The Shutdown of the U.S. Government and “Debt Default”: A Dress Rehearsal for the Privatization of the Federal State System?
By Prof Michel Chossudovsky
October 12, 2013
The “shutdown” of the US government and the financial climax associated with a deadline date, leading to a possible “debt default” of the federal government is a money making undertaking for Wall Street.
Several overlapping political and economic agendas are unfolding. Is the shutdown –implying the furloughing of tens of thousands of public employees– a dress rehearsal for the eventual privatization of important components of the federal State system?
A staged default, bankruptcy and privatization is occurring in Detroit (with the active support of the Obama administration), whereby large corporations become the owners of municipal assets and infrastructure.
The important question: is a process of “State bankruptcy” –which is currently afflicting local level governments across the land– possible in the case of the central government of the United States of America?
This is not a hypothetical question. A large number of developing countries under the brunt of IMF “economic medicine” were ordered by their external creditors to dismantle the State apparatus, fire millions of public sector workers as well as privatize State assets. The IMF Structural Adjustment Program (SAP) has also been applied in several European countries.
Will this gamut of deadly macro-economic reforms engineered by Wall Street and the Federal Reserve be conducive to widespread civil disorder across the United States?
While the declaration of a national emergency or martial law is not envisaged, reports confirm that the Department of Homeland Security (DHS) is currently “engaged in acquiring heavily armored tanks, which have been seen roaming the streets.” In the words of Ellen Brown, “somebody in government is expecting some serious civil unrest…”