U.S. To Be Sold

Like some sprawling conglomerate that can no longer meet its obligations, the United States is about to get broken up and sold to the highest bidder. So, we need to stop teaching Spanish in schools and switch to Chinese.

In less than two decades our nation has leveraged itself into bankruptcy. There is no actual capital in our banking system—none, except for local banks who stuck to their knitting, and did things the old fashioned way, with common sense.

Until now, financial institutions have been able to borrow money from the Fed at will. They have been allowed to give artificially high values to loans and assets they hold. If they were forced to fess up, and declare the true value of these assets, banks would have to call in all their good loans. That would shutter the nation faster than an alien invasion.

As our nation’s debt swells toward fifteen trillion (yes, Martha, trillions) our country is printing money as fast as the computer keys will move. Until now, we have been able to do this with low interest rates, as the world hunkers down and seeks safety in their investments. When all else is in the crapper, buy American. Unfortunately, this bunker mentality will not last for long. And when fear subsides, interest rates will spike. This will slow down business, as it becomes more expensive for companies to borrow. The Fed will be faced with the choice, to print money from thin air (with no one buying it) or pay higher and higher prices to lenders.

Just so we understand what we are talking about, let me do the math. The debt service on fifteen billion dollars (at 5%) is $750,000,000,000 per year. Seven hundred fifty billion per year. That is a lot of annual deficit.

Now, some of you may try to argue that our national debt is half that amount. You might say we shouldn’t include the five trillion we are guaranteeing for Fannie and Freddie. We shouldn’t include the trillions we are injecting into the nation’s banking system, or the amount for the coming national bank, the trillions more that we will have to spend to fix the damn system.

We aren’t in Kansas anymore, people! Wake up. This is real.

Our Congress is going to be faced with a no-win proposition. Borrow more and more money, even as we increase spending on entitlements, or print it and suffer with the inflation.

Look for a movement to sell our nation to the highest bidders, China and the Middle East. That’s right, Dorothy, look for the solution to be selling us out. Look for a movement to nationalize our nation's retirement system, because thieves go where the money is.

Imagine a national bank that holds a few trillion dollars in mortgage assets. Taxpayers are complaining about higher and higher taxes, a crumbling economy, etc. So, we go to China and say, “You know that $1.7 trillion you have in U.S. debt, that little piece of paper that says we’ll pay you a hundred billion a year in interest? How about we just swap? Our nation’s houses for your paper.

Now, it won’t happen that way, not our in the open. It will happen in subtle ways, a little at a time, until the sale is over. Even now, China is warning us not to protect our workers against cheap Chinese goods. They have us by the balls and they know they can bring us to our knees.

I will continue this discussion in later blogs, because it is something we have to understand before it is too late to save ourselves.

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