Under the Obama administration the reputation of the United States has weakened to such an extent that the world no longer holds us in high esteem; they can’t take us at our word. For defending Eastern Europe, forget about it, for defending our borders, forget about it, for defending Israel, forget about it and last but not least, for defending our Constitution, forget about it. We are a paper tiger sword rattler. The world no longer sees the United States as a player on the world stage. We have become in less than six years a truly banana republic. This is of great concern to all of us; our future is in doubt.
Eighteen trillion dollars in debt owed to the company man. But behind the scene another story is evolving. Nations waiting in the wings begin to see a crippled country – some are in the planning stage waiting to step into the void. We have wall papered the world with worthless currency and have very little means to pay it back. 1933 eliminated the citizens right to change dollars for gold, in 1971 the elimination went full circle for good; the gold window was closed, dollar convertibility was not longer available to foreign countries.
From 1950 to 1969, as Germany and Japan recovered, the US share of the world’s economic output dropped significantly, from 35 percent to 27 percent. Furthermore, a negative balance of payments, growing public debt incurred by the Vietnam War and Great Society programs, and monetary inflation by the Federal Reserve caused the dollar to become increasingly overvalued in the 1960s.
By 1966, foreign central banks held $14 billion, while the United States had only $13.2 billion in gold reserve. Of those reserves, only $3.2 billion was able to cover foreign holdings as the rest was covering domestic holdings.
Of little notice though has been the parabolic climb in our national debt – from a paltry $1 trillion to the $18 trillion of today. There is no stopping this explosion by big government. But that is half the picture, the other half is our growing entitlement state.
The parasitic moocher enabled by the progressive mindset of criminal politicians will bring us down quicker that a pheasant hit by a hunter’s shotgun.
The basement fire has been smoldering for years but now the first floor is engulfed and in the not too distant future it will be too late to save the building as flames reach the attic and burst through the roof. Many of us, the ones who made prior preparations will come out of this unscathed, but the others will go down in flames.
The United States has a choice, the proverbial “Y” in Yogi Berra’s road, but will they take it. The answer is no. They will continue to spend on entitlements fearing the inner city torch – a scant allocation for military upgrades will test the readiness of our military; putting this scenario into the proper prospective one has to look at China’s military buildup. They are testing our resolve in the South China Sea. Our response so far is minimal. Further ventures are expected. Japan is worried, manifested by their defense policy realignment.
And we must not forget that China is our biggest creditor, you really don’t want to chill their appetite for worthless dollars. And they are worthless, China knows that more than anybody else. How so? They immediately exchange them to unwitting buyers for oil, minerals and other hard assets, while we continue the printing. China has patience that we can ill afford. The clock is running and we are being shut out.
What brings us to this most pessimistic conclusion is the recent deal China struck with South Korea. Patience is a virtue in Asia, small steps lead to great things. After all the Great Wall was not built in a day. What the future can expect is more convertibility in yuan and less in the once almighty dollar. The long term consequences are an Argentinian style regime where interest rates compete with the highest mountains in the Andes range. There is always calm before the storm.
We are fast approaching the stage of the ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force.
The New Boston Tea Party where “REVOLUTION IS THE SOLUTION”
“May a Piece be With You”