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.

The legacy of the American National Debt

MOUNTAIN OF DEBT: Legacy of debt from Founding Fathers not celebrated on Independence Day

* By Tom Raum, Associated Press Writer

* On Friday July 3, 2009, 11:20 am EDT

* Print WASHINGTON (AP) — The Founding Fathers left one legacy not celebrated on Independence Day but which affects us all. It’s the national debt. The country first got into debt to help pay for the Revolutionary War. Growing ever since, the debt stands today at a staggering $11.5 trillion — equivalent to over $37,000 for each and every American. And it’s expanding by over $1 trillion a year. The mountain of debt easily could become the next full-fledged economic crisis without firm action from Washington, economists of all stripes warn. “Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth,” Federal Reserve Chairman Ben Bernanke recently told Congress.

Higher taxes, or reduced federal benefits and services — or a combination of both — may be the inevitable consequences. The debt is complicating efforts by President Barack Obama and Congress to cope with the worst recession in decades as stimulus and bailout spending combine with lower tax revenues to widen the gap. Interest payments on the debt alone cost $452 billion last year — the largest federal spending category after Medicare-Medicaid, Social Security and defense. It’s quickly crowding out all other government spending. And the Treasury is finding it harder to find new lenders.

The United States went into the red the first time in 1790 when it assumed $75 million in the war debts of the Continental Congress. Alexander Hamilton, the first treasury secretary, said, “A national debt, if not excessive, will be to us a national blessing.” Some blessing. Since then, the nation has only been free of debt once, in 1834-1835. The national debt has expanded during times of war and usually contracted in times of peace, while staying on a generally upward trajectory. Over the past several decades, it has climbed sharply — except for a respite from 1998 to 2000, when there were annual budget surpluses, reflecting in large part what turned out to be an overheated economy.

The debt soared with the wars in Iraq and Afghanistan and economic stimulus spending under President George W. Bush and now Obama. The odometer-style “debt clock” near Times Square — put in place in 1989 when the debt was a mere $2.7 trillion — ran out of numbers and had to be shut down when the debt surged past $10 trillion in 2008. The clock has since been refurbished so higher numbers fit. There are several debt clocks on Web sites maintained by public interest groups that let you watch hundreds, thousands, millions zip by in a matter of seconds.

The debt gap is “something that keeps me awake at night,” Obama says. He pledged to cut the budget “deficit” roughly in half by the end of his first term. But “deficit” just means the difference between government receipts and spending in a single budget year. This year’s deficit is now estimated at about $1.85 trillion. Deficits don’t reflect holdover indebtedness from previous years. Some spending items — such as emergency appropriations bills and receipts in the Social Security program — aren’t included, either, although they are part of the national debt. The national debt is a broader, and more telling, way to look at the government’s balance sheets than glancing at deficits. According to the Treasury Department, which updates the number “to the penny” every few days, the national debt was $11,518,472,742,288 on Wednesday.

The overall debt is now slightly over 80 percent of the annual output of the entire U.S. economy, as measured by the gross domestic product. By historical standards, it’s not proportionately as high as during World War II, when it briefly rose to 120 percent of GDP. But it’s still a huge liability. Also, the United States is not the only nation struggling under a huge national debt. Among major countries, Japan, Italy, India, France, Germany and Canada have comparable debts as percentages of their GDPs.

Where does the government borrow all this money from? The debt is largely financed by the sale of Treasury bonds and bills. Even today, amid global economic turmoil, those still are seen as one of the world’s safest investments. That’s one of the rare upsides of U.S. government borrowing. Treasury securities are suitable for individual investors and popular with other countries, especially China, Japan and the Persian Gulf oil exporters, the three top foreign holders of U.S. debt. But as the U.S. spends trillions to stabilize the recession-wracked economy, helping to force down the value of the dollar, the securities become less attractive as investments. Some major foreign lenders are already paring back on their purchases of U.S. bonds and other securities. And if major holders of U.S. debt were to flee, it would send shock waves through the global economy — and sharply force up U.S. interest rates.

As time goes by, demographics suggest things will get worse before they get better, even after the recession ends, as more baby boomers retire and begin collecting Social Security and Medicare benefits. While the president remains personally popular, polls show there is rising public concern over his handling of the economy and the government’s mushrooming debt — and what it might mean for future generations. If things can’t be turned around, including establishing a more efficient health care system, “We are on an utterly unsustainable fiscal course,” said the White House budget director, Peter Orszag.

Some budget-restraint activists claim even the debt understates the nation’s true liabilities. The Peter G. Peterson Foundation, established by a former commerce secretary and investment banker, argues that the $11.4 trillion debt figures does not take into account roughly $45 trillion in unlisted liabilities and unfunded retirement and health care commitments. That would put the nation’s full obligations at $56 trillion, or roughly $184,000 per American, according to this calculation.

A letter from Senator Ridgeway

Dear friend,

The government can’t get out of debt by getting into more debt.  But the tax and spend liberals don’t understand this.

Sadly, the same type of politicians who are spending us into financial oblivion with risky stimulus spending and bailout schemes are also busy at work in our state capitol.

The spendourway to prosperity policies that are being put forward by federal bureaucrats and congressional liberals are completely wrongheaded.  You know it and I know it, but we’ve got to spread the message before it’s too late.

There’s a battle raging in Jefferson City right now and if we don’t stand up for what is right then our children and grandchildren will be the ones left paying the bill.  But maybe that’s what big government liberals want?  After all, our Governor, Jay Nixon, recently proclaimed this on C-Span:

“If there’s debt, Missouri kids and grandkids          will pay that debt off.”

Unbelievable!!

You know what the big picture is:  tax-and-spend politicians are trying to drown our economy in debt and conservatives have to stop them if we have any hope for future prosperity.

1 (Over Please)

But I want to talk about some of the specific proposals that Missouri liberals want to use from Obama’s “stimulus” program.  They want to use this one-time money to pump up long term welfare programs.  Programs like:

** Expanding Welfare with one-time stimulus money

** Radically expanding the size of state government

** Long-term extended unemployment benefits

What happens when the pork-u-lus pump runs dry?  These programs do not stop when the money runs out.  We all know how hard it is to get dependents off the government dole once they’ve been “in the system.”

Any accountant would tell the governor you shouldn’t take on long term debt just because you have some extra short-term money.  So what will all these welfare expansions inevitably lead to?

HIGHER TAXES!!!

There’s really no other way.  I can tell you that these welfare programs and government expansions will inevitably lead to higher taxes after the federal government pulls the plug on the pork-u-lus money.

Here we are, seeing nothing but failure from Washington’s record-shattering spending and now the governor wants to spend like this in Missouri.

The D.C. politicians might like that, but in Missouri we understand that spending more than you have is a bad idea.

Our nation is facing unprecedented deficits — deficits even greater than we ran during World War II.  Now the federal government is starting to print Trillions of dollars to help fund their spending spree.

Yes, that’s Trillion.  With a capital T!

2 (Next Page)

LBJ tried to print enough money to cover his so called “Great Society” welfare programs and ran up the national deficit in the 60s.  Apparently the federal government didn’t learn anything from that lesson, because they’re going down the same path.

Well, I say, “Not in Missouri!”

We need to get the message out that common sense fiscal policy is the answer to our economy’s problems – not greater debt.  I’ve been working hard to spread the message in Jefferson City, but I need your help to show how many Missourians are against thisstimulusnonsense.

What really has me concerned is that many Republicans are feeling pressure from the liberal media and their Jefferson City allies to cave in to these welfare-expanding policies.

You would expect liberals to be all for bigger government, but Republicans too!?

We have to make sure that conservatives don’t go weak in the knees on these D.C.inspired spending sprees.

That’s why I’ve included a petition against this fiscally irresponsible approach to the stimulus.  I want to show my fellow senators, especially in my own party, that Missourians are against this wasteful and misguided spending.

I want to gather as many signatures as possible before next session to show my colleagues that people are against these irresponsible policies!

I also want to ask you to consider contributing so I can spread the message about the big-spending liberals’ wrongheaded plans beyond Clay County.

Remember, if we don’t stand up to the taxandspend liberals now, we’ll be paying for these programs forever.

3 (Over Please)

If you’re as fed up with these trillion dollar deficits and entitlement programs as I am, sign my petition and send a message to the governor:  no more taxes and no more wasteful spending!

To help me spread the message across the state, I’m asking you to send $100 to be a “Stimulus” Buster.  This contribution will help me show my colleagues how much opposition there is to this unprecedented government expansion.

If you can’t give $100, you can join this movement as a “Stimulus” Critic for $75, or for $50 you can join as a   “Stimulus” Skeptic.

The amount isn’t as important as showing support for common sense fiscal policy.  If we don’t stand up for what is right today, we’ll be paying for what is wrong forever.

Sincerely,

Sen. Luann Ridgeway

P.S.  Sign the anti-stimulus and wasteful spending petition enclosed so we can tell the big-government liberals we’ve had enough of these spend-our-way to prosperity policies.

P.P.S. By sending your $100 contribution today and becoming aStimulusBuster, we’ll spread the message of common sense fiscal policy across Missouri.

If you can’t give $100, you could be a “Stimulus” Critic for $75 or a “Stimulus” Skeptic for $50.

The Fed created another Trillion dollars our of thin air today

The fed just “printed” another Trillion dollars today with the goal of buying US Treasury notes.  You know those promises to pay with interest sold by the criminals in Washington.  Let’s walk through this transaction:

1  The treasury prints bonds and declares what they are willing to pay in interest if someone will give them money to use now.

2.  The fed, a private bank with permission to print our money, thanks to the Federal Reserve Act of 1913, conjures a Trillion dollars out of thin air,

3. The Treasury trades the newly minted debt based bonds to the  Fed for their newly minted money that comes at interest.   (Also due to the Federal Reserve Act of 1913.)

4.  The US Government spends the new money into the economy buying internal improvements and paying for external wars.

5.  The private bank called The Federal Reserve gets interest earned in its new bonds, plus interest earned on the new money it loaned to the Treasury, plus the amount of the loan… Nice deal…

6.  The gullible, American consumer, American tax payer, which ever you want to call them, buckles down to bear the burden of saving the economy and getting credit flowing again, which also comes at interest.