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To repeat the words of Henry Ford, truer now than ever before:
"It is well enough that the people of the nation do not understand our banking and monetary system for, if they did, I believe there would be a revolution before tomorrow morning."
Like any other big time borrower, we must now face this question: For how long can we pile up "cash advances" before creditors come and ask for their money, or threaten to cancel the credit line? Soon we'll all be paying through the nose, as the swindle moves into high gear, via rising taxes, shrinking dollars, and/or canceled promises like withheld and/or greatly reduced Medicare and Social Security payments.
While our foreign lenders might love having America on the hook, they HATE the idea of possibly never getting paid back anything close to what they lent us. So, when it becomes apparent to them that this may very well happen, they quite naturally tend to lose faith, and start threatening to cut us off. And that's already starting to happen:
* "We've lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets," says China's Premier Wen Jinbao. "To be honest, I am definitely a little worried."
* Meanwhile, Russia has already dumped the U.S. dollar as its main reserve currency. And Beijing says the rest of the world should think about doing the same, as do India and China. In fact, representatives from these four countries arranged a meeting from which representatives from the United States were barred. http://www.globaldashboard.org/2009/06/16/10116/
* During a recent speech at Peking University, Chinese students even burst out laughing at Treasury Secretary Tim Geithner when he called China's dollar-backed assets "very safe."
When lenders threaten to expose our "sham recovery," by not showing up with cash to lend, the bond auctions just mentioned threaten to fail. And at least once this year already, that is precisely what happened.
The problem here is that even one more failed bond auction could signal to the rest of the world that the jig is up, that the U.S. is done for, and that it's time to bring the lend-borrow cycle (that has provided much of America's widespread affluence over the past 30 years) to a complete halt. http://www.atimes.com/atimes/Global_Economy/HC24Dj01.html
With the bailouts and this fake "recovery" already looking like it will cost more than $24 trillion before it's all said and done, the Fed and the Treasury don't want to let any more failed bond auctions show up in the headlines -- which is why they've taken their "swindle" to a whole new level -- by deciding not to just to fake the "success" of the recovery, but to fake the success of the bond auctions that are supposed to pay for it! http://www.blacklistednews.com/?news_id=5643
Exactly how are they doing this? They are doing it by transferring billions of dollars, under the table, to our nation's lenders, and then paying them interest while we borrow back our own cash!
You see, for the scam to keep working, it has to look like foreigners still really want to buy our bonds. So the Fed prints out billions of dollars, then uses a clever buyback strategy to secretly stuff those billions into our foreign lenders' accounts, so that they, our lenders, can keep on pretending they really want to buy more of our debt: http://www.ictmag.info/politics/are-foreign-purchases-of-u-s-treasury-bonds-being-faked/
So what's the strategy the Fed uses to make these huge, under-the-table, cash transfers? It works like any other money laundering scam. We reimburse the foreign government lenders for big chunks of bad or toxic "agency debt" -- like for toxic and now largely worthless bonds sold to these governments by failed agencies Fannie Mae and Freddie Mac -- and then these governments write us a check, using the cash we just gave them, to buy more of our treasury bonds. Just so long as our government can keep this shell game under wraps, and keep paying them off under the table, the buyers of our treasury bonds will keep showing up to buy more. You wonder why Fed Chairman Ben Bernanke refused to answer Senator Bernie Sanders' question about where all the additional trillions went, over and above the TARP funding? This is why:
http://www.youtube.com/watch?v=oOpQkRsEfaU&feature=youtube_gdata
http://mrssatan.blogspot.com/2009/05/9-trillion-dollars-still-missing.html
