The World Won't Buy Unlimited U.S. Debt: Peter Schiff's Editorial in The Wall Street Journal

www.europac.net...

Barack Obama has spoken often of sacrifice. And as recently as a week ago, he said that to stave off the deepening recession Americans should be prepared to face "trillion dollar deficits for years to come."

But apart from a stirring call for volunteerism in his inaugural address, the only specific sacrifices the president has outlined thus far include lower taxes, millions of federally funded jobs, expanded corporate bailouts, and direct stimulus checks to consumers. Could this be described as sacrificial?

What he might have said was that the nations funding the majority of America's public debt -- most notably the Chinese, Japanese and the Saudis -- need to be prepared to sacrifice. They have to fund America's annual trillion-dollar deficits for the foreseeable future. These creditor nations, who already own trillions of dollars of U.S. government debt, are the only entities capable of underwriting the spending that Mr. Obama envisions and that U.S. citizens demand.

These nations, in other words, must never use the money to buy other assets or fund domestic spending initiatives for their own people. When the old Treasury bills mature, they can do nothing with the money except buy new ones. To do otherwise would implode the market for U.S. Treasurys (sending U.S. interest rates much higher) and start a run on the dollar. (If foreign central banks become net sellers of Treasurys, the demand for dollars needed to buy them would plummet.)

In sum, our creditors must give up all hope of accessing the principal, and may be compensated only by the paltry 2%-3% yield our bonds currently deliver.

I think the piece speaks for itself. It sums up what seems to be common sense to some but for most the idea that countries would quit buying our debt is unfathomable. Nice read.

To be honest, I really think there is going to be a revolution in the United States within the next few years.

Been listening to people like Mish Shedlock, Gerald Celente, Nouriel Roubini, and Peter Schiff. These guys have been spot on with almost everything they've said about the economy.

I think we're in for a rough ride, but it could also be an opportunity to clean out the corruption in our government. The people will only take so much, and then there will be a flash point, and a revolution.

Originally posted by JipStix
I think we're in for a rough ride, but it could also be an opportunity to clean out the corruption in our government.

The only way to clean out corruption, I hasten to say, is to perform targeted assassinations on the Rockefellers / Rothschilds etc. Untill the ruling elite are gone (and by gone, I mean their entire families and their cohorts shuffled off into this mortal coil), you will continue to see absurd inequalities, injustice, pain and fear on this planet. Your 'government' won't do anything. The golden boy Obama is nothing more than a mouthpiece and a figurehead, controlled by the unseen hands of these monsters behind the scenes.

I think it was Ben Fulford a while back who mentioned plans by the Chinese illuminati to carry out these targeted assassinations. It's a pity they choked in the end, if that really was happening and if Mr Fulford wasn't full of bs. You never quite know if these stories are true or not. But what is clear, is that the fractional reserve lending scam is on its knees. It is no longer sustainable, and we could be on the verge of witnessing something truly historical - the implementation of a new and frightening financial system.. something along the lines of the global 'mark', and we will be too helpless to resist it.