There are two great debts the American people have, yet there is only one debt that the nation talks about. These twin debts are the national debt–money borrowed from the nation against itself compiled with money borrowed from other nations–and the trade deficit–money given to other nations for imported products and services that will, at some point, come back to buy out the United States.
By Benjamin Clement as posted by Lorimer Wilson, editor of munKNEE.com (Your Key to Making Money!), FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the Intelligence Report newsletter (It’s free – sign up here).
The national debt is staggering as it is. And it’s growing. Yet half of it exists due to America’s system of money creation. The combined $2 trillion owed to China and Japan is vastly larger than the U.S.’s third largest debt holder, but not as large as the debt the nation owes itself.
Compare that $2 trillion to the $7.4 trillion trade deficit from 200-2011. This money is still floating out in the world, and when that money returns to the United States, it is not used to invest in America. It is used to buy out American assets.
These twin debts continue to grow, destroying the American economy.
“I place economy among the first and most important virtues, and public debt as the greatest of dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt. If we run into such debts, we must be taxed in our meat and drink, in our necessities and in our comforts, in our labor and in our amusements. If we can prevent the government from wasting the labor of the people, under the pretense of caring for them, they will be happy.”
– Thomas Jefferson
Wise words from a Founding Father, but America has outsourced its jobs. If there were jobs, there would be money from taxes. Little to nothing is made in the U.S. anymore. Without jobs America borrows money from the same very nations it has sent all of the good paying jobs to.
This is why the economy should be seen as our first line of defense; America is now indebted to the nations from which it gets the imports its citizens need to live. Without a strong economy the United States becomes reliant not on itself, but on others for its livelihood and, ultimately, its freedom. How can a nation keep itself free if it cannot stand on its own?
““I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war.”
– Abraham Lincoln
We have seen Lincoln’s fears realized. Multinationalist and corporate empires have sold out the United States for a quick buck. They pay good money to Super PACs that help send the politicians they need to Washington, where those paid-for politicians can ensure the continued wholeselling of America.
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It is these very multinationalists and corporations that push the “free” trade agenda that has been raising our trade deficit over the past two decades. They do not worry about America–their loyalties lie only with wealth. Once America dries up, they will simply move on to greener pastures, leaving Americans with the burden of paying back these debts.
“”Freedom is never more than one generation away from extinction. We didn’t pass it on to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same”
– Ronald Reagan
When asked who will fight for jobs, to end the nation’s dependance on foreign debt and toxic imports, the answer should be American citizens themselves. Rather than tell children how great America was, citizens should want them to see America’s greatness for themselves and preserve it for the next generation.
It’s up to the concerned and critical-thinking among us to look at the math, the hard data underlying the headlines, and construct what we can best calculate to be true [about our current personal financial level of (un)readiness for the future] and the truth is: the three adult generations in the U.S. are suffering, and their burdens are likely to increase with time. Each is experiencing a squeeze that is making it harder to create value, save capital, and pursue happiness than at any point since WWII….[Let’s]…walk through the numbers. Words: 2332
I read many hundreds of articles every week looking for writers who have an in-depth understanding of our economy and who are not reticent to tell it like it is. Monty Pelerin (a pseudonym) does just that week after week, year after year. This post includes introductory paragraphs and links to 25 of his most enlightening and current articles. Take a look. There are bound to be several that will grab your interest.