What do foreign governments want in return for loaning our government money?

“The Money That Is Sold Abroad Is You!”

George Orwell wrote that, “The great enemy of clear language is insincerity. When there is a gap between one’s real and one’s declared aims, one turns as it were instinctively to long words and exhausted idioms, like a cuttlefish spurting out ink.”


You have probably heard confusing phrases like the trade deficit, the falling dollar, the national debt, unfunded liabilities and so on, which all sound vague and actuarial and vaguely – well, “not me.”


The reality behind these accounting phrases is perfectly monstrous.


When someone – a foreigner, say – loans money to the American government, what are they getting in return?


Well, they are getting promises of interest payments, and eventual repayment of the principal.


Where does your government get this money?


The government is not a business; it does not generate profits in the free market, so where does it get the money to repay its creditors?


Do you see where this is going?


Are you beginning to understand that it is not dollars that are being sold, or bonds, or agency debt, or treasuries, or anything like that.


Where is your government going to get the money to pay off its creditors?


It is not pieces of paper or contracts or computer bits that are being sold.


There is only one thing that the government has to sell.


Governments have only one asset that they can use as collateral.


Your leaders are selling you.


When China lends $800 billion to your government, what they get in return is a guarantee that $10,000 dollars – plus interest – will be taken from your family at gunpoint and shipped overseas.


When a farmer gets a loan from a bank, he uses his livestock as collateral. It is the milk and meat his cows will produce in the future that he will use to pay off his loan.


The bank is buying a share in his cows.


You are the livestock your leaders use as collateral.


The people that you cheer for and throw parades for and drop balloons behind and donate money to are selling you to Chinese rulers, to the Japanese, to the Nigerians, to South American drug lords with accounts in the Caribbean banking centers, to Russia, to Korea, to Egypt, to Colombia, to Chile, to the Philippines, to Malaysia — and anyone else who is willing to give them a few dollars in return for the blood, sweat and toil of your future.


The flag that you praise and the anthems that you sing and the rulers that you weep and kneel before have as much loyalty to you as a plantation owner had to his slaves.


And sadly, plantation slaves had more pride than we do.


Plantation slaves did not generally praise their masters for selling them off, for auctioning off the lives, hopes, dreams and futures of their own little children.


We can understand that cattle may lick the hand of the farmer who lowers an axe to its neck, because cattle are dumb beast that cannot comprehend their real relationship with the farmer, and his imminent plans for them.


What is our excuse?


When we chant “USA” “USA” “USA,” when we cheer and bow and beg and scrape and sing and weep with joy that some new farmer now presides over the wholesale dismantling and sale of our family’s future, when we love with obsessive emptiness the leaders who laugh while they auction us off to every tin pot dictator and stockbroker the world over, what is our excuse?


Has our pride been so broken that we lunge with pathetic joy at every new silver tongued demagogue who pretends to care for us, even a tiny little bit?


In the future, our children will ask why we knelt and cheered as they were sold on the auctioneer’s block.

This video – and my life’s work – is my answer to my child.

sign right here, and here, and here

If anyone has been through the mortgage process lately you know exactly what I mean.

I love flow charts, so I am going to try to create a flow chart that follows what happens after you sign those documents.  Feel free to comment as you see fit.

Step 1:      An honest hardworking American chasing the American dream finds the house of his dreams and is run through an inquisition to prove his worthiness.

Step2:      Yea, your approved.  Sign right here.  You occupy your home and take possession of a 30 year mortgage.

Step 3:     Your bank takes your signature to the Federal Reserve, who promptly prints money out of thin air in the amount of the entire loan and gives this new money to the bank to be used as capital to create more loans.

step 4:    Your bank then sells the interest payments part of your contract to a mortgage consolidate company like Fannie Mae or Freddie Mac.

step 5:     Fan.Fred buy thousands of these mortgage contracts and piles them into multibillion dollar funds.  (Now remember there is no money in this pile, only the potential money of your interest payments.)

Step 6:     Fan.Fred prints and sells capital bonds to foreign investors.  These are basically borrowing money, at interest, from China, Japan, Sadi Arabia and others using your signature as collateral. 

step 7:     As you pay your interest payments, fan.fred will have the money to buy back the bonds, right??

step 8:     banking industry was deregulated in the 1980s allowing very creative ways to collect promissory signatures from US citizens.  These creative loans were doomed to fail.  Now that they are failing fan.fred are not collecting enough from you to buy back the bonds, so international investors become anxious.

step 9:     The US government (with your money)  steps in to secure these promises to foreign investors.  So foreign banks that bought risky bonds from a private bank, now are secure in their profits.

step 10:    Everybody wins, the banks got the cash up front from selling your signature to the federal reserve, then more cash when they sold the mortgage to fan.fred.  Fan.fred makes obscene profits when they sell the bonds, and make more money when you pay your interest payments.  The foreign banks make money on the interest from the now gaurenteed bonds they purchased.  Oh, what about you?  Well, you get to live in your house as long as you pay your mortgage payments plus the property taxes levied against you for assuming that you could live the American dream plus the additional taxes now needed to give to the foreign banks.

Don’t waste your vote on either of the banker backed republicrats.  Vote 3rd party!