In the last seven working days of November, the Bush administration borrowed $103.4 billion from individual investors and foreign countries still willing to loan us money. That’s a record.
This is all money that future taxpayers are going to be forced to pay back someday plus annual interest. It's the same as a tax increase put on your credit card.
What’s more, during November the government drew down $8.1 billion from entitlements in their criminal form of double taxation. We will not know which entitlements, Medicare, Unemployment, Airways, the Federal Employees Retirement System, Military Retirement, or whatever, were drawn down until the U.S. Treasury comes out with its Monthly Statement for November, but it will all be there in black and white just like it is every month.
Since the debt limit was raised $800 billion on Friday, November 18th, there have been several articles about the falling value of the dollar and the very real possibility that foreign nations will eventually seek investment elsewhere. With countries like Japan , Mainland and Honk Kong China, holding a sizable portion of the U.S. national debt and other currencies like the Euro showing more value all the time, this could bring on a financial Armageddon for the US.
More than half of the national debt is in the form of negotiable Treasuries that can be sold or cashed-in at any time. The United States has sworn to honor these securities at any time the holder wishes to cash them in before maturity. All the holders would lose is the remaining annual interest and any profit they might have made if they bought them at discount.
Because the government has no revenue other than taxes, all of this repayment falls on the shoulders of the American taxpayer, and all citizens are not taxpayers. We may have an estimated population of 294 million or so, but less than half of these people pay personal income taxes. That’s why Bush is willing to consider tax reform like a consumption tax that spreads the burden across more people.
For instance, to soften the blow many good hearts will try to pass off the national debt as something like $25,000 for every man, woman, and child in the country which would be true if they all paid taxes. The actual figure is more than $50,000 per taxpayer.
What makes U.S. Treasury securities “the safest investment in the world” has always been the fact that they are backed by every taxpayer in the country. And that applies to the entire $7.5 trillion debt.
The falling value of the dollar is one significant factor that may affect future borrowing, but what happens when the foreign countries that have been loaning us money figure out that it’s all on the taxpayer’s shoulders and most Americans are up to their eyeballs in debt themselves? Do you think they will still view treasuries as the “safest investment in the world?”
Take it one step further.
What do you think will happen when these gracious lenders find out that the U.S. Government has been cheating its own people with a systematic scam of double taxation plus interest and does so with phony trust funds under the false label “Intragovernmental Holdings?”
One of the things we have working in our favor is more than 725 military bases spread throughout 70 percent of the world selling “protection” just as the Mafia sold it to candy stores, dry cleaners, and other retailers when they started building their criminal empire – that plus major stockpiles of weapons of mass destruction spread all over the planet. Do you know where your nukes are? Maybe we can intimidate countries into loaning us more money.
And let’s not forget that our arch enemy, Osama bin Laden, has sworn to “bankrupt the United States” by making us spend a million dollars for every dollar he spends snipping at our heels from ambush just as our forefathers made holding the colonies a crisis for the British Empire.
Do you think this current frn rally is sustainable? Wipes out a few shorts...staves off the inevitable a while longer...2005 could be a "good" year...but it won't last...
Market Data 
Markets 
AI
