Unpayable Debts are never paid. Dr Michael Hudson
Dr Michael Hudson wrote Super Imperialism in 1972. That was the year after President Nixon took us off the gold exchange standard and the year before Henry Kissinger launched the Petro-Dollar. Hudson went to the State Department and the Pentagon to explain his book. He told them that the US was incapable of balancing its trade deficit. All those foreign wars and military bases were too expensive. By replacing gold with the US Dollar as the world’s reserve currency, America was capable of printing dollars to pay for the occupation of foreign nations. These were dollars that the occupied nations needed to conduct trade. It is as if we were paying nothing for everything we bought. When a general in the audience finally understood how this system worked, he said, “Wow! We’re ripping people off.”
That was in 1972.
In 1973 Kissinger convinced the Saudi royal family to agree to increase the price of oil 400% and to use their windfall proceeds to buy US Treasury bonds and stocks on the NYSE.
Because Dr Hudson was a liberal he dared not mention the other factor in perpetual trade deficits which was over population due to immigration. The Saudis could quadruple the price of oil only after America began to depend on oil imports due to its burgeoning population. The population had grown from 152 million in 1950 to 205 million in 1970 and 323 million today. Unfortunately for America workers, the ideal population is 150 million. Past that point we have to pay for imports by cutting wages. American wages had been higher than Europe’s from colonial times to 1950 because we had abundant natural resources and were able to add value to our final output through the application of skilled labor.
The Elite decided to keep the Game going by papering the world with pretend dollars rather than to reform it.
All those Federal Reserve Notes and Treasury bonds floating around the world since the Vietnam war and the more recent ‘War on Terror’ have started to haunt Bankers and everyone who understands money.
Why? Because if foreigners ever redeem their dollars, we will experience Hyperinflation in America and see the purchasing power of our wages be cut 50 to 60% overnight.
Donald Trump has addressed these issues by demanding that we cut back on foreign military spending and that we send millions of illegal aliens home. But even if we could send 8 million illegals home we would still have a population of 315 million which is 165 million more than ideal.
Donald Trump cannot single out Israel as the single most frustrating source for lies and wars in the modern era. We will never be able to cut back on defense spending until we force Israel to treat the Palestinians fairly.
Donald Trump is the first President in my memory to ever say that nobody ever pays 100 cents on the dollar when they negotiate a bankruptcy. At least, he does recognize that we are bankrupt and will no longer be able to pretend we will pay our debts. I will reserve my criticisms of Trump until later.
Trump is also the first President to declare war on election fraud. The Democrats benefited from the votes of 1.2 million dead people and 3 million illegal aliens. They also received millions of votes from people who vote 2 or 3 times. And an unknown number of votes from machines owned by George Soros and his friends who choice was switched from Trump to Hillary. I would guess they stole at least 8 million votes. If vote fraud were eliminated in the first two years of the Trump administration, it will be harder for Big Spending, pro-immigration candidates to be elected which is a good thing. It will reduce taxes at a time when most of us will forced to choose between paying taxes and eating.
We have other deficits which are about to bite us. America has trillions of dollars in infrastructure repairs that need to be done before the elections in 2020. Delay will turn America into a Third World nation. Things are that bad here.
Trump has been negotiating with companies to keep jobs in America. To mask the loss of jobs created when Wall Street decided to send 58,000 American manufacturing plants overseas they did two things: First, they added people to the payroll of the federal, state and local government. We now have 30.6 million government workers if you count contractors. A university professor who complained about the insanity on college campuses said we now have 1.2 administrators for every professor. That makes for expensive but nearly worthless education. Secondly, we have now set an employment record for the number of workers holding multiple part time jobs. And we now have a record for the greatest number of Americans not in the work force – over 95 million.
All that economic misery of low wages, high rents, high taxes combined with accelerating prices for medical care and tuition combined with fewer hours worked means more debts.
Americans have set records for student debt, credit cards and past due auto loans. American workers can no longer afford to live here.
Trump would like to cut the number of government workers. But he would need first to create millions of jobs. Trump would like to get growth going again by de-regulating industry as President Reagan did. Trump would like to cut regulations which require us to do business with Democrat donors or exempt the same from Obamacare or from EPA rules. The EPA has been very kind to JP Morgan and GE owned coal fired electric power plants while shutting down the others. Obama raised utility bills 40% for the average consumer while enriching his Wall Street friends. Trump wants to end the war on coal. That is well and good. But lowering utility bills and raising hours worked will not overcome the Debt Bomb the Bankers are set to unleash.
Currently, we are in a Bubble. The Dollar is higher but not because Trump won the election. We have a ten trillion dollar carry trade. Let me explain: Investors go overseas and take out loans in dollars which they convert into other currencies to invest. They pay low interest and hope to pay back in cheaper dollars. A slight problem has arisen. Interest rates are rising and the dollar has reached a 14 year high against other currencies. This can cause a Global recession as companies struggle to pay down their dollar debts. They have to buy dollars to terminate their loans. The increased demand for dollars means that the value of the dollar rises even higher making it even more difficult to close out trillions in losing investments.
There are other problems with rising interest rates. A high dollar makes it difficult to export anything. And who wants our GMO agriculture and our weapons that don’t work as well as what the Russians are selling? But the real dark cloud is that we have $225 trillion in interest rate swaps. These are just bets that the interest rate will not rise. But they are rising. Janet Yellen has talked of increasing interest rates .25% which is not much.
The problem Donald Trump has is that he cannot mention the fact that the last five Chairmen of the Federal Reserve Bank were Jewish.
He cannot mention that billions of dollars a week are being stolen because we are not allowed to use modern accounting methods to trace taxpayer dollars. He could let the Clinton Foundation and the IRS investigations spill over so he could add fuel to the fire for reform. That will help because our taxpayer deficit is accelerated by subsidies to the coalition of government workers, Bankers, illegal aliens and blacks. Not all of these subsidies are legal. The IRS knowingly gives billions in fraudulent tax refunds to illegal aliens. Rumsfeld announced on 9-10-2001 that he could not trace $2.3 in Pentagon spending from the Clinton years. That figure has risen to $9.6 trillion because American taxpayers are still not allowed to audit the books. That could change if Trump stirs up enough anger.
He needs to cut off the money stolen from government programs ranging from the Pentagon to HUD and to every other agency. But that will really anger the Elite. Why?
He cannot reveal the true extent of the billions of dollars stolen every week from the government.
He is not allowed to tell the voters the truth about our debt based currency. President Kennedy was killed for a lot less than that.
Higher interest rates will kill corporate earnings as will the high dollar value. That makes it difficult to sell overseas. And it will kill taxpayers. Americans pay $500 billion a year in interest on debts that are fictional. That is $500 billion a year in interest charges for creating for money that should have been zero if we still had Lincoln’s Greenbacks. If we still had Lincoln’s Greenbacks, we could spend $200 billion a year on infrastructure and $150 billion to bring down the budget deficit.
The US could survive the coming Debt Bombs and the Trump presidency but only if we arrested the Bankers and seized their assets to pay off our Unpayable Debts. We could re-write all of our home mortgages while reducing home mortgage loans to 1.5%. We could cut down on our wars overseas. We could refuse to turn over our infrastructure to foreign corporations who want to give us bonds on money the created out of nothing in exchange for the deeds to our highways, air ports, bridges, sewers, water systems and utilities. We would have to be insane to repeat the process that gave us the Great Depression and the lingering malaise that has cast a giant net over America since the Clinton Presidency if not before.
I think the Debt Bomb will defeat Donald Trump. The crashing euro will be a problem. Each nation has its own euro. After the EU collapses, Greek euros become drachmas and Italian euros become lira. That would be a near total loss for most of Europe.
The only solution is for a military coup of junior level officers to arrest the Bankers and to seize their assets so we can fund Debt Cancellation. The Jewish Lobby will not permit us to discuss Debt Cancellation or their role in our wars and our banking system. The latter is designed to blow after it has enriched the Financial Elite. The Jewish Lobby has made peaceful change impossible. They are insane but you already knew that.
“That was the year after President Nixon took us off the gold exchange standard…”
less than a quarter percent of some paper currency was backed by gold and not much more than that was backed by silver. Ending that was hardly taking “us off the gold exchange standard”. The FRN currency was so diluted by that point with fractional reserve lending practices there wasnt 1% gold to back it all.
Id say it was dead. Nixon just just cut the receipt roll officially.
Then you start bobbing down on trump. (fellatio)
NEXT!