For the better part of the last eight years I have been telling everyone that would listen that the biggest national security threat we face is not from a nation that supports terrorism, but from our national debt. If you are one of the thousands of people who have seen our live seminars you have witnessed first hand how I spend a lot of time on this subject and what we call “financial warfare” and how it threatens the sovereignty of this nation.
In the live Government Gone Wild seminars I use the example of the Suez Canal Crises of 1956 where allies of the United States (Great Britain and France) were in a battle with Egypt over control of the canal. At that time the U.S. owned a great portion of Great Britain’s debt and we were able to put financial pressure on them by threatening to dump their debt and sell sterling on the open market and thus destroy their currency as to cause a shortage of reserves needed to pay for imports. Great Britain and France backed down and some historians have said that it is at this point in time where the great British Empire ceased to exist.
This past week I had the opportunity to see the HBO movie “Too Big To Fail” which is a film based on the book about the banking crises written by Andrew Ross Sorkin who is a columnist for the New York Times. There is a part in the movie that most glazed over…but shook me to my core and,if true, really captures the magnitude of our debt problem.
In this particular scene Hank Paulson (played by William Hurt) is sitting down having dinner with who appears to be the Chinese Minister of Finance. He is then told by this Chinese official that the Russians had contacted them and asked them to coordinate the dumping of hundreds of billions worth bonds on the market. This modern day version of financial warfare would have, according to Hank Paulson and Ben Bernanke in the movie, brought down the entire economy of the United States!
Thank God the Chinese said “no thank you”.
The sad state of affairs is that our nation is now open to this type of financial attack because our reckless spenders in D.C. wont stop spending. Congress has put us in the unenviable position where our enemies abroad would want to buy our debt because it offers them a greater chance of bringing down this nation. Our record deficits represents an opportunity for the enemies of liberty to have incredible leverage over us: the chance to be our banker!
China has this leverage over us now but they choose not to dump the debt because currently we are their best customers. We may not be as fortunate in the future. –Government Gone Wild
In the live Government Gone Wild seminars I use the example of the Suez Canal Crises of 1956 where allies of the United States (Great Britain and France) were in a battle with Egypt over control of the canal. At that time the U.S. owned a great portion of Great Britain’s debt and we were able to put financial pressure on them by threatening to dump their debt and sell sterling on the open market and thus destroy their currency as to cause a shortage of reserves needed to pay for imports. Great Britain and France backed down and some historians have said that it is at this point in time where the great British Empire ceased to exist.
This past week I had the opportunity to see the HBO movie “Too Big To Fail” which is a film based on the book about the banking crises written by Andrew Ross Sorkin who is a columnist for the New York Times. There is a part in the movie that most glazed over…but shook me to my core and,if true, really captures the magnitude of our debt problem.
In this particular scene Hank Paulson (played by William Hurt) is sitting down having dinner with who appears to be the Chinese Minister of Finance. He is then told by this Chinese official that the Russians had contacted them and asked them to coordinate the dumping of hundreds of billions worth bonds on the market. This modern day version of financial warfare would have, according to Hank Paulson and Ben Bernanke in the movie, brought down the entire economy of the United States!
Thank God the Chinese said “no thank you”.
The sad state of affairs is that our nation is now open to this type of financial attack because our reckless spenders in D.C. wont stop spending. Congress has put us in the unenviable position where our enemies abroad would want to buy our debt because it offers them a greater chance of bringing down this nation. Our record deficits represents an opportunity for the enemies of liberty to have incredible leverage over us: the chance to be our banker!
China has this leverage over us now but they choose not to dump the debt because currently we are their best customers. We may not be as fortunate in the future. –Government Gone Wild
No comments:
Post a Comment