Wednesday, May 22, 2013

U.S. National Debt

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by Morley Evans

How much does the U.S. National Debt increase every day? 3.7 BILLION DOLLARS of new money is printed every night by selling new debt to foreign countries which have acquired mountains of US dollars in payment for foreign-made goods Americans have purchased and by selling some of the debt to the Federal Reserve which makes dollars out of thin air to buy U.S. debt instruments that are also created out of thin air. How do they think they can get away with it? They can't. Flight from the U.S. dollar is underway. Gold was frozen at $35 an ounce in 1970. Gold would be over $2000 an ounce today, if the Fed were not manipulating the price of gold with naked shorts to try to protect the dollar by showing gold is a poor investment. The Chinese, Russians, Indians and others are not fooled. They are buying gold at the low prices the Fed is creating to save itself.

Why don't we have hyperinflation like the Weimar Republic had before Hitler came to power? We already have lots of inflation, but most of the money the Fed creates is still locked up inside the Banks That Are Too Big To Fail. They are using it to pay stupendous bonuses to banksters and to buy banks that are not too big to fail. As the Left has always said, the rich keep getting richer while everyone else is getting screwed big time.

Prices stay relatively low and stable because the Fed keeps interest rates at next-to-zero and Americans are buying foreign-made goods manufactured by workers who are paid as little as 17¢ an hour who are doing the work American workers — now unemployed — used to do for $30 an hour, or more. American executives who have off-shored American jobs are pocketing bonuses and profits along with shareholders.

American productivity has increased by dumping American workers in favour of very low-priced foreign workers and installing high-tech manufacturing equipment in the United States. This reverses the economic revolution that Henry Ford began when he raised the wages of Ford workers to an unheard of $5 an hour in 1914. If 99% of the people have no money, who will buy the products? 1%? European countries are facing similar problems that are exacerbated by the Euro and the banksters.

Vassal countries like Canada are tied to the U.S. dollar and its economy with a ball and chain. Whatever they might think, Canadians are not independent. What happens to Americans, always happens to Canadians. The Bank of Canada admits it has no gold and yet they are so proud of how well they manage Canadian affairs! Where did Canada's gold go? They sold it. Ontario and Québec are part of the rust belt.

"This past fiscal year, the Treasury has increased the net debt of the federal government at an average rate of $3,699,744,466.56 per day. That works out to an annual increase of $1,354,106,474,762.13 in new debt. This is the fifth consecutive year that the government has spent a trillion dollars worth of new debt into existence." read more

Source: Forbes

Those who are unaware of the true history of the United States will grieve its demise. Those who know this history will sigh with relief. The end may not come with a bang but with a whimper. That is how the British Empire died. When the U.S. dollar is no longer the world reserve currency, it will be over for Washington and his empire. Americans will survive and build a new country built on freedom and justice. Americans will build the country they were promised in 1776, the country that has been betrayed by its leaders for over two hundred years.

Paul Craig Roberts:

1 comment:

Helen Tobias said...

You have shared very nice post. It was a big fun to read about "How much does the U.S. National Debt increase every day". America's currency has come up on top, a good new for Americans while Canadians are not independent.