Interview conducted in September 2009 pertaining to the Bush and Obama bailouts and their impacts on the public debt.
Two categories of expenditures, namely the bailouts and defense expenditure “eat up” almost the totality of federal government revenue.
The recipients of the bailouts are the creditors of the State. In essence, the federal government is financing its own indebtedness through the bailouts.
Tax revenues are channeled to the financial institutions and the war economy. All other categories of expenditure including health, education, economic and social infrastructure are financed by increases in the public debt.
The September 2013 “shutdown” of the government is the direct consequence of a process of fiscal collapse initiated in the wake of the 2008 financial meltdown at the very outset of Obama’s first term.
Michel Chossudovsky is an award-winning author, Professor of Economics (emeritus) at the University of Ottawa, Founder and Director of the Centre for Research on Globalization (CRG), Montreal, Editor of Global Research. He has taught as visiting professor in Western Europe, Southeast Asia, the Pacific and Latin America. He has served as economic adviser to governments of developing countries and has acted as a consultant for several international organizations. He is the author of 13 books. He is a contributor to the Encyclopaedia Britannica. His writings have been published in more than twenty languages. In 2014, he was awarded the Gold Medal for Merit of the Republic of Serbia for his writings on NATO's war of aggression against Yugoslavia. He can be reached at [email protected]
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