I'll use an analogy to explain what I think is going on economically in the Neoconservative Bush Administration:
A group of stockholder form a new corporation. The capital from the issue of stock is use to acquire plant and equipment to start the new Business. For several years the business expenses exceed the company revenue resulting in losses (e.g. In government term this is called a deficit). In order to continue operating, the business borrows money from banks and issues long term debt. Eventually losses offset all the stockholder equity in the corporation leaving only debt and A/P on the credit side of the balance sheet meaning that essentially the debt holders and creditors own all the assets in the company. Three creditor that have not received payment for some time get together and have an attorney force the company into bankruptcy. A receiver is appointed to liquidate all assets and pay creditors and debt holders from the proceed of the sale of assests. During the Bush administration huge deficit have occurred; because, the government is spending more than it is taking in from tax revenues. The Bush Administration has even reduced taxes, mostly on the wealthiest Americans, at a time when it is spending money like a drunken sailor. To finance the shortfall the government is borrowing form other countries like China by issue US Treasury Bonds. This kind of reckless financial irresponsibility can't go on forever. At some point the US government is going to have to choose one of two options to continue in business: 1) Some combination of raising taxes and reducing spending will be required. Enough revenue will be needed to meet current budget requirement and leave enough left over to pay the interest on the national debt and service the principle of the national debt. 2) Create a hidden tax through inflation. The world bank, of which the federal reserve is a part, can create US dollars to be placed in the hands of the federal government. This money can be used to service debt, pay interest, and make up for any shortfall in tax revenues. This would increase the amount of US currency around the world and cause a devaluing of the dollar. Looking at things from the consumer point of view, we would see it as price increases in all the good and services we consume and a withering away of the purchasing power of retirement funds and other investments. Inflation is a sneaky tax whereby the Federal Government can get into everyones back pocket to extract a tax without anybody realizing what is happening. Regards, LelandJ [EMAIL PROTECTED] wrote: >> When the dollar is weak against other currency, US assets like land, >> housing, factories, financial institutions, and buildings become >> attractive investment targets by foreign companies and wealthy >> individuals like ME oil barrens. The US could win all the preemptive >> wars in the world, but they would be hollow victory ,if it lead to our >> country being sold out to foreign companies and foreigners of immense >> wealth. >> > > So it would be better if assets like real estate, etc. were priced high... it > would also be priced high for US citizens... like taking away the American > dream of home ownership. We can deal with foreign investment the way many of > our competitors do.. but we are so greedy, we want their money so we take it > and give away our birthright. Go down to Mexico and try to buy some prime > real estate as an American citizen! > > Freedom and openness are what we stand for in this country, but it should not > be applied to those from outside who have interests other than our own. > > So, if we get some common sense in dealing with foreign nationals... what > would be the problem. Jacking up the prices is not the answer. > > Larry Miller > > --- StripMime Report -- processed MIME parts --- > multipart/alternative > text/plain (text body -- kept) > text/html > --- > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
