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by Al Martin

Bush-Cheney Regime Prepares U.S. for a Bleak Future


(7-31-06) The Bush-Cheney Regime has been transitioning the nation from a democracy to a dictatorship, using PATRIOT Act legislation and gradually usurping the constitutional guarantees and protections of citizens. It should be noted that the Regime has also drawn up a plan to transition the nation from a First World nation into a Third World nation. These two transitions classically go hand in hand, by the way, and that shouldn’t come as any surprise to anybody, since dictatorships that used to be democracies are created when the economies of these democratic nation-states collapse. Of course, who better to draw up a master plan, as it were, for this transition from a First to a Third World nation-state than that regime whose economic policies are causing the decline of the American empire in the first place. So what does this portend for the U.S.?

      As has been mentioned before, the Office of Emergency Management has been separated from FEMA and put directly under the Department of Homeland Security. Furthermore, a lot of people don’t know that the Office of Emergency Management’s powers and scope have been substantially broadened since 2003, since this would be necessary for a regime planning and preparing to transition the nation from a First to Third World status. You need a super-government agency, which the OEM really has become, that can control the nation’s diminishing resources, both nonrenewable and semi-renewable, as we have seen the printing of rationing cards for food and fuel already.

      We would also point out that these plans go much further than what we have discussed before and that, indeed, the Office of Emergency Management is conducting test programs across the country in concert with local utility companies, using their PATRIOT Act powers, wherein they have told utility companies to institute sudden power outages and roving brownouts and to blame it on other, more mundane, phenomena. The point of this is to gauge people’s response to suddenly having the power go off and being without power for a number of hours for instance.

      In a sense it is psychological testing to see how the people respond to more frequent power outages that they are being given a variety of excuses for occurring. These power outages can be from 4 to 6 hours, which would be a typical brownout period. The reason it’s convenient now is the record heat. That gets used for brownout excuses, as well as variety of natural disasters and unusual weather conditions the nation has experienced in the last 12 weeks. These will be used as the reason for sudden power outages.

      Other excuses are being used by utilities such as -- Well, a cable was pierced by the telephone company. These are innocuous sounding excuses. But they want to see how the people react to increased frequencies without power temporarily.

      In the second decade of the post-economically collapsed America, not only will production of food and potable water fall, but production of utility output is also going to fall. The reason why that always happens, by the way, in a collapsed state, is because the company, the utility or, to speak in a larger context, the nation-state no longer has the financial resources to import all of its energy needs.

      Remember -- under this regime, we have actually increased our foreign importation of oil and hydrocarbon fuels. For instance, when the Bush Cheney Regime took power, we were importing 58% of our energy needs. Now we are importing 62% of our energy needs. And this has been done, in part, to increase oil prices and to further enhance and consolidate wealth within the United States.

      To take this further, the OEM has worked with water utility companies to reduce water pressure or reduce water volume or to temporarily shut down water systems for short periods of time -- also to see how citizens would react to them.

      The OEM has also received a great deal of cooperation from several of the nation’s large grocery store chains, wherein the grocery store chains, on whatever day of the week they restock, are not restocking items fully, on a revolving basis, or they are leaving certain items off the shelves, not stocked, in other words, even though they have them. The reason this is being done is, once again, to assess people’s reaction to it. Thus far, the OEM seems to be quite pleased.

      In America, a land that is still very much mired in the fear, ignorance, prejudice and intolerance of the 1950s, when people wanted to believe government (and the majority still do), this has not caused a great deal of stress or distress. It has not caused any civil unrest anywhere. The people’s reaction to it has been, “Oh, well, it’s just another problem.”

      The American Psychiatric Institute pointed this out in a survey they did with the Kaiser Family Foundation. They didn’t ask -- “since the installation of the Bush Cheney regime.” They simply asked: “In the last 5 years, have you seen a noticeable decline in service quality at stores and at your vendors? Do you have to wait longer in lines? Have you seen increased computer problems, increased power outages, your pharmacy being out of drugs that you normally buy? Etc.” And, yes, people are cognizant of this.

      But it happens gradually enough so that it hasn’t become a problem yet. The reason it hasn’t become a problem is because the majority of citizens believe that the United States could never become a Uganda, despite the fact, as we have reported before and as the IMF has reported, our GDP-to-debt ratio is higher than that of Uganda.

      The reason why people don’t believe, by the way, that the United States could become a Third World nation-state bespeaks of the Bush Cheney Regime’s greatest ally: ignorance of economics.

      You see how Gallup Harris polling organization will consistently point to that, which we have pointed to before, that, over decades, there has been almost no change, at 18%, in the number of people that actually understand the temerity of ever-increasing government debt and budget deficits -- not only the long-term fiscal corrosion it causes but how that fiscal corrosion eventually translates, as it does in all nations that are going down the ladder from First to Second to Third World nations, where long-term fiscal corrosion eventually causes deterioration in a nation’s underlying industrial/ economic infrastructure, as has happened in this nation since the 1980s. We have pointed out the so-called gap in federal and state spending necessary for the maintenance of infrastructure -- that there was more than a $500-billion deficit in necessary infrastructure spending from 1984 to 1992. Now under the current regime, there has been a $350-billion gap so far in public infrastructure spending.

      This is in essence the “Third World-ization” to coin a phrase, of America.

      This has led to statistics that people are generally familiar with. For instance, there has not been a new oil refinery built in this country in 30 years. There has been no expansion of energy transmission systems in the nation in 25 years. We now have a telecommunications system that, in some cases, is as much as 20 years behind that of other First World nation-states.

      We have utility companies, particularly coal-burning power plants, which have not been modernized in more than 50 years, and we have a rail system now that has not been really modernized since the 1960s.

      We have internal water transportation systems, of canals, for instance, that have become inoperable. A good special on the Discovery Channel explained how the inter-coastal waterway now has become inoperable in terms of being able to handle commerce.

      What is the temerity of fiscal corrosion caused by ever-growing debt and budget deficits? It forces down necessary expenditures on infrastructure maintenance and repair, as debt service consumes an ever-rising percentage of governmental budgets at all levels -- municipal, county, state and federal. This is not just the federal government. Remember the aggregate public debt of the nation’s states, counties and municipalities has doubled under this regime. Doubled. It is an increase of more than $3 trillion.

      We are also seeing this deterioration in public pension systems, which has now bled into corporate pension systems, record aggregate accumulated deficits, actuarial deficits within the nation’s corporate pension plans, more than $3-trillion deficits. We also now have more than a $9-trillion future deficit in the nation’s public, i.e., municipal, county, state and federal, pension systems.

      The situation is becoming increasingly dire. And the regime is, correctly, in my opinion, instituting a long-range plan to prepare the nation for the decline of the American Empire, something that the regime has largely been able to hide from the people thus far. Now with the speculative bubble in housing unwinding, with consumer indebtedness at record levels, and with real wages now beginning to fall, the consequences of the fiscal corrosion that Bushonomics represents, and how that plays out in the lives of average citizens, cannot be hidden much longer. This then is the impetus for the regime to institute various plans to prepare the nation for the inevitable consequences of Bushonomics and all that it has caused.

      One way to do that is to put reality in the face of the people when it comes to public infrastructure deterioration, which is a direct symptom of fiscal corrosion of Bushonomics. And there will undoubtedly be more to come. The regime is now trying to push PATRIOT III. There will be more losses to the people of what few constitutional guarantees and protections they have remaining.

      Indeed, as the World Court and as the United Nations has pointed out, it would not be possible for American citizens to lose many more of their constitutional liberties and protections without the United States losing the capacity under both UN and World Court charter to label itself as a democracy.

      Of course, one of the consequences of that was that the regime pulled out of the World Court very early on, and it also pulled out of the appropriate UN global constitutional council because of it. They knew that they wouldn’t be able to meet the criteria of still maintaining a globally lawful entity of a democracy in the United States.

      The Bush Cheney Regime then is tightening the noose in every direction. It is tightening the noose on owners of gold. It is tightening the noose on citizens of average means’ ability to transfer money out of the country. It is tightening the noose on any type of ‘seditious speech,’ which is now construed to be any type of speech which is critical of the leadership or its policies. It is furthering its plans to prepare citizens for the transition from a First World to a Third World economic state. Expect more gradual deterioration. This will become more noticeable to you if you know what to look for.

      The signs are all there. Just notice – the next time your power goes out, or the next time your water pressure goes down, or next time where there used to be 12 cans of peanuts on the store shelf, there’s now only 6.

      These are small signals. And think to yourself: Do you have to wait in line now? Has service declined? Do you find, when you go to a grocery store or pharmacy where you shop, that more often now they don’t have what you always used to buy?

      Notice how John Negroponte, the National Security Director, has given immunity to many corporations now to essentially cheat the people by discounting corporate accounting altogether. You haven’t seen any actions before the Federal Trade Commission for it.

      You see this on the grocery store shelf. Look at how the 64-ounce or conventional half-gallon orange juice container is now the new 52-ounce “convenient” size at the same price. Look how many times you can see those examples.

      What used to be 64-ounce containers are now 52-ounces at the same price. Or you see what used to be called a pound of coffee, 16 ounces of drip coffee, is now either 11 or 13 ounces. Chock Full ‘O Nuts calls the 13-ounce package a ”lighter pound.” That’s how they advertise it! “Lighter, more convenient pound.” At the same price.

      When you see the words ‘better, easier, lighter, less heavy,’ you don’t have to knock yourself out, because it’s “more convenient.”

      This is the psychological aspect. Why do you think we are, of all First World nations, a nation that has the worst state of physical health? Hey, why lift the 16-ounce brick of coffee when you can lift the 13-ounce brick?

      In conclusion, this is yet another sign that the regime is certainly aware of what its economic policies are doing to the nation. It is also another sign that the regime knows that we are beyond a point of no return -- as US Comptroller General David Walker publicly stated and reiterated what he had said before, that we are effectively beyond the point of no return.

      But, in the regime’s defense, you could say that the regime is acting prudently in beginning to prepare the nation for economic collapse. Indeed, it should be this regime that ought to foster the plans to prepare the nation for economic collapse, since it is most familiar with the nature of that collapse, in that its own economic policies of Bushonomics, i.e. negative debt financed consumption, are leading the United States down that road to a bleak future.

    * AL MARTIN is an independent economic-political analyst with 25 years of experience as a trader on NYMEX, CME, CBOT and CFTC. As a former contributor to the Presidential Council of Economic Advisors, Al Martin is considered to be a source of independent analysis for financially sophisticated and market savvy investors.

After working as a broker on Wall Street, Al Martin was involved in the so-called "Iran Contra" Affair as a fundraiser for the Bush Cabal from the covert side of government aka the US Shadow Government.

His memoir, "The Conspirators: Secrets of an Iran Contra Insider," ( provides an unprecedented look at the frauds of the Bush Cabal during the Iran Contra era. His weekly column, "Behind the Scenes in the Beltway," is published weekly on Al Martin, which also publishes a bimonthly newsletter called "Whistleblower Gazette."

Al Martin's new website "Insider Intelligence" ( will provide a long term macro-view of world markets and how they are affected by backroom realpolitik.


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