The Bankrupt Power: Mujahidun's Assessment Of American Empire
26 January 2011
By Al-Ikhwah Al-Mujahidun
In the name of Allah, the Most
Gracious and the Most Merciful.
Today America is bankrupt. It can
no longer finance and control the world. The richest
country of the world is the most debt-ridden country
of the world. The super power that once used to give
loans to others is today drowned overhead with
debts—about $ 14 trillion, which it can't pay. What a
good saying, "As you sow, so shall you reap." America
faced bankruptcy and deficiency because of its
negligence and arrogance.
If we look at the past, we can see that when Bill
Clinton was vacating office for George Bush in 2000,
there was a surplus of $300 billion in the treasury.
When Bush turned to spending astronomical amounts both
at the military and financial fronts following the
9/11, the surplus became deficit. In the first two
years, the surpluses of $300 billion were spent. In
the following two years it rose to 600 billion
dollars. In the next two years, the debt was $ 900
billion. In 2009, it went up to $1.2 trillion. Today
it is nearly $ 1.7 trillion, being unprecedented in
the history of America.
This has forced America to borrow
more money and to revamp its debilitating economy. It
did so, taking heavy debts from Japan, China, Saudi
Arabia and other gulf countries. In the first term of
Bush, the debt reached $7.6 trillion. But in his
second reign, it rose to $ 10.6 trillion. Today it
stands at $ 14.02 trillion. More than half of the
present debts occurred in the past six years, when
Iraq and Afghanistan wars were at their heights. If we
spread the debts over the American population, every
American has borrowed approximately $45,300.
Regional analysts say, America must spend $1.3
trillion more than its revenues in the current year.
Because budget deficit is increasing by $400 billion
per day, it brings America to the verge of sinking
with the passage of each day.
It means America has to borrow 40
cents of every dollar that she spends. On January 15,
the finance secretary said that this was unprecedented
in the history of America. The irony is that the two
major parties blame each other for the crisis.
Congress is compelled to either remove the legal
limitation on debt to give free hand to the government
to borrow more money, or to bring great cut in
expenditure. But whatever step they may take, it will
not make any difference. In war times, debts usually
increase but not to the extent that the former
President Bush was responsible for. He bankrupted the
state and left it to Obama in that dilapidated
The trouble is that an interest
of $6 trillion dollar is added to the debt of $14
trillion. The actual interest is$ 900 billion but for
some reasons it rises to $600 trillion i.e.
A. Since the government can't pay
it back, therefore the interest multiplies.
B. The lenders (states, companies, banks, individuals
etc.) raise interest rates.
C. The government has lost its credibility against the
lenders and is imposing its self-made regulations.
D. The government keeps the military expenditure and
budget both on its high level. Therefore both of the
wars are supported by loan.
The Pentagon's budget is $717
billion for 2011. An additional amount of $200 billion
is allocated for war in Afghanistan and Iraq and the
so called "War on Terror".
The Soviet Union is dead now. The
Warsaw Pact is buried. So why is she (America)
destroying the world? Why did she waste her 6,000
soldiers in vain and $3 trillion over-spending? Why
The war in Afghanistan and Iraq
has left behind three main questions unsolved:
1. Would America have lost so
much, if Bush had not been made the President?
2. Would America not be in debt
to that extent, again if Bush had not been the
3. Would America not see the
crisis so heavily if he had not been at the helms of
All the answers could be but only
in the negative. Attacks over Afghanistan and Iraq
affected the stocks market. Companies were damaged and
bankrupted. In 2007-2008, a great regional crisis
started. This ushered in financial and commercial
deficit-- the immediate affect being on the housing
and mortgage sector. The economy melted down, growing
debts followed. Dollars were printed without any
support, dwindling its value and increasing the
inflation and financial deficit. Large companies
touched the peak of the crisis, compelling the
government to save them from bankruptcy by giving them
billions of dollars. It encircled America like a chain
and is difficult for her to get rid of.
The former Soviet Union would not
transcend to admit that the Afghan war was bringing
them to knees. In the same way the America is not
ready to accept this bitter reality that the main
cause behind the crisis is the Afghan war.
How and when can America get rid
of the current $14.02 trillion? The answer is
ambiguous. We can say that it is a back- breaking and
irreversible crisis, swallowing America day by day.
Can't we say that this hurricane is just like the
strong waves of the Red sea, which engulfed the
Pharaoh, putting him stayed in their embrace for ever?