Obama Joins Pete Peterson; LaRouche Warns: Austerity in a Collapse is Killer
January 24, 2010 • 12:47PM

Because the American people humiliated him with a massive defeat in last Tuesday's Jan. 20 election in Massachusetts, Nero-like President Obama has now joined with the evil, dotty billionaire Pete Peterson, to take his revenge on us, just as the original Nero avenged himself on his ungrateful Romans by setting their city on fire. That is the meaning of today's White House announcement that Obama "strongly" endorsed legislation to be voted Jan. 26 in the Senate, for the so-called "fiscal responsibility commission" for which Peterson has been campaigning for many years, putting well over a billion dollars into his various front-groups, including the Peter G. Peterson Foundation, the Concord Coalition, the Fiscal Times newspaper and others. It is expected that Obama will make a pitch for Peterson's scheme in his State of the Union address Jan. 27.

Peterson's goal for a quarter-century has been to cut off the support for elderly Americans through Social Security and Medicare, while simultaneously increasing taxes on the poor and middle-class, like the regressive value-added "VAT" tax of decaying Europe. In 1996, Peterson wrote in Atlantic magazine that senior entitlements are unsustainable, undeserved, unprincipled and unfair, as Saul Friedman noted in Huffington Post on Jan. 21. Peterson wrote, "We now face public budgets strained to the breaking point by demographic aging which will crowd out all forms of capital accumulation, private and public, material and human." He saw (the horror of it all) "a nation of Floridas" as part of a "gray wave of senior citizens that fills the states' streets, beaches, parks, hotels, shopping malls, hospitals, Social Security offices and senior centers."

As Atlantic magazine reported more recently: "Peter Peterson is 82, and is thinking about death. Yours!"

The plan for the Commission is that it will meet immediately, and issue its recommendations immediately after the November 2010 elections, to be forced through the lame-duck Congress, which need not fear popular reaction, immediately afterwards. Its proposals for Medicare and Social Security cuts and regressive tax increases would be fast-tracked through the Congress for a simple up-or-down vote, all in violation of the Constitution. Part of the scheme is that the annual budget deficit would be reduced from 10% of GDP at present, to 3% by 2015. No coincidence that this is exactly the "3% solution" of the European Union and its Maastricht Treaty, which have made Europe an economic wastebasket today. The same British imperial controllers who forced the "3% solution" on the European Union, have told their puppet Obama to implement it here as well.

The Washington Post of Jan. 21 reported an estimate that this "3% solution" would force $500 billion of combined benefits cuts and tax increases in that one year of 2015 alone. But remember that the increases in the deficit now, are caused by plummeting tax revenues amidst the current economic collapse. Isn't it clear that if you slash the expenditures which maintain the population, this genocide will mean that revenues will only fall that much faster?

Lyndon LaRouche has said that imposing austerity during an economic collapse like this one, is an ever-steepening downwards spiral to nowhere.

"If you try to put austerity through, or allow people to go to austerity measures," he said, "as the Obama Administration is going to try to do now, you're going to destroy the U.S. economy and you're going to kill a lot of your friends and neighbors, and probably yourself, too. So anyone who wants to do that, or tolerate that, or allow it to happen is being very stupid, criminally stupid, or something like that. And therefore, it must not happen. We must, despite what Paul Volcker's doing now, and what he's encouraging — we must let Wall Street take the heat! The merchant banks will take the heat; the merchant banking section will take the heat. The commercial banking section will be protected and survive — we need it. We are then going to use the power of the Federal government, to utter credit, to utter large masses of credit, in trillions of dollars, to launch large-scale production and related programs, investments in capital improvements, to get the economy growing up again."

Obama has negotiated with Pelosi and Reid, a scheme to institute the "commission" by Executive Order, if the Senate rejects it on Tuesday, Jan. 26. In a related piece of criminality, Sen. Evan Bayh (D-Ind.) said Jan. 22 that Obama may call for a freeze on discretionary spending in the State of the Union address Jan. 27.