World, Dump US Debt! You’ve Got Nothing to Lose but the Chains

With growing budget deficits, the US is selling debt it can only ever make good on if it can sell even more debt down the line (or if it “repays” it in devalued paper).

Astute News

As Russia steadily slashes its military spending and announces cuts will continue for the next five years through 2022, the US is going in the other direction and shoveling ever more fantastic sums of money into the military and parasite defense corporations. (Around half of Pentagon budget now goes to contractors.)

US Congress passed a $1.3 trillion budget for the fiscal 2018 last week that allocates $700 billion to Pentagon. For fiscal 2019 the military has been promised $716 billion.

The $1.3 trillion discretionary spending comes on top of projected $2.8 trillion mandatory spending by…

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11 thoughts on “World, Dump US Debt! You’ve Got Nothing to Lose but the Chains

  1. I heard that the U.S. government has money equal to the entire debt stashed under various anonymous names in multiple accounts, offshore as well as domestically. Has anyone else heard of this?

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  2. Taken from the article:

    “The most ironic position is China’s. Clearly marked by the US as a rival and a threat whose rise is to be arrested and contained, it nonetheless helps finance US deficits that finance the US military.”

    “Ironically the might of the most powerful empire the world has ever seen now rests on the goodwill, generosity (and ignorance) of those held down or threatened by it.”

    That is tantamount to committing suicide by giving your enemy the means in which to aid you in your destruction as in China continuing to finance the U.S. military by owning U.S. debt. But then, I guess in a really twisted way you can understand why China has no problem with financing U.S. debt.

    Basically, countries like China and Japan that buy U.S. debt are funding the government and the military and the Chinese buy U.S. Treasury Bonds because the U.S. purchases so much from the Chinese and now Trump comes along and wants a tariff war with China knowing full well that nothing must upset the ‘apple cart’ because both sides would have problems then because China would be saddled with worthless U.S. debt. The U.S. would lose its bond rating and interest rates would rise, not to mention that Americans would have to pay more for basics because the cost of importing goods from China would increase. Although, it has been intimated that China is diversifying its economic relationships to avoid continuously being locked in this toxic relationship with the U.S. and if China can manage to ‘divorce’ itself from the U.S., then Americans are in deep, deep trouble. Even more so than we are now. Sounds like this match made in ‘toxic heaven’ might disrupt quite a few things if it falls apart, including continuously funding the military, almost to the exclusion of everything else.

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    • This has always been a mystery to me, Shelby, why China doesn’t simply dump all the debt – or at least threaten to. I can’t understand why they would want to continue to carry this financial risk. Does it makes sense to you?

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      • No, it does not. But I do think that we will see China start taking more steps towards ending this ‘toxic’ relationship with the U.S. Remember just recently, China announced that it would no longer accept recycling and that has caused chaos in the U.S. because the U.S. was exporting tons of recyclables to China. Companies that were accepting recyclables to send to China are now at a loss as to what to do because not many countries are accepting these materials.

        https://www.npr.org/2017/12/09/568797388/recycling-chaos-in-u-s-as-china-bans-foreign-waste

        “For now, Rogue Waste says it has no choice but to take all of this recycling to the local landfill. More than a dozen Oregon companies have asked regulators whether they can send recyclable materials to landfills, and that number may grow if they can’t find someplace else that wants them.”

        “At Pioneer Recycling in Portland, owner Steve Frank is shopping for new buyers outside of China.”

        So, as you can see, I do believe that this is only the beginning of the end of the relationship between the U.S. and China because there was yet another news article out today that stated that “China has imposed tariffs on 128 U.S. exports.”

        And now the DOW is reacting to Donald Trump’s Twitter rant about Facebook. It’s down 600 points. But of course, since the stock market is just smoke and mirrors, it’ll probably be up 800 points by the end of the day. They’ll call it a ‘correction’.

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  3. Pingback: World, Dump US Debt! You’ve Got Nothing to Lose but the Chains | Worldtruth

  4. I might have a poor memory, but when the US hacked into China’s stock exchange, even though both sides knew what was going on but China could not prove it, China’s reaction was to dump several billion dollars of US debt on the open market. No hacking since then so it would seem the message was received loud and clear. I see no reason why China, which has gold reserves worth far more than bonds(of any nation except Russia)cannot be realised as capital in a not too distant future.
    All’s well that ends well?

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