The National Debt has created a new class of CREDITORS--ARABS & CHINESE.
The only place they want to put all those dollars to work is in the USA, or so it seems.
We only have limited NATIONAL assets to sell, like control of Ports and National Parks
We have seen major evidence that we are being foreclosed on by these creditors, who are demanding hard assets to control, in exchange for their mammoth holdings of Federal Reserve Notes (FRN's).
That's why they brought back the 30 year T-Bill.
We have to have high interest rates to buy off our Creditors. Otherwise, we continue to lose out National Assets to FORECLOSURE.
Hang on !.
We WILL get hit with MAJOR INTEREST RATE INCREASES, in order to get us back into the business of paying interest on bonds, bought by our world-wide creditor group.
The Federal Reserve Chairman's talk of "inflation-fighting" is a smoke-screen to cover the need for attractive interest rates for world-wide creditors. He ignores the fact that raising the cost of money--higher interest rates-- is the quickest way to higher inflation--much more effective than rising labor costs.
At least, high labor costs--wages--puts money in circulation to prop up this Consumer Economy.
Remember, our Nation's GDP is 2/3rds Consumer Spending.
How will that continue when we have no jobs?
Money Talks. **********************************************
Graduates versus Oligarchs By Paul Krugman The New York Times Monday 27 February 2006 Ben Bernanke's maiden Congressional testimony as chairman of the Federal Reserve was, everyone agrees, superb. He didn't put a foot wrong on monetary or fiscal policy. But Mr. Bernanke did stumble at one point. Responding to a question from Representative Barney Frank about income inequality, he declared that "themost important factor" in rising inequality "is the rising skill premium, the increased return to education." That's a fundamental misreading of what's happening to American society. What we're seeing isn't the rise of a fairly broad class of knowledge workers. Instead, we're seeing the rise of a narrow oligarchy: income and wealth are becoming increasingly concentrated in the hands of a small, privileged elite. I think of Mr. Bernanke's position, which one hears all the time, as the 80-20 fallacy. It's the notion that the winners in our increasingly unequal society are a fairly large group - that the 20 percent or so of American workers who have the skills to take advantage of new technology and globalization are pulling away from the 80 percent who don't have these skills. The truth is quite different. Highly educated workers have done better than those with less education, but a college degree has hardly been a ticket to big income gains. The 2006 Economic Report of the President tells us that the real earnings of college graduates actually fell more than 5 percent between 2000 and 2004. Over the longer stretch from 1975 to 2004 the average earnings of college graduates rose, but by less than 1 percent per year. So who are the winners from rising inequality? It's not the top 20 percent, or even the top 10 percent. The big gains have gone to a much smaller, much richer group than that.
What NAFTA & Illegals do to OUR WAGES