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Old December 9th, 2010 #1
SmokyMtn
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Join Date: Oct 2010
Location: East Tennessee
Posts: 8,506
Default America’s Message To The Rest Of The World......

America’s Message To The Rest Of The World: You Send Us Oil And Cheap Plastic Gadgets And We’ll Send You Our Wealth And Prosperity



Quote:
Have you ever seen pictures of extravagant wealth from places such as Dubai or Abu Dhabi and wondered where in the world they got all that money from? Have you ever read news stories that talk about China lending us hundreds of billions of dollars and wondered how they could possibly have so much wealth? Well, it is actually quite simple. They got much of it from us. Every month, the United States buys much more from the rest of the world then they buy from us. It is called a "trade deficit" and the United States has been running one for decades. In essence, what is happening each month is that we are transferring somewhere between 40 to 50 billion dollars of our national wealth to the rest of the globe and they are sending us oil and cheap plastic gadgets that Americans greedily consume. By the end of the year we have usually transferred somewhere around a half trillion dollars of our national wealth out of the country for good.

In order to maintain our standard of living, the U.S. government has been going to the countries we have been sending our wealth to and has been begging them to loan us massive amounts of their dollars. At this point the U.S. government literally owes trillions of dollars to the rest of the world.

Scoffers say that it is just a bunch of "paper money" that we are sending them, but the truth is that it is hundreds of billions of dollars of "paper money" that is not in the hands of average Americans. We have sent massive amounts of our wealth and prosperity overseas and it isn't coming back unless we borrow it.

Today there are dozens and dozens of U.S. cities such as Detroit, Michigan and Camden, New Jersey that are turning into post-industrial hellholes while thousands of gleaming new modern factories are going up all over China. 42.9 million Americans are now on food stamps (a 16 percent increase in just one year) while the oil sheiks of the Middle East build opulent palaces that are extravagant beyond belief.

Most Americans do not realize how serious the U.S. addiction to foreign oil really is. We are constantly being drained of our wealth by the oil powers of the Middle East.

So what are they doing with all of this money? Well, let's take a look at just a couple of examples.
http://theeconomiccollapseblog.com/a...and-prosperity
 
Old December 9th, 2010 #2
SmokyMtn
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Join Date: Oct 2010
Location: East Tennessee
Posts: 8,506
Default

Another quote from the same article linked above.......

Quote:
In addition, many economists are warning that the tax cut deal that Barack Obama and the Republicans have agreed to will increase U.S. government debt even more. In reaction to the deal, economist Nouriel Roubini recently posted the following message on his Twitter account....

"Obama-GOP tax deal costs $900 billion over two years. US kicking the can further down the road. Are bond vigilantes starting to wake up?"
A recent article on CNBC described what these "bond vigilantes" are....

Bond vigilantes – the term was coined by economist Ed Yardeni in the 1980s to describe major investors who demand higher yields to compensate for the perceived risks resulting from large deficits - could derail the country’s precarious recovery, some economists say.
The truth is that the U.S. government is not going to be able to borrow endless amounts of very cheap money forever.

At some point the U.S. is either going to face much higher interest rates on government debt or the Federal Reserve is going to have to step in and monetize the vast majority of all new government debt.

Either alternative will be absolutely disastrous.

Most Americans just assume that the wealth and prosperity that we have enjoyed for so many decades will always be with us. But that is not the case. We have been exporting our national wealth and our national prosperity so that we could fill up our shopping carts with cheap foreign-made plastic crap and so that we could fill up our cars with foreign oil. It has been a fun ride while it lasted, but with each passing day a national financial implosion draws ever closer.

An economic nightmare is coming.

You better get ready.
 
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