The Selling of America
The foreign holdings of Treasury securities in January was $3.072 trillion. With $739.6 billion of our debt owned by China, and $634.8 owned by Japan, a large amount of external pressure is placed upon our financial decision makers to ensure the security of these foreign investors. (The above numbers are as of January, 2009.) This is evidenced by the comments of China’s Prime Minister Wen Jiabao. “We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried,” he said. We may have reached the point where they stop buying notes and possibly only invest in hard assets.
The total U.S. debt is really $65.5 trillion dollars which exceeds the gross domestic product of the entire world. While President Obama promises transparency and boasts about including the cost of war in the numbers, he still omits the unfunded liabilities such as Social Security and Medicare. Contrary to popular belief, there is no “lock box” or funds set aside for these liabilities. The current obligations and the proposed social spending basically puts the United States in a bankrupt situation.
The technology bubble burst and the economy was affected. The housing bubble popped and the economy was devastated. Will the dollar be the next bubble to rupture which will destroy what little is left of the economy? The collapse would have global ramifications as the value of the dollar plummets much like currencies of the past. In an April, 2008, report, economist John Williams states, “The U.S. economy is in an intensifying inflationary recession that eventually will evolve into a hyperinflationary great depression. Hyperinflation could be experienced as early as 2010, if not before, and likely no more than a decade down the road. The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, and gross mismanagement.”
The sudden spike in gold prices tells me that the people with money aren’t liking what they see the Fed doing as they move away from the dollar. Add to this the upcoming G20 meeting reports, and people with cash are getting nervous. “Increasingly, the International Monetary Fund, with the support of the United States and Russia, appears positioned to launch a one-world currency at the upcoming G-20 meeting in London. ” The international safety net they are looking for is, “a super-reserve currency widely accepted by the whole of the international community.”
Global warming, global cooling, global change and global chaos are all ways of transferring the wealth from the U.S. to other countries. Included in this scheme is the cap and trade plan. As our companies are taxed for excessive carbon output, the costs of energy and products to the general public will jump dramatically. The funds will be transferred to someone who did not earn them, even if it is the government. It is basically a tax hike on every citizen much like a sales and use tax. Corporations don’t pay taxes, they pass them through to the consumers through price increases. So much for no tax hikes on 95% of working Americans, which in itself is an impossibility if all the programs are to be paid for rather than adding to the debt. A Wall Street Journal article states, “Politicians love cap and trade because they can claim to be taxing “polluters,” not workers. Hardly. Once the government creates a scarce new commodity — in this case the right to emit carbon — and then mandates that businesses buy it, the costs would inevitably be passed on to all consumers in the form of higher prices. Stating the obvious, Peter Orszag — now Mr. Obama’s budget director — told Congress last year that ‘Those price increases are essential to the success of a cap-and-trade program.'”
The Associated Press reports, “Under the lease, Spanish-Australian consortium Cintra-Macquarie will pay the state $3.8 billion up front and will be responsible for operating and maintaining the highway. It will get to keep the toll revenue it collects.” This is a lease, not a sale, but a Spanish company and an Australian bank are reaping the profits of U.S. property. “The two companies have been active in the U.S. road business. In 2004, the two inked a 99-year lease for the 7.8-mile elevated Chicago Skyway. Last year, Macquarie completed its acquisition of the Dulles Greenway outside Washington, D.C. And Cintra, which manages toll roads in Europe and the Americas, is a strategic partner to the Texas state government in the planned Trans-Texas Corridor. There are likely more such deals to come. ” And what about the water? “Thames Water was fully acquired by the German energy conglomerate RWE AG in January 2003. RWE is one of the world’s largest energy giants with more than 640 subsidiaries worldwide and annual revenues of more than $50 billion. RWE is in turn acquiring American Water Works through Thames Water—the largest publicly held U.S.-based water utility with 16 million customers in 29 states and three Canadian provinces. Thames is the operational manager of RWE’s international water business, including the management of the U.S. properties owned by American Water Works. Thames/RWE is gaining yet more control of U.S. water and wastewater services by entering into an agreement with Operations Management International (OMI), a Denver (US)-based firm. The corporate web is spun.”
And lets not forget the economic and social impact of what amounts to open borders. Illegal aliens that use our resources such as health care plus the drugs and other criminal activities of some. The taxing of border patrol and law enforcement is an issue in southwestern states. This block of people is seen as votes as amnesty will garner loyalty from the masses.
Has the country passed the point of no return? The current administration criticized and campaigned against deficit spending. The problem is that the problem has gotten worse as the same Congress is in charge of the purse strings and they now have a willing accomplice in the White House. This problem is bigger than anyone is letting on concerning our national security. Our adversaries have the strings to pull that will influence our national policies, possibly even more so than the demands of the citizens of These United States of America.