Hem Raj Jain
Pakistan Christian Post
Sub:- Christianity ought to ensure US Congress does not raise debt ceiling
Ref - US Treasury misleading USA and world on default.
Current US Govt shutdown is more or less internal matter of USA but debt default, being international matter, will no doubt destroy USA in every sense and not merely economically & regarding its credibility with devastating impact on global economy. Media has highlighted the statement of US Treasury Secretary that – “[Budget brinkmanship was playing with fire and implored Congress to pass legislation before October, 17 to increase the nation’s $ 16.7 Trillion debt limit in order to avoid a debt default by US Government]”. This is nothing short of misleading USA & world and black-mailing the US Congress by Treasury for increasing debt ceiling, as given below:-
(1)- While the debt limit does not authorize additional spending by the Federal Government, it does allow Govt to pay the bills for spending already incurred in profligate legislation passed by Congress and signed into law by the President. Therefore without raising debt limit profligate legislations can’t work. Public debt through fiscal deficit is supposed to be incurred only for removing unemployment in democratic welfare States (even as per prescriptions of eminent economist and pioneer proponent of fiscal deficit, John Maynard Keynes).
(2)- There is no sense in having democracy in any country if it’s all the adult citizens do not have economic freedom through productive employment (and not even through demoralizing unemployment allowances) and retirement benefits. Because Private-capital can not provide employment to all the citizens hence State-capital (born out of fiscal deficit) is deployed for generating remaining employment [This is joint – capitalism being practiced by all the democracies of the world where Private-capital and State-capital are supposed to be deployed profitably to jointly run the economy of these countries]. Hence any public debt is supposed to be spent by Govts in a way which increases employment hence increases demand and which in turn increases GDP too. Then this extra pumped money is to be taken back [as USA is also planning by tapering off the quantitative easing (QE) from year end or by other measures] so that efficiency of economy is preserved and inflation is avoided.
(3)- In a nut shell public debt has to be linked to consolidated fund (revenue and other income) of any Federal / Central Government which is mostly 10 to 15 % of GDP of any Country. But under the pressure of usurers and due to propensity of politicians (in Govt) to squander public money most of the Govts world over increased it hugely. The EU kept this limit up to 60%. In reality in many countries (of EU too) it is over 200 % of GDP, in USA public debt is over 100 % of GDP. - [this is because there is no control on profligate politicians (in Govt), as there is no commensurate asset back-up (precious metal or otherwise) of currency, the High Power Money M0)].
(4)- This huge public debt has created a situation where major part of consolidated fund of Govts are spent in servicing the debt with the result Govts are unable to spend money on employment generation programs hence there is huge unemployment all over the world which has resulted in ‘Generation Wasted’ as per one European leader.
(5)- Even in India despites Article 292 & 293 of Constitution (and by enacting unconstitutional law FRBM), Govts have been indulging in this open loot through constitutionally & morally untenable public debt where Chief Ministers (including of West Bengal) were seen frequenting India’s capital Delhi for getting some money as these States are hardly left with any money (after servicing public debt) for carrying out legitimate Govt functions. Obviously other countries are following the monetary model being followed by powerful Christian West (USA & Europe) where politicians (in Govt) and usurers world over are having a field day amidst ‘Wasted Generation’ and this needs to be stopped.
(6)- Therefore US Congress instead of increasing debt ceiling should insist and pass a law which will discipline US Govt monetarily and will constrain it to tighten its belt. There are so many areas where US Govt can easily reduce its unnecessary and wasteful expenditure. One such area (out of so many) is defense spending of US Govt.
(7)- USA is spending astronomical $ ~ 650 Billion and out-of-proportion on defense which is ~ 40 % of global military spending (though its GDP is only ~ 22 % of global GDP). Most of it is used by US Govt by giving lame excuse that USA has to ensure global peace through its military which is absurd and far from truth. Other countries are prepared to share the burden of maintaining global peace by contributing [men (including martial), material (including armaments) and money] to UN. But USA wants to retain hegemony & monopoly of 5 permanent members through Veto to P-5 countries at UN and does not want voting rights in UNSC to all members as per formula based on said contribution to UN.
(8)- Otherwise also the entire world has seen that USA has done practically nothing (its act of omission) to solve the gory fall-out of Arab –spring in NAME countries (including in Syria without any respite so far) where hundreds of thousands have been killed and millions have been displaced. Even when USA intervened (its act of commission) in Afghanistan and Iraq, the remedy has turned out to be worst than disease. USA needs to understand that world peace can be best maintained by participation of every country of the world in this process. Moreover when every opinion poll shows that overwhelming majority of people of USA do not want USA to be involved militarily in other countries then there is no reason why US Congress should give money to US Govt for military expenses for the purpose of this absurd Global-Policing.
(9)- Therefore US Congressmen (Democrats, Republicans and others) should immediately start educating the people not only in USA but all over the world that Congress (unlike other democracies, first in the hierarchy amongst various organs of State in US constitution) is not raising debt ceiling because it is interested in keeping public debt under control and even in bringing it down to reasonable and morally tenable level. Moreover Congressmen should say that if there is going to be any debt default then it will be due to failure of US administration to cut the wasteful and unnecessary expenditures of US Govt and not due to non-increase of debt limit by Congress beyond $ 16.7 Trillion (which itself is too much and immoral as mentioned above).
Therefore Christianity (especially from USA) ought to persuade / get persuaded the US Congressmen and US Administration to not increase the debt ceiling so that mankind may be rescued from further becoming “Wasted Generation”
Hem Raj Jain
(Author of “Betrayal of Americanism”)