port and airport fees and train and bus fares are common sources of increased user fees.

In many cases, austerity measures have been associated with short-term declines in standard of living until economic conditions improved and fiscal balance was achieved.



This would be disasterous for We The People.


Austerity programs are frequently controversial, as they have an impact on the poorest segments of the population. In many situations, austerity programs are implemented by countries that were previously under dictatorial regimes, leading to criticism that the citizens are forced to repay the debts of their oppressors.

Source


It would seem that this confirms the Conspericy that Banksters run the world.

If we as a nation continue forward with this Debt based economy, I think we may be doomed to this Fate.




posted on May, 7 2010 @ 05:39 PM
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Yup, along with Martial law.



posted on May, 7 2010 @ 05:42 PM
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reply to post by SpectreDC
 


Well I am betting if they try martial law that will be sure to spark a 2nd Revolution.



posted on May, 7 2010 @ 05:45 PM
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I heard this: Obama is going to, in the near future, call for Zero Spending except for defense(and maybe something else). That's extreme austerity because it means nothing for us.

Sorry so vague; maybe someone heard this and can explain the future budget better.



posted on May, 7 2010 @ 06:00 PM
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reply to post by mark_price
 


Well Zero Spending in the US would be a joke. This Adminastrations way to curb the debt is to just print more money. Can you say Hyper Inflation. Gas $10/Gallon and Bread $7 a loaf. Could likely become worse like Gas $25/Gallon Are you ready for that?



posted on May, 7 2010 @ 06:00 PM
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There are more than enough reasons to see this as being the plan all along. I honestly expected this sometime after Bush approved the first bailout. And why Obama can promise "everything",knowing full well he won't have to deliver any of it,because the IMF will say "No". (Just my Conspiracy-mind at work.)

These were some of my main concerns about the IMF. And don't forget,when the World Trade Organization is involved,their conditions are just as bad. Say "Good-bye" sovereignty. Say "Good-bye" to gun ownership,and so on,and so on,...You can look it up.

Here is an example of their 'program'...SAPS,indeed! (Get it?)



www.tagg.org...


What is 'Structural Adjustment'?

To qualify for an IMF or World Bank loan, poor countries must sign up to a "Structural Adjustment Programme". This means slashing public spending (health, education, etc.). It means dumping workers' rights, wages and conditions. It also means opening up sectors to foreign firms and driving local production our of business. Failure to structurally adjust leads to cancellation of the loan. Here are some examples of "Structural Adjustment".

Environment

IMF programmes cause deforestation in indebted nations. Goverments there try to generate cash to pay off IMF and World Bank loan interests by deforesting large areas. In 1998, thousands of deaths during Hurricane Mitch were directly due to mud slides in deforested areas. The IMF also forces farmers to produce a single crop for export as quickly as possible. This policy causes more pests and viruses, causing crop failure, causing.... etc., etc. (see Structural Adjustment Programmes).



posted on May, 7 2010 @ 06:07 PM
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reply to post by On the Edge
 


Well the IRS is a Division of the IMF. They will Tax Americans into slavery. Just wait and see. I however will not pay their Taxes anymore, Government has Stopped working and So have I so Since I make nothing they can Tax nothing.



posted on May, 7 2010 @ 06:10 PM
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reply to post by SWCCFAN
 


Yeah,no matter what the name is,the goal is the same. Just like the plan for "world government",whatever it takes to get the job done,it will be done.



posted on May, 7 2010 @ 06:11 PM
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Originally posted by SWCCFAN
reply to post by mark_price
 


Well Zero Spending in the US would be a joke. This Adminastrations way to curb the debt is to just print more money. Can you say Hyper Inflation. Gas $10/Gallon and Bread $7 a loaf. Could likely become worse like Gas $25/Gallon Are you ready for that?


Here it is: Spending Freeze: Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday.

The freeze would cover the agencies and programs for which Congress allocates specific budgets each year, including air traffic control, farm subsidies, education, nutrition and national parks.

But it would exempt security-related budgets for the Pentagon...

[from New York Times]


[edit on 7-5-2010 by mark_price]



posted on May, 7 2010 @ 06:40 PM
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Originally posted by mark_price

Originally posted by SWCCFAN
reply to post by mark_price
 



The freeze would cover the agencies and programs for which Congress allocates specific budgets each year, including air traffic control, farm subsidies, education, nutrition and national parks.



Farm Subsides, Education, Nutriton....

Looke like they are planning on starving us to death after. Then Kill the Education so no one will learn how to grow Food.

Sounds like a way of putting codex alimentarius in to play here in the US with out us seeing any leglesation.

[edit on 7-5-2010 by SWCCFAN]



posted on May, 7 2010 @ 09:09 PM
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Yes it will happen, That is how international banking works.

I'm very surprised that you folks don't study history enough.

There are different kinds of austerity, Forced or passive.
Greece is going through forced austerity.
The U.S. 100b dollar funded IMF and EU says we will bail you out, But in return you must raise taxes and pay them directly to the bankers.
You must also cut pensions and send that money to the bankers as well.

In some cases it is requested that You must surrender sovereign ownership of water rights such as lakes as well as natural resources as well as any asset the country has sovereign control of, possibly a territory.
This usually accompanies a further indebtedness because the asset is leased back to the country.

It is a takeover of a country by International bankers. When you see a country in severe debt and you live there, that is a red alert that YOU are being attacked financially.

When you have a central bank running your system and it funds your education system ,then it makes you particularly weakened overtime to become slaves to your central bankers.

They create a system to diminish your education have you cheering for more debt, then leave you homeless wile Mega bankers own the continent and all its resources.

Are you surprised? You owe 14t, Every asset and natural resource that our government regulates is subject to confiscation under austerity. Including your 401k and pensions and savings. Why do you think we kept such regulation out of the hands of the government?

When your time comes will you wage war and declare that It is not your Debt?

Or will you pay the consequences of your naive actions and agree to enslave your children.



posted on May, 7 2010 @ 09:23 PM
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reply to post by mark_price
 


you are mistaken by words.

When they say spending freeze it means it does not mean they will reduce spending.

It means THEY WONT SPEND ANY MORE THAN THIS FOR THREE YEARS.
It also means that they wont spend any less.
So it sustains the current deficit for 3 more years got it?Ties the hands of anyone trying to reduce it.

He will never drop it to 0 ever. Not going to happen. The day it does is the day the world ends.



posted on May, 7 2010 @ 09:49 PM
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Oh, got it. Has nothing to do with zero spending on certain things. Freeze the spending at a high level and make it sound like taking steps to reduce spending.



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