The Deficit - An Extincition Level Event?
posted Feb 24, 2004 at 12:12AM
During the presidential campaign George Bush Jr. let it be known that he would bring a CEO's sensibilities to the running of the nation's financial affairs.
Broadcast television failed however to zone in on the fact that Bush Junior bankrupted every company he ever owned. They are now failing to alert the populace that he is doing the same thing to the United States of America.
They dutifully repeat the White House mantra, that deficits don't matter. Pundits dutifully report that the size of the deficit is of little concern to the average American voter.
The IMF however says the growing American deficits DOES matter. History shows that when deficits hit a certain critical mass they matter very much indeed.
Of course it is not the job of the average American to be up on international economics and currency flows. It should however be a prime concern to a government that supposedly champions security, sovereignty and the flexing of American power.
When you own a controlling interest of a company's debt, you basically own a controlling interest in that company. Consider that in November that 72% of US Treasures were bought by five Asian banks. Consider that 50% of US debt is held by foreigners, mostly China and Japan.
The surface story is that these people are propping up the dollar so that the American consumer can keep buying. But in the mean time these countries have positioned themselves in a placer where they can soon dictate American policy.
"Do as we say - or a VERY nasty sell order will be coming down the pipe."
Never mind that if they simply stopped buying US Treauries - that act alone would put the US in a recession of historic proportions,,,,,giving the order to SELL, what is an already wasting asset, would be the financial equivalent of an Extinction Level Event
What is most perturbing is that Howard Dean, the one man who from the outset has campaigned on the basis of fiscal conservatism, the one man who has spoken of the deficit as not just a financial threat, but in terms of national security and sovereignty, the one man who past record shows that he does what he says, is the one man who has been painted by the media as being an vein throbbing extremist.
It just goes to show how deformed the concepts of conservative and right wing have been deformed and perverted by the current crop of neo-conservative spin-meisters and an overly accommodating, unquestioning media