Exclusive to OpEdNews:
OpEdNews Op Eds

Hold on to Your Seat: America and Its' Debt Based Economy

By (about the author)     Permalink       (Page 2 of 2 pages)
Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) ; ; ; ; ; ; ; ; ; ; ; , Add Tags  (less...) Add to My Group(s)

View Ratings | Rate It


Become a Fan
  (3 fans)

Most money being made today is from the financial transactions—the interests, the fees, and the creation of new kinds of exotic financial products that parse debt and resell it.  Dealing in debt is quite lucrative.  None of this actually produces wealth; it merely redistributes it more and more to the people at the top who have the money to lend.

The seventies stagflation were produced when the government stopped printing money to pay for the Viet Nam War and will happen again when this war ends.  But it may happen sooner because as the economy becomes less secure and deflation becomes an eminent threat, China, Japan and Middle Eastern oil countries that are buying that debt may decide the Euro may be a better bet.  When that happens as the old saying goes, “It will be Katie bar the door” to stop the rush to the exits.


At some point this must come unraveled in a rather nasty way.  Whether it happens tomorrow or not is not the question, the answer is, it will happen and when it does it will be catastrophic for individuals, businesses, and government entities at all levels.  What will happen to the big boys who created all of this?  Well, most of them learned from the experience of Michael Milken the “Junk Bond King” who developed junk bonds, or “high yield debt”, to (guess what) finance leveraged buyouts.  Indicted on 98 counts of racketeering and securities fraud, he pled guilty to six securities charges. He served twenty-two months.  According to Forbes, he paid a total of $900 million in settlements and fines and still had a net worth of over $1 billion upon his release.  His current net worth is estimated at $2.1 billion. 

The private equity and hedge funds are not regulated by the SEC and most are registered offshore for tax and liability purposes.  When it all falls apart most will be able to retire to their homes in the Mediterranean and live off their money in the Caymans, while the rest of us pick up the pieces.

Next Page  1  |  2



John Kelley is the Managing Editor of a monthly progressive newsmagazine, "We the People News", in Corpus Christi, Texas

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Toke Up The Revolution: Why Marijuana Is An Anarchist Weapon

Anonymous Anarchism: The Yang of Globalization

Hold on to Your Seat: America and Its' Debt Based Economy

The Last Fight For Eden: OWS Vs Oligarchy

NAFTA - the Neo-Liberal Destruction of Mexican Culture & Anarchist Responses from Zapatistas to Drug Cartels

Wall Street Leads the Socialist Revolution


The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
No comments