* Finally, the "swindle" goes public as Washington openly BUYS BACK their own debt using hundreds of billions more, that they create out of thin air.
Some time ago, people in Washington and on Wall Street got together and started carving up America's future financial security, essentially selling it off to the highest bidder. And they continue to sell off huge chunks of that wealth & security (namely the collective savings of all Americans). How do they do it without you noticing? Mainly they do it by way of "scheduled U.S. Treasury Securities Auctions," better known as "bond auctions." Mutual funds and pension funds, state governments, Wall Street banks, and foreign central banks are the buyers at these auctions. And the seller is our Treasury Department, which essentially gives away shares of our future (i.e. our eventually redeemable savings) -- in exchange for huge cash loans to Uncle Sam and the American consumer, redeemable today.
This provides the cash our government uses to prop up and pay for our economy's fake "recovery," by way of economic stimulus, immense bank bailouts, "cash for clunkers," etc. But it's cash that you and your grandchildren will have to pay back further down the line -- out of the personal savings you thought you were setting aside.
Who are some of the folks we owe ever increasing amounts of this money to?
* Little Luxembourg, no bigger than Rhode Island, has so far loaned us $104.2 billion. Russia has us on the hook for another $120 billion. Brazil, nearly $140 billion. Secretive banks in the Caribbean, nearly $190 billion...
* And what about those thugs that run Iran, Iraq, Libya, Nigeria, Indonesia, and Venezuela? So far -- along with a half-dozen other oil-producing nations -- they've got us dangling for yet another $191 billion in I.O.U.s, i.e. money we owe them, mainly for the oil we've received from them.
* Then too, Great Britain just loaned us $214 billion. Surprisingly, Washington, D.C. borrowed $523 billion from bankrupt state governments. And, as if the bank bailouts weren't bad enough, we're in hock another $630 billion to Wall Street financial firms and other buyers of government debt.
* Japan owns a $712 billion slice of America. China owns a staggering $776 billion call on our capital. And guess who tops the list? The Fed itself, which used dollars they simply printed up, in order to buy up nearly $5 TRILLION of the government's own debt, just to keep the American prosperity illusion alive: http://www.nytimes.com/2009/03/19/business/economy/19fed.html
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.