The Bitter Americans: America: For Sale

Be sure to check out the full article here.
http://www.thebitteramericans.com/2011/05/america-for-sale.html


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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Dollar at Risk of Crashing, Triggering Inflation: Strategist - CNBC

http://www.cnbc.com/id/40007252

By: Jeff Cox
CNBC.com Staff Writer

Federal Reserve policies have put the US dollar the risk of crashing, which will hammer consumers through higher prices, strategist Axel Merk told CNBC.

Investors should brace for a much weaker dollar [.DXY  76.59    0.71  (+0.94%)   ] by diversifying out of the greenback and into currencies of other countries, said Merk, chairman and chief investment officer of Merk Investments, of Portland, Maine.

Merk spoke the day after the Fed said it will be embarking on a program to buy $600 billion in Treasurys in an effort  to pump up the economy by increasing liquidity. Critics say the program, also known as quantitative easing, will further devalue the dollar and ultimately create inflation.

"It's with the best of intentions but I think it's a very, very wrong policy," Merk said in an interview.

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More than all the Tea in China | Capitol Commentary

http://capitolcommentary.com/2010/09/07/more-than-all-the-tea-in-china

China, America's banker.

The United States is a debtor nation and China owns about $1.00 for every $10.00 of U.S. debt.  Politicians might be very trendy today calling out U.S. banks for having been so reckless in their spending but, ironically, now China is doing the same thing to our politicians in Washington, D.C.  China has always bought U.S. debt in the form of Treasury securities and now is the largest holder of U.S. debt in the world having recently surpassed Japan.  One of the many differences between Japan being the largest U.S. debt holder and China is that we did not write China’s constitution and do not have military bases in their country.  With the massive spending bill having been signed into law by President Obama ($787 billion and counting) China is getting antsy that America is squandering their resources:

“We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I’m a little bit worried,” [Chinese Premier] Wen said at a news conference following the closing of China’s annual legislative session. “I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets.”

So this is what has become of such a fine nation as the United States!  To be fair to President Obama, reckless spending of taxpayer monies did not begin under his administration but he certainly did not improve the situation by signing into law the largest spending bill in the history of this country, a sum larger than the total costs of the war in Iraq and Afganistan.  As when any bill collector calls there were soothing words in response:

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China Holds More U.S. Debt than Indicated

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clipped from newsmax.com Despite recent government reports that China's holdings of U.S. Treasury debt declined during the second half of last year, the Asian economic giant almost certainly owns far more Treasury securities than official statistics indicate. After peaking at $801.5 billion, China's holdings of U.S. Treasury securities declined to $755.4 billion at the year's end, dropping the communist power into the position of second-largest holder of Treasury debt after Japan's $768.8 billion, official government data reveal. Mr. Johnson, a former chief economist for the International Monetary Fund, estimated that China owns about $1 trillion in U.S. Treasury securities, or nearly half the $2.37 trillion stock of Treasury debt held by "foreign official" owners. He argued that the "balance of terror," which was connected with the nuclear policy of mutually assured destruction adopted by both adversaries, proved to be "a source of stability."

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