Uncle Sam, Your Banker Will See You Now

Uncle Sam, Your Banker Will See You Now

Paul Craig Roberts

Early this morning China let the idiots in Washington, and on Wall Street, know that it has them by the short hairs. Two senior spokesmen for the Chinese government observed that China's considerable holdings of US dollars and Treasury bonds "contributes a great deal to maintaining the position of the dollar as a reserve currency."

Uncle Sam, Your Banker Will See You Now By Paul Craig Roberts

08/08/07 "ICH" --- - Early this morning China let the idiots in Washington, and on Wall Street, know that it has them by the short hairs. Two senior spokesmen for the Chinese government observed that China’s considerable holdings of US dollars and Treasury bonds “contributes a great deal to maintaining the position of the dollar as a reserve currency.” Should the US proceed with sanctions intended to cause the Chinese currency to appreciate,
“the Chinese central bank will be forced to sell dollars, which might lead to a mass depreciation of the dollar.” If Western financial markets are sufficiently intelligent to comprehend the message,
US interest rates will rise regardless of any further action by China.
At this point, China does not need to sell a single bond.
In an instant,
China has made it clear that US interest rates depend on China, not on the Federal Reserve.
The precarious position of the US dollar as reserve currency has been thoroughly ignored and denied.
The delusion that the US is “the world’s sole superpower,”
whose currency is desirable regardless of its excess supply,
reflects American hubris, not reality.
This hubris is so extreme that only 6 weeks ago McKinsey Global Institute published a study that concluded that even a doubling of the US current account deficit to $1.6 trillion would pose no problem.
Strategic thinkers, if any remain who have not been purged by neocons, will quickly conclude that China’s power over the value of the dollar and US interest rates also gives China power over US foreign policy.
The US was able to attack Afghanistan and Iraq only because China provided the largest part of the financing for Bush’s wars.
If China ceased to buy US Treasuries, Bush’s wars would end.
The savings rate of US consumers is essentially zero,
and several million are afflicted with mortgages that they cannot afford. With Bush’s budget in deficit and with no room in the US consumer’s budget for a tax increase, Bush’s wars can only be financed by foreigners. No country on earth, except for Israel, supports the Bush regimes’ desire to attack Iran. It is China’s decision whether it calls in the US ambassador, and delivers the message that there will be no attack on Iran or further war unless the US is prepared to buy back $900 billion in US Treasury bonds and other dollar assets. The US, of course, has no foreign reserves with which to make the purchase. The impact of such a large sale on US interest rates would wreck the US economy and effectively end Bush’s war-making capability. Moreover, other governments would likely follow the Chinese lead, as the main support for the US dollar has been China’s willingness to accumulate them. If the largest holder dumped the dollar, other countries would dump dollars, too. The value and purchasing power of the US dollar would fall. When hard-pressed Americans went to Wal-Mart to make their purchases, the new prices would make them think they had wandered into Nieman Marcus. Americans would not be able to maintain their current living standard. Simultaneously, Americans would be hit either with tax increases in order to close a budget deficit that foreigners will no longer finance or with large cuts in income security programs. The only other source of budgetary finance would be for the government to print money to pay its bills. In this event, Americans would experience inflation in addition to higher prices from dollar devaluation. This is a grim outlook. We got in this position because our leaders are ignorant fools. So are our economists, many of whom are paid shills for some interest group. So are our corporate leaders whose greed gave China power over the US by offshoring the US production of goods and services to China. It was the corporate fat cats who turned US Gross Domestic Product into Chinese imports, and it was the “free trade, free market economists” who egged it on. How did a people as stupid as Americans get so full of hubris? Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions.



Fantastic article PCR!As for me, I'm happy that the Chinese are calling BS on US hubris. Kudos to them. They don't even have to sell the treasuries to create economic chaos for the politicians. All they have to do is stop loaning the US $2 billion a week. Gee, how can the borrower threaten the lender and expect to come out on top? Even Soloman said, "The borrower is a slave to the lender." Thus, the US is merely a slave to China. Now, that's Karma.stetchedmind 08.08.07 - 2:11 pm #

The Neocon Smokescreen by erlenda The Christian Science Monitor tries to explain the Neocon mindset in it´s article "Empire builders-Neocon 101: Some basic questions answered". According to the article "Neoconservatives believe modern threats facing the US can no longer be reliably contained and therefore must be prevented, sometimes through preemptive military action." The Christian Science Monitor also assumes that, "Neocons envision a world in which the United States is the unchallenged superpower, immune to threats. They believe that the US has a responsibility to act as a "benevolent global hegemon." In this capacity, the US would maintain an empire of sorts by helping to create democratic, economically liberal governments in place of "failed states" or oppressive regimes they deem threatening to the US or its interests. In the neocon dream world the entire Middle East would be democratized in the belief that this would eliminate a prime breeding ground for terrorists. This approach, they claim, is not only best for the US; it is best for the world. In their view, the world can only achieve peace through strong US leadership backed with credible force, not weak treaties to be disrespected by tyrants." The Christian Science Monitor, however, has fallen for a smokescreen or what the Guru of the Neocon movement would call "a noble lie". (Although only the Neocons themselves would see their lies as "noble".) The Neocons have never been interested in promoting democracy, at least not a democracy as everybody else would define it, "a government controlled by the will of the majority of the people, respecting the rights of minorities". Neocon ideology has an extremely low view of humanity. Common man is considered as basically violent, unruly, debased and destructive. Therefore he must be ruled by an intellectual elite. And people can only be ruled successfully, if they are united against a common enemy. If there is no enemy dangerous enough, one must be invented. Those who are being ruled must be constantly deceived by their rulers about their true goals,for ordinary people are not capable of understanding the "necessary" steps, the elite has to take to reach their goals. World peace is NOT a goal the Neocons dream about. It would quite obviously contradict their fundamental belief that every society needs an enemy so it can function and be ruled. Neocons promote war and militarism not for the protection of America or even American interests in the world, but in order to give the people a common goal. Neocon policies have trashed the American economy, plunged the country into deep debt,brought down the Dollar, neglected necessary infrastructure and overstretched the American military to the breaking point. The Neocon Bush Administration has overturned large parts of the American constitution and laid the groundwork for a possible police-state. The American values of personal freedom and protection by the rule of civil law which are supposedly being defended in Iraq are being sacrificed at home. The Neocons are definitely not interested in democracy anywhere in the world. But there is one point, where the Christian Science Monitor got it right: "Most neocons share unwavering support for Israel" but the second part of the sentence is again another smoke-screen: "which they see as crucial to US military sufficiency in a volatile region". Many of the Neocons have a history of an extensive working relationship with the Israeli government. In a policy paper written by some of the Neocon architects for the Iraq war it states, that in order for Israel to "secure the realm" other Middle Eastern countries, first of all Iraq, must be broken into smaller states along ethnic and religious sectarian lines hostile towards each other. So even after the breaking up of most Middle Eastern countries, peace is not an option. These mini-states must be kept in constant turmoil, so they will not be tempted to form an alliance which Israel might see as a threat. This chaotic situation is not in the interest of the American military which would have to police it nor even in the interest of most of the American based corporations, except the military industrial complex. The Neocons are not in the business of protecting the interests of the American people or even American corporate interest. The Neocons were propelled into positions of power by a part of the global financial elite which shares their cynical views on humanity and finds their methods useful for the consolidation of capital and power. For some inside this global financial elite the state of Israel had been a pet project since it´s inception.atheo 08.08.07 - 2:11 pm #

Paul, This wasn't stupidity or hubris. This was just another controlled demolition on our way to one world government.ct 08.08.07 - 2:12 pm #

a) China sells the West some plastic shit >>> money goes from West to Eastb) China lends the money back to the West >>> money goes from East to Westc) the West buys weapons and pays so-called heroes and mercenaries to burn all that money in a sacrificial country >>> money burns in the Middle-EastRESULT: taxpayers from all over the world get nothing + innocent people and not so innocent people die + the poor get poorer, and NOTHING CHANGESOrwell (1984)Kadare (the Pyramid)and countless others (including Casa Nova) explained that system a long time agor_i_d Homepage 08.08.07 - 2:21 pm #

*Casanovar_i_d Homepage 08.08.07 - 2:22 pm #

If Americans are stupid, I wonder who PCR thinks the smart ones are.just a thought Homepage 08.08.07 - 2:30 pm #

It sounds like the "Neocon smokescreen" is vey much identical to the American smokescreen, wherein the United States portrays itself as upholding human rights, equality and freedom.BigPearl 08.08.07 - 2:30 pm #

Good article, as always. That might be the only way to stop America's insanity.And now for something completely different:http://exposure.cbc.ca/video/recruiterjohn Homepage 08.08.07 - 2:33 pm #

Disturbing Trends 2007The Alarming Growth of Foreign-held Debtby Michael J. KosaresForeign debt hangs like a sword of Damocles over the American economy. As our table illustrates this disturbing trend has shown the highest growth rate of them all. At this writing, foreign governments, institutions and individuals hold a collectively over $2 trillion of U.S. paper -- roughly one fourth of the national debt. Japan alone holds over $600 billion and mainland China over $400 billion. To suggest a measuring stick, federal tax receipts stand at roughly $2.2 trillion.It is not just the presence of the debt itself which worries the inner sanctums of Wall Street, but the threat foreign-held debt represents to the U.S. Federal Reserve. Through the purchase and sale of U.S. Treasuries, foreign creditors can force interest rates up when the Fed would like to keep them down and force them down when the Fed would like to keep them up. In other words, the Fed very well may be losing control of interest rate policy. Recently, when the Congress threatened trade sanctions against China, the bond market began declining, thus pushing up interest rates. This foreign influence on Fed policy-making did not exist even five years ago.There is an even darker aspect to the problem of foreign held debt, and that has to do with the international reaction to the future value of the dollar. If faith is lost, or even weakened to the extent that the trend to diversify out of dollars gathers steam, what is now a trickle of returning U.S. dollars could become a torrent. This, in turn, could trigger an uncontrollable inflation and dollar crisis globally.Some analysts have pointed out that such an exodus would be farfetched in that the holders themselves would have a great deal to lose by unloading a large portion of their positions. The fact of the matter, though, is that the exodus has already begun. For example, Russia recently announced that it was juggling its reserves to purchase Japanese yen. Several Gulf oil producing states have quietly followed suit and are switching out of dollars and into both the euro and yen. Japan over the past year has actually reduced its Treasury position and Chinese officials recently suggested that its central bank might exchange some of its more than $1 trillion in reserves for gold and oil. Many nation states with large dollar holdings have formed sovereign wealth funds, the purpose of which is to utilize reserves to acquire other assets including hard commodities, natural resource companies and an array of other assets. Analysts often infer that their exodus will be controlled, but the problem with systemic crisis is that the evolution from a controlled liquidation to panic, particularly a panic in the ranks of private institutional funds, can come quickly and without warning. That said, even a slow-motion unraveling, or a simple withdrawal from regular U.S. debt purchases, could have a devastating effect on the value of the dollar.atheo 08.08.07 - 2:45 pm #

Short, succinct, and to the point. Beggars don't dictate terms to theirbenefactors. Ya gotta love it. Theneocons have turned the US economy into Murder Inc with a checkbook anda stack of credit cards. The messagefrom Peking is, "You're over the max."Who are the smart ones if the US isstupid? The Japanese save 30% of their income; the Chinese save 50%. In the US we save nothing or spend more than we make, sometimes for years. Soon we will find out who issmart. No mo wah on credit. This isthe best news in I don't know whenever.Cy Kottik 08.08.07 - 2:53 pm #

I don't see any problem here.The US has built a number of Forced Labor Detention Centers and shall repay all that they owe their creditors through the new Slave Labor Market.LOL.BigPearl 08.08.07 - 3:00 pm #

“If China ceased to buy US Treasuries, Bush’s wars would end.”Then China would be able to concentrate on securing its own oil requirements while helping the development of other Near and Far East countries without any more hundreds of thousands of people being massacred.It’s China’s moment to step in and pull the plug on the USA; and billions around the world will cheer it on, if only because it’s less of a marauding monster than the USA.blizzard 08.08.07 - 3:18 pm #

Do I detect glee? China may not prove to be any kinder or gentler of a host to transnational power.atheo 08.08.07 - 3:23 pm #

It's kool to focus on China and all, but the real vangaurd against US imperialism can be found in South America.All praise is due to the the Great Bolivarian Revolutionary Hugo Chavez.BigPearl 08.08.07 - 3:37 pm #

atheo: "Do I detect glee?"Yes you do.It can't ever be any worse with China calling the economic shots than with the USA barging in left, right and centre with their juvenile self-righteousness, penchant for cruel vices, crushing destruction and bullying subjugation.Plus, many of us will not rest without a fitting revenge and a stinging lesson that will resound throughout history. Haven't you figured that out yet?blizzard 08.08.07 - 3:38 pm #

China is far less treacherous than the US.BigPearl 08.08.07 - 3:38 pm #

The global monetary system is a Rube Goldberg contraption that serves no one except the currency traders. It could well be that the completely irrational behavior of the Bush gang is designed to force a global breakdown in order to implement a new financial arrangement, perhaps a global currency.It is not in China's interest to sabotage the primary market for its own production. It would be self-destructive for China to carry out its threats against the dollar.The hubris of the US is reflected in the hubris of the CCP that imagines its position is strong enough to issue threats against its main benefactor. China's capitalism has not benefitted the majority of the Chinese people, most of whom subsist in feudal poverty. China is engaggeed in the gratification of foreign consumer demand while it suppresses the demand of its own people. China itself could implode with little provocation.cruxpuppy 08.08.07 - 3:40 pm #

"In this event, Americans would experience inflation in addition to higher prices from dollar devaluation." PCR "This is a grim outlook. We got in this position because our leaders are ignorant fools." PCRThis is indeed a grim outlock for citizens of this slave state, however the predatory elite banking dynasties are anything but ignorant. They have waged war against Americans by deception, and very effectively emasculated the igonorant americans since the Federal Reserve Bank was created by bribery and corruption in l913. The occult powers of the tribe include knowledge of economic and mind control, now you see the results.I have noticed Paul Craig Roberts was a guest economist at the Hoover Institution at Stanford and clearly has knowledge of the eugenics and fascist studies at this think tank. Is he out doing damage control by claiming "ignorance of our leaders" rather than pointing out the dual loyalties and agendas of the elite, elected or unelected?go 08.08.07 - 3:47 pm #

There is no hubris on the part of China. The US is threatening the Chinese with sanctions if they don't give in to US demands regarding their currency. China is only responding to US threats. That is not hubris.And you are wrong if you think a collapse of the US means a collapse of China.BigPearl 08.08.07 - 3:50 pm #

hypothetically speaking:Let's say this happens, China pulls the plug, $ becomes worthless *and* Americans finally have enough, storm the White House and Congress and kick the bums out. What if the U.S. abolished the Federal Reserve and gave the money power back to Congress, like the Constitution sez. Then Congress simply printed whatever the sum all lenders to the U.S. wanted, and paid everyone else back. Then Congress issued a new currency, tied to a basket of commodities? Ultimately, I think the goal should be to abolish usury altogether, and instead of letting banks or the government create money, issue an equal amount of currency to every citizen, indexed to GDP, so as the overall economy increases, so does the credit-per-citizen rate. There would be no inflation that way, because currency would stay in a constant ratio to the economy. Banks could still loan money at interest, but they'd actually have to loan it, not create it out of thin air like they do now. Money would still be created out of 'thin air,' but it would be distributed to everyone for the benefit of everyone, not just for the benefit of banks and their corporate hangers-on.Thoughts?leftlibertarian 08.08.07 - 4:02 pm #

Lets not forget what the neo-con 'plan' was to begin with: The aim was to borrow from China to invade Iraq. Done. China has no oil, so with US troups in Iraq, China holds the bonds, and America holds the oil. Like two poisonous snakes intertwined, China can't run their economy without keeping US happy and US can't maintain their currency without keeping China happy.Mutually assured financial destruction. The Neo-cons *loved* the cold war.Seabhcan 08.08.07 - 4:12 pm #

Just as the little Wizard of Oz kept pulling his levers to project an image of overwhelming magical power on a screen beyond his cubby, the "movers and shakers" of idiot American policy continue to act as though their action in the world is immune to cancellation. However, the world "audience" also has a stake in the "smoke and mirrors". If Americans could no longer afford Wal Mart, if the war production machine (Boeing, General Dynamics, General Electric, et al) ground to a halt in a worldwide economic collapse brought on by a dollar run, then we'd have a true stalemate. So, all of the huffing and puffing and mutually assured economic destruction is somewhat empty, except that perhaps a genuine world wide "Bolivarian" style revolution may unseat the real enemy, Corporate Capitalism. Perhaps that would be enabled by the end of war as we have known it.Albert Krauss 08.08.07 - 4:15 pm #

Meet the Global Ruling Class By JAMES PETRAS http://www.counterpunch.org/ petr...as03212007.html Even as the world's billionaires grew in number from 793 in 2006 to 946 this year, major mass uprisings became commonplace in China and India. In India, which has the highest number of billionaires (36) in Asia with total wealth of $191 billion, Prime Minister Singh declared that the greatest single threat to 'India's security' were the Maoist-led guerrilla armies and mass movements in the poorest parts of the country. In China, with 20 billionaires with $29.4 billion net worth, the new rulers, confronting nearly a hundred thousand reported riots and protests, have increased the number of armed special anti-riot militia a hundred fold, and increased spending for the rural poor by $10 billion in the hopes of lessening the monstrous class inequalities and heading off a mass upheaval. The total wealth of this global ruling class grew 35 per cent year to year topping $3.5 trillion, while income levels for the lower 55 per cent of the world's 6-billion-strong population declined or stagnated. Put another way, one hundred millionth of the world's population (1/100,000,000) owns more than over 3 billion people...The growth of billionaires is hardly a sign of 'general prosperity' resulting from the 'free market' as the editors of Forbes Magazine claim. In fact it is the product of the illicit seizure of lucrative public resources, built up by the work and struggle of millions of workers, in Russia and China under Communism and in Latin America during populist-nationalist and democratic-socialist governments. Many billionaires have inherited wealth and used their political ties to expand and extend their empires ­ it has little to do with entrepreneurial skills. The billionaires' and the White House's anger and hostility toward President Hugo Chavez of Venezuela is precisely because he is reversing the policies which create billionaires and mass poverty: He is re-nationalizing energy resources, public utilities and expropriating some large landed estates. Chavez is not only challenging US hegemony in Latin America but also the entire PDD edifice that built the economic empires of the billionaires in Latin America, Russia, China and elsewhere. The primary data for this essay is drawn from Forbes Magazine 's "List of the World's Billionaires" published March 8, 2007. James Petras most recent book is The Power of Israel in the United States.(clarity 2006 third printing) His essays in English can be found at petras.lahaine.org And in Spanish at rebellion.orgatheo 08.08.07 - 4:28 pm #

People please keep in mind that China is not the US.The US is a military Hyperpower, with bases across the world, it has inherited a position of supreme military power since the export of capital began in the 1880s.If China pulls the economic rug, the US military predominance ceases almost over night - but that does not make China or anyone else a Hyperpower, the position is left permanently vacant, it no longer exists.No other state has the bases, military technology or military pre-eminence to "replace" the US in this role, which is after all a hang over of the past and a pointless and destructive position.Even if China becomes the economic powerhouse of the world, the military option is not on the table. China, no matter how economically strong has no empty spaces in the world to fill.What we look at, unless we descend into local wars and needless bloodshed is the need for International law to be strengthened and in some respects resurrected.This is not a choice, but the inevitable consequence of passing into a new stage of historical development.The sleeping giant, has long woken up, but it speaks softly, is not about to stride across the world with military boots, but to stretch itself economically.Reason has failed to kerb the US, one economic power has the means to call it to order. If it does not listen, then dealing with it via the hidden hand of economics is bloodless if not painless.The end of the US as a military hyperpower can only be a moment of universal glee, for the rest of the world and for the majority of US citizens.Given King George's court of neocon numb-skulls, I dare say they will attempt to meet the threat with military hubris (not directed at China). We are not far from the end of the farce - the only hope is that ends relatively bloodlessly, but with 700,000 dead Iraq's and God knows how many slaughtered Afghans, sooner is better than latter.China may end up having no choice, it can certainly absorb the economic damage of pulling the plug.Greg Schofield (Perth) 08.08.07 - 4:51 pm #

How many war has China had? They do not go around the world picking fights with countries that governments they do not like running the county like the USA has been doing for the last 100 years. Maybe their human right are not up to what it should be.But then take Canada, Harper goes over to China and raises hell with them about their Human rights and them come home and back Israel up to Kill tousnds of Lebbones People.We got nothing but a bunch of war monger running Canada and the USAWilf 08.08.07 - 4:54 pm #

@BigPearl
And you are wrong if you think a collapse of the US means a collapse of China.It isn't that black and white; one of the effects of the Chinese economic expansion these past 17 years is the expectations of the nouveau riche of China and the aspiring wannabe's. A sudden abandonment of the US infusion of phony money would set these people back and create widespread instability. China is between a rock and a hard place on this. I think they are largely bluffing. They've hitched their wagon to the US scheme and are now only in retrospect realizing with some alarm that they made a deal with the capitalist devil to get out of state communism. They jumped from the frying pan to the fire. In the event that the plug was pulled, it isn't just the US that would suffer, those vaunted Chinese savings would be spent in a few months. Then they would have no place to turn, and Bernacke knows all of this.Always be aware that, social character (the basic cluster of values and beliefs of a people) is largely formed in terms of economic conditions. By embracing capitalism, 3,000 years of Chinese social character that has sustained the world's longest lasting civilization, has been seriously eroded and they have nothing to replace it with but the same other-directed (lacking an internal gyroscope) narcissistic/consumerist character orientation that is all-pervasive in the USA.If I'm wrong and the Chinese leadership is not bluffing, to dump US Treasury holdings will bring down the government and open up the country to control by international corporations and their local stooges, as is de facto the case in America right now.vicjoe 08.08.07 - 4:58 pm #

I've been waiting for this. China has been patiently aggregating dollars and is now pulling the plug on the neocons. They weren't worried about Iraq but they won't take any shit from Cheney, or his little dog, too. After all, the radioactive fallout from Iran will waft over Chinese territory. Now Rove et al will implement Plan B. It involves pandemic flu, a billion or more dead, American hegemony over Middle East oil, border skirmishes with China and India, a coup in Venezuela, a coup in the U.S., (another one) and martial law in the States. See Richard Heinberg's "Last Man Standing" scenario for a preview. These people won't give up without a fight and they're ruthless and conscience-less. The only way to stop them is to eliminate them all, including anyone involved in the Federal Reserve. Time for the pitchforks and torches...signalfire 08.08.07 - 5:04 pm #

EXCUSE ME! But the American people have been infested with parasitical zion leeches since our first president George Washington (1789-1797). Andrew jackson veto the charter bank in 1832. John Tyler 1841 let the parasites back in by renewing the charter bank. The rothschild made rockefeller, warburg and PJ Morgan. The zions have MURDERED every single individual who tried to fight them. The Neo-Conservatives have OWNed all the presidents big time after the assination of Kennedy. clintons & bush are minions.American people are not American Politians. American people are not full of hubris. OK! WE ARE GOOD, NATURE & GOD LOVING FOLK. THE NEO CONSERVATIVES DEMOCRATS AND REBULICANS WHO REALLY ARE TRAITORS AND SERVE ROCKEFELLER - THEY ARE FULL OF HUBRIS. THEY ARE THE PARASITE, MURDERERING, LYING, NEST OF VIPERS WHO HIDE BEHIND RELIGION, CHILDREN, SOLDIERS AND NATURE. THEY USE EVERYTHING DECENT AS A BODY SHIELD.POLITICIANS HAVE TURNED INTO CORPORATION SLUTS!NO SIR THE AMERICAN HEARTLAND REJECTS TODAYS PARASITE POLITICIANS - ALL OF THEM! THE WHITEHOUSE PROBABLY WANTS CHINA TO PULL THE PLUG. SO THEY CAN SAY SEE THEY DID IT NOT US.EGOR Homepage 08.08.07 - 5:10 pm #

As an investor this is indeed news to seriously consider. The US funny money has declined 33% over the past six years against all major currencies (been to the EU or Thailand lately). The US has also seen a corresponding increase in the partial takeover of US companies to foreign interest, primarily in natural resources, security, and utilities(www.economyincrisis.org). In todays Financial Times, China expects to invest 1,300 billion US dollars (bonds and cash) on a global shopping spree. The US Congress is likely on the shopping list. So it appears that the Israeli lobby finally has some serious competition from China. Cheers to the 26 US soldiers who got wasted this week to protect Israel and the US neocon war machine. And please get a passport and stash some cash.Humboldt County 08.08.07 - 5:22 pm #

EGOR: "WE ARE GOOD, NATURE & GOD LOVING FOLK."& "THE AMERICAN HEARTLAND REJECTS TODAYS PARASITE POLITICIANS - ALL OF THEM!"Really? Haven't seen much evidence of that vaunting claim in the last few years.Prove it.blizzard 08.08.07 - 5:30 pm #

"The chickens have come home to roost."---- Malcolm XI would add that now they are not only roosting, the (atomic) eggs are laid, and ready for harvest.Marta Homepage 08.08.07 - 5:32 pm #

Amazing, China will win out after all. I only said it last week-thinking that since they owned us we might at some point be saluting their flag, looks like it may be sooner. What's next.phonsie Homepage 08.08.07 - 5:43 pm #

Is that a tumbleweed I see on the White House lawn?It's me 08.08.07 - 5:44 pm #

We've all watched it happening, some of us in utter appall. How is it that those so-called leaders didn't see it coming? They did, except for the Iraq thing not quite working out. But they expected to be able to keep on destroying oil nations with impunity while destroying the safety net for working Americans. After all, anything that benefits ordinary folks is... gasp...socialism! Never mind that capitalism undeterred by social programs is simply dog-eat-dog law of the jungle. Meanwhile, go buy a wheelbarrow, because bread is going to cost a gazillion US dollars before you know it.Mickey Shell 08.08.07 - 5:44 pm #

I think the neocons and the Federal Reserve already have the answer. Let our friends know to get rid of their dollars, but not our potential enemies. Then default, drop the dollar altogether, creating global financial collapse of our enemies, and then reinvent the dollar as the Amero as planned.Outraged Reverend 08.08.07 - 5:48 pm #

If China is paying for America's war, then China and the people of China must be added to the list of complicity. They too are responsible for the death and slaughter of innocent people that America chooses to bomb. China makes it all possible.anonymous 08.08.07 - 5:48 pm #

signalfire, exactly. Wonder what hardcore Bush supporters expected to happen?dso 08.08.07 - 5:52 pm #

stretched mind has it right. PCR has told us the truth again. The usual Bush Brownshirts are out trying to discredit PCR in their ignorant comments. We should hunt these traitors down.truthteller 08.08.07 - 5:55 pm #

Outraged reverend:Exactly!!! The Amero will give new steam to the NWO and neo cons. They are not stupid, they know EXACTLY what they are doing.anonymous 08.08.07 - 5:58 pm #

The late great american tiger is a bankrupt drug addicted debt ridden house of cards fascist police state empire wallowing in the death throes of its own self made demise,good riddence to another evil empire i say. Any qestions?michael hall 08.08.07 - 6:00 pm #

Any number of scenarios described in these blogs could unfold. In each case, global economic depression would be a possibility. If that happens, any aspect of our highly technical society could fail and trigger a cascading series of other failures in food production, energy production, communications, you name it. The result would be massive political and social dislocation. Given the propensity of humans to blame others for their problems and the abundance of weaponry on the planet, it's no wonder that some scientists only give humans a 50/50 chance of surviving the current century. Never mind asteroids and global warming, our flawed nature will do us in.Greg Chadwick_Texas 08.08.07 - 6:11 pm #

in the not too distant past, china and india were the richest nations in the world until the advent of 'modern' colonialism. we are now returning to a 'natural' balance with asia again becoming the richest areas. thank god!it is about time that all the bloody 'christians' stay at home as they are just as unpopular as the scary muslim extremists.americans,...sit back, stay home, fix your broken economies and shattered infrastructures. katrina was years ago and you still have shit on the streets you haven't cleaned up! shame on you, get your priorities right! your people are ignorant as are your politicians. your bridges are woeful as are your roads. your houses are still built with sticks like the second little pig, isn't it time you moved on up to brick? your food is rubbish, filled with GMO's and chemicals. i hope USA goes broke, and soon. then maybe we'll have some peace in the world.Zipperhead 08.08.07 - 6:14 pm #

It looks as though they may have started selling 30-year Treasury Bonds in the open market today:http://www.marketwatch.com/tools...% 2Fintchart.aspGeorge 08.08.07 - 6:15 pm #

Cheny, Bush, and the neocons all have diversified portfolios, ranches in Paraguay, penthouses in Tel Aviv. The big losers will be common people who will find that their wages, pensions, etc... won't buy much.Look at history for an example of what is occuring. Britain borrowed from the US to fight WWI, became hopelessly indebted yet it took another world war before the US truly replaced Britain as hegemon. This will all play out over time with sudden jolts. The global elites will have time to shift their wealth and power away from New York. Corruption and militarism are not threatened. The American people will however pay a massive price for allowing their government and economy to be run by dual citizens.atheo 08.08.07 - 6:20 pm #

George,The European bond yields climbed today as well, I would guess for the same reason (money flowing from bonds into stocks). So I don't know that this is related to Chinese threats.-----------Treasuries Fall the Most in More Than Month on Stocks, Auction By Deborah Finestone and Sandra HernandezAug. 8 (Bloomberg) -- Treasuries fell the most in more than a month as a rally in global stocks drew demand away from government debt after the Federal Reserve said yesterday the U.S. economy is likely to weather a housing slowdown. A decline in 10-year notes pushed yields to the highest in almost two weeks after the government's auction of $13 billion in the securities today drew a higher yield than dealers expected. Trading in credit-default swaps showed the risk of owning corporate bonds dropped. ``The rally in the stock market is taking away demand for government debt,'' said Andy Richman, who oversees $10 billion in fixed-income assets as a strategist in West Palm Beach, Florida, for SunTrust Bank's personal asset-management division. ``People are taking money out of Treasuries and putting it into corporate debt as the economy is not going down the chute.'' The yield of the existing 10-year note rose almost 8 basis points, or 0.08 percentage point, to 4.86 percent at 4:15 p.m. in New York...atheo 08.08.07 - 6:33 pm #

We must waken the majority of americans kept stupid by the controlled media giants.John 08.08.07 - 6:42 pm #

Nothing to see here. Move along. Nothing to see here folks.http://www.marketwatch.com/tools...% 2Fintchart.aspGeorge 08.08.07 - 7:09 pm #

"any aspect of our highly technical society could fail and trigger a cascading series of other failures in food production, energy production, communications, you name it. The result would be massive political and social dislocation."Dislocation?You mean the USA's current and habitual feeding frenzy isn't already chronic dislocation? An economic collapse in the US is of course going to shudder the globe but everyone's already been warned long in advance and is fairly well-prepared to weather the storm (except in Echelon satellites like Britain, Australia & Canada, perhaps).Outraged Reverend and atheo - yes, the élite nazis from Cheney on down (including profiteers like Prince and Murdoch) have surely been making personal provision, off-loading dollars and making foreign investments. Doesn't mean they'll get away with it. It would help a lot if they were first charged and indicted in the US itself but, failing that, there are bound to be some well-crafted international indictments and freezing of foreign assets elsewhere. Then it will be up to the the US people and incoming government whether your war criminals, wreckers and profiteers recover their acquired foreign estates and are allowed to return to the US untried or whether you abandon them to the International Court.Boils down to national pride vs. international justice. I'm betting Average Joe will raise his little star-spangled wotsit and demand charges be dropped against his countrymen, no matter how vile and guilty.blizzard 08.08.07 - 7:27 pm #

It's about time someone out there in the world finally stood up to these war-mongering elitists. When our dollar crashes no one in this country will stand for it. Even the common american, who doesn't even pay attention to the world around them, has had enough. One more slip and people will be rushing the white house...or if we had it my way, this bipartisanship bullshit will finally stop and a new party will rise to break up the corruption and hold somebody accountable. Sound as good to you as it does for me?I beleive the Libertarian Party is a breath of fresh air. If anyone has a good notion of what the people truly want it's all there. Just wait, the depression will come and things will change. People will wake up and see the real world, where their opinions don't matter to anyone and their votes count for nothing. Democracy, my ass...we've being living under a a socialist-corporation for decades now.Anyone else think we need a change?"It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds." - Samuel Adams"There is but one special interest that we should be working for, and that would solve just about all of our problems, and that is our Liberty." - Rep. Ron Paul"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure" - Thomas Jefferson "For those who stubbornly seek freedom, there can be no more urgent task than to come to understand the mechanisms and practices of indoctrination. These are easy to perceive in the totalitarian societies, much less so in the system of 'brainwashing under freedom' to which we are subjected and in which all too often we serve as unwilling instruments." - Noam Chomsky LISTEN TO THOSE THAT HAVE COME BEFORE!Madam G 08.08.07 - 7:33 pm #

George,I note your double post. Here you can see that the movement in the 10 year euro bonds is identical to todays US move as shown in the above post. 8 basis points in each case.European Bonds Fall After Report Shows German Exports IncreasedAug. 8 (Bloomberg) -- European government bonds fell after a German report showed exports rose more than expected in June, adding to signs of faster economic growth in the region. Benchmark 10-year debt dropped for a third day, pushing yields to the highest in two weeks, as traders increased bets the European Central Bank will lift interest rates further this year. Monetary policy still seems ``accommodative,'' ECB council member Marko Kranjec told the Financial Times Deutschland in an interview yesterday. ``Where yield levels are at the moment is wholly inappropriate,'' said Marc Ostwald, strategist at Insinger de Beaufort in London. ``Yields are going to have to backup further from here.'' The yield on the German 10-year bund, Europe's benchmark, rose 8 basis points to 4.42 percent by 5:04 p.m. in London. That's the yield's biggest daily gain in more than two months. http://www.bloomberg.com/apps/ne...hyc& refer=ratesatheo 08.08.07 - 7:39 pm #

blizard,I'm afraid that even if the neocons are deposed by the US military they will no doubt find refuge. Remember that wealth is power and they serve the wealthy (who will take care of them). We face a global problem, to see the neocons as an American phenomena is erroneous. It isn't US power that has installed neocons in Canada, Australia, Britain etc...atheo 08.08.07 - 7:46 pm #

I say damn all the politicians!!!!The majority are self serving country wreckers!From screwing up our countries corporations to leaving the technology door wide open for all to come and steal it away...Our constitution is STILL the BEST EVER!Rich 08.08.07 - 8:01 pm #

Check out www.goldensextant.com, Purloined Minutes. Is it a joke or is it real? Looks real to me, and they are quite prepared for martial law.Outraged Reverend 08.08.07 - 8:08 pm #

atheo,No, precisely. Britain, Canada and Australia are also the neocon nations and founding members of the anglo club of economic espionage, Echelon. So the capitals of these poodle nations are top among the very places where profiteers from the Anglo-Axis are squatting their filthy lucre and where they imagine they're free from prosecution.Elsewhere, throughout Echelon's victims, from Spain, France and Greece to South Africa, Paraguay and Venezuela, there are tenacious activist judges who are perfectly capable of generating and serving international arrest warrants and freezing accounts.Forget about Britain, Canada and Australia - they're all heavily invested in the US delusion and have helped to create and propagate it.blizzard 08.08.07 - 8:20 pm #

I did not read all posts, but the great dollar is worth a wopping 4 cents.In the sixtys the dollar was worth 85 cents and you could get a gallon of gas for a quater.I have no idea what the leaders will do next but it seems this is part of the plan for the North American Union.anthny 08.08.07 - 8:37 pm #

Blizzard,Venezuela! I guess you are probably correct. We truly have a global problem here.atheo 08.08.07 - 8:39 pm #

Tsk, tsk, tsk - time to pay the piper America. You thought your mortgage was held by Fanny who?China doesn't have to be a hyper-power militarily, all they have to do is call in their chips and you're toast. Meet the new Boss!And here you thought you were getting such a break on your labor costs using China's slave labor market to outsource those expensive union job's you've crushed in the homeland.Those Yankee Dollar printing presses will be working overtime to keep up with the payment to creditor's, and there's gonna be a load of real cranky Neo-Elitist's getting a BIG cut in pay as a result of Mr. George W. (bring it on) Bush's cowboy antic's.You should all be proud though - afterall, you've earned everything you've got through your apathy, complicity, greed, and slothfullness over the past couple Centuries. I find it funny reading these comments for the most part. You're all quick to lay blame and point fingers, and quick to look the other way to protect the magical "American Dream" from those Bushy bad guys until you are forced to realize that it's through your own individual failings to control the beast you've allowed to be created that you're in the mess your in. You've been paid off by those same Neo-Elitist's since the begginning of time in order for you to look the other way while they arranged your house of cards to suit themselves. You have stood by like a bunch of sheep and watched the highway to Fort Knox under construction, and now that's it's almost complete and the Elite 1% have all that gold to themselves you all bitch and moan about the fascist state that's been put in place robbing you of your rights you thought you had. Unless you can pull an Elephant out of your hat's this time around - the fat lady has taken the stage!The thing that really pisses me off though is that you keep killing people indescriminately and starting wars to serve your Empires greed for resources and economic dominance, then pretending that you're against war, or outraged by the invasion into Iraq. The rest of the world isn't quite as dumb as you give us credit for-thanks!Time for a spanking? Well maybe, if China thinks the time is right. They are the ones holding a spade royal flush afterall. There's many dialects used in the Provinces of China - after you learn Spanish maybe you should start with some Mandarin lessons.Angel Gabriel 08.08.07 - 8:47 pm #

I love this guy.... I like everything he writes. He is like Ron Paul, straight talking, honest and angry about what these "pigs at the trough" have done to our country. Cudos for him.Pepper 08.08.07 - 9:00 pm #

China's patient build-up of significant global economic power coincides with Russia's economic recuperation, and the two are partners in security. China is using part of its stash for diplomatically-credit- worthy 'friendly-financing' in the "third world", giving poor countries a sweet option to the cruel IMF etc. Russia and China are today the main national impediments to the global oligarchy's crazed ambition of totalitarian global control. The US military, with its 1000-ish external-to-US military bases, vast arsenal of weapons and a prolific weapons R. and D. effort, serves along with assorted covert agencies of murder and mayhem as the oligarchy's global thug. As well as a vast re-armament program of new-nukes, and who-knows-what-other-evil hidden research, the US is engaged in a major effort to create a new generation of biological weapons, some of them, perhaps, with genetic implications. Then there is the global tussle for oil, strategic minerals, and soon food and water. China in short has got a lot to worry about, and must understand that it has an opportunity now, in conjunction with Russia, to play some strong cards. But limited in number, and perhaps melting away with new developments.... The blessing is that a war upon Iran - propaganda-on-behalf-of having had its main impetus from Israeli hysteria/pressure, via Israeli/Jewish influence over and control of mass media and the US political system - will be perceived by China and Russia as a direct attack on important Russian and Chinese interests, as well as possibly serving as a preliminary step toward the insanity of a surprise thermonuclear strike against them. War on Iran would signal that insanity capable of any depravity has command and control in the US of nuclear and other horrific weapons. Incidentally, if the US and allies in perversity resort to more 'subtle' means, ratcheting up tensions with covert provocations a la Gladio aimed at the Chinese or Russians, the Russians and Chinese could at any time signal the end of the current configuration of the US occupation of Iraq by surreptitiously feeding the Iraqi resistance effective S-to-S missiles - maybe made in the USA - to make the already traumatic Green Zone a hellishly unsafe zone. P. C. Robert's article concludes with some 'sillyisms', which may serve to vent a bit of emotion but don't tell us anything: For example: "We got in this position because our leaders are ignorant fools." Much more complex than that!But he did give us some good news: the Chinese have finally quietly wagged a thunderous finger of warning.Robert Snefjella 08.08.07 - 9:11 pm #

Anthny:I think you are right. I think the North American Union will play a key factor in any dollar collapse. The 3 leaders of US, Can, and Mexico will be meeting this month in Quebec. It will be interesting to see how the Canadians take this? China like the U.S. is a known human rights abuser. Look how they treat their own peasant class. I have a cousin who adopted a little chinese girl that had been abandoned because she was female. Also, a professor I know adobted a baby chinese girl that was 3 years old, but at the time of adoption was no larger and developed as a 1 year old. The child is fine and of normal development now. I just don't look at China as a possible "saviour of the world". Its best that West begins to fix their problems once and for all. That window of hope may be if/when the U.S. economy does finally blow.anonymous 08.08.07 - 9:18 pm #

@leftlibertarian,Doesn't work that way. There needs to be VALUE backing any monetary issue. The USA simply has little VALUE having used up it's mineral resources, oil resources, and outsourced its' manufacturing. Scientifically, the USA has been outstripped in almost every field by one country or another. There may be some VALUE in the intellectual property contained in the USA, but frankly, sell the intellectual property (ie science knowledge) and there's nothing left. Mind you, anything the USA has done has, as I said, been exceeded by another country somewhere.@Atheo,Read China's history, they are hegemonists, not destroyers. To the Chinese mindset, the best generals never have to fight because they have maneuvered so skillfully that their opponent simply cannot lift a sword. Read Sun Tzu - it's less costly to assume a working infrastructure than destroy and build another. A lesson that was one of those undoing the Nazi advance into Russia and the current USA approach to Iraq - seems fascists never learn.China will move before any further meetings are held regarding the North American Union - it's in China's best economic and long term strategic interests to do so.not an american Homepage 08.08.07 - 9:18 pm #

@anonymous,Don't believe half the propaganda the west feeds you about China. I've been to China many times, even traveling and living with Chinese families. Most of what you espouse is put forth by known schills for the US governments - Amnesty International, etc...As I have stated many times, that very poor Chinese peasant may be sleeping on a bed stuffed with Renminbi looking forward to a wealthy retirement, and neither of us would ever know.not an american Homepage 08.08.07 - 9:23 pm #

As the U.S. helped Saddam during the Iraq/Iran war, that is how I look at China...It is funding the U.S. agression in Iraq. They have lost any moral authority themselves. As long as it serves China...They are going down the long and destructive path of the West. I would like to be wrong, but it just does appear that they are following the same path. Today the U.S., tomorrow China. We can all start the change by doing one thing; start with yourself, and work out from there.anonymous 08.08.07 - 9:25 pm #

I am a 1964, i.e., 1964 U.S. Army length of service military who served and fought in three major engagements.After I had one my time 432,000 of us were BETRAYED on monthly retired pay. Then in the '70s this same deceiftul and thankless nation took our "earned life-time" HEALTH CARE. I now pay the same as the draft-dodger or highly paid civilian.Then in 1984 to obscure and hide hte true Defense Budget they did what is shown in the posted Arroya Brief.Since that time my monies has come from the hated; frenchies, krauts, russkies, saudies, Communist China and of all places from one Osama bin Laden until klinton froze his good monies.Paul Craig. Since the taxpayer don't pay me anything can I go over to Beijing and see if they will consider me worth my salt? I can be reached at wdgray@shawneelink.net"Arroya Center, Research Brief.Funding Military RetirementFor many years, the Defense Department funded military retirement on a "pay-as-you-go" basis, estimating how much money was needed to write checks for current retirees and adding that amount to the budget. This system worked well as far as paying retirees went, but it did not hold policymakers fiscally responsible for today's decisions affecting the size of the future retirement bill, e.g., increasing the force size. To promote better management, in 1984, Congress directed a switch to an accrual method of funding retirement. Under this procedure, each year the services transfer into a fund the amount necessary to pay for future retirements. The amount transferred is a percentage of the service's basic pay. Thus, if a service implements policies that affect the future value of retirement benefits, it sees the budgetary consequences of that decision immediately in the form of an increase in the amount transferred to the retirement fund. Analysis by Arroyo Center researchers William Hix and William Taylor, reported in A Policymaker's Guide to Accrual Funding of Military Retirement, suggests that the current procedures do not fully capture the intent of the legislation and that changes could eventually save the Army as much as $5-6 billion annually.[1] How the Retirement Fund WorksWhen Congress established the retirement fund, it shifted responsibility for service rendered before October 1, 1984 to the Department of the Treasury; DoD has responsibility to fund service rendered after that date. At the time of the transfer, Treasury accepted an unfunded liability estimated at $529 billion, which was to amortize over 60 years.[2] Annually the services transfer an amount equal to a percentage of their basic pay accounts for the active and reserve components. The percentage differs by component, but it is identical within components for all services. In FY95, fund transfers equaled 33.5 percent of the active duty basic pay and 9.7 percent of the selected reserves. The Board of Actuaries annually calculates the liability for the pre-1984 service, adjusted for changes in assumptions and experience, and transfers an amount equal to one year's amortized payment. The money in the fund is invested in nonnegotiable government securities, and it draws interest.Transfers into the fund and its investment transactions qualify as intragovernmental transfers (even though they represent an outlay to DoD) and thus have no effect on the deficit. Only payments to retirees from the fund represent outlays to the federal government. Figure 1 shows the operation of the fund and lists important factors in the calculation of the amounts.Figure 1-Operation of DoD Retirement FundHow Gains and Losses OccurThe fund's liability is not static, and three things can cause what are called actuarial gains and losses:[3]Funding assumptions can changeBenefits can changeExperience can differ from assumptions.Funding assumptions. To determine how much money DoD has to transfer to the fund, a Board of Actuaries reviews assumptions about economic and noneconomic factors at the beginning of each year. Economic factors include assumptions about pay raises, cost of living allowance (COLA) increases, and interest rates. An assumed pay raise means that the future liability of the fund will increase because retirees will draw more money. Therefore, the amount transferred into the fund has to increase to account for this future liability. An assumption that the interest rate will increase has the opposite effect. The fund earns interest on nonnegotiable government securities. So if interest rates go up, the fund will earn more interest, thus the amount transferred can be less. The so-called noneconomic assumptions include such things as the rates of retirement and the longevity of retirees. If, for example, higher retirement rates or lower death rates are assumed, funding requirements increase.Benefits. Benefit changes also affect the size of the contribution. For example, Congress slipped the 1994 and 1995 COLA increases from January 1 to later in the year. These delays reduce the actuarial value of the retirement benefit and, hence, the funding required.Experience. As mentioned, the actuaries review certain economic assumptions at the beginning of the year. Frequently, these differ from what actually happens during the year. For example, if the pay raises or COLAs approved differ from the assumptions, the fund earns more interest than anticipated, or fewer people retire than anticipated, the funding requirements change.Right now only Treasury benefits from any decreases in fund liability.[4] The Treasury would make annual payments to fund this amount amortized over 50 years. If the liability of the fund goes down because it earns more interest or for some other reason, the size of the Treasury payment goes down. The assumptions made by the Board of Actuaries have turned out to be conservative; over its life, the fund has never had an actuarial loss. All the net changes in liability have been downward.These decreases can be substantial. In FY95, for example, the liability was reduced by $48 billion. The Treasury amortized this amount over 30 years, and reduced its annual payment by that amortized amount. Over the first 10 years of the fund's life, the average annual gain has been almost $30 billion, and the annual Treasury payment has shrunk from $25 billion to $11.5 billion.Different Service Retirement PoliciesA second area of interest pertains to service retirement practices. The intention of the annual transfer from the services is to fund the future retirement liability of the individuals represented in those accounts. This procedure assumes that all services retire people at an identical rate. But they do not. A service's level of seniority directly affects the number of people it retires. The higher the level of seniority, the more retirees. For both the officer and the enlisted forces, the Air Force maintains the most seniority, the Marine Corps the least.Accrual percentages computed with service-specific personnel policies would differ significantly by service. Current policies cause the budgets of the Army, Navy, and Marine Corps to carry several hundred millions of dollars a year of the cost of Air Force personnel policies. Hence, in its retirement budget the Air Force appears several hundred million dollars a year cheaper than its actual cost; the other services appear more expensive.What Should HappenTo capture the intent underlying the legislation, Arroyo Center researchers suggest two changes to current procedures, one requiring new legislation and one not. First, they recommend that the gains and losses that accrue to the retirement fund be shared between the Defense and Treasury departments. The division should reflect the relative contributions of the populations for which the departments have responsibility. This change would require new legislation. Second, they also recommend that each service contribute to the retirement fund an amount that reflects its retirement liability. This change would not require legislation.There appears to be a legislative basis for sharing the gains. The clear intent of Congress when it established the fund was to promote better management. The law says that the monthly accrual payments are intended "to permit the military services to recognize the full cost of manpower decisions made in the current year." By making the consequences of decisions affecting retired pay immediately apparent in service budgets, Congress provided strong incentives for better management. But not being able to share in the actuarial gains tends to dissipate the effect of the incentive.Congress intended for the retirement fund to allow the services to recognize the full cost of their personnel decisions each year. The committee report accompanying the legislation went on to say that "the individual services manage their forces in different ways and different tradeoffs would occur among the services." One of the different ways the services manage their forces is by seniority. If the legislative intent were to be followed, the Air Force would set aside the largest fraction of its base pay to fund retirements, and the Marine Corps the smallest. Yet each service sets aside an identical percentage. This policy in effect causes the Army, Navy, and Marine Corps to fund Air Force retirements. Furthermore, it means that the budgets do not reflect the cost of their personnel decisions. Were these two changes made, Arroyo Center researchers estimate that the Army share of these changes could approach $5-6 billion annually, or about 8 percent of the current budget.-------------------------------------------------- ------------------------------[1] The research in this report builds upon a study by Richard Eisenman et al., The Accrual System for Funding Military Retirement: Assessment and Recommended Changes, Santa Monica, CA: RAND, forthcoming.[2] Subsequently, the Board of ActuariesWillard D. Gray Homepage 08.08.07 - 9:27 pm #

The neocons work for the world financiers whose accumulated wealth is growing out of proportion and needs more and more global "events" to make it grow. Wars are the best means for lending big sums of money to governments. Another option used in the past is to lend money to countries with corrupt leadership: A proven formula applied by both the World Bank and the IMF. In order to completely get control of the banking system in China and thus the Chinese economy, they have to create a financial crisis leading to a world depression. This event will also allow Cheney and Bush to declare emergency measure and suspend the American constitution. This way, they would have achieved a major objective which is to end democracy in the "perceived" cradle of democracy and would pave the way for world fascism. No more middle class but a world of masters and slaves.Deceived 08.08.07 - 9:29 pm #

After reading the article today, I shuddered. I wrote the letter below only a few days ago to a friend living in France who asked me how things look inside the USA.******Ahh, the Forever War. Your brother is absolutely right, most of the population is fed up, realizes that Republicans and Democrats are all corrupt or ineffectual.However, what can we do? Nothing. I don't know when you left the US, but the past 5-6 years, TV News is all about sex scandals, Hollywood gossip, sensational murders, natural disaster and "heart warming" stories. The economy and the war are given--at most--5 minutes. Information is there, but not on TV. Regular programming is mostly reality shows- "YOU can be rich and famous! No need to go to school!" We use the TV to escape also, but NOT to watch American programs, but for DVDs--mostly Korean and Japanese films, which we are really into.Perhaps I'm too cynical, but I think those of us who believe that other countries have a right to exist without kowtowing to the US, have lost. And this seems to have shifted most of the world to the right.The US is setting up HUGE permanent bases in Iraq (much bigger than the ones we have in we still have in Japan, S Korea, Germany, Philippines, etc) Bush is ready to move into Iran. So-called Democrats like Hillary (a Republican in drag) and Obama (a disappointment) are beating the drum for going into Pakistan.Powerful Democratic Senators Pelosi and Feinstein say Bush and/or Cheney impeachments are NOT an option. (Feinstein's husband got a $500 MILLION contract to fix the electricity in Iraq about a year ago....uhm)Only a few in Congress-- such as Democrats Barbara Boxer, Dennis Kucinich and Henry Waxman, and Republicans Ron Paul and Chuck Hagel truly see how the infrastructure of the US is crumbling before our eyes. Katrina and the recent bridge collapse are only the obvious results. We are no longer producers, but consumers with an economy based on credit card debt. There are millions of home foreclosures, a deficit into the Trillions-- a result of the war, and patched up by borrowing from China, Saudi Arabia and Japan. What would happen if they called in the debt, I wonder? We wouldn't pay even if we had the money (which we don't) so is a Chinese Triad going to "chop off our fingers" to collect? (smile)Other than Third Reich which only lasted a decade, I think the US will go down in history as the most powerful but shortest lived Empire ever created. Hubris.Marta Homepage 08.08.07 - 9:30 pm #

Not an american,There is no propaganda about china funding American war blitz. Its fact.As far as female children, it is fact. As far as Chinese people are wonderful, that is fact generally speaking. As far as your statement:"As I have stated many times, that very poor Chinese peasant may be sleeping on a bed stuffed with Renminbi looking forward to a wealthy retirement, and neither of us would ever know."That sounds rather like values in the West now doesn't it? Humans are humans, no matter what color or nationality. They all have the propensity of good works and bad. I hope China keeps in mind the track that the Western nations have taken over and over and seem not to have learned from. The U.S. problem goes way back, and can be directly linked to European Imperial values. That is where the change should occur, to dismantle the corporate/imperial/empire mindset and the accompanying value system that has trickled down to the masses, replacing it with strong community oriented economies based on human and ecological value. China should begin this process too, and they can start by stopping the funding of American bloodbaths.anonymous 08.08.07 - 9:49 pm #

angel gabrel,What a pile of trashy rubbish. Are you some kind of Troll? You sound just like Fox News shills, just the opposite side of the same coin. You obviously can't see that you are also the problem with your hate and mud slinging values.anonymous 08.08.07 - 10:06 pm #

my comment on the hole the US dug for itself?HAHAHAHAHAHAHAI'm "luvin it"nofois 08.08.07 - 10:10 pm #

As a consequence of trade imbalances with United States trading partners and the inability of the United States Government to meet current debt obligations of its creditor nations, the United States, through its representative, the Federal Reserve Bank of the United States of America, has decided on a policy of U.S. dollar re-alignment. This re-alignment recognizes the inability of the U.S. Government to continue to function in its current form, and hence has decided on a new dollar rationalization scheme. We believe that a dollar re-alignment would be the most prudent form of action for the U.S. Government to take. As an alternative to complete default and failure to make good on our monetary promises we believe that the policy described here is the most effective course of action to remedy the current crisis in the currency markets. Effective immediately the United States government is issuing a new currency called the New Dollar or the Amero. This new currency will be issued in the following form: Old dollars will be replaced on a one to one basis for new Ameros for the citizens of the United States, Canada, and Mexico. Any holder of U.S. dollars outside of these jurisdictions will also be able to redeem their old dollars for the new Amero; five old dollars can redeemed for one new Amero. This policy is effective immediately. From the Office of the President of the United States of America;and the Federal Reserve Bank of the U.S.Carl Baydala Homepage 08.08.07 - 10:48 pm