NewsMax “Expert” Robert Wiedemer: Don’t Worry, be Happy

"US Treasurys [sic] Now a 'Toxic Asset,' Debt Deal Won't Fix It"; S&P Will Drop AAA Rating, but the Chinese Will Take the Hit; Fed Will Keep on Printing Dollars, to Buy Its Own Treasuries

By Nicholas Stix

 

Robert Wiedemer's attitude is what we have seen for generations from the Third World countries whom we lent trillions, in 2011 dollars. They would borrow trillions from us, with no intention of ever repaying them, and the corrupt bureaucrats at IMF and the World Bank "lent" them our money, with no intention of ever collecting the interest, let alone the principal.

 

There is a word for printing up money that is not backed by any wealth: Counterfeiting.

 

There is a word for borrowing money with no intention of repaying it: Fraud.

 

There is a word for taking other people's money one is responsible for: Embezzlement.

 

The point of selling Treasury bonds is to add money to the federal government's coffers. The money must therefore come from outside the federal government (private individuals or organizations, or foreign individuals, organizations, or governments). If the federal government prints up more money, why should it bother "buying" Treasuries with it? The worthless, counterfeit cash is already on the ledger.

 

Why shouldn't every country deal with its debts this way? Because then their currency would become worthless.

There's a name for the sort of country that borrows money and welshes on repaying it, and that simply prints up worthless money to pay its bills: A failed state.

 

The world's economic powers may permit traditional, failed, Third World kleptocracies to welsh on their financial obligations, but they will not permit that, and will no longer buy government debt from the world's newest, and largest, failed Third World kleptocracy: The United States of America.