Posted on 12/02/2012 6:53:14 AM PST by Libloather
National Debt Is Still the Biggest Threat to Our National Security
Dr. Ileana Johnson Paugh
Friday, November 30, 2012
“An unlimited power to tax involves, necessarily a power to destroy, because there is a limit beyond which no institution and no property can bear taxation.” – John Marshall
Americans are in denial about the simple fact that our national debt is the biggest threat to our national security. National debt grew exponentially from Washington’s profligate deficit spending, recessions, and wars.
**SNIP**
Our national debt has exploded in the last four years. During President Obama’s first three years in office, it grew by $4.7 trillion, an increase of 45 percent. (factcheck.org)
Our current policy seems to be putting pressure on the U.S. dollar until two options remain - default on the U.S. debt, or monetizing it by printing more money. If we default, as in any case of bankruptcy, creditor nations would demand payment in American assets – our oil fields, mines, land, parks, monuments, buildings, military bases, and even the indentured servitude of generations of taxpayers.
(Excerpt) Read more at canadafreepress.com ...
$20 TRILLION? $100 TRILLION? When does the 'oh crap' moment arrive?
Now ego and political philosophy are driving things—soon events will come forth and drive decisions. I hear the hoofbeats of the four housemen of the Apocalypse growing louder with each passing day. War is on the horizon—grim and terrible war on the scale of the 1941-45 war of the Great Generation. Things like the Fiscal Cliff, and the return of the draft will be as nothing. The nation will be divided no more once cities start to be attacked and many thousands are buried in lead caskets.
The definitive outer “oh crap” limit is debt service payments. When monthly interest on the debt exceeds monthly revenue, it’s over. Nobody is going to loan money to someone just to pay other loans and rack up more debt in the process. AFAIK, debt service is about 20% now. Of course, the breaking point comes before then; that’s just the absolute outer limit.
Obama will get a stranglehold on every economic channel as possible and then shortly before his second term expires, he will crash the whole country and seize total control of the ruins.
Watch...
Gee, I thought “global warming” was the biggest threat. (sarc)
I honestly tried to post a pic saying “Too Much Is Never Enough”.
All my search came up with was fat porn...
The “Oh crap” moment arrives when the rest of the world admits the US dollar is “Not worth a Continental” and starts pricing oil in something other than US dollars.
Remember what BO said his first cut would be if the R's did not raise the debt ceiling? Seniors SS checks and then the military personal's paychecks.
The mathematics of the situation are this; the exponential numbers of the welfare state are about to kick in, on steroids.
The Cloward-Piven/Alinskyites have succeeded in overwhelming the system. The last dominoes just haven't started falling yet.
We can't salvage what used to be the United States of America. We can only be prepared to deny the Cloward-Piven/Alinskyites control when the chaos begins.
We need to start talking about how to win the chaos after the collapse. The ruling-class oligarchy plans on killing as many peasants as possible, the way they always do. They will shoot a lot of them, and starve a lot more.
The only question is, how do we deny them control of the chaos they have engineered?
How do we make them the victims of their own chaos?
We’re going to crash.
The people giving us this money aren’t going to do it forever.
Currently, Zimbabwe is #1 globally at 235%. Japan is #2 at 208%. There is no shortage of news stories out there detailing Japan's coming crash. (eg, see here)
5 years ago, just after Pelosi and Reid took over, the US was in the middle of the pack, at around 55%. Our total debt was $8 Trillion, and our GDP was about $14 Trillion. (Germany and the EU both hover around 80%. Most of out post-WWII history was about 25-40%, but when the GOP got all 3 Houses, they stupidly decided to try some extra deficit-spending.)
Today, thanks to the Left shooting us up the charts, we are at about $16 Trillion in debt, with a $15 Trillion GDP to reach 105%. We just surpassed Sudan's 103% to get into 11th place (out of 242) on the globe... and Obama is pretending his re-elction is a mandate for more.
While we are racing into some untenable positions, I do not think it will be the US that starts the global crunch. Japan is mere months away, and their collapse will certainly affect any nation in a highly interest-sensitive position... like the US.
Greece is at 165%, but they are small enough to not be a factor (like Zimbabwe), and they have a VERY generous Germany to come to their aid. However, Japan does not have an economy 10 times its size to come to its rescue. China, US, and the entire EU combined are barely 9 times its size... and I don't see China being in a rush to help their hated local rival, let alone getting all of the EU to agree on anything.
As per the above link, if interest rates climb just 2%, Japan's entire tax revenue stream will be eaten by interest payments. Once they collapse, prices here rise sharply. With the increased interest rates, inflation goes up, so that the value of the dollar also decreases. Welfare benefits could go up, but the purchasing power will be far less, so the poor will start getting "itchy" in short order.
It's coming folks, and that right soon... and those who are only looking domestically for signs of how the SHTF are going to get just as surprised as those who are paying no attention at all.
(FYI: China has ZERO social programs, has the same 40% debt-to-GDP ratio that we had in the post-war boom, and they have been investing in many resource-rich areas for the past 2 decades. Guess who will come out on top once the US and Japan come crashing down thanks to just a moderate 2% rise in interest rates...)
How much is too much?
We will find out in the near future. I guess when China quits buying
Our bonds. These DC bloodsuckers are not capable of solving what
They have created.
Financial Stewardship File.
China quit buying our bonds several years ago.
The only current buyers of our bonds are holders of Euros ... and ... the Benbernank.
That’s nice.
Who’s going to pay our current debt?
” - - - control of the chaos - - - “
‘’When one is up to his a**hole in Alligators, it is oft’ times difficult to remember that the original intent was to drain the swamp.”
So here we are in America, ‘soft on Communism’ as we were warned about 60 years ago, and wondering why, who, how,what, when, and where did we get on this wrong track Communist swamp buggy?
Thus, it is well that we review where are by pondering the, [slightly modified], words of historical wisdom from the flagpage of a VERY wise FReeper as follows:
“The Ten Planks of Karl Marx’s Communist Manifesto,
(and How Statists Implement Them):
1.) Abolition of private property rights, (via high property taxes, restrictive zoning laws, “fair housing” edicts, environmental and “wetlands” regulations, UN Agenda 21, etc.).
2.) Institution of a heavily graduated income tax, (by calling it “taxing the rich”).
3.) Abolition of all rights of inheritance, (through a confiscatory estate tax on “the rich”).
4.) Confiscation of the property of enemies of the state, (through lawless application of asset forfeiture and eminent domain).
5.) Centralization of credit into the hands of the state, (Federal Reserve, Federal Trade Commission, TARP, FHA, Fannie Mae, Freddie Mac, federal takeover of student loans, etc.).
6.) Centralization of the means of communication and transportation into the hands of the state, (FCC, DOT, FEMA, NTSB, FAA, etc.).
7.) Consolidation and subjugation of all major industries to central government control, (FDA, EPA, OSHA, ICC, HUD, NLRB, EEOC, DOE, TSA, Medi’care’. Medic’aid’, Obama’care’, etc.).
8.) Mandatory labor union membership, (”card check” to bypass employee consent, automatic withholding of union dues, forced unionization of health care workers, teachers, police, firefighters, etc.).
9.) Equitable redistribution of all wealth, (TANF, SSI, EITC, SNAP, etc.).
10.) State controlled, but “Free” public education, (and food, housing, health care, cell phones, Internet access, etc.).
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