By Ellen Brown / Original to ScheerPost
U.S. banks are again in the crosshairs. Standard and Poor’s has downgraded five new middle-tier banks and put 3 others on negative outlook. This follows sweeping downgrades earlier in August by Moody’s, which cut credit ratings on ten banks and placed four of the fifteen largest U.S. banks on review for possible downgrade. As with the banks going into receivership earlier this year, concerns include interest rate risk due to unrealized losses from long-term securities.
Meanwhile, the U.S. government itself has been downgraded by Fitch Ratings, which questions the government’s ability to finance its nearly $33 trillion federal debt. Just the interest on the debt is approaching $1 trillion annually — one third of the government’s federal income tax receipts — while the military budget is closing in on another $1 trillion, devouring over half the discretionary federal budget. That leaves virtually none to cover the nearly $6 trillion that, according to the American Society of Civil Engineers, is needed to repair America’s broken infrastructure, among other neglected service needs.
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This is NOT an accident.
.
It is the PLAN.
The federal govt does not use taxes to fund its spending including interest.