Thursday, June 01, 2006
Much that needs to be said about outsourcing has been said by all of us; except OUTSOURCING OUR WEALTH. In normal times, prior to this administration, the interest earned on our Treasury Bills to raise money was handled by the wealthy of our country which translated into the rich getting richer and the poor getting poorer. As of this writing, our national debt is $4.8 trillion and 43 percent is owned by the central banks of China, Japan , Great Britain and off shore hedge funds. This amounts to over 206 trillion of our oustanding debt leaving our shores. Since this administation took office, 73 percent of our new borrowing has come from abroad. Over a period of time this will be devastating on the worth of our country. Also must we be naive enough to not believe that the sources that own our ten year benchmark securities wouldn't have an extreme interest in our monetary interest policies? Or what would happen if another country could earn more on its investment elsewhere? We all know that our nation is in a precarious position. Hopefully our new Secretary of Treasury, Paulson, can redirect our policies. I have seen it quesioned. Why would a man take a 40 million annual paycut and give up control of 700 million of worth in the firm he is leaving? And, being honest, these were my first thoughts. Then another thought entered my mind. In the direction we are headings, what would his wealth be? At this stage the only item that I have one hundred percent confidence in is as follows. It took us five plus years to get here-- We are a long way from the deficits and debt ending, and no one person or group will solve these problems soon. It will be at least one generation, and maybe more, before we are back on solid ground. If you have read any other of my posts maybe you understand my feelings when I say WE MUST REBUILD AMERICA.
