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Tuesday, September 8, 2009

The Great Debt Disaster & The Paymasters Helping it Along.

One of the most difficult matters that we have to face up to is the subject of personal debt. Even before the current financial 'Credit Crunch' people were often struggling to maintain their heads above water, constantly juggling their finances and robbing Peter to pay Paul, but over the last eighteen months that problem has increased drastically for tens of thousands of people. More and more people are facing the possibility of having their homes repossessed, often leading to a break-up in their relationships due to the immense stress that they are placed under.

The following report, which was posted by Milton Franks-Lhermann, lays it on the line when it comes to the massive debt problem facing the USA. However, there is no room for UK complacency, for I'm certain that the problem is just as bad, proportionately, here in the UK. We know that Saudi Arabia has poured billions of £'s into the UK, and almost certainly accounts for the manner in which the UK government behaves when it comes to the various policies enacted to differentiate between Islamic rights and the rights of other citizens, all of which helps the extremists Islamic factions towards achieving their goal of an Islamic State here in the UK, which, if nothing is done to stand against it, is likely to happen within the fifteen to twenty years.

Here is Milton Franks-Lhermann's report, headed America's Debt Disaster:
The United States of America is almost $12 trillion in debt, and much of that money is owed to foreign nations like China, Russia, and Saudi Arabia. And in the next decade our debt is set to double, to a massive $24 trillion in 2019.

Like teenagers with their first credit cards, Congress and the White House are burning through money with absolutely no thought for the consequences - but the bill for this spending spree is going to come due, soon.

America's debt crisis is not a hazy menace in the distance. The national debt costs taxpayers $500 million in interest payments every day. That's half a billion dollars up in smoke -- yesterday, today, tomorrow, and the next day. And where does that money go? Much of it is shipped to foreign investors, including China's central bank. Experts say we owe China about $800 billion, but no one knows for sure. The Communist Party buys Treasury securities through anonymous middlemen, and refuses to divulge the full extent of its loans, calling them a "state secret."

That is worth repeating: We don't know how much money we owe to China, because they won't tell us.

Not only are we paying these foreign creditors a fortune in interest, we constantly depend on them to lend us more, and more, and more. And if they decide to ask for a higher interest rate, we will have no choice but to pay it.

This problem is huge, but we have ignored it for too long. Part of the reason is that these numbers are just plain hard to understand. Most Americans have a sense of how much a million is, and maybe even a billion. But a trillion?

To put it in perspective, consider this: a million seconds is about 12 days. A billion seconds is 31 years. And a trillion seconds? 31,000 years.

And our debt isn't just a trillion dollars... we already owe $11.8 trillion, and by 2019 we'll owe $24 trillion. President Obama's proposed budget for 2019 includes more money for interest payments than for national defence.

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