Where is Our Government Leading Us?

Foreigners holding rights to U.S. dollars (U.S. Treasury bonds) no longer believe that investing in the U.S. monetary system has future prospects. They have recently taken losses by selling long term U.S. Treasury bonds. Why losses? Because no one wanted the bonds except the U.S. Treasury, who was forced to prevent a free fall in value, in order to continue what increasingly appears to be a complete bailout and stimulus fraud. The U.S. spending policy has transparent revealings to everyone but the sleeping or brain washed American electorate. We continue to plunge headlong toward full blown uncontrollable bankruptcy of our entire country.

European governments had been urging Obama to clean up our Wall Street mess, as their economies have been hit hard by the economic slowdown that everyone knows was caused by the demon derivatives. Now the European governments have no choice but to prop up their own monetary systems by retrieving their investment in long term U.S. Treasuries. British politicians are feeling the heat from their own constituencies, who are knowingly fed up with government gullibility in not dealing realistically with their situation.

The U.S. has had a reprieve of sorts, by the fact that the Chinese government has a vested interest in the U.S. monetary system. It is the U.S. consumer who provides the majority of the growth funding for the Chinese economy, by consuming a large portion of Chinese goods. The Chinese reinvested some of the proceeds of their long term U.S. Treasury bond sales, but only after the U.S. Treasury offered short term bonds for interest rates it was forced to pay.

This was a response to the Treasury Secretary Geither’s visit to China, where a usually polite Peking University audience snickered at his assertions that the U.S. government was taking necessary measures to protect the U.S. dollar. The Chinese know all about how to keep the power of money out of the hands of its people. It’s not hard to objectively perceive the Treasury tactic I have pointed out to you in a previous article of mine, The Destroying of the Dream on May 27, 2009. The government is poised to bankrupt the U.S. monetary system at will. Complete monetary power does not need a free market monetary system. It just needs taxation power.

Any currency the Chinese government can control in China will serve their purpose. The Chinese are now flexibly poised for the future. The U.S. market is not the only large market in the world. India is enjoying robust growth. It is a beneficiary of employment cutbacks in Europe and America. Improving computer technology is facilitating the transfer of jobs to India.

Not only is the U.S. government trashing our free market monetary system, it is destroying the economic psyche of American savers who are trying to live the American dream. Consider that, utilizing taxpayer money to control General Motors, the government used controlling corporate power to ban “Mom and Pop” bondholders from reorganizational planning meetings. Disregarding “Mom and Pop” bondholders preferences under bankruptcy laws, the government gave legally inferior contractual debtors (labor unions) the more advantageous position in reorganization. This blatant political payback to a controlled voting block, ignored the systemic structure of society that recognizes the rights of a worker to the fruits of his invested savings. Thwarting a basic natural law of civility with political corruption is insanity. It is interesting to note that the “fat cat” bondholders were not given the same shoddy treatment.

Individual investors throughout the Unites States are not going to be indifferent to such an outrage. Are you going to invest your earnings in corporate bonds with government running amuck in our American society? Is such an outrage just another government tactic to insure that everyone follows their lead to spend, spend, spend? What could be more damaging to the operation of a free market? But remember, anarchy doesn’t need a free market, only monetary power.

If the American public were paying attention they would be witnessing the dismantling of a free market monetary system (impending systemic bankruptcy), the destroying of the dominant world free market economy and the creation of a run of the mill anarchy, dictating the use of the U.S. dollar.

Can you believe that’s what the majority of Americans want? It’s not what I want for my grandchildren. There is much to clear up in Wall Street, but we need to reign in the government now. The spend, spend, spend policy must be stopped in its tracks. It will destroy the American economic system and remove the underpinnings for the achievement of economic growth and justice for all citizens.