Friday, May 20, 2011

The Bitter Americans: America: For Sale

Be sure to check out the full article here.

Our country is being put up for auction, and due to the corrupted and disfigured state of our Republic, we the people are losing our power to do anything about it. I believe there are two major internal issues which are contributing to the degradation of control U.S. citizens should have over the fate our own country.

The Debt

The escalating national debt is forcing us to borrow more and more money from whoever will lend it to us. We borrow money through selling Treasury Bonds to investors, with a promised percentage return on investment. Since the end of World War II, ownership of debt is no longer peddled to the citizens of the United States. Most Americans have lost the kind of patriotism and loyalty which fueled the success of the bond buying programs in the 1940’s, and probably with good reason. We are taxed too much and we all have seen how badly the government wastes our money as it is, both of which contribute the lack of faith we have in government.

We’ve all heard that China is buying up a lot of our debt. As of October, 2010, China alone possessed nearly $1 trillion ($907 billion) in US Treasury Bonds. Japan, the UK, and Oil Exporters (then next top owners of our debt) possessed nearly another $1.5 trillion together.

Let’s roll back to the late 1950’s for a little history lesson. In 1956 there was a little conflict called the Suez Canal Crisis (or Tripartite Aggression). Essentially, the Suez Crisis was an offensive war fought by France, Britain, and Israel against Egypt to gain Western control of the Suez Canal, a coveted waterway which connected the Mediterranean and Red Seas. The US desired a diplomatic solution to the conflict and condemned the actions of its typical allies. At the time, the US still possessed a significant amount of debt from Britain and France in the form of Treasury Bonds as a result of both countries’ need to borrow during and after World War II. In order to force the withdrawal of French and British forces from the conflict, the United States threatened to sell off its bond holdings – which would have essentially crippled the value of their currency.
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