Our “Prosperity” Is An Illusion Supported By Debt, Deception & Imports

“…2005 Balance of Trade Deficit debt $723 billion equals $1.4 million dollars per minute flowing out of the country for imports. This is the money foreign interests have been using in the last 25 years to buy out 13,000 of our best American companies (see the list of companies sold). By losing ownership of these companies, the profit that is made, the taxes that would have been paid, and the technology now resides in foreign countries…”

Our “prosperity” Is An Illusion Supported By Debt, Deception & Imports

By Thomas Heffner
Published 01/26/07
As posted at Economy in Crisis

Americans are now living on borrowed money, outsourced manufacturing, subsidized foreign insourced manufacturing, and a declining manufacturing base. We are gorging ourselves on unaffordable imports (toys, kitchen appliances, clothing and foreign cars) with no American owned production or earnings.

Debt Since 1987

  • Home mortgages from $1.8 trillion to $8.2 trillion
  • Consumer debt from $2.7 trillion to $11.0 trillion
  • Government budget debt limit recently raised and is now approaching $9.0 trillion
  • Household debt has quadrupled
  • 2005 Balance of Trade Deficit debt $723 billion equals $1.4 million dollars per minute flowing out of the country for imports. This is the money foreign interests have been using in the last 25 years to buy out 13,000 of our best American companies (see the list of companies sold). By losing ownership of these companies, the profit that is made, the taxes that would have been paid, and the technology now resides in foreign countries.

    With a declining tax base due to the loss of these wealth producing companies, our internal budget deficit is increasing and out of control. Our government now has to borrow money from these countries to operate. As of June 2006 we owed Japan $635.3 billion, China $327.7 billion, England $201.4 billion and billions to other countries. These countries now finance nearly 100% of our new debts, wars, tax cuts, social programs and infrastructure.

    These countries that compete with us are now our bankers. This sounds unbelievable but if these bankers decide to pull their loans, our government could not function. The leverage that they can use to make us bend to their will makes us dangerously vulnerable.

    To make our vulnerability even greater, Japan and China have each accumulated approximately $1 trillion dollars of currency reserves thru their balance of trade surplus with us. They can now use this money to buy any strategic company that they want to own and control. Most of our companies are for sale daily on the open stock market.

    Posted in The American Sell-Off, Economy in Crisis & Too Big to Fail.