Liquidating the Empire

By Patrick J. Buchanan

October 14, 2008

"Liquidate labor, liquidate stocks, liquidate the farmers."

So Treasury Secretary Andrew Mellon advised Herbert Hoover in theGreat Crash of '29.

Hoover did. And the nation liquidated him -- and the Republicans.]

In the Crash of 2008, 40 percent of stock value has vanished,almost $9 trillion. Some $5 trillion in real estate value has disappeared. A recession looms with sweeping layoffs, unemployment compensation surging, and social welfare benefits soaring.

America's first trillion-dollar deficit is at hand.

In Fiscal Year 2008 the deficit was $438 billion.

With tax revenue sinking, we will add to this year's deficit the$200 to $300 billion needed to wipe the rotten paper off the books of Fannie and Freddie, the $700 billion (plus the $100 billion inadd-ons and pork) for the Wall Street bailout, the $85 billion to bail out AIG, and $37 billion more now needed, the $25 billion for GM, Chrysler and Ford, and the hundreds of billions Hank Paulson will need to buy corporate paper and bail out banks to stop the panic.

As Americans save nothing, where are the feds going to get the money? Is the Fed going to print it and destroy the dollar and credit rating of the United States? Because the nations whose vaults are full of dollars and U.S. debt -- China, Japan, Saudi Arabia, the Gulf Arabs -- are reluctant to lend us more. Sovereign wealth funds that plunged billions into U.S. banks have already been burned.

Uncle Sam's VISA card is about to be stamped "Canceled.

"The budget is going to have to go under the knife. But what gets cut?

Social Security and Medicare are surely exempt. Seniors have already taken a huge hit in their 401(k)s. And as the Democrats are crafting another $150 billion stimulus package for the working poor and middle class, Medicaid and food stamps are untouchable. Interest on the debt cannot be cut. It is going up. Will a Democratic Congress slash unemployment benefits, welfare,education, student loans, veterans benefits -- in a recession?

No way. Yet, that is almost the entire U.S. budget -- except for defense, the wars in Afghanistan and Iraq, and foreign aid. And this is where the axe will eventually fall.

It is the American Empire that is going to be liquidated.

Retrenchment has begun with Bush's backing away from confrontations with Axis-of-Evil charter members Iran and North Korea over their nuclear programs, and will likely continue with a negotiated peace in Afghanistan. Gen. Petraeus and Secretary Gates are already talking "reconciliation" with the Taliban.

We no longer live in Eisenhower or Reagan's America. Even the post-Cold War world of George H. W. Bush, where America was a global hegemon, is history. In both relative and real terms, the U.S.A. is a diminished power.

Where Ike spent 9 percent of GDP on defense, Reagan 6 percent, we spend 4 percent. Yet we have two wars bleeding us and many more nations to defend, with commitments in the Baltic, Eastern Europe,and the Balkans we did not have in the Cold War. As U.S. weapons systems are many times more expensive today, we have fewer strategic aircraft and Navy ships than Ike or Reagan commanded. Our active-duty Army and Marine Corps consist of 700,000 troops, 15 percent women, and a far higher percentage of them support rather than combat troops.

With so few legions, we cannot police the world, and we cannot afford more. Yet, we have a host of newly hostile nations we did not have in 1989.

U.S. interests in Latin America are being challenged not only by Cuba, but Venezuela, Bolivia, Ecuador, Nicaragua and Honduras. Brazil, Argentina and Chile go their own way. Russia is reasserting hegemony in the Caucasus, testing new ICBMs, running bomber probes up to U.S. air space. China, growing at 10 percent as we head into recession, is bristling over U.S. military sales to Taiwan. Iran remains defiant. Pakistan is rife with anti-Americanism and al-Qaida sentiment.

The American Empire has become a vast extravagance.

With U.S. markets crashing and wealth vanishing, what are we doing with 750 bases and troops in over 100 countries?

With a recession of unknown depth and duration looming, why keep borrowing billions from rich Arabs to defend rich Europeans, or billions from China and Japan to hand out in Millennium Challenge Grants to Tanzania and Burkina Faso?

America needs a bottom-up review of all strategic commitments dating to a Cold War now over for 20 years.

Is it essential to keep 30,000 troops in a South Korea with twice the population and 40 times the wealth of the North? Why are McCain and Obama offering NATO memberships, i.e., war guarantees against Russia, to a Georgia run by a hothead like Mikheil Saakashvili, and a Ukraine, millions of whose people prefer their kinship to Russia to an alliance with us?

We must put "country first," says John McCain.

Right you are, Senator. Time to look out for America first.

General, Ambassador Wave White Flag After Ron Paul's Grilling

Both the electronic and print media made certain that the world knew that Sens. Hillary Clinton and John McCain had questioned Gen. David Petraeus before the Armed Services Committee but totally ignored the blistering by Rep. Ron Paul before the House Committee on Foreign Affair

“Reviewing the presentations by our panel, I have noted with some concern that they seem more focused on justifying a future attack on Iran than reporting on progress in Iraq,” Paul said.

Paul expressed concern about claims that “new enemies” were emerging in Iraq with ties to Iran: “First we were told that the enemy was Saddam Hussein and his Baathist Party. Then we were told the enemy was the ‘bitter-enders’ from Saddam’s former government. Then the prime enemy became al Qaeda in Iraq, a prime focus of the presentation by Amb. Crocker and Gen. Petraeus last September.

Now the two were saying that the new enemies are mysterious ‘Special Groups’ that are said to have spun off from Muqtada al-Sadr’s Mahdi Army.

“If this phenomenon of constantly emerging enemies bent on destabilizing Iraq is accurate and our presence in Iraq keeps generating new enemies,” he said, “perhaps the problem is the occupation itself. If this is the case, doesn’t it make sense that our departure from Iraq may actually have a stabilizing effect?”

Paul said he suspects that these Iranian-supported “Special Groups” are not the prime enemy. He suggested they are being used to provide an excuse for a U.S. attack on Iran or are meant as justification for a permanent U.S. military presence in Iraq.

“It makes little sense to assert that Iran is funding militias to undermine the Iraqi government.

“The leading political parties of Iraq, the Islamic Dawa Party and the Supreme Islamic Iraqi Council, have close ties to Iran. Leaders of these parties were in exile in Iran until the U.S. invasion of Iraq. Iranian President [Mahmoud Ahmadinejad is warmly welcomed in Baghdad by Iraqi Prime Minister Maliki. Why would Iran set up militias in the south to destabilize a government with such strong Iranian ties? I find the allegation that Iran just cannot tolerate an elected government next door to be unsatisfying.”

Paul then challenged them to produce “any hard proof ” that the Iranian government is arming groups in Iraq.

Paul: “Why should the American people continue to support a war that was justified by false information, since Saddam Hussein never aggressed against the United States, Iraq had nothing to do with 9-11, and Iraq had no weapons of mass destruction?

“It is said that we must continue the war because we have already sacrificed so much. But what is moral about demanding even more needless sacrifice of human lives merely to save face for the mistakes of invading and occupying Iraq? Doesn’t it seem awfully strange that the Iraqi government we support is an ally of the Iranians who are our declared enemies? Are we not now supporting the Iranians by propping up their allies in Iraq? If (Iraqi Prime Minister) Maliki is our ally and he has ‘diplomatic relations’ with (Iranian President) Ahmadinejad, why can’t we? Why must we continue to provoke Iran, just looking for an excuse to bomb that country? Does our policy in Iraq not guarantee chaos for years to come?

“It is estimated that up to 2,000 Iraqi soldiers refused to fight against al-Sadr’s militia. Why should we not expect many of the 80,000 Sunnis wehave recently armed to someday turn their weapons against us, since they as well as the Mahdi Army detest any and all foreign occupation?

“Is it not true that with the recent surge in violence in March, attacks are now back at the same levels as they were in 2005? Does Iran not have a greater justification to be involved in neighboring Iraq than we do, since it is 6,000 miles from our shores? If China and Russia were occupying Mexico, how would we react? Since no one can define ‘winning the war,’ just who do we expect to surrender? Does this not mean that this war will be endless since the political leaders will not end it—until we go broke?

”Paul said, “I do have one question that there is enough time to answer: In your estimation, does the administration have the authority to bomb Iran without further congressional approval?”

Petraeus: “Uh, congressman, I, uh, I’m the commander for Iraq, and I do not know the answer to that question, and it’s not within my purview.

”Crocker: Er, uhh, congressman, nor is it in mine, er, ahh, uh, I, uhh you know, my job is Iraq, and I’m just not competent to pronounce on, uh, an issue like that.

”Paul: (who must have been wondering if either had ever read the Constitution) “It disturbs me to no end that we cannot get a flat-out “no” on this question.”