John:
My assessment is that 90% of the value of the U.S. dollar comes from the U.S. military. After we had our satellite systems in place, Cheney said “deficits don’t matter.” The US debt and deficit financing is no longer a debt system. It is a global taxation system.
Catherine
John wrote:
Could you expand on this thought just a little? This is one very sober line of reasoning.
John:
Global treasuries and sovereign wealth funds, central banks and a variety of large institutions buy Treasury securities or hold dollars not because there is economic value behind them or because these financial assets are sound fiscally or in terms of credit. They buy them because if they don’t buy them, their current holdings will drop in value faster (that is given their current holdings, they are better off with a managed fall that a precipitous one) and because they are forced to — both in terms of trade agreements — and because they have a gun at their head. If they don’t buy, they and their population will be subject to a wide variety of demonstrations of physical and financial force that will result in loss of life.
Hence, demand for U.S. dollars and government and agency bonds continues even as value falls. The losses on these holdings represents a tax paid to the “Empire.” The fundamental system is as old as the hills. It is based on force. However, this tax is not paid through the income statements, it is paid through the balance sheet. Hence, national legislators do not have to pass bills to authorize their people paying the tax. There is no disclosure.
This global taxation system can be implemented and enforced through the back door without the average global citizen understanding what is happening. Rather, it is invisible to all but the most financially sophisticated people.
What the implementation of this system means is that the household drain I describe here and the community drain I describe here are happening globally. That is, the Slow Burn (described here ) is draining everyone globally, not just in the U.S.
A recent Gallup poll published in the Wall Street Journal on June 26, shows that the American institution most respected is the military — 45% of Americans surveyed had a great deal of confidence in the American military and 26% had quite a lot of confidence in them. This compares to 6% and 6% for Congress and 7% and 13% for big business. Also in line with understanding who and what puts bread on the table, the next most respected institution after the military is small business with scores of 28% and 32%.
Abraham Lincoln was right, “You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time.”
Wow, some heavy duty stuff here man, I like living a simplier life, someone will have to pay for screwing up this world and it will be people like me! Boy talk about taxing one and by force, just recently I celebrated my 50th birthday, and while walking home (yes intoxicated) I was stopped by the local police whom arressted me for suspicion of DUI, my truck was parked nearby, anyway long story short, I was found not guilty of DUI, they never asked me who was driving just cuffed me under suspicion and when I pinched one of them,pinched not punched while being cuffed, I was given 45 days in jail $2000 fine not to mention my attorney fees, 2years formal probation, cheez all becos I pinched a cop talk about justice! While in NJ child molesters get probation.
catherine:
love your website. on the dollar: what’s your update? military procurement notwithstanding, how do budget and trade deficits figure now into the equasion? my sense is a downward trend of the dollar vis-a-vis other fiat currencies. and the longterm looks like collapse of the dollar.
what’s your analysis?
joseph
What do you think of Lyndon Larouche and his publications. Send me an articke that can give me a good idea of your perspective on him that you agree with
Ken:
You want me to assume significant legal liabilities for free? Why would I do that?
The nature of sustainability is that you have to sell it for more than it costs you to make it.
After $6 million of legal expenses and 13 years of no personal income, I am sure you too would be wise enough to not ask or answer such a question,
Best,
Catherine
Catherine,
Your response to John here appears to contain important insight, yet the nexus is somewhat lost concerning your claim that “If they don’t buy, they and their population will be subject to a wide variety of demonstrations of physical and financial force that will result in loss of life.” Some concrete examples would be extremely helpful here, where countries who refused to buy dollars ended up on the business end of US weaponry. Please let me know by email if you have responded to my request for concrete examples.
Thanks
All it that is needed for evil to prevail is for good men to do nothing. Look up for our redemption draweth nigh. We will be held accountable for what we know and what we do with this knowledge. I for one have switched to a local bank and my family and I are passing this info on to many. God bless your efforts Catherine.
This is a great piece. I’ve followed your work for a while now after you were referenced so often by Mike Ruppert and am amazed at your understanding of these issues.
Would you be inclined to agree that our country has been turned into a “war economy”.
As I’m watching the huge job losses in every industry across the board and have been researching the billions in earmarks, government contracts and grants, I have noticed a disturbing theme – I’d say that in reality about 65% or so of spending is on military related projects. I was wondering what is going to happen if we get a president in office whom isn’t inclined to continue the pursuit of control of oil and doesn’t advocate preemptive uncalled for wars and occupations given that the bulk of us spending is on military projects and investments.
Personally I’m completely pessimistic for the future of this country – while everyone says that there could never be a collapse, I see one coming fairly quickly. We have lost over 600,000 jobs in this country just since the beginning of the year with more to come – millions have lost their homes and the market is flooded with foreclosed properties that our congress so conveniently gave funding to buy up in order to rent and/or sell them back to the public, we’ve got over 35 million people who can’t even afford the food they need each month (as of may 08 – the FNS is deliberately withholding the current numbers – wonder why…..) – that is costing more than $3 BILLION/month to fund, over half of the states are seeing that their unemployment security funds are going to be in the red within the next year or two if not sooner if job losses continue on current path, and people can’t find new jobs.
So what happens in Jan – April 09 when tax season comes around and those that usually would be paying in either don’t have any money or have earned so much less, compiled with the numerous businesses that won’t end up paying in due to heavy losses – and all the money the Treasury counted on isn’t there? What happens when they inform congress that all this money they’re spending isn’t available? That they can’t fund the food stamp program, can’t give the states anymore assistance with unemployment benefits and millions are going without food and are being evicted from the rentals they now occupy after losing their homes? Will that wake us up? Is that what has to happen before people realize what is going on and what is coming? Hopefully i’m just exceptionally pessimistic and way off base, but when you look at the domino effect, it’s getting scarier as each day goes by.