That assumption did not figure into the USA incurring runaway deficit spending, chalking up debts to the tune of US$39 trillion and impossible to pay back. Oh yes, the USA is still in denial about the falling demand by countries to buy its debts. Sure, two thirds of USA debts are carried internally in the books of USA pension funds, hedge funds, big banks and even the Federal Reserve. Imagine the Federal Reserve buying up huge chunk of USA debts itself, basically the right hand borrowing from the left hand. Can this really be sustained?
The system is surviving on ICU, and every effort is made to ensure it does not collapse. Any collapse of the USA's ability to fund its debt, with interest payments now exceeding US$1 trillion alone, is going to, realistically, bring the USA back to the stone age. How much more interest can the USA afford to pay as the debt continues to rise? Any default by the USA means pensioners will find their retirement funds wiped out, investors in hedge funds will find themselves clutching at toilet papers, depositors in big banks will find their money turned to dust and property prices will tank which will decimate most banks.
Of course, with all the financial wizards holding the reins of the USA's purse string, nothing of the kind that I am talking about is going to happen. They still claim that the debt ceiling will always be extended till kingdom come. Let us hope the kingdom holds the pieces together long enough. As the saying by Abraham Lincoln goes - you can fool some of the people all of the time, and all of the people some of the time but you cannot fool all of the people all of the time.
Anonymous
1 comment:
If the USA Empire is built to withstand all eventualities and expected to last forever, why is the USA afraid of Japan collapsing or selling its treasury holdings? Why is China's rise making the USA nervous and paranoid? Tell me why.
The USA knows that its long-lasting empire is just a figment of the imagination of its misguided leaders. When the USA had to keep down the rise of Germany and Japan, the signs were already there that immortality of empires is just a mirage. The taking down of Saddam Hussein using fabricated evidence of weapons of mass destruction hogwash was another indication of how paranoid the USA was when Saddam Hussein wanted to sell oil in Euros. And that was also why Maomar Gaddafi was taken out as well.
Now, taking out China is a different kettle of fish. China holds most of the cards in rare earth, manufacturing, a market that even the USA needed, an economy that is going to overtake the USA and a military that is undergoing continuous upgrading. China has the deep pocket to do so, with more than US$3.2 trillion in reserves, with gold taking center stage now, unlike the former Soviet Union, Germany and Japan. What really upended the USA's attempt to cripple China was pushing Russia, a nuclear power, into the arms of China. That move created a military alliance that the USA could not even want to confront directly.
The USA had been using Russia as a pawn against China for decades, but the Ukraine War put paid to that agenda. Pushing Russia out of the G7 and sanctioning Russian energy was the straw that broke the camel's back for Putin. Now, Putin is not a weak leader like Gorbachev, who was arm-twisted around the fingers of NATO and lied to about NATO's expansion Eastward.
Now the USA is using its doggies and mickeys to go up against China, fabricating all the doom and gloom regarding China's rise. Thankfully, what had been espoused about the China threat has been seen as propaganda fabricated to make China look bad and evil. Countries took such demonization with plenty of salt nowadays. Give a dog a bad name and then skin it has been the USA motto all over the decades.
Post a Comment