Who are some of the folks we owe ever increasing amounts of this money to?
* Little Luxembourg, no bigger than Rhode Island, has so far loaned us $104.2 billion. Russia has us on the hook for another $120 billion. Brazil, nearly $140 billion. Secretive banks in the Caribbean, nearly $190 billion...
* And what about those thugs that run Iran, Iraq, Libya, Nigeria, Indonesia, and Venezuela? So far -- along with a half-dozen other oil-producing nations -- they've got us dangling for yet another $191 billion in I.O.U.s, i.e. money we owe them, mainly for the oil we've received from them.
* Then too, Great Britain just loaned us $214 billion. Surprisingly, Washington, D.C. borrowed $523 billion from bankrupt state governments. And, as if the bank bailouts weren't bad enough, we're in hock another $630 billion to Wall Street financial firms and other buyers of government debt.
* Japan owns a $712 billion slice of America. China owns a staggering $776 billion call on our capital. And guess who tops the list? The Fed itself, which used dollars they simply printed up, in order to buy up nearly $5 TRILLION of the government's own debt, just to keep the American prosperity illusion alive: http://www.nytimes.com/2009/03/19/business/economy/19fed.html
To repeat the words of Henry Ford, truer now than ever before:
"It is well enough that the people of the nation do not understand our banking and monetary system for, if they did, I believe there would be a revolution before tomorrow morning."
Like any other big time borrower, we must now face this question: For how long can we pile up "cash advances" before creditors come and ask for their money, or threaten to cancel the credit line? Soon we'll all be paying through the nose, as the swindle moves into high gear, via rising taxes, shrinking dollars, and/or canceled promises like withheld and/or greatly reduced Medicare and Social Security payments.
While our foreign lenders might love having America on the hook, they HATE the idea of possibly never getting paid back anything close to what they lent us. So, when it becomes apparent to them that this may very well happen, they quite naturally tend to lose faith, and start threatening to cut us off. And that's already starting to happen:
* "We've lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets," says China's Premier Wen Jinbao. "To be honest, I am definitely a little worried."
* Meanwhile, Russia has already dumped the U.S. dollar as its main reserve currency. And Beijing says the rest of the world should think about doing the same, as do India and China. In fact, representatives from these four countries arranged a meeting from which representatives from the United States were barred. http://www.globaldashboard.org/2009/06/16/10116/
* During a recent speech at Peking University, Chinese students even burst out laughing at Treasury Secretary Tim Geithner when he called China's dollar-backed assets "very safe."
When lenders threaten to expose our "sham recovery," by not showing up with cash to lend, the bond auctions just mentioned threaten to fail. And at least once this year already, that is precisely what happened.
The problem here is that even one more failed bond auction could signal to the rest of the world that the jig is up, that the U.S. is done for, and that it's time to bring the lend-borrow cycle (that has provided much of America's widespread affluence over the past 30 years) to a complete halt. http://www.atimes.com/atimes/Global_Economy/HC24Dj01.html
With the bailouts and this fake "recovery" already looking like it will cost more than $24 trillion before it's all said and done, the Fed and the Treasury don't want to let any more failed bond auctions show up in the headlines -- which is why they've taken their "swindle" to a whole new level -- by deciding not to just to fake the "success" of the recovery, but to fake the success of the bond auctions that are supposed to pay for it! http://www.blacklistednews.com/?news_id=5643
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