China has loaned out a staggering 15 trillion dollars to launch it’s economy into the stratosphere, and the recent defaults point out the fragility of the system as companies saddled with debt start to belly up.
But if the central bank of China experiences losses, it simply prints more money. Other than the upheavals of some companies going under, the whole system keeps working. There is no “Debt” in China nor a debt clock. There is no interest. And certainly China does not pay off a bunch of uber wealthy Europeans in order to issue debt. So on and on it goes, a gigantic boom.
America is however shut down. At 17 trillion in debt to foreign European rich people via the private federal reserve bank, our interest payments approach half a trillion dollars a year. That’s money that could be used to feed and shelter every last poor American ten times over, and fund a million small companies. Instead, it’s all gone into fancy mansions and football stadium sized yachts with 20 solid gold toilets. Wait, China doesn’t have to pay these fatcat Europeans, why does the US? Why? Cause we got snookered in 1913 into passing the banking act that established the private federal reserve and gave it the sole right to print our currency. Its taken 100 years for that tiny seed to reach an avalanche and fall down the mountain it must. By the time Obama leaves, the interest payments will be so crippling government may no longer be able to function. Instead, the acceleration in the debt growth may be so massive that even turning the spigots on, we will reach 50 trillion in debt by 2020 and 100 trillion in debt by 2025. An interest payment of 6 trillion a year may eclipse every penny taken into the government. At that point the USA will hit what I call “Quick Doubling”. In 2030 the debt will hit 150 trillion. By 2040 the debt will hit 300 trillion. By then the interest payment would be 18 trillion a year, or double our revenue. What then? Just let it run! By 2050 that debt will hit 500 trillion dollars and the interest payment will be 30 trillion dollars against a revenue of perhaps only 15 trillion. Keep it going! By 2060 that debt will hit 1,000 trillion dollars. And our yearly payment will hit 60 trillion dollars. Against a revenue of perhaps 20 trillion.
In truth, it will all come crashing down much before 2060, many speculate that 2018 might be as far as this ponzi scheme can run. All because we pay our interest to private people, and not the government itself. What of the rebate back of the 96%? The fed is supposed to return profits back to the treasury. In 2012, the fed sent 88.9 billion in “profits” back to the treasury. But the US gave the fed $359,796,008,919.49. Don’t be fooled. Some 270 billion was absorbed into yachts and 300 room villas.
China doesn’t have this problem. Moreover, China lends to businesses, not speculators in the derivatives market like the banks in America. For this reason, for a long long time, China is going to absolutely CRUSH America economically until the day comes that America wises up. Yet by then, it may be far too late.