Who is funding the war in Iraq and Afghanistan?

Who is funding the war in Iraq and Afghanistan?
April 6th, 2006  

Topic: Who is funding the war in Iraq and Afghanistan?

Who is funding the war in Iraq and Afghanistan?
According to a well known Political Scientist Charles Tilly, in his article called "War Making and State Making as Organized Crime", characterized the established authority in every nation is a Protection Racketeering Business.

Concepts of War Making and State Making
1. War Making: Taxes its citizens in exchange for protection from Exterior threats and also neutralizing its rival outside its territory.
2. State Making: Taxes its citizens in exchange, eliminating rivals inside its territory.
3. Protection: Citizens are billed while the authority services protection.
4. Extraction: Are both War Making and State Making in order to gain new territories.

However if the US needs money to fund the war why does the Bush Administration continue to advocate tax-cuts while the country is experiencing increasing trade imbalances? Never ever in any nation's history where an administration decides to cut taxes in the middle of an armed conflict. This goes against the theory of the "Rachet-effect" where governments levy a increasingly high level tax in order to fund a war.

Source: https://netfiles.uiuc.edu/rohloff/ww...e%20making.pdf

The question remains, who will pay the US deficit while the Fed does all it can to tame interest rates?

1. The Future Generation of Americans will pay the deficit.
2. Borrow money from Banks or other monetary institutions however will go back to the American Tax Payers as interest rates for loans and mortgages will increase.
3. Top Holders of overseas US Bonds and Securities are China and Japan. China, the second largest overseas holder of US Government bonds, holds at a total amount of $262.2 Billion US Dollars. In other words China has given a loan of that estimated amount to the US.
4. Cut government services, which already have, such as health-care, student financial aide, social security.
5. As fiscal conservatives argued such as Senator John McCain have stressed, to cut bloated overspendings.

Source: http://www.bloomberg.com/news/markets/bonds.html