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Sunday, August 09, 2009

Diverting Foreign Aid

I must comment on the idea that pulling down our $100 billion in foreign aid to help other initiatives in the US is somehow going to be “good” for America. This argument pops up every time the US Mindset returns to focus on the disastrous budget deficits we have been running for nearly 2 generations now. Unfortunately, like the ups and downs of our economy, all discussion related to the deficit dies as soon as the economy turns the corner and people go back to focusing on making money in the latest paper bubble. It is also unfortunate that these incredible "peace time" budget deficits do little more than expose the underlying reality that the US economy has become so reliant on consumer spending and non manufacturing "industries" that our bubble to burst cycles have become more frequent (about every 10 years) and more dramatic. Obviously, with the economy based on businesses that have no physical infrastructure and or physical output capacity (the production of intangible products) they are able to grow rapidly when able to exploit the latest economic / financial gimmick and can just as rapidly shrink when that "event" is played out. Consumption as we all know is primarily of foreign made products of all varieties.

Getting back to the argument that somehow reducing our "foreign aid" and bringing back a few billion dollars back to the US as having any tangible ability to "enhance" our economic development. This is a completely false argument and even when foreign aid has been reduced during tough economic times, it quickly returns during boom times and is usually a greatly celebrated event stamped by whoever happens to be in the White House as an example of the how "generous American" people are willing to back whatever pop-charity is prevalent at that time.

Before I go on, I will preface my argument with my own jaded view of the machine that functions in Washington of ex-piece-corp / lobbyist / international "aid" how to make $200k a year "non-profits" with "do gooder" figurehead cronies "leaders" related to the various politicians, lobbyist, ex-politicians etc., all of whom are very good at raking money out of the Federal Government to feed themselves using their idealistic agenda. These many folk are professional and very good at making carriers for themselves, backed by US Gov money under the guise of "international aid" and normally spend most of their time traveling the world, speaking, living in posh neighborhoods of DC and otherwise justifying their idealistic agenda to other folks who look just like them or aspire to create their "careers" picking up in their footprints. The vast majority of US Foreign "aid" goes in the pockets of these folks and their extended networks and little of it gets anywhere near the end "user" or "target" of the program or individuals it was designed to "help". I could go on but you get the point. In addition, the "International Aid" machine in Washington and associated labyrinth of non-profits (most often not of international focus) are also often the best way to pay for access to the political machine. "Give $50k to my wife's / sister's / friend's / ex-business partner's / other relative's charity and we can talk" kind of politics.

Having said all of that, I will go back to the argument that somehow reducing foreign aid is going to better our economy if we redirect that cash. We have directly spent since our pointless invasion of Iraq no less than $1 Trillion. I remember Bush's speech during the height of the financial crises when talk of $700 billion to bail out financial institutions was being thrown around and thinking, "George, why don't you just say it? You know how much $700 billion is, you spent more than that battling your fictitious "enemies" on the other side of the planet for the past 5 years." George could have just said, "T-ain't anything America. Just deal with it. I know the war was a great excuse to use my access to the largest "bank" on the planet to write checks to my friends and buddies, esp. the ones who lost so much money in the .dot com crash and Enron like debacles of the early part of my presidency, but this, well, now we have another "crises" primarily created by my friends and I got no nation to invade so please excuse me if I just hand this money over directly to them this time!"

Well, that is reality you know. So what about "foreign aid"? What about pulling our vast military presence out of Japan, 2/3 of it out of Korea and Europe? What about exiting Iraq? Can we get that Trillion Dollars (plus the estimated Trillion or so legacy costs) back? Never. What about the pointless war in Afghanistan? Does anybody ever ask themselves what the real long term ramifications of a decade war against Muslim extremist around the globe will have on the long term desire of these folks to one day actually organize themselves some kind of multi-nation alliance and truly threaten other nations? I mean really, right now and for the years going back to the beginning of radical Muslim movements against nations outside of Israel (the true root of all this mess), was there ever a time in modern history they had the potential to do anything more than cause a bit of terror by blowing something up with some rudimentary explosive devises or come up with more creative ways to use our own technology against us like in the 9.11 "attack"? Come on? Help me out here. How many Americans ever went to bed worried that some "army" from the middle east would invade their shores? We and a few other developed nations feed our "allied" Muslim nation friends all of their military technology for crying out loud. These folks cannot even make a microphone or CD player in their own nations let alone a computer or sophisticated guidance system, navy fleet, air force or any other mass weapon arsenal necessary to threaten other nations. Isn't it true the primary reason we don't want Iran to develop the technology to enrich uranium is that we really don't want any of the nations on the planet that do not align themselves with our capitalist / "democratic" value system to have the ability to create ANY technology or products which could head them in the direction of being able to create real weapons of mass destruction like we do?

And so with all this, is taking $25 or $50 billion out of our "foreign aid" going to solve anything? We are directing hundreds of billions of dollars every year to our global military infrastructure; billions more are spent subsidizing our agricultural and agricultural exports; billions more are being spent / or credited to companies for the removal of fossil fuels from all corners of the planet; billions of dollars are being sucked out of our economy, from each individual, by companies operating within pathetically designed regulation / lack of regulation of our energy companies and infrastructure; billions of dollars are being sucked out of the American taxpayer every year for the construction of and maintenance of a transportation infrastructure designed specifically for the single most destructive product in use on the entire planet, the automobile; billions of dollars in energy literally escape right in the atmosphere by the pathetically designed and geographically dispersed regulation of building standards that allow millions of structures to be built annually with the environmental soundness of a mid 20th century box; billions of dollars are being spent incarcerating millions of Americans each year instead of educating them (with more of these dollars going into private hands each year);billions of dollars are being sucked out of the wealth of people, their pension plans and their governments around the planet monthly by the vast unregulated financial industries that have learned to rake as much cash out of the planet's financial wealth as possible with no nation, government, regulatory authority or power to answer to but the pursuit of as much wealth as humanly possible... I could go on about how many ways $25-$50 billion a year are completely wasted, lost, sucked into the coffers of companies riding the "free economic" poorly regulated and wasteful economy we have created but I will rest here.

Suffice to say, any person who decides to go after the politically easy, populace target of "foreign aid" when the true causes of our financial mess and destructive economic model lies right in front of us, is only succumbing to a failed logic and worse, exposing themselves to a deeper sense of "America is right and great and we should look after ourselves even if much of what we do economically and militarily is pathetically harmful to the planet and humanity in general."

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