The U.S. Now In The Weakest Position Of Foreign Debt Since The 13 Colonies
Back when American Revolutionary war leader George Washington wanted to establish a government independent of British rule, the U.S. had no viable tax base to establish either a government or to fund a poorly equipped and organized 5,000 man American army. The 13 Colonies were a weak opponent to highly organized and better equipped British Army of the King of England.
Since George Washington had little real tax base to fund any viable military to defend the 13 Colonies against the British army he needed a source of funding. Jewish Prussian businessman, Haym Solomon was a friend of George Washington and offered to secure massive no-interest loans to the government and army of George Washington in exchange for religious freedom for Jews in America. Wealthy European families such as the Rothschilds and Sassoons loaned the U.S. money as well as hired a well equipped and trained 7,000 man mercenary army to win the Revolutionary War for the U.S. While the American army had suffered severe setbacks such as at Valley Forge, the professional army of mercenaries was able to create huge military defeats for the British. All these wealthy Jewish families who loaned money to the U.S. government wanted in return was religious freedom for Jews in America.
Toady the U.S. is in a similar weak condition. The war in Iraq is being fought with a military budget of $419 billion dollars, with 40% of the soldiers poorly trained and equipped National Guard members who have less combat skills than the U.S. Marines, and face severe equipment shortages of radios, body armor or even ammunition.
The U.S. Treasury will take in $2.2 trillion dollars, but this is dwarfed against a $8.1 trillion national debt. In order to help pay for the huge national debt created by this U.S. Treasury shortfall, the U.S. offers billions in bonds to sell at government auctions. Nearly 50% of these bonds are purchased by foreign interests or even official state banks. Japan holds $682 billion in U.S. bonds. China holds $248 billion. Other countries such as South Korea or state in the Carribean hold billions more.
Because of the high amount of foreign held bonds, these foreign powers have sought bills in Congress to gut antidumping laws and an end to laws against predatory trade practices. Unlike the early debtors to America who sough only religious freedom of expression and charged no interest, the current national debt and interest are very high. The national debt and interest per American citizen is now at $27,425.29 as of today.
In Iraq, the U.S. is fighting a war that has topped $229 billion in costs while the U.S. government lags far behind in U.S. Treasury revenues. The first Gulf War was heavily financed by the U.S. Government seeking financial assistance from Saudi Arabia and other states. In this latest war, the U.S. has sought foreign peacekeepers because it cannot alone afford the high costs of the war.
The U.S. finds itself in another war that it cannot afford with Iraq. And for the second time since the Revolutionary War a huge foreign debt looms over a weak American government. It took 42 American presidents 242 years to run up a $1.01 billion dollar national and foreign debt. In just five years, Mr. Bush has managed to run up a $1.09 national and foreign debt.
When a debtor such as a automobile or home purchaser cannot pay for the item, the keys often must be handed over and the item repossesseed. What will happen if the foreign debt to China or Japan continues to grow? Does that that mean that if the debt cannot be paid that the keys to America are simply handed over to states like Japan or China since they are debtor owning the bonds to America?