by C.L. Luce
Recent article regarding sub-prime market and credit crisis
|From Debt to Dependency
The collapse of the American economy and the end of Sovereignty
December 12, 2007
By C.L. Luce
A recent article in the Financial Times stated “Times have changed” and went on to state that if America is to remain the economic superpower of the world that it must resist protectionist policies by “capitalizing on opportunities” and expanding into the global market. As always there are no specific examples of “capitalizing on opportunities”.
In reading articles like these I am amazed at the ignorance of the writers hired to expand these premises and the ignorance of the masses that accept them. I read the news daily and am hard-pressed to find anything which is based on truth and the foundation of transparency towards any subject which is presented. Even when “facts” are stated they are left standing alone or editorialized based on faulty logic and a lack of understanding of the broader picture.
Let me clarify very precisely my correction to the financial times article.
The United States is no longer an economic superpower and the truths which support this claim are too numerous to name. Because of America’s policy towards debt and dependence to banks through lines of credit and addiction to long term loans, she has reached a point of irreversible collapse. Our national economy deals entirely in the negative and even growth is measured in reduction of deficits and never in a positive balance.
U.S. based bonds are now a liability to those countries who have acquired large quantities, and in the face of an insolvent U.S. economy a panic is building which will inevitably lead to foreign entities fleeing from U.S. based securities and opting instead for more dependable alternatives.
America is completely in the hands of its debtors, and all credit received is based on the goods and resources which Americans can produce for export including land and property rights made available by the depletion of American sovereignty. The United States of America will never again be the worlds leading superpower. Our only great power remains in the military, whose funding is wholly provided by foreign loans. As a result the American military is quickly becoming a privatized militia dependant on funding obtained through European banks.
In a monumental final step towards total dependency, the Federal Reserve itself has opened up a Temporary Auction Facility which is funded through credit lines directly to the Bank of England, Central Bank of Europe and several other central banks. This $40 billion dollar credit line is designed to be a temporary solution to the American mortgage collapse brought about by sub-prime loans which have bled into the prime market resulting in multi billion dollar losses to American banks. While to the ignorant this might sound like a solution, it is blatantly another debt which shifts the defaulted mortgage collections from American banks to foreign entities. Thus as mortgages continue to collapse, instead of property being confiscated by American banks, it will instead become collateral for international banks taking it out of the hands of American ownership.
Because mortgages must mathematically continue to default as the result of a debt based society, this $40 billion bail out will be quickly depleted resulting in either an extended line of credit (meaning more debt and reduced sovereignty) or a panic which will skyrocket adjustable rate mortgages causing massive defaults allowing banks both foreign and domestic to grab land en masse to balance assets with acquired debt. As a result millions of Americans will be left without homes creating demand far above available supply making the price of buying or owning a home increase above the capacity of most middle-class Americans households. When this occurs combined with the continuing decline of the dollar, America will no longer exist as a first world country, let alone an international superpower.