Coldwolf
Feb 20, 2006, 01:03 PM
Strangely, I find myself in agreeance with you guys. Maybe a little bit of a different angle, but still....
The United States is a debtor nation. Yosemite Joy posted several posts a while back about the increasing debt we owe to China. The truth is, we don't have to be attacked to be crippled. Consider what would happen if 2 things happened.
1. The OPEC nations curtail shipments of oil to the US
2. China refuses to buy any more US paper.
Dr. Ron Paul is a Republican member of Congress from Texas.:The federal government issues U.S. Treasury bonds to finance its deficit spending. The largest holders of those Treasury notes â our largest creditors â are foreign governments and foreign individuals. Asian central banks and investors in particular, especially China, have been happy to buy U.S. dollars over the past decade. But foreign governments will not prop up our spending habits forever. Already, Asian central banks are favoring Euro-denominated assets over U.S. dollars, reflecting their belief that the American economy is headed for trouble. Itâs akin to a credit-card company cutting off a borrower who has exceeded his credit limit one too many times.
Debt destroys U.S. sovereignty, because the American economy now depends on the actions of foreign governments. While we brag about our role as world superpower in international affairs, we are in truth the worldâs greatest debtor. Like all debtors, we are not truly free. China and other foreign government creditors could in essence wage economic war against us simply by dumping their huge holdings of U.S. dollars, driving the value of those dollars sharply downward and severely damaging our economy. Desmond Lachman, an economist at the American Enterprise Institute, states that foreign central banks âNow have considerable ability to disrupt U.S. financial markets by simply deciding to refrain from buying further U.S. government paper.â Former Treasury secretary Lawrence Summers warns about âA kind of global balance of financial terror,â noting our dependency on âthe discretionary acts of what are inevitably political entities in other countries.â
Ultimately, debt is slavery. Every dollar the federal government borrows makes us less secure as a nation, by making America beholden to interests outside our borders. So when you hear a politician saying America will do âwhatever it takesâ to fight terrorism or rebuild Iraq or end poverty or provide health care for all, what they really mean is they are willing to sink America even deeper into debt. Weâre told that foreign wars and expanded entitlements will somehow make America more secure, but insolvency is hardly the foundation for security. Only when we stop trying to remake the world in our image, and reject the entitlement state at home, will we begin to create a more secure America that is not a financial slave to foreign creditors. Attribution (http://www.lewrockwell.com/paul/paul213.html)
The Bush administration has run up a 8 trillion dollar debt to foriegn governments. We have ...nothing to pay this debt back with.
So we don't need to be attacked, foriegn governments could cause a total economic collapse just by halting loans to our country, and we need to anticipate this.
Read this one too. (http://www.willthomas.net/Convergence/Weekly/United_States.htm) It was written in Nov 2004, and is more relevant than it was then.
The United States is a debtor nation. Yosemite Joy posted several posts a while back about the increasing debt we owe to China. The truth is, we don't have to be attacked to be crippled. Consider what would happen if 2 things happened.
1. The OPEC nations curtail shipments of oil to the US
2. China refuses to buy any more US paper.
Dr. Ron Paul is a Republican member of Congress from Texas.:The federal government issues U.S. Treasury bonds to finance its deficit spending. The largest holders of those Treasury notes â our largest creditors â are foreign governments and foreign individuals. Asian central banks and investors in particular, especially China, have been happy to buy U.S. dollars over the past decade. But foreign governments will not prop up our spending habits forever. Already, Asian central banks are favoring Euro-denominated assets over U.S. dollars, reflecting their belief that the American economy is headed for trouble. Itâs akin to a credit-card company cutting off a borrower who has exceeded his credit limit one too many times.
Debt destroys U.S. sovereignty, because the American economy now depends on the actions of foreign governments. While we brag about our role as world superpower in international affairs, we are in truth the worldâs greatest debtor. Like all debtors, we are not truly free. China and other foreign government creditors could in essence wage economic war against us simply by dumping their huge holdings of U.S. dollars, driving the value of those dollars sharply downward and severely damaging our economy. Desmond Lachman, an economist at the American Enterprise Institute, states that foreign central banks âNow have considerable ability to disrupt U.S. financial markets by simply deciding to refrain from buying further U.S. government paper.â Former Treasury secretary Lawrence Summers warns about âA kind of global balance of financial terror,â noting our dependency on âthe discretionary acts of what are inevitably political entities in other countries.â
Ultimately, debt is slavery. Every dollar the federal government borrows makes us less secure as a nation, by making America beholden to interests outside our borders. So when you hear a politician saying America will do âwhatever it takesâ to fight terrorism or rebuild Iraq or end poverty or provide health care for all, what they really mean is they are willing to sink America even deeper into debt. Weâre told that foreign wars and expanded entitlements will somehow make America more secure, but insolvency is hardly the foundation for security. Only when we stop trying to remake the world in our image, and reject the entitlement state at home, will we begin to create a more secure America that is not a financial slave to foreign creditors. Attribution (http://www.lewrockwell.com/paul/paul213.html)
The Bush administration has run up a 8 trillion dollar debt to foriegn governments. We have ...nothing to pay this debt back with.
So we don't need to be attacked, foriegn governments could cause a total economic collapse just by halting loans to our country, and we need to anticipate this.
Read this one too. (http://www.willthomas.net/Convergence/Weekly/United_States.htm) It was written in Nov 2004, and is more relevant than it was then.