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Call it the austerity death trap. Under these circumstances, the harder a country works to cut its debt, the worse the ratio becomes - because the economy shrinks even faster. Greece is already in the trap. Spain and Italy are perilously close. Even Britain, France, and Germany are tip-toeing up to it. And now us. Deficit hawks have to understand: The first step must be to revive growth and jobs. That way, revenues increase and the debt/GDP ratio drops. Only then - when the economy is back on track - do you start cutting.

As a voice at the megaphone of the Portland protest said, "The United States does not have a deficit problem. The United States has a revenue problem." According to a 2008 report by the Government Accountability Office, 25 percent of the biggest corporations pay no federal income tax. B of A, the recipient of $45 billion in bailout funds, shuttles its would-be tax dollars into 115 offshore tax havens. Meanwhile, budget deficits are cited as justification for pay freezes for public workers and cuts to heating assistance programs, Social Security, and other social safety nets.

As the "debt ceiling" fight drags on, the true costs of deficit hysteria are coming due.

In a flurry of blind panic and irrational exuberance, organizations from the European Central Bank to the Organization for Economic Cooperation and Development suddenly abandoned everything we had learned, at a bitter cost, about economics during recessions and decided that fiscal austerity was the way to go while the world was in the depths of a slump - indeed, many claimed that spending cuts would actually be expansionary.

I n certain circles, it has become fashionable to argue that monetary policy is a superior instrument to fiscal policy - more predictable, faster, without the adverse long-term consequences brought on by greater indebtedness. Indeed, some advocates wax so enthusiastic that they support recent drives for austerity in many European countries, arguing that if there are untoward effects they can be undone by monetary policy. Whatever the merits of this position in general, it is nonsense in current economic circumstances.

Civilizations rise, decay and die. Time, as the ancient Greeks argued, for individuals and for states is cyclical. As societies become more complex they become inevitably more precarious. They become increasingly vulnerable. And as they begin to break down there is a strange retreat by a terrified and confused population from reality, an inability to acknowledge the self-evident fragility and impending collapse. The elites at the end speak in phrases and jargon that do not correlate to reality. They retreat into isolated compounds, whether at the court at Versailles, the Forbidden City or modern palatial estates. The elites indulge in unchecked hedonism, the accumulation of vaster wealth and extravagant consumption. They are deaf to the suffering of the masses who are repressed with greater and greater ferocity. Resources are more ruthlessly depleted until they are exhausted. And then the hollowed-out edifice collapses. The Roman and Sumerian empires fell this way. The Mayan elites, after clearing their forests and polluting their streams with silt and acids, retreated backward into primitivism. As food and water shortages expand across the globe, as mounting poverty and misery trigger street protests in the Middle East, Africa and Europe, the elites do what all elites do. They launch more wars, build grander monuments to themselves, plunge their nations deeper into debt, and as it all unravels they take it out on the backs of workers and the poor. The collapse of the global economy, which wiped out a staggering $40 trillion in wealth, was caused when our elites, after destroying our manufacturing base, sold massive quantities of fraudulent mortgage-backed securities to pension funds, small investors, banks, universities, state and foreign governments and shareholders. The elites, to cover the losses, then looted the public treasury to begin the speculation over again. They also, in the name of austerity, began dismantling basic social services, set out to break th

Economic historians will look back on this era as a time when policy-makers damaged Americans' welfare with ideologically driven, self-inflicted wounds.

We've studied a century's worth of social unrest and the data suggests austerity measures can lead to riots.

"In just a few short months, we've witnessed people power in action. From the Middle East to the Midwest, movements have risen up to overturn tired dogma and challenge entrenched power. Many of us were inspired by these events. And many of us were surprised. Perhaps we were growing skeptical that people power could still work. Maybe we had forgotten a vital fact about our world: that bold citizens, united around a common mission, can still come together to create major change against enormous odds." - 350.org (April 7, 2011) "Even when people are willing to take action in concert to redistribute the pie, whether by Gandhian mobilization or use of force, this may resonate falsely, for the pie is disintegrating. Its recipe and ingredients are obsolete. And freedom attained in harsh austerity, characterized by intense competition for food, will be doubtful or of little comfort." - Jan Lundberg ("Social Justice Activists Must Take Into Account Ecological, Cultural, and Economic Transformation")

October 2011 is the 10th anniversary of the invasion of Afghanistan and the beginning of the 2012 federal austerity budget. It is time to light the spark that sets off a true democratic, nonviolent transition to a world in which people are freed to create just and sustainable solutions. Read more.