America's Debt Revisited

America’s Debt 
 Revisited.

Oops the caption is incorrect the figure today stands at 17 and a half Trillion .................and counting.

You might remember a while ago I discussed the American debt problem. It appears the American Treasury did not read or heed my advice as their debt has blown out considerably since publishing my last editorial. Many western countries are drowning in debt and rely on the Global Mafia-like lending institutions to borrow money. In our house we are not in debt. My wife is a very prudent person and is very careful with our finances, always has been.

Early in our marriage we knocked our 25 year house loan off in 3 years, it goes without saying our bank was not too happy about this achievement and discussed with their Head Office in the city whether or not to charge us an extra fee for a short term loan rather than a house loan. As no-one had accomplished this feat before in the banks history of turning a long term loan into a short term loan it was not written into our contract so they decided not to pursue it.

We are discussing America’s debt here. I know debt has value to our bank because they are always phoning and sending demanding letters to my boy requesting he pay off some of the money on his Credit Card loan. He will not let his mother take care of his finances so he will remain in debt for ever and ever or for the term of his natural life whichever comes first.

Our government should have made my wife the Ministeress of Finance then they would have not found themselves in the trouble that are in now giving our taxpayers money to failed countries in Africa or inviting in the rest of the world in as permanent house guests.

Back to America’s debt, if I could freeze frame the American National debt clock it would sit around $17, 700, 000, 000, 000. What is even more impressive is the National total US Unfunded Liability, sitting at $123, 290,674,000.000, yes that is in TRILLIONS. Let us round these figures up.

American owes the Federal Reserve Bank; a very private and elite consortium of bankers $18 trillion; let us forget the Liability bit.

Interestingly the U.S. debt jumped more than $300 billion last year on the first day the federal government was able to borrow money under the deal President Obama and Congress sealed last week. What keeps this scheme alive is that the American Dollar is the preferred currency to purchase petrol, in fact wars have been contrived to make sure this remains the case. It is called the Petro Dollar.

The Federal Reserve Bank does not have this sort of money lying around but they do have some very heavy-duty printing presses that can print this sort of money 24 hours a day without getting hot and breaking down, then lend it to the American Tax payers via the American treasury and charge them interest on the money they have just printed.

It is a great Ponzi scheme and I am surprised with the best money people in America not one person on Wall Street has rumbled this, perhaps it is because they are all players. My wife would have picked it up years ago.

Let me approach from another angle. A Dollar note weighs close to a Gram. A million dollars in one dollar bills comes in at a little over one ton. 18 Trillion Dollars in weight is close to 18,000,000 Metric tons.

Now the Nimitz is a Super Aircraft Carrier of the American Navy and weighs in at 100,020 Tons. You know where I am going with this I am sure. I will remove some unnecessary 20 Tons of superstructure here and there and drop the weight down to 100,000 Tons for ease of calculation as my maths are not the best, although my wife’s are.

Simply put, America’s national debt in one dollar bills is equal to the weight of 180 Nimitz’s. The Chinese have discovered a way to turn this debt into a profit and is prepared to buy up America’s paper debt to achieve this. $18 trillion debt might sound a lot but from the Chinese point of view it is only worth its weight in debt.

China is the big power-house which will soon rival America in power and economic growth if they have not so already. They have achieved this in a comparatively few short years, they have foresight, industrial knowhow and national drive. They also see gold in worthless paper.

As a matter of interest China holds officially $1.1 trillion in U.S.-government debt instruments, which comes up to $2 trillion if you include nongovernmental securities and Chinese purchases through other jurisdictions. The reason why Beijing has purchased so much U.S. debt is not benign. It’s the result of China’s policy to encourage exports by holding down the value of its currency, the yuan.

It is all to do with Futures and things. The Chinese realise as with oil there is going to be a huge shortage of paper in the future.

With the destruction of the land desecrated by the mining of Shale oil and the deforestation of land due to the planting of ethanol producing plants American Debt which has no real monetary value does have value as a recyclable paper product of 18,000,000 tons and is going to be worth a lot of money in the future.

It appears only my wife and I can also see what China is up to but unfortunately I cannot get in on this mammoth money making scheme because it will take up all my savings.

After the deforestation of much of Australia’s forests and turning them into wood-chips to fuel China’s power stations China then saw the opportunity of buying trillions of Dollars of America paper debt as an alternative product for fuelling their power stations when the coal runs out, as opposed to buying America’s recyclable plastic bottles cardboard and Polystyrene and stuff, and I have no doubt they will profit handsomely in the future as a result of their foresight.

Does this make any sense?